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Posted: 7:19 p.m. Tuesday, Feb. 26, 2013
By Maria Miller
JOHNSTOWN, Pa. —
It's a story 6 News has been closely following: The Johnstown Redevelopment Authority announced Monday the firing of long-time executive director Ron Repak.
The authority said he pocketed more than $130,000 from Conemaugh Health Systems while operating under a fictitious company, Diversified Development Technologies.
But what is a fictitious company? 6 News reporter Maria Miller found out it doesn't exactly mean what you think it may imply.
When you think of the term fictitious, you think of false or made up, but when it comes to interpretation by state officials, it can be any company operating under a different name. And in this case 6 News found out Repak's company was legitimately registered.
"A fictitious name is any name other than the individual or entity's proper name and the type of business in which they are engaged," said Ron Ruman, spokesperson with the Pennsylvania Department of State.
6 News found DDT was registered with the Department of State in 2003 but its owner and address are listed as K.U. Resources, a consulting firm near Pittsburgh.
6 News wondered why any company would want to operate under a separate name. Ruman has no prior knowledge of this case but offered this comment: "If for whatever reason, the business that's being conducted under the new company or new business, it's seperate from the overall work of K.U. Resources, then they would have to register that as a seperate business entity."
The names of three men are listed as officers under K.U. Resources, the principal being Mark Urbassik. 6 News confirmed he's from the Johnstown area and is friends with Deb Walter, the woman JRA said worked closely with Repak. She resigned from her post on Monday.
It all raises another question: if the fictitious company engages in some sort of wrongdoing, is the parent company held responsible too?
"If there's a different individual that's ultimately running this company and they're doing something that the folks at the parent company don't have any involvement with and don't know about, then they would have to make that case to authorities," said Ruman. "I'm sure if they could do that then they wouldn't be responsible."
Ruman said the Department of State does conduct investigations into companies who are reported to them but he could not confirm if they are looking into this particular case.
The redevelopment authority told 6 News tat state and federal authorities are not finished with their investigation.
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