2009-2011 Pennsylvania Liquor Control Board Out of Control

In 2009, the PLCB launched a plan to sell wine from vending machines at grocery stores. After just over a year, the program ended at the suggestion of the Auditor General thanks to poor sales, mechanical problems, and public scrutiny. The roll out of this nutty idea was at the behest of Ira Lubert and Herbert Vederman who were Rendell campaign donors. Vederman gave Rendell $346,276, including a $100,000 lump sum in 2002. Mr. Vederman also served as the governor's campaign finance chairman. Meanwhile, his business partner, Ira Lubert, gave Mr. Rendell $140,980 in that time period.

• March, 2009: Battered by PR missteps, in March, 2009 the LCB announced it would spend $170,000 on charm school for its employees. Mr. Conti said, “This is part of the renaissance of the Liquor Control Board. The point is to become a specialty retailer and not be known as a government monopoly.” Harrisburg good-government activist Eric Epstein calls the idea "a demented interpretation of happy hour." He says it's "a sad state of affairs when you have to train people to be kind and courteous."

• May, 2009: The LCB decided to roll out a $142,000 advertisement inviting family members to get Mom drunk on Mother’s Day. “Treat her to the perfect Mother’s Day cocktail this year. Try a Mother’s Kiss mixed drink, made with equal parts strawberry kiwi vodka and lemonade.”

• 2010-2011: Wine & Spirits lured former CEO Joe Conti away from his full-time job and persuaded him to join the 2010 Pro-Am Tournament. The deal included a photo book, shirts, food and beverages, and other gifts. Mr. Conti's ticket was provided by Bacardi.

Another PLCB client gave Mr. Conti a bottle of Johnnie Walker Blue whiskey with a message on the $300 bottle that read: “to the Super CEO.” Former LCB Board Chairman P.J. Stapleton hosted the Keystone Weekend which featured thousands of dollars in free booze, courtesy of PLCB vendors.

Mr. Stapleton played in pro-am golf events in 2010 and 2011 paid for by vendors. He also accepted gifts.

Merchandising director James H. Short Jr. also feasted at golf outings, including an August 2010 trip to Pebble Beach in California. W.J. Deutsch, a wine and spirit marketer, paid his tab. In another instance, Short accepted a round of golf from Southern Wine and Spirits while on state time.

Capital Wine & Spirits provided Mr. Short with six bottles of wine and a bottle of bourbon while vacationing on Hilton Head Island in June 2011. The State Ethics Commission documented a culture at the LCB where executives accepted gifts from vendors and failed to disclose the perks. But the SEC did not disturb a single vendor's contract, and the gift recipients were allowed to keep their pensions.

The state Ethics Commission found that three former officials from the Pennsylvania Liquor Control Board violated state law when they accepted lavish gifts and golf outings from vendors doing business with the agency.