Will Metra ever recoup Pagano cash?
The bankruptcy case involving former Metra Executive Director Phil Pagano’s widow is wrapping up even as questions remain about money he owed and wrongfully obtained from the agency.
Pagano killed himself in May 2010 by stepping in front of a commuter train amid an investigation into financial wrongdoing. It was later revealed he took $475,000 in improper vacation payouts among other irregularities. These included a suspect $64,500 in sick day and additional vacation time payments.
Despite a salary of $269,000 Pagano borrowed $838,816 from a secondary life insurance policy and a generous incentive plan, designed to encourage top executives to stay at the agency.
At his death, he owed Metra $127,000. That debt is still being negotiated between the agency and Pagano’s estate.
Pagano’s widow, Barbara, filed for bankruptcy last year. Her husband had incurred about $200,000 in debts, including some hefty credit card bills, without her knowledge, attorneys said.
Adding to the mystery behind his suicide, it was revealed in bankruptcy court last year that Pagano had kept two households — one in Chicago and another in Palatine — in addition to his family home in Crystal Lake, according to a transcript.
So far, Barbara Pagano has received a life insurance policy for about $500,000 through Metra and is paid $6,538 a month or $78,463 a year in pension benefits. The pension benefits do not reflect the dubious vacation or sick day payouts, officials said.
Metra did have insurance against crimes and so far that has netted the agency $70,000, spokeswoman Judy Pardonnet said.
But that amount is a pittance compared to what the scandal has cost the agency. Freedom of Information Act requests to the agency indicate that it has spent about $2 million on consultants to investigate what went wrong and suggest safeguards, while misspending on Pagano’s watch comes to around $1 million.
Metra Director and Arlington Heights Mayor Arlene Mulder said the agency had paid the estate what it was required to by law. “As a board member, I’m not engaged in particulars. We did what we were supposed to do, no more and no less,” Mulder said.
“You learn a lot when something goes wrong. Sometimes you have to think about the unthinkable.”
Metra Director Jim LaBelle of Zion said the agency could recoup another $40,000 in tax-related funds.
“Our legal folks are pursuing whatever avenues they think are possible and hopefully it will get wrapped up soon. Sometimes it takes a while to get through the legal processes. We’re recovering what we can.”
Your voice
I love my In Transit readers. After writing about IDOT’s plans to fix congestion on the Eisenhower Expressway (good luck), the emails rolled in. Here’s some samples.
Bernard Wagner of Schaumburg wrote, “It’s so easy. Double-deck the road. You double the lanes right away, not a lane at a time. (You) don’t have to widen or buy property. We have the technology to prevent collapse. (You) only have to plow snow on the upper deck.”
Villa Park’s Walter Allen suggested, “With the high cost of adding lanes, which would not necessarily reduce congestion, I think the best solution is to construct an elevated, four-lane expressway with limited entrances and exits. Many of the vehicles entering at I-294 are headed to the Loop. Frames that span the tracks or hammerhead piers could support the structure with high-level bridges at the existing overpasses.”
And Mike Romanco in Naperville said, “OK, so we’ve barely spent anything in the past 50 years on one of the world’s most traveled, and most needed links for a massive population of 8 million. 170 options? Give me a break. They just need to spend money!
“Left-hand turns off the highway — eliminate them!
“Not enough lanes? Ever been out to California?
“Try building upward, and create a double-decker, where one set of lanes goes out, and the other in, and if you don’t want to build six lanes across on top, just build three or four, and change traffic patterns from one level to the other depending what time of day it is.
“The issue here is politics as usual for the city of Chicago, and surrounding suburbs. It has nothing to do with being able to ‘solve’ the problem, or not enough land or space. Nobody wants to pony up the money.”
You should know
We’re No. 41! Actually, it’s no cause for rejoicing because a study of all 50 states by GMAC Insurance found Illinoisans scored a 75.8 percent average in a test of driving knowledge. And 19 percent of Illinois drivers taking the test failed. First place went to Kansas while Washington, D.C., came in last (insert your own political jokes here). Of course, I have my doubts about the study since it finds men are better drivers than women, at least according to test scores. Males earned an 80 percent average compared to females with a 74 percent average. Comments? Send them to mpyke@dailyherald.com.
One more thing
Don’t even think about drinking and driving this holiday with nearly every unit of law enforcement from state police to dogcatcher out on patrol. The most deadly time of day during the Memorial Day weekend is from midnight to 2:59 a.m. with 96 people dying in 2010, according to state data.