R. Budd Dwyer - Bribery Investigation and Conviction

Bribery Investigation and Conviction

During the early 1980s, public employees of the Commonwealth of Pennsylvania overpaid millions of dollars in Federal Insurance Contributions Act (FICA) taxes. As a result, the state solicited bids from accounting firms to determine refunds for its employees. The contract was eventually awarded to Computer Technology Associates (CTA), a California-based firm, owned by John Torquato, Jr, a native of Harrisburg, Pennsylvania. Later Pennsylvania Governor Dick Thornburgh received an anonymous memo detailing allegations of bribery that took place during the bidding process for the $4.6 million contract.

An investigation was undertaken by the United States Attorney. Dwyer was charged with agreeing to receive kickbacks worth $300,000 in return for using his office to steer the contract toward CTA. The US Attorney also indicted Torquato, Torquato's attorney William Smith, Smith's wife and Bob Asher, the former Republican Party Chairman for the State of Pennsylvania. In return for lighter sentences, Torquato and the Smiths pled guilty and testified on behalf of the Federal government against Dwyer and Asher. In 2010, Smith revealed in a documentary about the case that he had given false testimony under oath.

Dwyer denied any wrongdoing. Federal prosecutors offered him a single charge of bribe receiving (which would have meant up to a maximum of five years imprisonment), resignation from his office as Treasurer of Pennsylvania and full cooperation with the government's investigation but he refused. Instead Dwyer went to full trial. However his defense was curtailed by the prosecution because the case was limited to only those who had been charged. The names of the unindicted conspirators who were linked in the bribery scandal but were not on trial were withheld. These unnamed individuals were believed to have been staff members of the Dauphin County Republican Party.

On December 18, 1986, Dwyer was convicted of having accepted a bribe. Even so he continued to profess his innocence, as did others close to him. Dwyer wrote to President Ronald Reagan seeking a presidential pardon.

Despite his conviction, Dwyer was allowed under Pennsylvania law to continue serving as state treasurer until his sentencing by U.S. District Court Judge Malcolm Muir on January 23, 1987. Dwyer, on being found guilty, faced a sentence of up to 55 years imprisonment and a $300,000 fine.

Bob Asher, his co-defendant, would be sentenced to one year in jail. He later returned to politics and served as a Republican national committeeman for Pennsylvania.