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Team 4: PHEAA's Lawyer Fees Top $400K

POSTED: 4:26 pm EDT May 31, 2007
UPDATED: 1:13 pm EDT June 1, 2007

There is new information Thursday about Team 4's investigation of PHEAA.

PHEAA has released its legal bills, and they show the state student loan agency spent more than $400,000 fighting WTAE Channel 4 and two other media organizations in court over the release of spending records.

WTAE Channel 4 was the first media organization to request spending records from PHEAA two years ago.

The Associated Press and a Harrisburg newspaper followed up with requests for more records., but PHEAA took the fight to court and lost their battle 19 months later.

Now, Team 4 has discovered just how much it cost them to fight that battle.

The legal tab PHEAA racked up totaled $409,000 with two law firms.

Records show that state lawmakers on PHEAA's board spent more than $800,000 on retreats at posh resorts like Nemacolin Woodlands Resort.

Lawmakers and their wives billed the public agency for "hawking experiences" at a resort falconry academy, bottles of wine from hotel room service, a $129 massage called Pure Relaxation, a group dinner for $18,000, manicures, pedicures and facials and a $2,600 tab for golf greens fees.

Rep. Tim Mahoney of Uniontown came up with $1.2 million by adding the $800,000 PHEAA spent on retreats with the $400,000 it spent on lawyers trying to keep the public from seeing those expense records.

PHEAA spokesman Keith New said of the $400,000 legal tab, "We did not want to spend this money. We do, though, have trade secrets to protect. The courts acknowledged that."

The court ruling did allow PHEAA to redact or black out trade secrets from its spending records before releasing them.

Mahoney said it's time public agencies like PHEAA are forced to abide by a tougher, open records law.

"We need to open up Pennsylvania as far as where all the money is being spent," said Mahoney. "And where it's being wasted and if it's being wasted, let's get it corrected and let's get it corrected now."

Mahoney has introduced House Bill 443, which would overhaul Pennsylvania's right to know law.

Gov. Ed Rendell incorporated much of Mahoney's bill in his plan to open up government records to the public.


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