LCTA told scam didn't affect premiums; Strelish officially resigns as director

Oct. 28--KINGSTON -- The president of Luzerne County Transportation Authority's insurance provider has assured the authority board that fraudulent claims filed by a former branch manager did not contribute to the authority's rising insurance costs.

Chuck Volpe, Excalibur Insurance Management Services president, told the board on Tuesday that over $260,000 alleged to have been fraudulently obtained by Robert Galuska, a former Excalibur branch manager, had no effect on their premiums.

Galuska, 61, Jenkins Township, was charged earlier this month in Lackawanna County on charges of theft, receiving stolen property and forgery.

The criminal complaint alleged that Galuska opened claims and requested checks in advance of documents being signed by claimants, using fictitious names and addresses similar to his own.

Galuska, Volpe said, had carefully spread false claims against both Wilkes-Barre City and the Luzerne County Transportation Authority during a seven-and-a-half-year period, so they were less likely to be identified.

Galuska is alleged to have submitted more than 20 false claims between 2008 and 2015.

Volpe said because of the quick turnover rate and incremental nature of the claims, they were not counted as "loss" by the insurance company and did not result in increased premiums.

"My first thought, my first priority, was that if we had in any way cost the city or the authority money, we would pay it back," said Volpe, "but that was not the case."

Valid claims upped cost

Volpe said increased premiums charged to the company during that time period were the result of valid claims made and an increase in the number of vehicles owned by the authority.

Volpe said his only regret is not informing the parties of the fraudulent activity sooner.

"I didn't realize the parties would be named in the legal documents," he said. "I apologize."

Norm Gavlick, interim executive director of the LCTA, restated Volpe's comments and said, "No costs have been assessed to us; the issue was strictly in the confines of Excalibur, not the transportation authority."

Strelish resigns

The board also unanimously accepted a letter of resignation of Stanley Strelish, who formerly served as executive director of the authority.

Strelish pleaded guilty earlier this month to five felonies related to the "ghost rider" scandal involving public bus service. He was also directed by Dauphin County Judge William Tully to pay a $5,000 fine and perform 100 hours of community service.

Board members said the resignation was not unexpected and they were focused on moving forward in providing services to area residents.

Training complete

The board also announced the completion of recent training of its operators regarding the Americans with Disabilities Act.

Frank Knorek, director of administrative services, said the ADA training dovetailed with final revisions of the authority's ADA policies.

"Our drivers have been fully trained in a five-hour course that included learning ADA-related regulations, hands-on instruction and sensitivity training," said Joe Roselle, compliance supervisor.

Accommodating students

Gavlick said he had recently been in contact with Ray Wendolowski, Wilkes-Barre Area School District solicitor, regarding anticipated changes in locations of district school buildings.

He said the district would look at modifying its routes or adding new routes to benefit district students.

"I think that this would be an excellent way to get our young people familiar with using our buses," said Gavlick. "I believe that an increase in the ridership of students in the district would benefit both the district and the authority," said Gavlick.

Intermodal policing

Gavlick said that a recently implemented Wilkes-Barre police presence at the Intermodal Center has been effective and received positive feedback.

"Police are on site to identify criminal activity and take necessary action," he said.

Lorri Vandermark, LCTA marketing director, said the authority is seeking to have an increased internet presence on its Facebook page and its website.

She said the authority would participate in the "Stuff the Bus" program in which non-perishable food items are collected on buses in conjunction with the Commission on Economic Opportunity's Thanksgiving food collection program.

Reach Geri Gibbons at 570-991-6117 or on Twitter @TLGGibbons.

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