Feb.19, 2010

A retired Scranton accountant testified Friday in federal court at the money laundering trial of Scranton businessman Joseph P. Donahue that he was stunned when he received a notice from a bill collector regarding a bank account he had never opened.

Dominick Georgetti said his suspicions turned to Mr. Donahue after he saw a copy of the application for the "merchant account" that bore his signature and listed Mr. Donahue's name as a reference. Merchant accounts allow businesses to accept payments by debit or credit cards.

Mr. Georgetti told assistant U.S. Attorney Gordon Zubrod that the signatures on the documents were not his and that he had not authorized anyone to sign his name or open an account on his behalf.

Referring to a computer enlargement of the document, Mr. Zubrod pointed out that the application bearing Mr. Georgetti's signature had been sent from Mr. Donahue's fax line.

Mr. Georgetti said he contacted Mr. Donahue and asked if he had opened the account.

"He said he couldn't remember," Mr. Georgetti said.

He said Mr. Donahue later sent a letter to his son, Paul Georgetti, explaining why the account had been opened. Paul Georgetti is expected to testify Monday.

Several other prosecution witnesses have testified that Mr. Donahue ran up expenses they were liable for by using their names and personal information to open bank accounts, secure financing and get credit cards.

Mr. Donahue was indicted on money laundering, among other charges. His lawyer, Phil Lauer of Easton, has said Mr. Donahue was trying to run profitable businesses that later failed, not trying to scam people out of money.