DA finds no improper conduct by GUARD following Gilbert’s allegations

Aug. 6--WILKES-BARRE -- An investigation by the Luzerne County District Attorney's Office found no improper conduct by Berkshire Hathaway GUARD Insurance into a city vote on funding for company expansion onto the former Sterling Hotel lot, DA Stefanie Salavantis announced Tuesday.

While never mentioned by name in the DA's release, the probe arose following allegations made earlier this year by City Councilwoman Beth Gilbert -- a former GUARD employee -- who claimed that a GUARD executive attempted to sway not only her vote in favor of the company, but the votes of others on council.

"Documentation obtained in the course of the investigation together with statements memorialized by a then-GUARD employee and council member are unsupported," Salavantis said.

A spokesperson from Berkshire Hathaway GUARD said, "We are happy that the Luzerne County District Attorney's Office affirmed our position that GUARD has always conducted itself with the highest integrity and we continue to do so."

In a written statement posted on her Facebook page, Gilbert said:

"This is a he said, she said matter, so of course the allegations are going to be unfounded. When the DA's office began to look into the case, I knew that not much could be done legally. I did, however, appreciate the DA's office doing their due diligence in the matter.

"I know what I went through in my former position, and the higher-ups at the company know as well. I can at least sleep soundly at night knowing that I stood up against them and did what was the right thing. I saw wrong, and tried to right it, and I hope that at the very least, Guard has learned from this situation. I also hope it gives current and future employees the courage to stand up for what it right."

DA: Official wasn't approached

The DA said the investigation revealed that GUARD officials were considering relocating the company outside of Wilkes-Barre City.

"Both state and city officials approached GUARD to discuss possible grant funding to reduce the financial impact of GUARD remaining in the city," a news release from the DA's office stated. "The employee and city official making the allegation of impropriety was, at no time, approached or consulted regarding the decision to seek grant funding, remain in the city or relocate. Further, GUARD officials neither approached nor consulted the employee/city official for the purpose of influencing voting on the issue."

The release goes on to say that statements made by the employee/city official which were memorialized at the time of the alleged incident "confirm that the individual was unaware of the issue until immediately prior to it being placed on the city council agenda."

Also, at the time, the individual specifically denied that GUARD officials made any attempt to influence the voting on the issue, the release states.

"GUARD officials have been cleared of any wrongdoing and the matter is now considered closed," Salavantis said.

Background

In February, the Luzerne County District Attorney's Office confirmed it was investigating Gilbert's allegations.

The Times Leader contacted Salavantis after a citizen called the paper to ask if anyone was reviewing the allegations raised in the leaked resignation letter Gilbert sent to Berkshire Hathaway GUARD Insurance Companies in January.

The DA at that time declined to discuss how and when her office got involved or elaborate on any other aspect of the investigation.

Previously, Gilbert said she could not talk about her exit from GUARD "due to potential litigation." She left to go to work as a talent buyer for Special Guest App. Its office in downtown Wilkes-Barre is a short walk from GUARD's corporate headquarters on Public Square.

GUARD spokeswoman Elizabeth Hartman, when first asked in January about Gilbert's letter and allegations, said it is company policy not to comment on personnel matters. In a prepared statement at the time, Hartman said: "Berkshire Hathaway GUARD has always conducted itself with integrity, full transparency and openness in all of our dealings with the city of Wilkes-Barre."

Gilbert said she also faced "some of the oddest, some downright unethical encounters" at her former workplace.

"From being called into a GUARD executive's office to sway my vote on City Council and being asked to leverage my power to influence others to vote in Guard's favor to then targeting me afterward for discipline and the bald-faced refusal to give me an earned raise for two and half (sic) years, the not so subtle signals have been clear. Play ball our way or suffer the consequences."

Council made two highly publicized votes regarding GUARD and in each case Gilbert abstained, stating she worked for the company.

In January 2017, council approved the application for a $1 million state grant to assist with GUARD's downtown office consolidation. It was later awarded and factored into the company's decision to locate its corporate headquarters here and create hundreds of jobs.

In December 2018, council approved a deal to provide parking at a reduced rate for GUARD employees at the city-owned James F. Conahan Intermodal Transportation Facility.

Reach Bill O'Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.

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