FBI and IRS agents raid three prominent Philadelphia political players

A federal probe into campaign spending and two publicly funded nonprofits led Wednesday to raids on the offices of State Rep. William F. Keller (D., Phila.), the home of city Traffic Court Judge Robert Mulgrew, and the suburban office of a prominent political consultant.

The FBI and the IRS are looking at whether money from Keller's political action committee was used for noncampaign purposes, according to two sources familiar with the investigation.

Authorities are also scrutinizing finances related to two nonprofits: the South Philadelphia Area Revitalization Corp. (SPARC), a taxpayer-funded nonprofit established by Keller, and Friends of Dickinson Square Community Development Corp., a nonprofit linked to Mulgrew before he was elected a judge, according to a source with direct knowledge of the investigation.

Agents visited at least six locations in and around the city during early-morning raids. Among them were the Media offices of Martin O'Rourke, a public relations consultant who served as Keller's spokesman in 2008; the South 13th Street home of Lorraine DiSpaldo, Keller's legislative aide; and KO Sporting Goods at 2001 E. Moyamensing Ave., owned by Keller and his childhood friend Mark C. Olkowski.

FBI Special Agent J.J. Klaver confirmed only that agents visited those sites. IRS Special Agent Shauna M. Frye confirmed that agents from her office were also at the scenes. "We are here on official business," she said.

O'Rourke, DiSpaldo, and Mulgrew were among the top recipients of spending by Keller's PAC in 2007.

"Rep. Keller has not been involved in, nor is he aware of, any criminal activity whatsoever," said Keller's attorney, Fortunato N. Perri Jr. "He has fully cooperated with the request for documents and he will continue to in the future."

Perri confirmed that FBI and IRS agents took documents from Keller's political and business offices.

He said agents did not question Keller, who he said was not asked to appear before a grand jury.

"It's not our belief at this point that he's the target of any investigation," Perri said. He declined to offer a theory of who might be a target.

Mulgrew, Olkowski, and O'Rourke could not be reached for comment.

The prosecutors leading the investigation, Assistant U.S. Attorneys Paul L. Gray and John M. Gallagher, declined to comment.