WILLIAMSPORT - A federal judge this week ordered the Clerk of Courts to release the $124,869 in restitution Thea Tafner was sentenced to pay to Mount Carmel's American Hose and Chemical Fire Company.
Tafner, former ambulance committee chairwoman of the fire company, filed an appeal May 16, 2011, to absolve her of paying an initial lump sum within 60 days of her sentencing for opening a fraudulent bank account to which she directed $3,712,203 in Medicare payments over nine years, and used $1,816,045.13 for personal gain.
Although the Third Circuit Court affirmed the sentencing, court documents filed Oct. 10 indicated the clerk of courts office would not "release the funds held in the court's registry to the victim in this case without a further order from the court."
In court documents filed Oct. 16, Chief Judge Yvette Kane of the U.S. District Court in the Middle District of Pennsylvania ordered the restitution to be released to "designated victim(s) in the case."
A representative of the financial department of the U.S. District Court in Scranton confirmed the money would be distributed this week, but would not provide any further details, saying it is not "public information."
American Hose President James Reed said they have not received the $124,869 as of Thursday, but did get a call from the courts to verify the mailing address. It is likely coming as a check, as they did not ask for account number for a direct deposit, he said.
Once the money is in the company's hands, it will be placed into an individual checking account designated for the restitution funds, and their attorney Michael Smith, of Hummel and Lewis, Bloomsburg, will determine the arrangements on how the money will be handled.
Due to Tafner's actions, the ambulance portion of the fire company was closed down, and the fire company is involved with active lawsuits from Shamokin Area Community Hospital and Cornerstone Adminisystems, of Cumberland County.
Both these lawsuits have been at a standstill until the initial lump sum was figured out, Reed said.
While Tafner had signed an agreement not to appeal her sentencing conditions, she and her lawyer argued that, as part of the plea agreement in exchange for her waiver of any appeal rights, the government agreed not to force Tafner - a long-time teacher at Line Mountain and elementary principal in the district at the time of her arrest - to use money from her Pennsylvania Public School Employee Retirement System account. But by requiring the large payment up front, Tafner argued that the court was forcing her to use that pension money.
The money was placed in the court registry July 1, 2011, until the courts decided whether the order to pay the lump sum was proper, which it was on May 29, 2012. Tafner remains in Federal Prison Camp in Alderson, W.Va, while she serves a 30-month imprisonment, and has begun paying $250 a month to pay back $1.8 million. Even with the $124,869 deducted, the remaining $1,691,176 would take nearly 564 years to pay back at the current minimum rate of $250 a month.
Reed said the first $250 check arrived at American Hose nearly two weeks ago, but it was not cashed yet.
He noted the initial lump sum and the $250 a month isn't enough, but is grateful for at least some of what was taken
"I want to put this all behind us," he said.
American Hose filed a writ of summons against Thea Tafner in March 2011 and her brother Carter Tafner and his business in October 2011.
Carter Tafner has since passed away, and Reed said their attorney will recommend if any further action is necessary against his estate.
Tafner also filed on Sept. 21 for Chapter 13 bankruptcy, typically done by an individual with a consistent source of income. It allows the individual to develop a plan to pay down debt over time.
