Herald - Lantern - Dispatch 25 September '85 29

/Jlg^NEWS INI/ DIGEST '7/ Ul / The w'eek's II II j I Top Stories (From Page 4) Happy Halloween RIO GRANDE — A rent hike dispute at Grande Woods South Mobile Homes Park appears headed for the courts. The owners increased rent $20 a month July 1. About 200 of the 250 tenants refused to pay and are putting the hike in an escrow account. Now the owners have sent eviction notices effective Oct. 31, but they say no one will be thrown out. It's a necessary step to get the dispute in front of a judge, they claim. Manipulation AVALON — Rev. Robert W. Scott resigned as chairman of the borough's Board of Ethics last Thursday and recommended the board be abolished because "the opportunities to manipulate its function for political maneuver are too great..." Scott is pastor of the church Mayor Rachel Sloan, object of a recall movement, attends. Her opponents have asked the board to probe a meeting at Sloan's house which the county Prosecutor found did not violate the state Sunshine Law. Too Late NORTH WILDWOOD - Stymied by a state ban on new construction because the city's sewage treatment plant is overloaded, the 75-member Holly Beach Builders' Association last week offered to pay for water-saving devices in older buildings. But a DEP official said even substantial water consumption reductions would not suffice. A new, regional plant is to be operating by the summer of 1988. Women to Elect COURT HOUSE - The county's threemonth old Advisory Commission on the Status of Women will meet at 7 tomorrow night in the county library building's public meeting room. Officers will be elected and reports heard on workshops attended at a recent statewide roundtable conference of women's commissions. Public is invited. Lawyers' Delight OCEAN CITY — The city's fight to restore invalidated Blue Laws has contributed to an anticipated deficit of $30,000 in the legal contigencies fund. City Treasurer Donald Hart said most of the $60,000 in the fund has been spent, and legal expenses of $31,415 are yet to be paid. Hart said $14,028 of the amount was spent doing Blue Law research. And City Solicitor Gerald Corcoran, who is paid $65 an hour, projects expenses of $10,000. The cost of a new zoning ordinance and legal fees spent to defend the city against tax appeals are other factors. Fire Damages Hotel WILDWOOD — Firemen from three communities battled a fire that did an estimated $100,000 damage to the Dorsey Hotel on Montgomery Avenue early on Sept. 17. Two adults and a child were evacuated from the structure which was closed for the season. Firemen from Wildwood, Wildwood Crest, and North Wildwood extinguished the blaze. The Smell of Success BURLEIGH — After many a summons, comes the variance. That's what Golden Crust Bakery received from Middle Township Zoning Board last week after months of complaints about noise and odor. Complainant Be mice Phillips and bakery owner John Kwasneski both received summons during the hassle.

State Blots Tots AVALON — Tighter state regulations for pre school youngsters have put the borough recreation department's Tot Shop program out of business. The program was deemed a success although only half the children were from Avalon. To meet the new state requirements would have been too costly, recreation director David Haberle said. They included: a fire suppression system, door modifications, smoke detectors, additional teacher training, more insurance and additional administrative work, he said. Payroll Blues WILDWOOD — Council President Ed Herman, who campaigned on a program of eliminating wasteful spending, said council intends to freeze its own pay, cut two solicitors a total of $17,000, hike the city clerk 4 percent to $35,800 and the tourism director $2,000 to $26,000. The proposed salary ordinance was due for more deliberations at 1 today. Interest focuses on the $40,000 salary of Business Administrator Marc Pfeiffer. Mayor Victor Di Sylvester charged the solicitor cuts and threats against Pfeiffer really were aimed to him. Council, Mayor, At Odds WILDWOOD — City Council and Mayor Victor Di Sylvester are feuding over the fees of Department of Law Director Charles Henry James, and the performance of Business Administrator Marc Pfeiffer. Council is currently trying to cut salaries. Di Sylvester thinks the attack of Pfeiffer is aimed at forcing top level changes in the public works department. A Tough Sell WILDWOOD CREST - Mayor Frank McCall is trying to sell voters on replacing the old Crest Pier with a new community center which has a price tag of $2 million, and could result in a tax increase. Voters will ballot on the center in November. But the city has authority to build and finance it without voter approval. Build Or Pay TUCKAHOE — Developers will have the choice of either constructing underground water reservoirs, or paying into a fire safety fund which will be used for the same purpose under two ordinances proposed by the Upper Township Planning Board. Mayor Daniel Beyel said most builders will opt to build the systems instead of paying into the fund. A public hearing on the ordinances will be held on Oct. 28. Holding the Ax COURT HOUSE — "Let me be the ax. at least in the beginning." Chuck Kline, county MUA construction manager for its Middle/Seven-Mill Beach sewerage project. asked Middle Township Committeemen last week. He was responding to Mayor Michael Volls's concern about Cruz Construction Co. It started laying 14-inch pipes in Crest Haven earlier this month and is scheduled to complete the $14 million job. with seasonal delays, in July 1987. "The contractor (Cruz) is obligated for restoration" of damaged property. Kline said. I n. Classified | X. • Page 1 ; 50° : I OFF \ I . X!

Houghton-owned 5911 Pleasure Ave. in Sea Isle City. °°r" Word

7 Charged With Insurance Scam

By E.J. DUFFY SEA ISLE CITY - Joseph and Donna (Livoy) Houghton, owners of 5911 Pleasure Ave., could lose that expensive beach block property here if convicted on 43 counts of mail fraud. Arrested by U.S. postal authorities Thursday, the couple and five others were indicted on those counts last Wednesday in connection with an alleged 10-year scam that reportedly bilked more than $1 million from 22 insurance companies. Each of the defendants was also indicted by federal grand jurors in Philadelphia on two counts of fraudulently transporting insurance checks between New Jersey and Pennsylvania, according to U.S. Postal Inspector Anthony Wolchasty. Besides Joseph, 42. and Donna Houghton, 40, the grand jury indicted her father, Frank Livoy, 65, and her sister, Lynda Livoy, 36, both of Collingdale. Delaware County. Pa. . John, 43, and Kathleen Cassidy, 37, of Bensalem, Bucks County. Pa.; and Nancy Cohan. 23, of Norristown, Montgomery County, > Pa., Wolchasty reported. HE SAID THE Houghtons were arrested in Montgomery County at their $200,000-plus home in Plymouth Meeting. They face additional charges. Wolchasty added, for harassing and tampering with a federal witness. According to the indictments. he continued, the seven defendants since 1975 have staged automobile accidents and fabricated injuries using aliases and false identifications. They allegedly falsified insurance claims, forged checks, and lied to insurance investigators, medical personnel, lawmen and the grand jury. The indictments also charge, Wolchasty said, that the defendants used the reputed scam money to buy expensive homes, cars and boats for enticing others into their purported schemes. "If convicted," the postal inspector said, the defendants would be sentenced to the following prison terms and fines: Joseph Houghton, 236 years and $88,000; Donna Houghton. 103 years and $51,000; Frank Livoy, 90 years and

$34,000; Lynda Livoy. 50 years and $26,000; John and Kathleen Cassidy each 60 years and $28,000; and Nancy Cohan, 45 years and $25,000. Asked if they could also forfeit any property they acquired in the commission of a crime, Wolchasty replied: "That's a good question (but) I don't even want to speculate on that." , He fielded the question to Assistant U.S. Attorney Thomas Rueter. He said the defendants aren't likely to lose property through forfeiture, as in drug cases, but could through a "new fine provision." A judge. Rueter noted, could order them to pay fines that are double the value of what they purportedly took in ($1 millionplus) through the allegedly fraudulent dealings, and/or pay restitution to the 22 insurance companies they reportedly victimized. Therefore, the defendants might have to sell any ill-gotten property to meet the court-ordered payments. In a separate grand jury indictment last week, Wolchasty said. Donna Houghton, her father. Frank, sister, Lynda, and mother, Elizabeth Livoy, 61. was charged with 12 counts of mail fraud. They're accused of submitting false applications to the Pennsylvania Department of Welfare between August 1979 and

March 1981 to acquire public assistance checks and food stamps. Wolchasty said. If convicted on those counts. Frank and Lynda Livoy face $12,000 fines and 60 years behind bars; Elizabeth Livoy faces 2 40-year term and an $8,000 fine while Donna Houghton faces a 20-year sentence , and a $4,00% fine, the postal inspector added. He said postal inspector? conducted investigations on the cases based on infor- •» mation from the Pennsylvania Insurance Depart ment and the Insurance Cri'me Prevention Institute. ACS Board Members RIO GRANDE -The executive board of the Cape May County Unit of the American Cancer Society has been announced for 1985-86. with Dr. Robert G. Beitman. M.D.. as president and Mrs. Kathy Plousis as chairman of the board. Other members are: President-elect and division medical delegate. Dr. Shah Chaudhry. M.D.: Executive committee chairman. Mrs Doris E. Menz; vice presidents. Nevin Wampole and Miss Jane E. Friel; treasurer. Miss M. Jane Vance; secretary. ■ x

Li IL J wm . BRIDAL COUPLE — Newlyweds Mr. and Mrs. Thomas W. Bigbam Jr. (she is former Theresa J. McCarrigle) afler they were married recently by Mayor Robert' Fothergill of Lower Township. Bridgegroom is son of Mr. and Mrs. Thomas Bigbam. North Cape May. Bride is from Miami Avenue. Villas. Reception was at Menu Restaurant, Rio Grande.