Current state and federal laws lack the teeth needed to pursue criminal charges on those counts, said Montgomery County District Attorney Risa Vetri Ferman. The report recommends a list of reforms.
"Everything looked at might have been wrong, but they concluded it was not a crime under current law," she said. "If he had simply come in and told the truth, we would not be here today."
Matthews was arrested Tuesday morning at a Springfield Township, Montgomery County, convenience store and charged with one count each of perjury and false swearing. If convicted of both charges, he faces up to nine years in prison. He has denied the allegations.
After his arrest, Matthews resigned as chairman of the county's three-man governing panel, but said he intended to serve out the rest of his term, which ends this year, as a regular voting member.
"This is totally silly," he said as he was ushered into a courtroom for his arraignment just before noon. He was released moments later on a $50,000 unsecured bond.
His attorney, Tom Egan, described the charges as an unfounded political takedown.
Matthews, brother of MSNBC news host Chris Matthews, has frequently touted the achievements of his administration since announcing he would not seek another term earlier this year.
But the grand jury report paints a unflattering portrait of a dysfunctional county government that often ignored its own procurement policies, recklessly spent taxpayer money, and rewarded political cronies.
Among its findings:
Matthews purportedly spent at least $100,000 on personal credit cards, country club memberships, sporting goods, and rental fees for a car driven for personal use.
