Ex-Williamsport finance director allegedly orchestrated co-mingling of state, federal funds | News, Sports, Jobs

SUN-GAZETTE File Photo
William E. Nichols, Jr. at the Trade and Transit Center II.

A former Williamsport finance director as general manager of River Valley Transit allegedly engaged in many years of directly commingling and ordering staff to mix state and federal funds directed for transportation-related projects for other purposes.

In a detailed 34-page affidavit, state Attorney General Special Agent Kevin M. Schofield laid out where the testimony heard by a statewide grand jury investigating William “Bill” Nichols Jr., 71, alleged misrepresented where money was supposed to go and orchestrated decades of entanglements, leading state attorney general officials to charge Nichols with felony counts of theft and tampering with records for misuse of state and federal funding intended to benefit River Valley Transit.

Nichols is accused of misusing more than $500,000 in city, state and federal funds, according to the affidavit.

The Williamsport Bureau of Transportation (River Valley Transit) in Lycoming County provides fixed-route bus services to the citizens of the greater Williamsport area.

RVT also manages the Endless Mountains Transportation Authority (EMTA), the Williamsport Parking Authority (WPA) and the Hiawatha Inc.

RVT owns several properties in Williamsport, including the Trade and Transit Centre I, the Trade and Transit Centre II, the Church Street Transportation Center, a public compressed natural gas (CNG) fueling facility and the Peter Herdic Transportation Museum.

River Valley Transit is now River Valley Transit Authority, a separate entity that officials say is working closely with PennDOT to ensure financial compliance.

Nichols began his employment with the city in 1978. He served as the general manager of RVT for over 40 years, until his termination in January of 2020.

As general manager of RVT, Nichols also managed the WPA, EMTA and the Hiawatha.

While serving in these roles, Nichols simultaneously served as the city finance director.

As finance director, Nichols prepared the city’s annual budget and oversaw daily department operations.

The finance department was responsible for approving all payment requests from the various city agencies. Nichols was also on the board of directors of the Hiawatha, a non-profit entity.

The Hiawatha, a paddlewheel boat on the Susquehanna river that provides pleasure cruises, is a well-known tourist attraction in Williamsport.

The grand jury concluded that Nichols improperly utilized public funds to provide financial support for the Hiawatha, a non-government entity.

He also engaged in a course of conduct designed to prevent the state Department of Transportation from discovering that he, through RVT, was diverting public funds for improper uses.

PennDOT required financial data to be provided to them in order to provide oversight of restricted state transit funds.

This data allegedly was regularly manipulated in order to prevent PennDOT from discovering RVT’s unauthorized expenses. Nichols, as manager of EMTA, is also accused of putting at least two people on the payroll of EMTA who did not work whatsoever for EMTA.

During this time, Nichols further authorized the payment of Hiawatha employees through the city, instead of directly from the Hiawatha’s account.

The affidavit states allegation of improper use of compressed natural gas grant and that a vendor was paid $584,519 for work that was wholly unrelated to the CNG project.

The grand jury also heard testimony of a possible wiretap violation. In that 2018 conversation, the mayor could be heard discussing Nichols saying he does not control city finances but rather reports them. The mayor said he did not consent to the conversation being recorded and was unaware of its existence until the time of his testimony.

There is no evidence that indicates Nichols used any of the money for personal benefit or purchases.

Mayor Derek Slaughter fired Nichols when Slaughter took office in January 2020. Nichols waived his preliminary hearing earlier this week at a district magistrate court in Dauphin County and was released on his own recognizance. A formal arraignment is scheduled for Nov. 8.

The case is being prosecuted by Chief Deputy Attorney General Brian Zarallo.