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Home > Blogs > Butler County News and Issues > Archives > 2009 > August > 11 > Entry
West Chester trustee disputes ‘kickback’ was paid
The question assistant U.S. Attorney Jennifer Barry tried to ask West Chester Twp. Trustee George Lang in federal court today, Aug. 11: “Isn’t it true, Mr. Lang, that Orlando Carter was paying you to grease the skids for him at Butler County?”
The question the judge would allow: “Isn’t it true that Orlando Carter was paying you over $300,000 to make introductions for him at Butler County for the benefit of his company.”
“Yes, among other things I did for that organization, yes,” Lang replied.
Lang was called to the stand by defense attorneys for Carter, former owner of Dynus Corp.
As the company was taking out $6.5 million in loans in Butler County’s name without county approval, Lang said Dynus contracted with him to help secure a fiber optic contract with the county.
The fraudulent loans ultimately caused the company’s collapse in 2005 and felony charges against company executives.
Lang said he introduced Dynus officials to Kay Rogers, then county auditor. Rogers was in charge of the county’s information technology division, he said, so it made sense for her to be involved.
Rogers would later plead guilty to bank fraud for her role in securing the loans.
Dynus paid Lang’s company $360,000 for introducing company and county officials, $100,000 of which went each to company president Jim Smith and then Butler County GOP executive director Scott Owens.
Testimony this morning focused on the payments given to Smith. There were two checks, one for $20,000 paid to Smith’s girlfriend and another for $80,000 that Smith had said he used to build a pool.
In earlier testimony, Smith referred to the payment he received as a “kickback,” because he was a Dynus employee getting paid by a contractor for the company.
But Lang said he was unaware Smith was a Dynus employee when he was working as a consultant for Lang. He even gave Smith tax forms accounting for the payments.
“Did you give Mr. Smith a kickback?” asked defense attorney Martin Pinales.
“No,” replied Lang.
“Was it under the table in any way?” Pinales asked.
“No it was not,” Lang said.
Lang said he would not have given Smith the money if he knew he was working for the county. But he said he did tell Carter about the payments.
Lang’s company later merged with Dynus Financial, where Lang served as president. As a company employee, he used the company’s suite on the 50-yard-line of Paul Brown Stadium and was reimbursed for meals at Jags, where he was part owner.
Lang said he had met Smith when his company, the Lang Agency, was trying to get a employee benefits contract with Reynolds and Reynolds, where Smith worked. When Smith came to him with the Dynus proposal, Lang said, he was excited about it.
“Dynus, I still believe to this day, was sitting on something really big, and something that could change the world,” Lang said.
Lang said the county and company did enter into an economic development agreement, but it fell apart when news surfaced of the fraudulent loan.
Carter is fighting an 11-count indictment, including charges of bank fraud stemming from the loan.
Smith has pleaded guilty fraud, as well as another former company employee.
Permalink | Comments (3) | Post your comment | Categories: Dynus
Comments
By pw
August 11, 2009 12:01 PM | Link to this
Well Mr Lang, you don’t sound very convincing. You guys all squander money away while others are getting laid off in Butler County. Shame on you! Come clean. Start singing with the chior.
By juneg
August 11, 2009 12:30 PM | Link to this
Keep your feet off the floor, the s_ is flowing. Who in their right mind believes this bull.
By exposed
August 11, 2009 1:33 PM | Link to this
At least Scott Owens had the sense to drop off the radar with the GOP last year. George needs to drop off as a WC trustee, and the GOP needs to have nothing to do with either one of them, especially since these two are currently working to get 2 of their special (Rino/dem) candidates elected as trustees this November. Whichever ones they support, please avoid.