Another official in the same department, Concetta D. Lilly-Pearson, was demoted and suspended for 20 days from her $88,351-a-year position for accepting a more limited number of meals and gifts. A third person, Francis G. Punzo, no longer employed by the city, was also implicated in the investigation.
The investigation by the city Inspector General's Office was spurred by a city employee's tip and lasted more than a year.
Inspector General Amy Kurland, a former federal prosecutor, said she had referred the case to the U.S. Attorney's Office for possible criminal prosecution and to the city Board of Ethics for possible violations of its regulations.
Verizon, which has a city contract worth about $12 million annually for telephone and data services, said it had terminated one employee and given "final written warnings" to five others, while reassigning the entire unit handling its account with the City of Philadelphia.
"Verizon holds itself to the highest standards of business conduct, and the conduct described by the inspector general does not meet that standard and violates Verizon policy," said spokesman Lee J. Giercynski.
Both James, 56, a city official for the last 16 years, and Lilly-Pearson, 51, a city employee for nearly 27 years, were accused of violating the city's Home Rule Charter and an executive order initially issued by Mayor John F. Street by accepting gifts and meals from Verizon.
James, Lilly-Pearson, and Punzo could not be reached for comment. James had worked for Bell Atlantic as the account manager dealing with the city before becoming the city's deputy commissioner of public property in 1995. In 2007, he transferred to the city's Division of Technology.
Lilly-Pearson's future city position was unclear.
