Even Closer Ties Seen Between Cop, Bus Co.

New details suggest that Harvard Police Lt. Lawrence J. Murphy is all but a partner in the bus company whose work he arranges and oversees for the University's Commencement and reunion activities.

The company, Cavalier Coach Corporation of Medford, Mass., has received the transportation contract for Commencement and the reunions for the last six years. There is no competitive bidding for the Harvard contract, which is worth an estimated $125,000 a year to Cavalier.

Murphy, who says he decides what bus companies to employ for reunions, has repeatedly understated the extent of his role in Cavalier. In an interview last May, Murphy said he had no financial or personal ties to the company.

But later in the year, Murphy was forced to acknowledge that he is involved with the financial maintenance of Cavalier. The lieutenant is authorized to sign paychecks for company employees, and he holds an American Express Corporate Card in Cavalier's name.

In addition, Murphy acknowledged being a close personal friend of Cavalier' owner, Joan Libby. The two have vacationed together in Florida, and The Crimson observed Murphy entering Libby's home on two consecutive evenings last fall. Murphy said he visited Libby to console her following the death of her mother.

In making these admissions, Mur- phy said he was acting as little more than afriend of the company. He said he only had thecredit card and check-signing power in caseanything happened to Libby.

But in interviews over the past month, Cavalieremployees, owners of other bus companies andentrepreneurs who have hired the company have saidMurphy is involved with nearly everything Cavalierdoes.

Murphy, sources say, shows up at the Cavalieroffice throughout the year, and his work is notlimited to helping in the planning of Harvardactivities, as the lieutenant insists. Heorganizes bus schedules, meets with clients andreceives mail at the company's Medford office. Histwo children have even done work for the companyaccording to a source.

Murphy has also traveled on behalf of thecompany, twice attending the annual United BusOwners of America convention with Libby. Murphysaid in January that he would have joined Libbyfor this year's convention in San Antonio, but hewas ill.

Libby, in a phone interview last week, saidMurphy has never had any relationship with hercompany.

"Lt. Murphy has absolutely nothing to do withCavalier," Libby said.

She said the matter had been investigated byauthorities, but declined to comment further.

Harvard officials maintain there is nothingwrong with Murphy's ties to Cavalier because thebus company has provided excellent service. VicePresident and General Counsel Margaret H. Marshallhas said that the arrangement does not violateHarvard's policy on conflicts of interest.

"There are many reasons why institutions orparts of the institution use vendors on a repeatedbasis," Marshall said last fall. "Excellence ofservice is one. Price is another. Reliability is aa third."

Murphy declined to comment last week. "I'veanswered all those questions for you," he said."and I don't think we have to go back into thatagain."

But it's not hard to find examples ofMurphy's close ties to the company. Take, forexample, his involvement with one contract thathas absolutely nothing to do with Harvard.

The Boston Athletic Association, a privatenon-profit group which organizes the BostonMarathon every April, hired Cavalier last year tohelp with the marathon.

In doing so, the association picked Cavalierout of several companies who had bid to transportabout 10,000 runners to the starting line and pickup those in need of medical attention. Thecontract is worth an estimated $25,000 to Libby'scompany.

"We put out bids each year," says DavidMcGilvrey, technical coordinator for the marathon."We retained Cavalier last year for the firsttime."

This year, McGilvrey, who is in charge ofbusing for the marathon, decided to renew theassociation's contract with Cavalier without abid--just as Harvard has done for the past sixyears.

"We felt that Cavalier was the bus company ofchoice," McGilvrey says. "So this year, we didn'tsee the need to go through the bidding process."

One big reason McGilvrey decided to keep thecontract with Cavalier is Lt. Murphy.

Despite the fact that the marathon has nothingto do with his job at Harvard, Murphy takes timeon weekdays to meet with McGilvrey to plan thebusing for the marathon.

"Larry has attended just about all themeetings," McGilvrey says. "And he has personallybeen extremely helpful to me. He'sdetail-oriented, and loquacious. He's willing tolet you know."

"We work hand-in-hand, Larry and me," he says.

Libby has refused to answer anyquestions about how her company operates. But inconversations with Cavalier employees and otherbus owners, Libby portrays herself as a successfulentrepreneur who built a business virtually fromscratch.

"I entered the transportation industry over sixyear ago," Libby wrote to regional bus owners whenshe ran last fall for a spot on the United BusOwners Of America board of directors. "As theowner of Cavalier Coach, I was faced with manyobstacles."

"I competed with large establishedtransportation companies, but I surmounted theseobstacles and utilized this intense competition todevelop my company. Today, Cavalier Coach isconsidered one of the most professional andwell-run companies in the Boston area."

That opinion is generally shared by area busowners--even those who dislike Libby's salestactics, which many say are overly aggressive.

"They are up-to-date; their drivers are good,"says one bus company owner, speaking on conditionof anonymity. "I've been on their buses, andthey're in good shape."

While some bus owners express outrage atHarvard's refusal to open bidding on theCommencement contract, other owners say theyunderstand the University's position.

"When you start with something so big [likeCommencement], sometimes it's better to stay withthe same company," says another bus owner. "Youhave to make sure that it's done right."

Libby wins contracts, owners say, by developingpersonal connections with entrepreneurs.

For example, Rosemarie Resnik, an associate forclasses and reunions at Radcliffe, is one ofseveral University officials who have defendedMurphy's arrangement with Cavalier.

In an interview late last year, Resnik praisedthe work Libby has done for Commencement andreunions. Resnik described herself as a "objectiveobserver" who did not know Libby personally.

However, sources say that Libby and Resnik havespent time together outside of work, includingexercising together on at least one occasion. Andstate licensing records show that Resnik testifiedon Libby's behalf five years ago when the Cavalierowner applied for a charter busing license.

While acknowledging that she testified forCavalier, Resnik denied last year that she knowsLibby personally.

Despite Cavalier's reputation for goodservice, the financial success of the company isanything but clear. Libby herself told a companyemployee last year that the business is notturning a profit, according to a source.

And questions remain about how the company wasfounded. Some suggest Murphy may have helpedcontribute.

Pressed at one point last year by an employeeabout the amount of time Murphy spends atCavalier, Libby said that Murphy had as much aright to anything at Cavalier as she did.

Cynthia Winterhalter, who with her husband ranthe Ashland-based bus company Big W Trans until itwent out of business in 1992, used to supply busesto Libby for Harvard's Commencement and reunions.

She said in an interview last week that Libby,who had worked for Commonwealth Bus Company, tookover the coach service division of that companyeight years ago. Richard Zimmerman, Commonwealth'sowner, held on to the school bus part of thecompany, Winterhalter said.

Winterhalter added that she does not know whatprecipitated the split between Libby andZimmerman. She said Libby used the coaches fromCommonwealth to start Cavalier.

Libby is not indepedently wealthy, and shelives in a modest home in Jamaica Plain. But shehas at least one friend who might have been ableto help back the new company.

That friend is Murphy.

While the lieutenant makes less than $90,000 ayear as a lieutenant with the Harvard police,department sources have insisted he has outsideincome.

Murphy owns at least three homes, according tosources and government clerks in three counties.

His home in Somerville, on a 2,800 square-footlot, is valued at $144,100, according to the cityclerk's office. Another Murphy home, on NewHampshire's Atlantic coast, is worth in theneighborhood of $80,000, according to countyrecords there. Murphy also may have a stake in acottage in southern Florida, sources say.

Questions about Cavalier's founding resurfacedrecently when Libby applied for statecertification as a woman-owned business. Suchcertification helps businesses win governmentcontracts designated for companies owned by womenor minorities.

The certification process is usually a simplematter of offering proof that at least 51 percentof the business is owned by a woman or minority.Libby has said she is the sole owner of Cavalier.

But an official at the state office of minoritybusiness held up Libby's certification for weeks,sources say, because the Cavalier owner could notaccount for how the company was founded.

One source says Libby told the state she hadstarted Cavalier with a $450 loan from her mother.

According to Lynn Wachtel, the executivedirector of the state office of minority business,Cavalier eventually won certification as awoman-owned business, Sources say documentssubmitted by Libby finally cleared up the matter.

Those documents were signed by a public notary.The notary's name?

Harvard Police Lt. Lawrence J. Murphy.

But in interviews over the past month, Cavalieremployees, owners of other bus companies andentrepreneurs who have hired the company have saidMurphy is involved with nearly everything Cavalierdoes.

Murphy, sources say, shows up at the Cavalieroffice throughout the year, and his work is notlimited to helping in the planning of Harvardactivities, as the lieutenant insists. Heorganizes bus schedules, meets with clients andreceives mail at the company's Medford office. Histwo children have even done work for the companyaccording to a source.

Murphy has also traveled on behalf of thecompany, twice attending the annual United BusOwners of America convention with Libby. Murphysaid in January that he would have joined Libbyfor this year's convention in San Antonio, but hewas ill.

Libby, in a phone interview last week, saidMurphy has never had any relationship with hercompany.

"Lt. Murphy has absolutely nothing to do withCavalier," Libby said.

She said the matter had been investigated byauthorities, but declined to comment further.

Harvard officials maintain there is nothingwrong with Murphy's ties to Cavalier because thebus company has provided excellent service. VicePresident and General Counsel Margaret H. Marshallhas said that the arrangement does not violateHarvard's policy on conflicts of interest.

"There are many reasons why institutions orparts of the institution use vendors on a repeatedbasis," Marshall said last fall. "Excellence ofservice is one. Price is another. Reliability is aa third."

Murphy declined to comment last week. "I'veanswered all those questions for you," he said."and I don't think we have to go back into thatagain."

But it's not hard to find examples ofMurphy's close ties to the company. Take, forexample, his involvement with one contract thathas absolutely nothing to do with Harvard.

The Boston Athletic Association, a privatenon-profit group which organizes the BostonMarathon every April, hired Cavalier last year tohelp with the marathon.

In doing so, the association picked Cavalierout of several companies who had bid to transportabout 10,000 runners to the starting line and pickup those in need of medical attention. Thecontract is worth an estimated $25,000 to Libby'scompany.

"We put out bids each year," says DavidMcGilvrey, technical coordinator for the marathon."We retained Cavalier last year for the firsttime."

This year, McGilvrey, who is in charge ofbusing for the marathon, decided to renew theassociation's contract with Cavalier without abid--just as Harvard has done for the past sixyears.

"We felt that Cavalier was the bus company ofchoice," McGilvrey says. "So this year, we didn'tsee the need to go through the bidding process."

One big reason McGilvrey decided to keep thecontract with Cavalier is Lt. Murphy.

Despite the fact that the marathon has nothingto do with his job at Harvard, Murphy takes timeon weekdays to meet with McGilvrey to plan thebusing for the marathon.

"Larry has attended just about all themeetings," McGilvrey says. "And he has personallybeen extremely helpful to me. He'sdetail-oriented, and loquacious. He's willing tolet you know."

"We work hand-in-hand, Larry and me," he says.

Libby has refused to answer anyquestions about how her company operates. But inconversations with Cavalier employees and otherbus owners, Libby portrays herself as a successfulentrepreneur who built a business virtually fromscratch.

"I entered the transportation industry over sixyear ago," Libby wrote to regional bus owners whenshe ran last fall for a spot on the United BusOwners Of America board of directors. "As theowner of Cavalier Coach, I was faced with manyobstacles."

"I competed with large establishedtransportation companies, but I surmounted theseobstacles and utilized this intense competition todevelop my company. Today, Cavalier Coach isconsidered one of the most professional andwell-run companies in the Boston area."

That opinion is generally shared by area busowners--even those who dislike Libby's salestactics, which many say are overly aggressive.

"They are up-to-date; their drivers are good,"says one bus company owner, speaking on conditionof anonymity. "I've been on their buses, andthey're in good shape."

While some bus owners express outrage atHarvard's refusal to open bidding on theCommencement contract, other owners say theyunderstand the University's position.

"When you start with something so big [likeCommencement], sometimes it's better to stay withthe same company," says another bus owner. "Youhave to make sure that it's done right."

Libby wins contracts, owners say, by developingpersonal connections with entrepreneurs.

For example, Rosemarie Resnik, an associate forclasses and reunions at Radcliffe, is one ofseveral University officials who have defendedMurphy's arrangement with Cavalier.

In an interview late last year, Resnik praisedthe work Libby has done for Commencement andreunions. Resnik described herself as a "objectiveobserver" who did not know Libby personally.

However, sources say that Libby and Resnik havespent time together outside of work, includingexercising together on at least one occasion. Andstate licensing records show that Resnik testifiedon Libby's behalf five years ago when the Cavalierowner applied for a charter busing license.

While acknowledging that she testified forCavalier, Resnik denied last year that she knowsLibby personally.

Despite Cavalier's reputation for goodservice, the financial success of the company isanything but clear. Libby herself told a companyemployee last year that the business is notturning a profit, according to a source.

And questions remain about how the company wasfounded. Some suggest Murphy may have helpedcontribute.

Pressed at one point last year by an employeeabout the amount of time Murphy spends atCavalier, Libby said that Murphy had as much aright to anything at Cavalier as she did.

Cynthia Winterhalter, who with her husband ranthe Ashland-based bus company Big W Trans until itwent out of business in 1992, used to supply busesto Libby for Harvard's Commencement and reunions.

She said in an interview last week that Libby,who had worked for Commonwealth Bus Company, tookover the coach service division of that companyeight years ago. Richard Zimmerman, Commonwealth'sowner, held on to the school bus part of thecompany, Winterhalter said.

Winterhalter added that she does not know whatprecipitated the split between Libby andZimmerman. She said Libby used the coaches fromCommonwealth to start Cavalier.

Libby is not indepedently wealthy, and shelives in a modest home in Jamaica Plain. But shehas at least one friend who might have been ableto help back the new company.

That friend is Murphy.

While the lieutenant makes less than $90,000 ayear as a lieutenant with the Harvard police,department sources have insisted he has outsideincome.

Murphy owns at least three homes, according tosources and government clerks in three counties.

His home in Somerville, on a 2,800 square-footlot, is valued at $144,100, according to the cityclerk's office. Another Murphy home, on NewHampshire's Atlantic coast, is worth in theneighborhood of $80,000, according to countyrecords there. Murphy also may have a stake in acottage in southern Florida, sources say.

Questions about Cavalier's founding resurfacedrecently when Libby applied for statecertification as a woman-owned business. Suchcertification helps businesses win governmentcontracts designated for companies owned by womenor minorities.

The certification process is usually a simplematter of offering proof that at least 51 percentof the business is owned by a woman or minority.Libby has said she is the sole owner of Cavalier.

But an official at the state office of minoritybusiness held up Libby's certification for weeks,sources say, because the Cavalier owner could notaccount for how the company was founded.

One source says Libby told the state she hadstarted Cavalier with a $450 loan from her mother.

According to Lynn Wachtel, the executivedirector of the state office of minority business,Cavalier eventually won certification as awoman-owned business, Sources say documentssubmitted by Libby finally cleared up the matter.

Those documents were signed by a public notary.The notary's name?

Harvard Police Lt. Lawrence J. Murphy.