Judge: Insurance company must cover legal fees for Strelish, Henderson

April 01--WILKES-BARRE -- Luzerne County Transportation Authority's insurance company must pay for the legal fees of two officials charged with inflating senior citizen ridership numbers to secure millions of dollars in funding, a federal judge ruled Wednesday.

A total of $150,000 must be paid by Allied World Specialty Insurance Co. for the defense of former LCTA head Stanley J. Strelish and suspended Operations Manager Robb A. Henderson, U.S. District Judge Malachy E. Mannion ruled this week. Cross-motions filed by both men against the insurer were dismissed by the judge, court records show.

Allied, known formerly as Darwin National Assurance Co., previously paid Strelish $50,000 for his legal costs and agreed to contribute another $50,000 toward Henderson's fees, according to court documents. But the insurance company argued its liability should end there.

Mannion, however, ordered the insurer must pay up to $100,000 of Henderson's fees in addition to $50,000 for Strelish.

Strelish, 62, of Laflin, and Henderson, 60, of Exeter, were charged in June 2014 in a scheme to inflate ridership numbers that came to be known as the "ghost rider" scandal.

A 2014 presentment said the Pennsylvania Department of Transportation first noticed "dramatic increases" in senior ridership in 2007. Ten LCTA employees and several officials testified before a grand jury that determined Strelish and Henderson directed drivers to inflate the ridership numbers "by both direct orders and training, and by subtle pressure."

As a result, $3.16 million in funding was withheld from the LCTA.

Strelish, charged with five felony counts of tampering with public evidence, was sentenced in October to five years probation and ordered to a $5,000 fine and perform 100 hours of community service. He was freed on $25,000 unsecured bail. Henderson, who was suspended from his position as operations manager when charges in the case were filed, is currently awaiting trial.

Reach Joe Dolinsky at 570-991-6110 or on Twitter @JoeDolinskyTL

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