Reining in the Phila. Sheriff's Office

By James F. Kenney

City Controller Alan Butkovitz's recently released investigation of the Philadelphia Sheriff's Office raises serious questions about accountability, oversight, and possibly fraud at the expense of the poor.

Butkovitz's thorough investigation of the office's operations under former Sheriff John Green found that a private contractor overcharged the agency by as much as $11.6 million for advertising and other costs related to the sale of foreclosed homes.

Previous audits found more than $53 million in unclaimed funds that were never returned to the owners of foreclosed homes after sheriff's sales. Instead, the money sat in Sheriff's Office accounts for nearly a decade - in violation of the law.

Also troubling was the former sheriff's contention that his office did not have a duty to locate the owners of foreclosed homes and give them the proceeds remaining after debts on their homes were paid. As a result, private "finders" were given special access to lists of those who were owed money and, on finding them, charged them as much as 35 percent of their unclaimed funds. Over a five-year period, one company received nearly $4.5 million from the Sheriff's Office to return to evicted homeowners, of which it took approximately $1.5 million in fees.

Butkovitz's report also cited people who encountered lengthy delays in getting their money from the Sheriff's Office. One sheriff's employee told investigators that people seeking their money were told their paperwork had "fallen through the cracks," forcing them to turn to private finders.

Pennsylvania law limits finders' fees to 15 percent for unclaimed funds in the possession of the state, but there is no limit on fees for unclaimed funds held by the city Sheriff's Office. That's why I followed up on a key recommendation in the Butkovitz audit by introducing legislation to prohibit private finders from charging fees in excess of 15 percent for the return of surplus sheriff's sale proceeds.

Butkovitz concluded that Green "disgraced his office by allowing private parties to improperly benefit financially - at the expense of the most vulnerable." Given the chance, however, acting Sheriff Barbara Deeley took the initiative to institute reform measures. And while some have called for the abolition of the Sheriff's Office, I believe incoming Sheriff Jewel Williams should have the opportunity to clean up the mess left by his predecessor and establish strict procedures, accountability, and efficiency.

I also believe responsibility for conducting sales of foreclosed properties and distributing the proceeds should be transferred to City Hall. The new sheriff, meanwhile, should retain responsibility for court security, prisoner transport, writ service, and other duties not related to real estate.