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City Controller: Car Auction Scheme Gives Public Employees Bad Rap

There was shock, outrage and anger on Grant Street and beyond Friday after several people, including a city employee, were arrested in a car auction scheme.

Tom Flaherty, now a common pleas court judge, held the post of Pittsburgh city controller for dozens of years.

By telephone, Flaherty told Channel 11’s Alan Jennings that he hired 35-year-old Michael Livingstone as an auditor in the city controller’s office a number of years ago.

Livingstone was just charged with rigging bids for cars impounded by Pittsburgh police and sold at auction.

The deals, police said, cost the city more than $17,500.

"It was a real shock for me when I heard about the charges," Flaherty said.

Livingstone is one of six people arrested by auto squad detectives.

Current city controller Michael Lamb expressed outrage.

“I’m angry. I'm angry as the city controller. I’m angry as a public employee because this type of thing makes all public employees look bad, and I’m angry as a citizen of this city that someone would violate the public trust,” Lamb said.

Also facing conspiracy and theft by deception charges are Donald Matthew Tollan, 56, of Esplen; his sons, Donald Matthew Tollan Jr., 38, Sean Matthew Tollan, 28, and Donald Mathias Tollan, 29; and their friend, Edward Freiberger, 32, of McKees Rocks.

The arrests came Thursday following a four-month investigation.

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