Ex-Treasurer Barbara Hafer and Chester County businessman Richard Ireland say they're innocent of corruption charges

HARRISBURG - Former state Treasurer Barbara Hafer and Chester County businessman Richard W. Ireland told a federal judge Monday that they were innocent of corruption charges.

Magistrate Judge Susan Schwab, who presided over the arraignments here, set a preliminary trial date for both defendants of Oct. 4 and released them on recognizance.

Hafer is charged with lying to federal agents who were questioning her in a wide-ranging investigation to determine if government contracts were traded for contributions or bribes to politicians, commonly known as pay-to-play schemes.

In an indictment last month, prosecutors said Hafer, 72, who served as treasurer from 1997 to 2005, lied when she told investigators in June that she had not received money from Ireland after she left government and started a consulting firm.

Hafer was supposed to be helping Ireland's King of Prussia firm with a real estate deal. But Hafer did not have to actually find any real estate for Ireland in order to be paid, the indictment says.

Hafer's lawyer, John A. Knorr, declined to comment after the hearing.  He has said Hafer had "simple lapses in her memory" when she denied accepting the money from Ireland, who made millions through dealings with the Treasury Department during Hafer's tenure.

Ireland's lawyer, Joshua Lock, also declined to comment.

Ireland, 79, of East Fallowfield, become a millionaire helping financial advisers land government work. Hafer gave Ireland's clients lucrative contracts that have stayed in effect for years. Ireland contributed more than $200,000 to her campaign funds while she was in government.

But Ireland's indictment focuses only on the period beginning in 2008, when Rob McCord was treasurer. Ireland is charged with wire and mail fraud in connection with what prosecutors said was his scheme to bribe McCord.

Prosecutors said the bribes were a "quid pro quo exchange" in the form of campaign contributions, including many in which Ireland's role as the real donor was hidden.

Ireland operates several firms in Montgomery County. The indictment says he channeled money through some of his employees, reimbursing them for their contributions to McCord. Ireland is also accused of money laundering.

McCord resigned last year after he was charged with extorting campaign contributions. He has pleaded guilty and is awaiting sentencing.

Sources familiar with the investigation say McCord was cooperating with the FBI while he was treasurer and secretly recorded Ireland as they discussed contracts.

Ireland's indictment says he had been trying to get work for his clients with the Treasury Department and the massive pension system for state employees, known as SERS. As treasurer, McCord served on the SERS board, prosecutors noted.

One of Ireland's former clients won a major SERS contract, but SERS officials said Ireland was not involved in landing that contract.

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