Contractor, Accountant Indicted in Philadelphia IBEW Scandal

The net has grown wider for International Brotherhood of Electrical Workers Local 98, if not necessarily for its allied power brokers at Philadelphia City Hall. On November 25, Donald “Gus” Dougherty and Michael McKale, respectively, a Local 98 contractor and an accountant for Dougherty’s firm, were indicted in U.S. District Court for the Eastern District of Pennsylvania on multiple fraud and theft charges. The alleged acts included avoiding required contributions to union benefit plans, making false statements on a mortgage loan application, and placing Dougherty’s wife in a no-show union job. The charges are part of a much larger ongoing investigation by the FBI, the IRS and the U.S. Labor Department’s Office of Labor-Management Standards, Employee Benefits Security Administration and Office of Inspector General. The corruption broke wide open nearly two years ago.

Electrical Workers Local 98, now with some 5,000 dues-paying members, for years has been a powerful presence … Read More ➡

Philadelphia Electrical Workers Contractor Pleads Guilty to Bribery, Theft

ibewlogoBeing a union contractor can be risky, even if the labor boss with whom he does shady business has the same last name and is a lifelong friend. Such was the case for Donald “Gus” Dougherty, president of Dougherty Electric, Inc., in Philadelphia. On Monday, May 19, Dougherty pleaded guilty in federal court to bribing a business manager of International Brotherhood of Electrical Workers Local 98 to facilitate an off-the-books payroll scheme. He’d been charged last June in a 100-count indictment handed down following a joint investigation by the FBI, the IRS and the Department of Labor. The guilty plea comes on the heels of another guilty plea by him on April 15 to 98 counts that included operating an illegal cash payroll, stealing from a union benefit plan, and bribing a bank official.


For four years, said federal prosecutors, Donald Dougherty paid off the business manager of the Read More ➡