PITTSBURGH — Allegheny County District Attorney Stephen Zappala has released new details about the sealed search warrant his office served on Pittsburgh City Hall last month.
That investigation is focusing on city finances under the administration of former Mayor Ed Gainey.
Gainey has repeatedly denied any wrongdoing and said he welcomes any investigation by the DA, adding that he has nothing to hide.
Zappala told Chief Investigator Rick Earle that new information came to light when Mayor Corey O’Connor took over after defeating Gainey.
“When Mayor O’Connor began looking at his budget, he found several other sources that the accounting just does not make sense,” Zappala said.
Zappala spoke publicly for the first time about that sealed search warrant he served on the city of Pittsburgh last month. The DA requested documents and contracts from the administration of former Mayor Gainey, who served one term.
Zappala confirmed on Wednesday that he’s looking at several no-bid contracts, along with taxpayer money that never made it where it was supposed to go.
Zappala: “A lot of the funding that we are concerned about was identified for youth at risk in minority communities. That money wasn’t being spent on any youth, and you’re talking about a lot of COVID money, all the COVID money that was spent, we are taking a look at every dime of that and it’s a great deal of money.”
Earle: “Do you have concerns about that?”
Zappala: “Absolutely, absolutely I do.”
11 Investigates also learned that the DA is not only relying on records and documents, but witnesses as well.
Earle: “And you have cooperating witnesses in this case?”
Zappala: “Absolutely, we do.”
Because some of the funding involves federal money, 11 Investigates recently learned that the FBI is also involved.
Zappala confirmed that today.
Earle: “It’s my understanding there’s also a federal investigation being done by the FBI at the same time?”
Zappala: “I’ll let the U.S. attorney’s office....”
Earle: “Can you comment on that? Are you aware of that?”
Zappala: “I know we have some agents that we are working with, yes.”
11 Investigates reached out to the FBI for comment, and they sent us this statement:
“FBI Pittsburgh is aware of reports indicating the Allegheny County District Attorney’s Office served a search warrant to the City of Pittsburgh. The FBI cannot comment on any involvement in this matter.”
At a court hearing this morning, a judge refused to unseal that search warrant.
The DA initially requested it be sealed for 60 days so it doesn’t tip off any potential targets or embarrass anyone who may not ultimately face charges.
He also indicated that some of the cooperating witnesses fear retaliation.
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