Criminal charges for former executives of shuttered midstate energy business

(Lancaster) — Two former executives of a now-shuttered midstate energy company are facing criminal charges related to misuse of company funds.

Northern Lancaster County Regional police have arrested former Worley and Obetz CEO Jeffrey Lyons and controller Karen Connelly for allegedly using company money to cover over $1 million of Lyons’ credit card debt.

The Manheim-based residential heating and cooling business closed its doors in June, amid allegations of fraud. About 250 workers lost their jobs.

The Lancaster County District Attorney’s office said Connelly told police payment of the credit card debt was part of a “package deal” for Lyons. Company owners Seth and Robert Obetz said there was no such arrangement.

The district attorney’s office said the money covered plane tickets, online shopping purchases, gym memberships, home projects, spa services, and college costs for a relative, among other costs.

Lyons, 57, is charged with six felonies: five variations of theft and dealing in proceeds of unlawful activities, a first-degree felony. Connelly, 64, is charged with two felonies: dealing in proceeds of unlawful activities and conspiracy to commit theft.

Police alleged Connelly had an inflated salary, authorized by Lyons. She also had her home heating paid for by the company, even after her retirement in 2016.

The district attorney’s office said the misuse of funds were recorded in company paperwork as “cost of goods.” The company CEO and controller were the only individuals with such access to company funds, meaning the conspiracy did not have to go beyond Lyons and Connelly.

The investigation is ongoing.