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Vendors penalized $9M for gifts to state officials

HARRISBURG— Four suppliers of alcohol to Pennsylvania’s state-owned system of liquor stores have agreed to pay about $9 million in penalties for providing gifts to liquor agency officials, federal prosecutors said Thursday.

The U.S. attorney’s office in Harrisburg said the vendors, in turn, will not be prosecuted.

A state ethics investigation ended the gift-giving practice 2012.

U.S. Attorney for the Middle District of Pennsylvania Bruce Brandler said the decision to accept the payments rather than prosecute factored in the cooperation of the companies in the investigation and the “historic nature” of the gift-giving.

The board’s former marketing director was convicted of fraud in 2015 after being accused of accepting golf trips, gift cards, meals, sports tickets and other benefits from vendors over 10 years. James Short Jr. awaits sentencing.

In 2014, Short and two other former top officials at the control board had to pay the state thousands of dollars for various gifts, such as dinners and golf trips, they accepted from alcohol marketers and others.

The Liquor Control Board’s former chairman Patrick Stapleton III, chief executive Joe Conti and Short violated the ethics law when they did not report accepting the gifts, the ethics commission said.

Under a consent agreement issued by the ethics commission, Short had to pay the state $13,586, Stapleton $7,258 and Conti $2,388.

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