A group of conspirators schemed to deceive Luzerne County officials into redirecting $581,037 in opioid settlement funds, according to a lawsuit filed in county court.
County council allocated the funds to Always Believe Recovery in December. The company wanted to open a drug and alcohol detoxification and recovery center with 100 beds in a former assisted living facility in Wilkes-Barre, the former Riverview Ridge at 300 Courtright St.
Last month, council redirected the funds to True North Recovery of NEPA because Always Believe Recovery “changed its legal operating name,” the council resolution said. The lawsuit alleges Always Believe Recovery changed its name in February to True North Recovery LLC and claims True North Recovery of NEPA LLC is a “fraudulent entity” created in April.
“Adding just two words — ‘of NEPA’ — created a nearly identical entity name designed to confuse third parties, particularly government agencies disbursing funds,” the suit said. “This naming strategy exploited the likelihood that busy government administrators might not notice the subtle difference when processing paperwork.”
Cynthia A. Bellino, a Carbondale resident, and True North Recovery LLC are plaintiffs in the lawsuit filed Friday. Bellino alleges “a coordinated effort to bypass her ownership rights” and claims “an entirely separate company” was created to “completely exclude her participation.”
True North Recovery of NEPA LLC didn’t “disclose that Ms. Bellino had been excluded from the new entity” and “didn’t disclose the ongoing legal disputes over management and ownership,” the suit says.
Lawrence Moran, managing partner of True North Recovery of NEPA LLC, said Bellino’s allegations “are provably false and wholly disputed” and her lawsuit “looks like her attempt to do an end run around an active and ongoing lawsuit in Lackawanna County.” Moran said he and his partners filed a suit months ago in Lackawanna County to confirm a decision “to no longer be in business with her.”
Moran added “there was a decision made the change the operating company” because Always Believe Recovery was a Delaware entity that “wasn’t in good standing.”
“It was everybody’s preference, the partners and the regulators, to use a Pennsylvania company, the lenders. It was actually a lender driven decision,” Moran said.
The drug and alcohol detoxification and recovery center on Courtright Street is expected to open by Sept. 1 and is acquiring licenses to open, Moran said. The building purchase cost $3 million, and building renovations cost $2 million, Moran said. The center will also have 100 employees.
The Luzerne County funding comes from the county’s share of settled litigation over the opioid epidemic. Luzerne County expects to receive $25.3 million over 18 years from the state’s settlement trust and now has approved more than $3.2 million in fund expenditures.
The project at the former Riverview Ridge at Courtright Street also received a $1 million state grant through the Wilkes-Barre Industrial Fund. Moran said his company has not received any government funding yet because the funds will be reimbursements once the recovery center is operational.
Bellino is seeking from than $2 million in damages and injunctive relief prohibiting “further deceptive practices in the government grant procurement process.”
Luzerne County was not named as a defendant. County Manager Romilda Crocamo said Tuesday she had not seen or read the lawsuit and noted the county has not transferred any funds to any entities involved in the planned recovery center.
The defendants listed in the lawsuit are: Moran; The Joyce, Carmody & Moran law firm in Pittston; Nicholas Colangelo of Shavertown; Christopher Gilchrist of Jenkins Twp.; Matthew Haley of Greenfield Twp.; True North Recovery of NEPA LLC in Moosic; Ashburn Advisors LLC in Moosic and company principals Christopher Cawley and Paul Colarossi; and David Enslin of Clarks Summit.
Bellino, Moran, Gilchrist, Colangelo and Haley executed an operating agreement for Always Believe Recovery in July 2024, with each holding a 20% ownership interest, the lawsuit said. Bellino is represented by attorneys Erik Roberts Anderson and Sean C. Campbell of McNees Wallace & Nurick LLC in Harrisburg.