Connect with us

Pennsylvania

David McCormick claims he created ‘hundreds of jobs’ in Pa. Records say otherwise

Published

on

David McCormick claims he created ‘hundreds of jobs’ in Pa. Records say otherwise


The merger

In June 2003, McCormick initiated discussions with Robert Calderoni, chairman and CEO of Ariba, a Palo Alto-based FreeMarkets competitor, about the possibility of a “strategic relationship of some form” and potentially a “business combination.” After more discussions, McCormick approached his board about the idea in September.

From the beginning, the company made clear its intent was to save money by reducing “redundancies,” including those resulting from duplicative jobs. According to SEC filings, FreeMarkets told its shareholders that a benefit of the merger would lead to “at least $25 million in annual potential cost savings, through the consolidation of redundant facilities, personnel and overhead.” Jim Frankola, chief financial officer for Ariba at the time, told analysts on a January 2004 conference call, “Of those savings, we anticipate approximately one-third to come from duplicative G&A functions, plus the one-half from redundant R&D efforts, and the remainder from other functions.”

Later that month, Michael Schmitt, Ariba’s executive vice president and chief marketing officer, told San Jose Mercury News that FreeMarkets would consolidate its headquarters into Ariba’s, with the companies trying to “eliminate redundant jobs.” That same day, the Pittsburgh Post-Gazette quoted an analyst saying it was likely “a lot of people in Pittsburgh will lose their jobs,” adding “that’s certainly what typically happens” with a merger.

McCormick told the Pittsburgh Post-Gazette, “There will certainly be redundant functions and consolidation of those functions.” In a July 2004 deposition regarding the merger, he told the court that job losses were expected “particularly in our technology development organization where our plan as part of the merged company is to eliminate that completely.” The next month, McCormick told Ariba shareholders what they “accomplished” leading up to the merger: “We have already eliminated 150 positions and have plans to eliminate another 100 positions over the next two quarters.”

Advertisement

Indeed, by the time the merger was complete, in July 2004, FreeMarkets had laid off or eliminated 150 positions. By December 2005, the combined company had reduced its workforce by an additional 100 employees, for a grand total of 250 lost jobs. At least 100 of those jobs were in Pittsburgh.

Calderoni defended McCormick in an interview with the New York Post, saying, “When we bought FreeMarkets, Dave insisted on keeping jobs in Pittsburgh. It really mattered to him as part of the transaction. In fact, he pushed for us to move jobs from California to Pittsburgh.”

It was a difficult time to run a startup tech company. The early aughts saw the bursting of a tech bubble that had grown during the late 1990s thanks to easy access to capital but started to pop in the early 2000s. As the Pittsburgh Gazette reported, the merger married “two unprofitable online business-to-business software and service firms that made names for themselves at the height of the dot-com boom, only to see their fortunes turn sour with the industry, forcing them to struggle to grow.”

McCormick wrote in his book that “creative destruction along with the bursting of the tech bubble eventually found its way to our sector as well.” However, he also admitted, “We didn’t move fast enough to become one of the true ‘software as a service’ companies that would eventually dominate the landscape. As CEO, I hadn’t built a team around me capable of evolving our business model quickly enough,” leading to the decision to merge with Ariba.

The merger, however, profited McCormick quite well. He became president of Ariba and a member of its board of directors, drawing $500,000 in annual salary, compared to the $350,000 he made at FreeMarkets, and was eligible for an annual bonus targeted at $300,000. He was also awarded 83,333 shares in Ariba, valued at $921,663, and 500,000 shares of stock options that had a potential realizable value between $3.4 million and $8.8 million. In September 2005, McCormick resigned as president of Ariba to work in the George H.W. Bush administration and received another $1,701,699 in severance.

Advertisement

McCormick spokesperson Elizabeth Gregory told WHYY News in a statement, “Dave is proud to have helped create hundreds of jobs in Western Pennsylvania during his time at FreeMarkets.”



Source link

Pennsylvania

Pa. man found guilty of raping teen girl who he took to Mexico

Published

on

Pa. man found guilty of raping teen girl who he took to Mexico


A Pennsylvania man was found guilty of repeatedly raping his daughter’s best friend over a three-year span before fleeing with the teen to Mexico.

On Thursday, March 5, 2026, Kevin Esterly, 53, of Whitehall Township, Pennsylvania, was convicted on all counts of rape, statutory sexual assault, involuntary sexual intercourse and endangering the welfare of children.

Esterly shook his head as the verdict was read but said nothing in the courtroom.

Resources for victims of sexual assault are available through the National Sexual Violence Resources Center and the National Sexual Assault Telephone Hotline at 800-656-4673.

Advertisement

Esterly’s trial began on Tuesday, March 3, after a judge denied his pretrial motion for the charges against him to be dismissed and for the Lehigh County District Attorney to be removed as a prosecutor in the case.

Both Esterly and his victim testified on Wednesday, March 4.

The victim — who is now 24-years-old — told the courtroom that she met Esterly and his family while attending church as a child and became best friends with one of his daughters. Esterly was a youth leader and elder at the church at the time. The victim said Esterly also coached her soccer team.

The victim said she became so close to Esterly’s family that she called his wife “mom” and eventually spent almost every weekend at their home in Lowhill Township, Pennsylvania. She also said she vacationed with them in New York state and Ocean City, Maryland.

The victim said Esterly first sexually assaulted her in August 2015 when she was 13-years-old after he gave her alcohol during a family birthday party.

Advertisement

“I was scared. Frozen in fear,” the woman told the courtroom on Wednesday. “I pretended I was sleeping.”

The woman accused Esterly of sexually assaulting her almost every time she slept over at his home. She told the courtroom she eventually became addicted to alcohol and drugs, which Esterly gave her in exchange for sex. According to the woman, Esterly gave her cocaine and methamphetamine to keep her awake during school because she “would be up with him all night.”

The woman said Esterly continued to sexually assault her until he was confronted by his wife in 2017. Esterly’s wife then threw him out of the house, according to the victim. She said Esterly continued to sexually assault her over the next year.

Esterly was later arrested and then sentenced to prison after federal agents found him with the victim in Playa del Carmen, Mexico, in 2018. She was 16-years-old at the time.

The woman said she moved on and went to college after Esterly’s sentencing though she still struggled with drug addiction. She said she sought counseling in February 2025. She told the courtroom she received a message from Esterly on LinkedIn that same month in which he apologized for “failing you as a person I was supposed to be for you.” At that point Esterly had been released from prison.

Advertisement

The woman said she had not told anyone about her relationship with Esterly up to that point and replied to him, “I live with our secret every day as I promised. I would appreciate an apology.”

The woman told the courtroom that Esterly responded by writing, “I hope one day you can forgive me. Nobody knows I reached out to you. That is the best for both of us.”

On Feb. 21, 2025, Allentown Police received a report of Esterly’s sexual assaults which led to the new charges being filed against him. He was arrested in West Virginia in June 2025 after two police pursuits. He was then extradited to Pennsylvania.

The victim told the courtroom on Wednesday that she kept quiet about Esterly’s abuse for years because she “was afraid to speak,” and felt “dirty and ashamed.”

“I wasn’t ready to tell anyone,” she said. “He was a father figure in my life. I loved him.”

Advertisement

The woman also said she didn’t want to hurt Esterly’s daughter who was her best friend.

When the District Attorney asked her why she was “here today,” she replied by saying, “I want to tell the truth. I want to be set free.”

The woman ended her testimony by saying, “I don’t want to live with this secret anymore.”

After her testimony, Esterly took the stand for 45 minutes, denied all of the accusations against him and accused the woman of lying.

Closing arguments then took place Thursday morning. It then took an hour for the jury of seven women and five men to reach their verdict.

Advertisement



Source link

Continue Reading

Pennsylvania

3 dead in apparent murder-suicide spanning from Pennsylvania to Illinois, police say

Published

on

3 dead in apparent murder-suicide spanning from Pennsylvania to Illinois, police say



Advertisement

Two women are dead in Pennsylvania and a man is dead in Illinois after an apparent murder-suicide, police said on Wednesday.

According to a report from the Pennsylvania State Police, the investigation began in Hillside, Illinois, when police there were dispatched after a man reported two women dead in Jackson Township, Pennsylvania. Police said that when officers got to Hillside, about 15 miles west of Chicago, they found that the man had died from a self-inflicted gunshot wound.

After identifying him, troopers said Hillside officers contacted police from Jackson Township to request a welfare check at the man’s home on Dior Drive, about 30 miles north of Pittsburgh. 

Map shows distance from Hillside, Illinois, to Zelienople, Pennsylvania

Advertisement

KDKA


Police said officers used forced entry to get into the home and found two women dead from apparent gunshot wounds. It’s believed the two women were family members of the man who died by suicide in Illinois, investigators said. 

Pennsylvania State Police said they’ve assumed control of the case and are “actively investigating” what happened surrounding the three deaths.

Police didn’t release any names, saying the process of formal identification and notification of next of kin hasn’t been completed. Sources told KDKA that the victims were a husband, wife and their daughter.

“At this time, investigators believe there is no ongoing threat to the public, and law enforcement is not searching for any additional individuals in connection with this incident,” police wrote in the public information release report. “This remains an active and ongoing investigation.”

Advertisement

State police didn’t release any other details on Wednesday but said more information will be made public when it’s available.  

“My first reaction was shocked because this is such a close-knit neighborhood, and to think something that horrible could happen here is very tragic because they were such a good family,” neighbor Danielle Sporer said on Wednesday. 



Source link

Continue Reading

Pennsylvania

Top Pennsylvania 2027 quarterback enrolls into Coatesville (Pa.)

Published

on

Top Pennsylvania 2027 quarterback enrolls into Coatesville (Pa.)


One of the top 2027 Pennsylvania high school quarterbacks from the 2025 season has announced that he’s leaving for a new home.

Per an announcement by Class of 2027 signal caller Mikal Shank Jr., the quarterback has left Harrisburg (Pa.) and is now at Coatesville (Pa.) for his senior season. Shank Jr. last season started 14 games for the Cougars and is arguably one of the state’s top returning players behind center heading into the 2026 campaign.



Source link

Continue Reading
Advertisement

Trending