Former Pa. City Manager Pleads Guilty to Money Laundering, Federal Program Theft in Corruption Case

This story was produced by the State College regional bureau of Spotlight PA, an independent, nonpartisan newsroom dedicated to investigative and public-service journalism for Pennsylvania. Sign up for Talk of the Town, a newsletter of local stories that dig deep, events and more from north-central PA, at spotlightpa.org/newsletters/talkofthetown.

JOHNSTOWN — After years of denying sweeping allegations of public corruption, former DuBois City Manager Herm Suplizio pleaded guilty Thursday to money laundering and federal program theft, ending a polarizing case that tested the reputation and future of the small city he once helped govern.

Appearing before U.S. District Court Judge Stephanie L. Haines, Suplizio, 66, who was accused of stealing more than $1.5 million in public dollars, faces a potential prison sentence of 27 months after pleading guilty to the two crimes. He also will have to pay up to $250,000 in fines and $500,000 in restitution to the City of DuBois.

His sentencing has been scheduled for Nov. 23.

While in court, Suplizio said little besides answering the standard questions from the judge about accepting responsibility. He slouched over as he sat between his two attorneys during the hearing. As Haines read the terms of the plea, residents from DuBois audibly reacted with huffs of disbelief and whisperings about what they felt was a lenient agreement.

Several told Spotlight PA they did not want to publicly discuss the case.

Assistant U.S. Attorney Brendan T. Conway, who prosecuted the case with Special Assistant U.S. Attorney Summer Carroll, summarized the government’s evidence during Thursday’s nearly hourlong hearing. When Haines asked one of Suplizio’s attorneys, Michael Comber, if he agreed with the summary, Comber replied that he didn’t acknowledge every single fact.

“We do acknowledge that there is proof, as summarized in court today, that could result in a conviction,” Comber conceded.

Both Suplizio and his lawyers declined to comment when the hearing was over.

The corruption investigation into Suplizio’s actions traces back to 2020, when law enforcement officials in Pennsylvania received an anonymous letter, signed “Concerned Citizens,” alleging Suplizio was engaging in financial wrongdoing.

Suplizio, the letter asserted, was directing money from a nonprofit he oversaw to DuBois, where as city manager he controlled nearly all government operations and had wide power over the city’s accounts. The authors raised questions about the legality of those money transfers.

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The letter sparked an investigation by prosecutors in the state Office of Attorney General, who in the spring of 2023 arrested Suplizio on charges that he stole more than $600,000 from public accounts over which he had signatory authority.

Later that year, federal prosecutors took over the case, adding a new wrinkle: They also charged Suplizio’s onetime administrative secretary, Roberta Shaffer, in the case. The new charges immediately sparked speculation among people in the community about whether Shaffer, 61, would turn on her former boss and agree to provide incriminating information.

Like the state prosecutors, federal authorities alleged Suplizio diverted money that belonged to DuBois into secret bank accounts that only he and Shaffer controlled — and over which the city had no oversight. DuBois City Council did not approve the accounts, according to the federal indictment. The money they allegedly diverted included about $60,000 in annual fees that DuBois was supposed to receive under its waste management contract with a private company.

Those accounts, according to the indictment, were associated with DuBois’ annual summer festival Community Days, which celebrates the city’s storied volunteer fire department.

Spotlight PA has previously reported that Suplizio, a one-time and ultimately unsuccessful state Senate candidate, was instrumental in the fundraising efforts for Community Days. In addition to serving as the city’s chief administrator, he was also the longtime executive director of the DuBois Area United Way.

In its “Richest Little City” series, the newsroom found he leveraged these positions and was often in a decision-making position on both ends of deals, despite potential conflicts of interest. It also uncovered eye-popping allegations about cash lockboxes hidden in a ceiling and the city’s former solicitor showing up at City Hall with a gift bag stuffed with more than $93,000 in cash.

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In all, federal authorities alleged Suplizio stole more than $1.5 million in public dollars — money he used to make payments on his personal credit card, pay for various personal expenses and make substantial cash withdrawals. Shaffer, authorities alleged, wrote and signed many of the checks that paid for the credit card bills and that resulted in the cash withdrawals.

The secret accounts were also allegedly used to pay for donations to local politicians, a fundraising dinner for a local judge and a city employee’s wedding reception. In addition, several cashier’s checks purchased through withdrawals from the secret accounts, as well as numerous large cash deposits, were later deposited into Suplizio’s personal bank accounts, authorities alleged.

For months, Suplizio and Shaffer were preparing to fight the case, with a trial date set for October. But in late May, Shaffer pleaded guilty to two counts of federal program theft and money laundering. She faces a maximum total sentence of up to 20 years in prison, a fine of up to $500,000, or both. Her sentencing hearing is scheduled for Sept. 22.

Beyond the courtroom, the corruption case against Suplizio raised troubling questions about how such a large theft could have gone unnoticed in such a small city. It also nearly derailed the city’s consolidation into one local government with nearby Sandy Township.

Consolidation efforts eventually resumed, and in January of this year, the two united to become the new “City of DuBois.”

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