American Scandal - The "Kids for Cash" Kickback Scheme | Wilkes-Barre, Pennsylvania | 1

Episode Date: May 16, 2023

Two Pennsylvania judges hatch a plan. If they pull it off, they'll score nearly a million dollars.Need more American Scandal? With Wondery+, enjoy exclusive seasons, binge new seasons first, and listen completely ad-free. Start your free trial in the Wondery App, Apple Podcasts, Spotify or visit https://wondery.app.link/rUic7i1hMNb now.  See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

You're listening to the first episode of this American Scandal season. With Wondery+, you can binge the remaining episodes, listen to new episodes early, and explore more exclusive seasons completely ad-free. Start your free trial of Wondery Plus in the Wondery app, Apple Podcasts, or Spotify today. It's January 30, 2007, in northeastern Pennsylvania. In a hallway outside a juvenile courtroom, Jessica Van Reeth is pacing anxiously, clutching a small piece of paper. County courthouse is full of teenagers and their parents, all waiting for their turn in front of a judge. Some of the kids are engaged in heated arguments with their parents,

while others are sitting on benches, completely silent and looking terrified. But if there's one thing all these families have in common, it's that no one seems happy to be here. It's a feeling Jessica Van Reeth can relate to. Van Reeth is 16 years old and a junior at a nearby public high school. She has a reputation for being confident and outspoken, the kind of teenager who isn't afraid to speak her mind, wear what she wants to, or argue with people about politics.

Van Reeth knows she can sometimes come off as a bit sharp, but that's only a small part of who she really is. Van Reeth is a good student with a solid GPA. And on top of all the academics, she's held a part-time job for the last two years, working as a waitress at a local Italian place. All in all, Van Reeth sees herself as a pretty normal teenager, which is why this whole experience has been so stupefying.

In a few minutes, Van Reeth has to defend herself against criminal charges. It all started a few months ago, when she was caught by her vice principal holding a lighter and a pipe used to smoke weed. When the vice principal caught her, Van Reeth didn't know what to say. The pipe and lighter belonged to her friend, but she didn't want to get them in trouble. So Van Reeth took the blame. But she didn't just get a slap on the wrist. She was charged with a crime, and now she has to appear in juvenile court in front of Judge Mark Chivarella,

known for his policy of zero tolerance, and with a reputation for sending kids away for minor offenses. But Van Reeth jotted down what she believes are some good arguments, and she's hoping she can make a strong appeal to the judge and get him to show some leniency. arguments, and she's hoping she can make a strong appeal to the judge and get him to show some leniency. Van Reeth continues pacing the hallway outside the courtroom when her father, Jack, comes up and lays a hand on her shoulder. You doing okay, honey? Yeah, I'm just scared. I didn't do anything bad, but it doesn't mean the judge is going to see that. Oh, Jessica, he'll do the right thing. Yeah, he'll see it. I promise. Dad, you don't know that. No, I do know that. Remember, I talked to the people in the

probation department and they laid out the worst case scenario, which is that you get probation, right? Nothing to be scared of here. But what if they were wrong? I don't even have a lawyer. We should have gotten one. Jessica, we went over this. The probation officer said you didn't need an attorney. You're going to be fine. Van Reeth! And that's us. Come on, honey. Let's get it over with. Then we'll get out of here and put it all behind us.

Van Reeth nods, and she and her dad step into the courtroom, where they find Judge Chivarella sitting at his bench. Chivarella is in his mid-50s and sits peering down at Van Reeth with a look of contempt. He tosses aside his paperwork and a moment later, the hearing gets underway. This is Van Reeth. You stand accused of possession of drug paraphernalia. How do you plead to these charges?

Van Reeth takes out her folded piece of paper and glances down at her notes. She's been getting ready for this moment for days. But now that she's standing in front of the judge, she suddenly feels frozen. I'm, um... Come on, speak up. I can't hear you. I'm sorry. Van Reeth, to the charges of possession of drug paraphernalia,

guilty or not guilty? Um, guilty. I see. And you were there when I spoke at Crestwood High School? Van Reeth doesn't admit that she made a point of missing Chivarel's appearances when he came to her high school. Instead, she just shakes her head. No, sir, I wasn't at school those days.

Did your friends attend the assemblies? Yes. And did they tell you what I said? Yes, but what did I say would happen if you had drugs in school? You said you would send us away. That's right. And that's what I'm going to do now. in school. You said you would send us away. That's right. And that's what I'm going to do now.

The hearing hasn't lasted more than 90 seconds, but Chivarella hands down a severe judgment, ordering Van Reeth into juvenile detention. Van Reeth wants to plead with the judge to get him to reconsider, but Chivarella moves fast and tells a sheriff to place her in handcuffs. Van Reeth starts to panic, looking over at her father, hoping he can somehow intervene. But her dad looks just as stunned and confused as she is. A moment later, Van Reeth is let out of the courtroom feeling dizzy and speechless. She doesn't know how this could have happened, how a judge could be so unfair. He didn't even seem interested in her side of the story. Jessica Van Reeth is only a teenager and doesn't know a lot about courts or judges.

But one thing was obvious. It appeared his only goal was to send her to jail and then move on to the next kid. Get ready for Las Vegas-style action at BetMGM, the king of online casinos. Enjoy casino games at your fingertips with the same Vegas strip excitement MGM is famous for when you play classics like MGM Grand Millions or popular games like Blackjack, Baccarat, and Roulette. With our ever-growing library of digital slot games, a large selection of online table games,

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Free of charge. BetMGM operates pursuant to an operating agreement with iGamingOntario. In the past decade, Boeing has been involved in a series of scandals and deadly crashes that have dented its once sterling reputation. At the center of it all, the 737 MAX. The latest season of Business Wars explores how Boeing allowed things to turn deadly and what, if anything, can save the company's reputation. Make sure to listen to Business Wars wherever you get your podcasts. wherever you get your podcasts. From Wondery, I'm Lindsey Graham,

and this is American Scandal. America's criminal justice system is built on a promise of fairness. Citizens charged with a crime are guaranteed an impartial jury and granted a wide range of legal protections. And then there are the judges, who themselves play a central role in the process. They serve as referees of the law, acting as independent custodians of America's courts. The obligation for judges to be fair and honest is one of the hallmarks of our country's democracy. But in 2009, citizens in northeastern Pennsylvania had their faith in this core democratic institution shaken as they confronted one of the largest acts of judicial corruption in recent history.

The case involved two county judges who orchestrated the construction of a for-profit juvenile detention center. In return, the judges received lucrative financial kickbacks in a scheme that came to be known as Kids for Cash. Countless children would have their lives upended. The FBI got involved after leading an investigation into the mafia. Victims and members of the press fought for years to get out the truth. And in the end, the two judges would face their own day of reckoning. This is Episode 1, Wilkes-Barre, Pennsylvania. It's 1966 in northeast Pennsylvania, about 41 years before Judge Mark Chivarella sent Jessica

Van Reeth to juvenile detention. It's late in the evening, and Chivarella is walking with friends through a residential neighborhood in Wilkes-Barre, a city about 100 miles north of Philadelphia. The boys are wandering along a narrow street past rows of small wood frame houses. It's a modest neighborhood full of working people, and at this hour, the streets are all but dead. As the group rounds a corner, Chivarella takes another look at his watch. It's a lot later than he thought it was, and Chivarella knows his mom and dad aren't going to be happy that he's still out. But then again, he manages to get away with a lot later than he thought it was, and Chivarella knows his mom and dad aren't going to be happy that he's still out. But then again, he manages to get away with a lot. Chivarella is 15 years old,

and his parents have taken to calling him Scooch, Italian slang for pest, and a nickname given to troublemakers. Chivarella doesn't think of himself as a bad kid. It's true he's had his fair share of trouble, and he's even been suspended at school a few times for getting into fights. But nothing's ever gotten too serious. And so even though the night has gotten late, Chivarel isn't worried.

He'll get home at some point and deal with his parents then. So he and his friends walk for a few more blocks, talking and palling around, before turning onto a busier street. There are a number of cars parked along the road, and a block away, there's a bar blasting loud rock music. But as they walk down the street, one of Chivarella's friends spots a red convertible, parked with the top down.

It's a beauty, top of the line, with red leather interior, the kind of car Chivarella would kill for. The teenagers surround the car like a group of hungry sharks. Chivarella heads for the passenger side, and glides his hand along the trim, imagining himself driving down the open road with the wind in his hair. It's a beautiful car, and Shavarella can't help but wonder why the owner would just park it here with the top down. It's completely exposed. Shavarella turns to one of his friends, who grins and says whoever it was, they're just asking for it, aren't they?

Chivarella shoots his friend a skeptical look. It sounds like he wants to pull off something more than one of their usual pranks. Sounds like he's saying he wants to steal the convertible. But Chivarella's friend tells him to relax. He doesn't want to steal the car, or at least he doesn't want to steal it forever. The friend says they should just take it for a joyride, then come back and park the car exactly where they found it. Shivarela hesitates. If anything happened and they got caught, his dad would lose it. So Shivarela says he's out. He should be getting home anyways. But the other guys tell Shivarela

to stop being so scared. It's not that big a deal, and it'll be fast. They'll hop in, get it going, take the convertible for a quick ride around the block. Chivarella stands staring at the car, feeling torn. He doesn't normally shy away from challenges, but this is serious business. At the same time, he's nearly salivating staring at the car. Chivarella doesn't know if he'll ever have another chance to ride in a car like this.

It's a dream. And his friends are right. If they play it safe, no one's going to get caught. So Shivarela says he's in. And taking one last look around the block, the teenagers make their move and hop in the convertible. About an hour later, Mark Shivarela sits slumped in the back of a police car as it heads through the east end of town.

The car turns onto a quiet residential street, and the officer at the wheel shoots Chivarella a knowing look in the rearview mirror. The policeman just caught the 15-year-old and his friends as they were about to steal a car. The officer could have booked Chivarella at the station and turned the night into a real fiasco, but instead he said he was willing to let it go and just bring Chivarella back home. The officer probably thought it was an act of mercy, but what he doesn't know is that for Chivarella, going home probably isn't a lot better than spending a night in the county jail. Chivarella's dad, Mark Sr., can be hot-tempered, and Shivarela knows that arriving home in a cop car is bound to set him off.

Shivarela's fears only grow worse when the police car pulls up in front of his house and he sees his neighbors peering at him through their front windows. The east end of Wilkes-Barre is a tight-knit community, one of those places where everyone knows everyone and the whole town looks out for each other. And while normally that's a good thing, Chivarella knows he's about to become the center of neighborhood gossip and a source of shame for his parents. A minute later, the police officer escorts Chivarella up the front steps

and knocks on the door. When the door swings open, Chivarella is somewhat relieved to be face-to-face with his mother. She's wearing a faded blue house dress and slippers and looks like she was just getting ready for bed. But seeing a police officer on her front steps, Mary Chivarella gets a look of shock. The officer explains he caught her son and his friends attempting to steal a car, but instead of booking him, he's going to let the family decide on a punishment. Chivrella's mother shuts her eyes,

shaking her head in weary disapproval. She tells the officer she appreciates him showing mercy, and they'll handle it from here. Chivrella steps in from the front porch. And as soon as the door closes, his mother turns to him, looking furious. Mark, what did you do? Mom, it's not what it sounds. We just wanted to have some fun. We weren't going to steal it. Then what were you going to do? We just wanted to take it for a

spin, you know, drive around the block. And you don't think that that's stealing? No, no, you don't understand. Mark, I understand. But what I don't get is how this could have happened in the first place, because we did not raise you to be a thief. Mom, I'm not a thief. You know, getting into fights at school is one thing, but my own son, a criminal, that I just can't believe. Shavarella's mother begins tearing up and turns away to hide her face. Oh, Mom, I'm sorry. I promise no more getting into trouble. I swear it's never going to stop with you, Mom, I'm sorry. I promise no more getting into trouble. I swear it's never going to stop with you. Mom, I'm telling you, last time. Well, you've said that before. Mom, listen. Shavarella's mother wipes her nose and heads to the staircase where she calls out to Shavarella's father. We've got a problem. You've got to get down here. I need you to come take care of it.

Chevarella swallows hard as his father comes lumbering down the staircase. And after his mom explains what happened, his dad grits his teeth and stares down at his son, looking ready to pick a fight. So Chevarella tries again to explain himself, but then it happens fast. His dad winds back and smacks him on the side of his head. Chivarella crashes to the floor, his ears ringing. And the last thing he remembers is the smell of the old musty rug and the feeling of shame for disappointing his mother. It's 1994 in downtown Wilkes-Barre, about 28 years later.

In a large hotel ballroom, Mark Civarella steps onto a stage and smiles at a group of about 300 people in the audience. Off to one side of the room, a pair of loudspeakers is blasting music. And behind Civarella is a large banner that reads, A Remarkable Choice for Judge, playful pun on his first name. The room is packed with Chivarella's most passionate supporters, and even though he's prepared for this moment a million times, Chivarella is feeling nervous. In just a few moments, he's going to announce that he's running for county judge. It's the culmination of decades of hard work, along with Chivarella's commitment to clean himself up and build a good life. When he thinks back on all the old memories,

Chivarella has a hard time reconciling his identity today with that teenager so many years ago. Chivarella made a lot of mistakes when he was a kid. But he grew up. He went to college and then law school. Chivarella got married, had three children, and he and his wife settled down in his hometown, where he's been a partner at a law firm for over 16 years. It's a prestigious job, but Chivarella has an itch to do something more, something bigger with real power, where he can make a difference in the community. Becoming a judge seemed like the most obvious move. Chivarella never forgot how a good dose of punishment helped him straighten up back when he was a teenager. At the time,

he'd been driven by some dangerous impulses, but his father held him accountable. And while the punishments weren't pleasant, Chivarella can now see how they helped shape him into the successful man he's become. So Chivarella is hoping to pay it forward, sharing these life lessons as a county judge. Though winning the election isn't going to be easy. There are three other highly qualified candidates vying for the job. And Chivarella was told he should dip into his savings, spending upwards of $150,000 of his own money running ads for his campaign. But that's all getting ahead of himself. First, Chivarella just needs to make

the announcement that he's entering the election, and if tonight goes well, he'll figure out what comes next. So a minute later, Chivarella begins making his way across the stage and approaches a microphone. The music is turned down, and a few of Chivarella's supporters whistle and cheer. Chivarella gives a warm greeting to the audience, asking how everyone's doing, and after another round of cheers, he launches into it and begins to tell his story. Chivarella starts by reciting some of his accomplishments. He's a local boy and a decorated coach on the girls' swim team at the nearby Catholic Youth Center. In his time, he's led the team to win nearly 100 consecutive meets.

Chivarello gets some mild applause from that bragging right, but it's not exactly the reaction he was hoping for. He decides to shift gears. So Chivarello says he's always loved Wilkes-Barre. It's home, but he's grown concerned. His parents raised him with strong values. But he worries now that those kind of standards are disappearing, that the soul of the community is slipping away. Chivarella pauses to gauge the response, and he can feel the audience

is dialing in. So he goes further, saying he wants to restore Luzerne County back to the wholesome community it used to be back when he was a kid. Chivarella says if he's elected, he'll be tough on crime and impose the maximum sentences, including the death penalty. Several people in the audience shout out in support. And while Chivarella believes in the redeeming value of punishment, he can also see that a platform of law and order resonates with voters. So Chivarella calls for a change in the community's culture, a change that begins in the courtroom. And he tells the audience, it's time for people who break the law to realize they'll be punished. The crowd roars and applause,

and Chivarella makes his closing pitch. The voters should elect him to be a judge in Luzerne County. He promises to be a citizen's judge, that he'll help restore Wilkes-Barre to a better time, a time when the community had values and people didn't think they could get away with breaking the law. That brings out another round of cheers. And hearing such a unified response, Chivarella decides it's settled.

He has his platform. He's gonna run on law and order, what the voters care about. And as long as he's willing to risk some of his savings and be clever with the political ads, this election could be his for the taking. He was hip-hop's biggest mogul, the man who redefined fame, fortune, and the music industry. The first male rapper to be honored on the Hollywood Walk of Fame, Sean Diddy built an empire and lived a life most people only dream about. But just as quickly as his empire rose, it came crashing down. Today I'm announcing the unsealing of a three-count indictment,

charging Sean Combs with racketeering conspiracy, sex trafficking, interstate transportation for prostitution. I was f***ed up. I hit rock bottom. But I made no excuses. I'm disgusted. I'm so sorry. Until you're wearing an orange jumpsuit, it's not real. Now it's real. From his meteoric rise to his shocking fall from grace, from law and crime, this is the rise and fall of Diddy. Listen to the rise and fall of Diddy

exclusively with Wondery Plus. On January 5th, 2024, an Alaska Airlines door plug tore away mid-flight, leaving a gaping hole in the side of a plane that carried 171 passengers. This heart-stopping incident was just the latest in a string of crises surrounding the aviation manufacturing giant Boeing. In the past decade, Boeing has been involved in a series of damning scandals and deadly crashes that have chipped away at its once sterling reputation. At the center of it all, the 737 MAX. The latest season of Business Wars explores how Boeing, once the gold standard of aviation engineering, descended into a nightmare of safety concerns and public mistrust. The decisions, denials, and devastating consequences

bringing the Titan to its knees and what, if anything, can save the company's reputation. Now, follow Business Wars on the Wondery app or wherever you get your podcasts. You can binge Business Wars, The Unraveling of Boeing, early and ad-free, right now on Wondery Plus. It's early 1998 in Wilkes-Barre, Pennsylvania, and Mark Civarella is staring at what might be the most heinous building he's ever seen. It's a squat, three-story brick structure built in the 30s, and from the looks of it, no one's given it much love since. The metal handrails are stained with rust. Some of the bricks in the facade look like they're about to crumble. The whole place looks abandoned, almost haunted.

And Chivarella is having to come to grips with an uncomfortable fact. This is where Luzerne County sends children who've misbehaved. It's been four years since Chivarella took the stage in a hotel ballroom and announced he was running to be a county judge. Throughout his campaign, he stuck with a consistent message, positioning himself as someone who was tough on crime, and the campaign seemed to resonate with voters. Chivarella ended up winning the general election and is now a little under halfway through his term, which lasts 10 years. And throughout that time, Chivarella has been proud to work as a public servant, though recently the job took an unexpected turn when he was assigned to be a judge in juvenile court. He's not thrilled about working at what people call kiddie court,

but he also knows it's a rite of passage for newer judges, a stepping stone towards more prominent appointments. So Shivarela decided he'd get a first-hand look at the county's juvenile justice system, and that meant coming to this squat brick building, the River Street Juvenile Detention Center. And that meant coming to this squat brick building, the River Street Juvenile Detention Center. River Street serves as a holding facility for minors awaiting court hearings or placement in longer-term detention. And in that sense, it's like a jail for minors. And as a judge overseeing juvenile cases,

Chivarella is going to be responsible for sending children to be held at this facility. So he thought it was important to come see the detention center in person. And in just a few minutes, he's supposed to meet with Sandra Brullo, who runs the day-to-day operations of the facility and offered to give Chivarella a tour. Chivarella begins walking up a small hill leading to the entrance of the detention center. When he arrives at the front door, Brullo steps out and waves him in before closing the door against the cold. Chivarella walks inside and greets Brullo, a woman in her late 40s with highlighted hair and dark eyes that look a little cold and tired. Entering the building, Chivarella is hit with an overpowering smell of mildew. His face wrinkles and he looks around trying to find the source. But Brullo doesn't seem to mind. She just barrels forward and begins giving Chivarel a history of River Street.

She says it's been around since 1937 and was originally a prison for women. Chivarel tries to tune out the odor and pay attention to the conversation. He nods along as Brulot continues with the history of the place and leads them down a main hallway, giving him the bigger tour. As the two walk side by side, Chivarella notices paint peeling off the cement block walls, settling like snowflakes along the floor. He can't help but point out the disrepair, telling Bruno that the hallway must be due for a paint job sometime soon. But Bruno just shrugs and says they have bigger problems. Like vermin. River Street is constantly battling infestations of rodents and cockroaches.

But the picture only grows more bleak as the tour goes on. Brullo shows Chivarella a series of old jail cells that have been repurposed as workspaces. She explains this is where probation officers hold meetings with parents and government officials. Chivarella's jaw goes slack as he stares at those so-called workspaces. But Brulot doesn't seem affected by any of it. She admits that while the facility isn't great, it does pass state inspections.

Chivarella doesn't say a word. There's no real point about making any fuss about vermin, mold, or peeling paint, because Brulot seems to think this facility is completely fine. So as the tour wraps up, Chivarella thanks Brulot seems to think this facility is completely fine. So as the tour wraps up, Chivarella thanks Brulot for her time, and he makes his way out into the cold winter air.

He can't believe what he's just seen, that this is where the county houses some of its most endangered and vulnerable, minors caught up in crime. And he can't imagine what voters would think if they ever learned how bad the conditions have gotten here at River Street. So Chivarella's going to take care of that right away. About a half hour later, Judge Mark Chivarella steps into the Luzerne County Courthouse,

a building with a large classical rotunda, a dome inlaid with stained glass. The building with a large classical rotunda and dome inlaid with stained glass. The building is a symbol of civic power and dignity. But for Chivarella, it's also a stark reminder of the terrible conditions he just witnessed at the River Street Juvenile Detention Center. Seeing the conditions there, Chivarella felt immediately driven to get a new facility constructed, a more proper place to house children in trouble. Of course, Chivarella doesn't have any say over the county's budget. He's only a judge. But he does know someone who could pull the levers of political power, an old acquaintance who might be able to get the county to fund the project.

Chivarella continues down a marble corridor as he makes his way to the office of Thomas Makowski. Makowski is a county commissioner and could hold the keys to finding budget for a new facility. Shivarela arrives at his office and knocks on the door. A moment later, Makowski answers and greets Shivarela with a big smile. Mark, what a surprise. Hey, come on in. Hey, Tom, hope it's okay I dropped by. It's always okay. Yeah, yeah. What's going on? Shivarela steps into the office and shuts the door.

Well, Tom, I was just over at River Street. You been there? No, not in a long while. Well, it's an old building. Yeah, from the 30s, I think. We spent some money repairing it over the years. Well, I gotta say, if you have, it doesn't really show. The place is in horrible condition.

Well, I've heard stories. Leaky pipes. Some issue with the heat. No, it's worse than that. Cockroaches and rodents. The whole place smells. We've got probation officers and families taking meetings in old jail cells. Oh, really? Yeah, it was just there. And I don't think that's even the half of it. So I came here straight away because I was hoping we could do something about it.

Well, I'm sure we could. We can talk to the county engineer. We can get things cleaned up. Chivarella shakes his head. Not. There's no cleaning up at River Street. The place is a dump. It's like putting a Band-Aid on a bullet wound.

Well, right now, that's our only option. Is it? What about a new facility? Oh, new construction is not cheap. Have you looked at our current budget? Oh, I get it. And I know it'll be tough, but we put our children here, right? Murkowski is silent for a moment. Yeah, Mark, we do. Okay, this is worth talking about. Let me sit down with the other commissioners and I'll see if we can get some traction. Thank you, Tom. A minute later, Chivarella steps back into the rotunda of the county courthouse

and begins making his way to his office, feeling optimistic. Chivarella knows that money doesn't just rain from the sky. The county budget is always a difficult negotiation. But the facts speak for themselves. And if the county commissioners have any sense of right and wrong, they should be willing to take action. It's late 1999 in Wilkes-Barre, Pennsylvania, and Judge Mark Chivarella is on a mission. He's back at the Luzerne County Courthouse, where he met with Commissioner Thomas Makowski. Chivarella thought he'd made a compelling case

for a new juvenile detention center. But over the last two years, Chivarella has been frustrated to see no real progress, despite his repeated follow-ups with Makowski. Chivarella has now lost his patience with the county government. But he isn't sure what else he can do, given his limited power as a judge.

So Chivarella decided to get some advice from a higher-ranking member of the county court, Judge Michael Conahan. Conahan is known as a powerful figure both in the local court system and the broader community. Outside his role as a judge, he's also a successful businessman and has a reputation as a mover and a shaker.

So Chivarella figured Conahan might be able to help out and share some ideas about how they could get a new detention center built in Luzerne County. Chivarella makes his way through the courthouse before arriving at Conahan's chambers. When he steps inside, he finds his fellow judge sitting at a large walnut desk stacked high with case files. Conahan is in his late 40s, with close-cropped hair and a dour expression. He seems to radiate influence and control, and welcomes Chivarella into his office and they get down to business.

Chivarella lays out his case. He offers another graphic portrayal of the current juvenile detention center and details how he's been trying to get the county commissioners to do something about it. He explains the whole process has been beyond frustrating. He keeps pressing for a new facility, but whenever he checks with the county commissioners, all he gets is lip service. He's not sure what to do next. Conahan gives Chivarella a curious look, asking why he cares so much about the detention center. Chivarella says that it's his job to put minors on the right path, but the right path can't start

in a derelict facility like River Street. Conahan nods and says he agrees, but what does any of this have to do with him? Chivarella clears his throat and says he's got an idea, but he needs some advice. The commissioners keep saying it would be too expensive

to construct a new juvenile detention center in Luzerne County. But Chivarella thinks they could save money by teaming up with other nearby counties and building a detention center that would serve all of northeastern Pennsylvania. Chivarella knows Conahan is a savvy businessman, so he's curious what he thinks. Is this kind of joint project feasible? For the first time, Conahan's expression brightens. He tells Chivarella it's a great idea, but the problem is that going through government channels is a waste of time.

The private sector is how you get things done. You need to rethink the business model, and a private for-business detention center is a solid proposition. Conahan adds that he has some business associates who might be interested in this sort of opportunity. He'd be happy to reach out, engage their interest. Conahan wraps up the conversation with a note of optimism, saying that with the right connections and a good business plan, they should be able to break ground on a new facility, one worthy to house the children they're trying to save.

I'm Jake Warren, and in our first season of Finding, I set out on a very personal quest to find the woman who saved my mum's life. You can listen to Finding Natasha right now exclusively on Wondery+. In season two, I found myself caught up in a new journey to help someone I've never even met. But a couple of years ago, I came across a social media post by a person named Loti. It read in part,

Three years ago today that I attempted to jump off this bridge but this wasn't my time to go. A gentleman named Andy saved my life. I still haven't found him. This is a story that I came across purely by chance but it instantly moved me and it's taken me to a place where I've had to consider some deeper issues around mental health. This is season two of Finding, and this time, if all goes to plan, we'll be finding Andy. You can listen to Finding Andy and Finding Natasha exclusively and ad-free on Wondery+. Join Wondery in the Wondery app, Apple Podcasts, or Spotify. or Spotify. It's July 2001, and Mark Civarella is ready to share some good news with his business partner and fellow judge, Michael Conahan. But getting here hasn't been easy. For the past year and a

half, Civarella has continued serving as a judge in juvenile court. He stayed true to his campaign pledge and has been dishing out tough punishments for the minors who stand before him. And along the way, Chivarella has earned some of the highest juvenile detention rates in Pennsylvania, sending away more minors than almost all of his peers. But Chivarella doesn't question the approach. He still believes that people, even children, need real incentive to follow the law and behave correctly. And there's no stronger signal than the threat of imprisonment. Still, Chivarella does struggle. He hates having to send minors to that crumbling detention center on River Street. The facility hasn't gone through any serious renovations, and Chivarella thinks

it's barely equipped to handle children. But that situation could soon change, in no small part because of Judge Michael Conahan. Conahan suggested that they bypass the county and turn to the private sector to build a new for-profit detention center. Conahan brought on board a major investor named Robert Powell, an attorney and one of Conahan's friends. Powell and his business partner signed on to own and manage the new facility, which is going to be called PA Child Care. Once they had an investor,

the next step was to find someone who could actually build the facility. Chivarella turned to one of his friends, Robert Miracle. Miracle owns a commercial real estate company and knows the business inside and out. After hearing the pitch, Miracle signed on too and became the builder for the project. The group then found a site for the detention center, and now they just need the financing to come through so they can break ground and begin construction. Chivarella has been

pleased to see the project moving forward, but their builder and Chivarella's friend Robert Miracle just made a stunning update. Once they wrap up construction, Chivarella is going to take home an enormous amount as a finder's fee, but Chivarella doesn't feel right keeping it all to himself. So he's on his way over to the chambers of his partner, Judge Michael Conahan, planning to make an offer he believes is more than generous. A moment later, the elevator doors open and Chivarella hurries toward Judge Conahan's chambers. When he steps inside, he finds Conahan sitting behind his desk, reviewing case files. In a single, almost breathless wave,

Chivarella lays it all out. He tells Conahan that once they finish construction, the rebuilder is going to award him a finder's fee of nearly a million dollars. Conahan's eyes widen. He tells Chivarella that he's a lucky guy and Miracle is one hell of a friend. But Chivarella points out that a finder's fee is standard practice in real estate and was built

into the budget. But it is remarkable that Miracle offered to pay the fee to Chivarella. He didn't have to. Then Conahan leans back in his chair, and with a sardonic grin, he asks whether Chivarella came here to brag or whether he's going to offer to buy the next round of drinks. Shivarela laughs and says he'll get the drinks, but no, he's not here to brag. Without Conahan's help, the project wouldn't have gotten off the ground. So it's only right that they split the money, 50-50. Hearing this, Conahan throws his pen in the air and says this is turning out to be a damn fine day. Shivarela laughs again, agreeing that the finder's fee is a welcome development. But what he doesn't tell Conahan is that he needs the money, now more than ever.

Shivarela has been running up his credit, living beyond his means. He's been trying to keep up with some of his wealthier friends, but the spending has gotten out of hand. By now, Shivarela has a six-figure debt. But the finder's fee will allow Shavarella to pay all of it off while offering some financial security for his family. But that's all contingent on finally finishing construction. So Shavarella tells Conahan he's worried that financing isn't going to come through, and that could put the finder's fee in danger. But Conahan shakes his head and smiles, telling Shavarella to cheer up.

There's now a million dollars on the line. So one way or other, they're going to get this thing built. It's December 2001 in Pittston, Pennsylvania, about five months later. It's the afternoon of Christmas Eve, and Robert Powell is walking through an empty lot in a large industrial park. The wind is freezing and whipping at his face as Powell paces around a series of half-frozen puddles waiting for Judge Michael Conahan to finally show up. Powell is an attorney and real estate investor. He's not exactly happy to be waiting around in an industrial park on Christmas Eve, but he had to talk with his associate, Judge Conahan, and two agreed to meet at the site of their soon-to-be juvenile detention center.

In part, today's meeting is meant to be a tour of the site, but Powell also wanted to get some private time with Conahan so he could ask the judge a favor. Increasingly, this construction project is turning into a boondoggle. Powell has hit a number of financial roadblocks, and now the bank's funding is looking like it could fall through.

But Powell can't let that happen. He's already made a sizable investment from his own savings, and if the project falls apart, there's a chance he could lose all of it. So Powell is hoping Conahan might have an idea, maybe a way to appease the banks and guarantee funding. Powell rubs his hands together, trying to stay warm, when Judge Michael Conahan pulls up on the gravel lot. The judge steps out of the car and takes a quick look around the site. Afternoon, Robert, and Merry Christmas. Merry Christmas back at you. Welcome to the future side of PA child care.

Not bad. Not bad at all. It's a lot bigger than I thought. Yeah, we should have space for about 50 beds. Well, knowing our good friend Mark Shibarella, I'm sure he'll keep this place full. Well, maybe we should tell that to our builder. He's worried. What for? We've got everything lined up.

He's frustrated with the delays. Yeah, we all are. That's just the nature of this sort of thing. Yeah, well, Miracle's not the only one who's worried. I'm catching heat from the lenders. Well, then let's find a lender that's easier to work with. Now, I've talked to all of them, Michael. They're all saying the same thing, which is what?

It's too risky. They want assurances. Judge Conahan squints, giving Powell a skeptical look. Assurances about what? Well, they want to know our business is going to be successful, that this place isn't going to sit empty. Well, look, Robert, in about two weeks, I'm taking on a new title. I'm going to be president judge in Luzerne County.

What does that mean? It means I'm going to have broad power over the courts. I can sign an agreement making it so that the county only sends minors to our facility. We'll have no problem keeping the beds occupied. You can do that. I can do that. And I assume that would take care of our problem with the banks? Well, yeah.

I mean, if there's some sort of guarantee of business, yeah, getting funding shouldn't be an issue. So good. It's taken care of. Now, show me around. I want to get a full view of the site. You just listened to the first episode of our series on Kids for Cash. But this is only the beginning.

As the season progresses, you'll continue to follow Judge Mark Chivarella as he sends thousands of children to for-profit detention centers, which he and fellow Judge Michael Conahan have stakes in. But the real conflict begins when the public and the FBI start to uncover the truth. As pressure builds, Chivarella faces a choice. Will he take responsibility for ruining the lives of these children, or will he fight to the end, hoping to evade justice? To listen to the rest of this season of American Scandal, start your free trial of Wondery

Plus in the Wondery app, Apple Podcasts, or Spotify. With Wondery Plus, you can listen to other incredible history podcasts like American History Tellers, History Daily, Tides of History, and more. Download the Wondery app today. Powell and Conahan take a walk through the industrial park, only pausing to gaze out at the bank of woods on the side of the property. But soon, the two men agree they're

freezing and it's time to get out of there. So they hop in their cars and drive off. As Powell gets back on the open road, he feels some measure of relief. If Judge Conahan can guarantee that beds will be filled, this should be the final hurdle. None of the lenders are going to turn him down. And with the money in place, it won't be long before cranes and construction teams arrive on the site. A ceremonial ribbon is cut, and they break ground. From Wondery, this is Episode 1 of the Kids for Cash Kickback Scheme for American Scandal. In our next episode, judges Chivarella and Conahan get involved in a plan for a second detention center. But as Chivarella orders more and more minors to be detained, the business comes under scrutiny, and the judges' scheme begins to unravel.

and the judges' scheme begins to unravel. If you'd like to learn more about the Kids for Cash scheme, we recommend the book Kids for Cash, Two Judges, Thousands of Children, and a $2.8 million kickback scheme by William Eckenbarger, and the documentary Kids for Cash, directed by Robert May. This episode contains reenactments and dramatized details. And while in most cases we can't know exactly what was said,

all our dramatizations are based on historical research. American Scandal is hosted, edited, and executive produced by me, Lindsey Graham, for Airship. Audio editing by Christian Paraga. Sound design by Molly Bach. Music by Lindsey Graham. This episode is written by Vanessa Gomez. Edited by Christina Malsberger. Our consultant for this series is William Eckenbarger. Our senior producer

is Gabe Ribbon. Executive producers are Stephanie Jens, Jenny Lauer-Beckman, and Marsha Louis for Wondery.