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St. Johns County Clerk - Office Has No Current Ties To Business Indicted in Bribery Case

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St.

Johns County clerk: Office has no


current ties to business indicted in
bribery case
Sheldon Gardner
St. Augustine Record
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St. Johns County's clerk of court said the office cut ties with a debt collection
company a few years ago after learning of a bribery investigation involving the
company and its owner.

The statement came in response to a request for information from certain


Florida clerks of court this month from Florida's Chief Financial Officer
Jimmy Patronis.
An indictment was filed in 2019 against Penn Credit Corporation and Donald
Donagher Jr., who led the business during that time. The indictment says that
Donagher and Penn Credit gave and offered to give gifts and services to
several clerks of court, or people or groups affiliated with them, in an attempt
to get "favorable treatment for Penn Credit in the award, allocation and
retention of debt collection work."

The case is in United States District Court in the Northern District of Illinois.
It was delayed by COVID-19, but has another status hearing on Feb. 19.

Allegations against Penn Credit


Among other things, the indictment alleges that Donagher tried to
influence former St. Johns County Clerk of Court Hunter Conrad, who is the
current county administrator, through contributions to his campaign account.
Conrad, who was clerk from 2015 to 2019, hasn't been accused of
wrongdoing.

In 2016, Donagher arranged $8,000 be donated to Conrad's election


campaign from himself, Penn Credit, Donagher entities and a Florida lobbyist,
according to the indictment.

Error! Filename not specified.

"On or about Nov. 17, 2016, in response to an email from a Florida lobbyist
asking if Donagher had seen a note from Clerk E (Conrad) thanking the
lobbyist for his 'generous support and help during my campaign,' Donagher
replied in an email to the lobbyist and employees A, D and E, and others: 'I
did. It would be nice to have the whole account. 100 percent.'"

Conrad wasn't available for an interview with The Record on Wednesday but
issued a statement:

“The St. Johns County Clerk of Courts Office canceled the contract with Penn
Credit, which was one of its three collection companies, in 2018 after being
made aware of the allegations and ongoing federal investigation. As a former
prosecutor and elected official ... I have devoted my career to upholding the
public trust.”

County spokesman Michael Ryan added, via email to The Record, that
"Conrad received more than 350 donations during the campaign and every
donor received a thank-you note."

Information wasn't immediately available about the bidding process that Penn
Credit went through to get its contract with the clerk's office, but Ryan said it
was a legitimate bidding process.

Related:New St. Johns County administrator took 'unorthodox' path to the


top
Contract was terminated two years ago
Patronis asked for clerks to respond within 30 days about their business ties
with Penn Credit.

Current St. Johns County Clerk of Court Brandon Patty released a statement
on Wednesday:

“The St. Johns County Clerk of the Circuit Court and Comptroller informed
CFO Jimmy

Patronis on Tuesday, Feb. 9, 2021, that it has no current contract with Penn
Credit.

Previously, the Clerk’s Office had a contract with Penn Credit, which was
terminated on

Oct. 1, 2018, by giving a 60-day written notice.

"The St. Johns County Clerk of the Circuit Court and County Comptroller is
zealously committed to preserving and promoting the public trust and good
government here in St. Johns County.”

As of Feb. 3, the Clerk's Office listed Penn Credit Corporation as one of its
collection agencies on a webpage. According to Patty, the listing was on an old
webpage, and the listing has been removed.

Patronis said, via a press release, that "The facts laid out by the U.S.
Department of Justice illustrate public corruption and moral depravity at the
highest levels of certain local governments. The indictment includes charges
against Penn Credit for violating federal laws concerning bribery and
conspiracy relating to federally funded programs.

"Specifically, Penn Credit is alleged to have offered and given gifts and services
to five clerks of court for the purposes of receiving favorable treatment in the
award of debt collection work. The indictment includes alarming allegations of
bids rigging, fee hikes, squashing competitive bidding and more. Of the five
clerks in the complaint, four are Florida clerks from three different Florida
counties."

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Error! Filename not specified.

Indictment is 'meritless'
Don Donagher and Penn Credit have denied wrongdoing, according to a 2019
press release.

"The indictment presents a novel and meritless theory based on conduct that
allegedly occurred long ago," according to the release. "First, the government
has charged Mr. Donagher with bribery related offenses, but it has not charged
any public official or even claim that a public official was a supposed co-
conspirator. Second, unlike the long line of corruption cases that have been
prosecuted in Chicago, this case has none of the standard hallmarks of bribery
and corruption.

"There are no allegations of secret cash payments. There are no allegations of


concealed payments to shell companies. There are no allegations of lavish gifts
or free vacations. In fact, there are no allegations that Mr. Donagher did
anything to personally enrich any public official. Simply put, none of the usual
indicia of corrupt activity are present in this case. Instead, the Department of
Justice is attempting to criminalize entirely lawful, publicly-disclosed
campaign contributions and laudatory donations to various charities, a
scholarship fund and the partial sponsoring of a Women’s History Month
event."
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