Gregg Township Files Lawsuit Against Spotlight PA Over Financial Records Disclosure
STATE COLLEGE — In a significant legal battle, Gregg Township has initiated a lawsuit against Spotlight PA, aiming to block the release of financial records linked to an investigation into the alleged embezzlement of nearly $533,000 by a former employee, Pamela Hackenburg. This action comes as the township seeks reimbursement through its insurance for the funds reportedly misappropriated over five years.
This week, both parties agreed to pause the court proceedings in Centre County as the township awaits a determination from its insurer, Travelers Casualty and Surety Company of America. Hackenburg has been accused of theft and awaits trial on four felony charges, having been officially terminated from her position after being on unpaid leave since May.
The dispute gained public attention following Spotlight PA’s investigative report in December, which uncovered how the alleged theft remained undetected by township officials for years. The report was based on documents acquired through Pennsylvania’s open records law, revealing several financial transactions linked to the sportsbook DraftKings.
In response to an open records request submitted by Spotlight PA for communications with the insurance company and supporting documents for the claim, the township denied the request. It cited exemptions under the Right-to-Know Law. After an appeal, the Pennsylvania Office of Open Records partially ruled in favor of disclosure but upheld the township’s refusal to release communications with Travelers.
Transparency attorney Josh Bonn, representing Spotlight PA, emphasized the importance of public access to government financial records, particularly in cases involving allegations of public funds misuse. As the dispute remains on hold, the township anticipates a decision from Travelers within the next 30 to 60 days regarding its bond claim.
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