Politically connected electrician charged

June 26, 2007|By John Shiffman, INQUIRER STAFF WRITER

A Philadelphia electrical contractor was charged Tuesday with stealing $869,000 from a union benefits plan, bribing a bank executive, and "making illegal payments" to labor leader John J. Dougherty.

These "illegal payments," authorities said, included the sale of a house to John Dougherty for $24,000 below market value and $115,000 worth of electrical work on the labor leader's Philadelphia home.

Dougherty was not charged with a crime, but U.S. Attorney Patrick L. Meehan said that the case remains open and that the related transactions "are still of great interest to investigators."

The labor leader, one of Philadelphia's most powerful politicians, said later that he was "very comfortable with all the transactions" he had with the indicted contractor, Donald "Gus" Dougherty, a longtime friend who is no relation.

At a news conference, Meehan called the transactions between the two men "sweetheart deals," but he deflected reporters' questions about John Dougherty.

"Today . . . we are focusing on the conduct on the part of the contractor himself, and not making any specific comments on the union officials," Meehan said.

In fact, John Dougherty's name does not appear in the Gus Dougherty indictment. He is, instead, referred to only as "International Brotherhood of Electrical Workers Local 98 Official #1." Sources confirmed that "Official #1" is John Dougherty.

The 100-count grand jury indictment charges Gus Dougherty with making false statements, stealing union benefits, making unlawful payments to union officials, bank bribery, tax evasion and filing false tax returns.

If he is convicted, the advisory federal sentencing guidelines call for a term of 41 to 51 months, said Assistant U.S. Attorney Anita Eve.

Gus Dougherty's lawyer, Nicholas J. Nastasi, said that his client would surrender to the authorities Wednesday or Thursday.

"Mr. Dougherty is ready to face these charges, ready to get this behind him, and anxious to return full time to supporting his wife, his two children," Nastasi said. "This sounds like a white-collar case, but this is really a blue-collar guy."

Nastasi declined further comment and said he would address the charges in court.

According to the indictment, between 2001 and 2005, Gus Dougherty stole more than $869,000 from an IBEW employee benefit plan while maintaining an "under-the-table" cash payroll of more than $2.6 million.

1 | 2 | 3 | Next »
|
|
|
|
|