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The suspended DuBois city manager was arrested Thursday on federal charges of conspiracy and federal program fraud, U.S. Attorney Eric G. Olshan announced.
The five-count Indictment named John "Herm" Suplizio, 63, along with city employee Roberta Shaffer, 58, as the defendants.
According to the indictment, from 2014-22, Suplizio, as the city manager of DuBois, and Shaffer, a city employee, conspired to divert and steal hundreds of thousands of dollars in city funds.
As the full-time, salaried city manager, Suplizio maintained substantial authority in DuBois, where he ran the city's day-to-day operations. As alleged, beginning as early as 2008, Suplizio and Shaffer used the city's tax identification number to establish secret bank accounts into which they diverted city money, including approximately $60,000 in annual administrative fees from the city's waste management contract.
During the alleged conspiracy, Suplizio and Shaffer made large cash withdrawals from these unaudited accounts, wrote checks to themselves and others and obtained cashier's checks with themselves listed as payees -- totaling more than $350,000. The two also allegedly spent more than $450,000 from the accounts toward payments on Suplizio's personal credit card, which he used to pay for personal vacations, utility bills for his residence and department and jewelry store purchases, among other personal expenses.
"Herm Suplizio allegedly funneled city money into secret bank accounts that he and Shaffer controlled and that he could use for his personal benefit, including hundreds of thousands of dollars in personal credit card payments," Olshan said.
"As alleged, the suspects abused their public positions and betrayed the public's trust all while lining their own pockets with hundreds of thousands of dollars," said FBI Pittsburgh Special Agent in Charge Mike Nordwall.
If convicted, Suplizio and Shaffer face up to 45 years in prison, a fine of up to $1,250,000 or both.