Developer says he told Dougherty not to pay

Peter DePaul said the labor leader and state Senate candidate had repeatedly offered rent for staying at the Dockside luxury apartments.

April 13, 2008|By Craig R. McCoy, Inquirer Staff Writer

Developer Peter DePaul said yesterday that labor leader John J. Dougherty had repeatedly asked to pay rent during his temporary stay at DePaul's luxury apartment building, but that he had rebuffed the top union official.

"I didn't charge him. He wanted to pay me. I told him it wasn't necessary," DePaul said in a telephone interview.

Federal authorities investigating Dougherty have been looking into his stay at DePaul's Dockside apartment building on Penn's Landing, focusing on whether the labor leader truthfully reported the length of his stay on an official disclosure form, according to sources familiar with the matter.

On the form, labor leaders must declare gifts they receive from employers of union workers. Dougherty said he had stayed "10 or 20 days."

DePaul said Dougherty originally had asked him to rent a place at Dockside for two or three months. DePaul said he didn't know how long Dougherty had ended up staying, and had told federal authorities that.

Dougherty is one of three candidates seeking the Democratic nomination for the state Senate seat being vacated by Vincent J. Fumo, who is facing a September trial on corruption charges.

Frank Keel, a spokesman for Dougherty, declined to comment Friday and did not return a telephone call yesterday seeking comment. Dougherty has said the federal investigation - said by sources to be exploring several potential tax and labor-law crimes - would find no wrongdoing on his part.

DePaul responded yesterday from Florida to messages left at his office and home on Friday. He said he had testified in February before a federal grand jury about providing Dougherty with the free apartment.

According to DePaul, he thought federal investigators had dropped the apartment matter because they first asked him about it two years ago and hadn't followed up.

When he was called before the grand jury, DePaul said, "I was shocked."

Dougherty said on his disclosure form that he had stayed at Dockside in 2005. At the time, his wife was recovering from a stroke, and they were having their Pennsport home extensively renovated.

DePaul said Dougherty had first asked about renting a unit at the Dockside in October or November 2004, saying he would pay rent. DePaul said he would not take any payment.

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