Would-be replacement for Philadelphia sheriff
making changes already

The would-be successor to Philadelphia Sheriff John Green on Friday removed four high-level staffers from their jobs and fired contractors doing title work in response to allegations of rampant mismanagement and potential fraud within the Sheriff's Office.

In addition, and of direct impact on homeowners, acting Sheriff Barbara Deeley suspended foreclosure sales for 50 days. Housing advocates sought such an action as a respite for homeowners until a new federal funding-aid program starts up, a reason unrelated to the office's internal problems.

And in what could be the most important development, neither mentioned nor acted upon in public, sources confirmed that Deeley was likely to cede control of foreclosure sales permanently to the Philadelphia courts.

After meeting with Mayor Nutter on Friday afternoon, Deeley suspended office finance director Tyrone Bynum, solicitor Edward Chew, and real estate supervisor Crystal Stewart "pending their separation Feb. 7."

Also, Darrell Stewart, Crystal Stewart's husband, was transferred from his position as director of real estate.

The four, none of whom could be reached Friday night by phone or e-mail, were the main figures in charge of sales of foreclosed properties, one of the office's main missions in addition to serving writs, transferring prisoners, and securing courtrooms.

That function has been assailed for more than a decade for poor record-keeping, which defenders say is at least partly the fault of an outdated computer system that city politicians have refused to replace.

Most recently, City Controller Alan Butkovitz called for a comprehensive forensic audit of the department by special fraud examiners. Butkovitz said his auditors were alarmed by the lack of records provided by the Sheriff's Office on accounts totaling $53 million.

"The findings in his report are in large part the impetus for the actions I have taken today," Deeley said in a statement.

In what could be an attempt to stave off critics calling for eliminating the elected office, sources familiar with the discussions involving Deeley, the courts, and city officials said Friday that Pamela Dembe, president judge of Common Pleas Court, was working with Deeley on the details of a transfer under which the First Judicial District - the Philadelphia court system - would take over the auction of foreclosed property, or sheriff's sales.

The Pennsylvania Supreme Court would have to authorize such a move. Dembe did not return a telephone call seeking comment.

Green was scheduled to retire on Oct. 31, but postponed his departure to facilitate the forensic audit and bridge what appeared to be a standoff between his staff and Butkovitz's auditors.

He then abruptly announced his retirement Dec. 31, and three days later Gov. Rendell nominated Deeley to fill the position until January 2012, when a newly elected sheriff would be sworn in.

She almost immediately brought in former City Controller Joseph Vignola, an old ally and seasoned city politician, to assess the office's problems. On Friday, Deeley appointed Vignola to the new post of chief deputy for finance and accountability.

Vignola said Deeley's moves were meant to instill public confidence in sheriff's sales, through which foreclosed property is auctioned off and the proceeds distributed, "and instill confidence in this new sheriff."

"Suffice it to say," Vignola said, that the controller's audit indicated "that there could be a lack of internal controls and moneys that cannot be properly accounted for."

Butkovitz called Deeley's actions "a very prudent move going forward in an effort to protect the money." He said he was "pleasantly surprised at the decisiveness of those steps."

With uncertainty about the integrity of the process, and with those who ran it removed, Vignola said it made sense to put off sheriff's sales for 50 days, which would put the next date in March.

That was applauded by advocates looking to delay the February sheriff's sale - Green had postponed the January sale - to account for delays in the arrival of federal money under a program that provides loans to homeowners to help them keep their homes.

"We think this fits in very well with the necessity to give those homeowners the opportunity to apply," said George Gould, a lawyer for Community Legal Services, who successfully appealed to Common Pleas Court to delay the January sales. He represented the Philadelphia Unemployment Project, an advocacy group.

Needing confirmation by a Republican-controlled Senate that refused to act before Republican Tom Corbett's swearing-in as governor Jan. 18, Deeley might have to demonstrate commitment to reform to win the job permanently.

Senate Majority Leader Dominic Pileggi (R., Delaware) applauded her effort but said "the normal approach" would be to find a nominee from outside an office under such scrutiny.

"It appears that she is taking very seriously her responsibility to run the Sheriff's Office, which is a good thing. However, it does not change my thinking about the nomination," Pileggi said through a spokesman, reiterating that it would be Corbett's decision.

The new governor "will review the nomination and select someone he believes has integrity and the ability to perform the job," spokesman Kevin Harley said Friday night.

Nutter was also supportive - to a point. He said he would not inject himself into the Senate confirmation process.

His spokesman, Mark McDonald, said the mayor "looks forward to working with the acting sheriff and all other stakeholders in the justice system to ensure the integrity of the office."

Also casualties on Friday were the title companies that handle closings on the properties and distribution of the proceeds: RCS Searchers, Global Abstract, and City Line Abstract, which Butkovitz had said operated without a contract with the Sheriff's Office.

RCS owner James Davis, brother of Crystal Stewart, said he would produce contracts for his advertising and other work next week. Davis said he expected his contracts to be honored and an audit to vindicate him and Green.