Metra chief Pagano gave no answers on unauthorized cash
The investigation that preceded Metra Director Phil Pagano's apparent suicide-by-train will continue, officials say, as the mystery persists over why he allegedly took unauthorized payments now estimated at about $100,000.
"The investigation has to continue because we are talking about taxpayer dollars," Metra spokeswoman Judy Pardonnet said Saturday.
The original allegations against the 20-year head of Metra stemmed from questions about payments of $56,000 for unused vacation time.
But in the week leading up to Pagano's death, the internal Metra investigation mushroomed into county and federal probes of the agency that runs Chicago-area passenger trains.
Now, a source close to the investigation says, it is clear Pagano obtained about $100,000 in payments through at least three separate checks.
The legal questions surrounding those payments include whether he forged the Metra chairwoman's signature on the authorizations and whether some of the money was for vacations he hadn't yet earned, the source said.
Pagano was questioned about the checks days before his death on Friday and admitted he took the money, but the source said that when he was asked by attorneys if he wanted to divulge any personal issues that led him to need cash, Pagano responded, "No."
Pagano's salary was $269,600 a year.
Arlington Heights Mayor Arlene Mulder, who is on the Metra board of directors, told the Daily Herald Pagano knew what he did was wrong. But, she said, allegations that the problems went beyond his vacation advances were unfounded.
Still, whether the probe of wrongdoing will go beyond Pagano remains unclear.
While the Cook County state's attorney and federal agencies are also investigating, Pardonnet said Saturday "there is no official investigation into any other employees or actions."
She said Metra is continuing to cooperate with the outside investigations.
U.S. Sen. Dick Durbin, while expressing condolences for Pagano's family, said Saturday he believes the Federal Transit Administration should continue the inspector general review of Metra that he requested. The Illinois attorney general's office has requested a copy of Metra's final internal investigation report, but whether it will intervene given Pagano's death is undetermined, spokeswoman Natalie Bauer said.
Metra board members gathered at the agency's downtown headquarters Friday morning to hear a preliminary report on the allegations and potentially to fire Pagano, who was put on paid administrative leave April 30 when the probe began.
But before they could convene an official meeting, the board members received word Pagano had stepped in front of an oncoming Metra train near his home in Crystal Lake just a few hours earlier.
Pagano - who had been personally involved with the fallout from dozens of suicides-by-train - was killed instantly, authorities said.
An autopsy performed Saturday showed Pagano, 60, died of multiple blunt force trauma, McHenry County Deputy Coroner Kim Bostic said. An official cause of death won't be made until test results are back in several weeks.
The source close to the investigation says Pagano must have felt he couldn't handle leaving the agency under allegations of theft after running Metra with a positive record for two decades.
Meanwhile, Metra is still likely to go forward with hiring an inspector general to review business practices and instituting oversight committees, Pardonnet said. The board is scheduled to meet on Friday, though that could change if it conflicts with funeral arrangements for Pagano, which are still unknown.
• Daily Herald staff writer Marni Pyke contributed to this report.
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<ul class="links">
<li><a href="/story/?id=379485">Funeral arrangements set for Metra chief <span class="date">[5/9/10]</span></a></li>
<li><a href="/story/?id=379387">Pagano death part of a disturbing trend? <span class="date">[5/9/10]</span></a></li>
<li><a href="/story/?id=379389">Officials say Pagano walked in front of oncoming train <span class="date">[5/8/10]</span></a></li>
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