The investigation of Phil Pagano
Citing a troubling lack of oversight and accountability, attorney James G. Sotos on Friday detailed numerous violations and irregularities carried out by former Metra Executive Director Phil Pagano at the expense of the agency. These include the following.
• Starting in 1990, Pagano, who died a week ago, sought regular payouts for unused vacation time. Metra policy states some vacation days can be carried over or converted to sick days. Only on "very rare circumstances" can they be cashed in. Officials said it was unknown whether Pagano had used those vacation days or not.
• From 1999 to 2006, Pagano received $250,000 by cashing out about 80 percent of his vacation days at the start of each year, regardless if he took time off or not, Sotos' report finds.
• From 2007 to 2010, Pagano obtained $225,000 by cashing out vacation days at the start of each calender year or in the preceding year. This includes seeking $57,000 for largely unearned 2010 vacation days in June 2009 and $57,000 in January for 2011 unearned vacation time.
• When Metra's chief financial officer questioned the June 2009 request, Pagano allegedly stalled him, then in January forged the signature of Metra board Chairman Carole Doris for both $57,000 requests. Sotos also contends the executive director forged Doris' signature on a document authorizing payouts of vacation. Doris became Metra chairman in summer 2006.
• Sotos also questioned the veracity of a document dated 2005 or 2006 in which former Metra Chairman Jeffrey Ladd authorized vacation payouts for unused time for Pagano as well as awarding him three extra weeks of vacation in 2000. There is no signature on the document and no copy of the original, Sotos said. As of this year, Pagano had accumulated 11 weeks of vacation.
• Metra offered incentives for Pagano and the former deputy executive director to stay with the agency in the form of a deferred-compensation plan to be accessed at retirement or age 60. Metra also provided a life insurance benefit. The value of both plans was about $1 million and Pagano borrowed $838,816. He owes the agency $127,000 but Metra staff said they were trying to find out if the difference could be made up through Pagano's pension. If any criminal convictions had occurred before his death, a clause in the pension could have resulted in forfeiture, an official said.
• Other irregularities include a $42,000 vacation payout because of an alleged human resources error, and a $21,500 sick day payout. The sick day payout program originally was intended to benefit just three executives including Pagano.