Don’t tell International Brotherhood of Electrical Workers Local 98 that lightning can’t strike twice in the same place. For them, it’s now happened. Around 7 A.M., October 16, FBI agents raided the headquarters of the Philadelphia union in search of evidence of threats of violent retaliation by union leaders against certain dissenting members. Authorities would not say if the search was related to an August 2016 FBI raid connected to an influence-peddling scandal implicating IBEW Local 98 Business Manager John Dougherty, Philadelphia City Council Member Bobby Henon, and certain other persons. That case produced multiple indictments a couple years later for bribery, embezzlement, concealment, and tax evasion. A former City official and an unindicted contractor thus far have pleaded guilty.
IBEW Local 98, with about 5,000 active members, for decades has been close to Philadelphia’s construction industry and City Hall. Some might say too close. On January 30, 2019, a … Read More ➡
The decline of the corrupt old guard at International Brotherhood of Electrical Workers Local 98 continues. On January 27, James Moylan, a close ally of the powerful Philadelphia union, and for a while chairman of the City of Philadelphia’s zoning board, was sentenced in U.S. District Court for the Eastern District of Pennsylvania to 15 months in prison and three years of supervised release for wire fraud and tax evasion. He also will have to pay $130,783 in combined restitution to the union and the IRS, plus a $10,000 fine and a $400 special assessment. Moylan had pleaded guilty in October. The actions follow an investigation by the FBI, the IRS, the U.S. Labor Department, and the Pennsylvania State Police and Attorney General’s Office.
Union Corruption Update has covered this case since January 2019, when a federal grand jury handed down a 116-count indictment against eight persons for a wide … Read More ➡
James Moylan is about the last person that International Brotherhood of Electrical Workers Local 98 wants to see taking the witness stand. But those fears might be realized. On October 16, Moylan, a longtime friend of John Dougherty, business manager of the powerful Philadelphia union, pleaded guilty in federal court to 17 counts of wire fraud and four counts of filing false income tax returns in connection with his theft of around $49,000 from two nonprofit groups, each in some way supported by the union. He had been charged in January following a joint probe by the FBI, the IRS, the U.S. Labor Department’s Office of Labor-Management Standards, Office of Inspector General, and Employee Benefits Security Administration, plus the Pennsylvania State Police and Attorney General’s Office.
IBEW Local 98, now with about 4,700 members, for years has held a prominent place in the overlapping worlds of Philadelphia labor, real estate … Read More ➡
For George Peltz, running a business and ripping off a union often meant the same thing. That’s why he’s no longer involved in either. On May 20, Peltz, a Philadelphia-area contractor, was sentenced in U.S. District Court for the Eastern District of Pennsylvania to 18 months in prison and two years of probation for bribery, theft from a benefit fund, and tax fraud related to his dealings with International Brotherhood of Electrical Workers Local 98. He also paid nearly $1 million in restitution. Peltz had pleaded guilty in January. The actions are part of a larger federal and state joint probe of corruption in Philadelphia that thus far has implicated a city council member, a Pennsylvania Supreme Court justice, a couple of contractors and several Local 98 officials.
Union Corruption Update earlier had analyzed a sweeping federal indictment unsealed on January 30 against eight persons in the overlapping worlds of … Read More ➡
International Brotherhood of Electrical Workers Local 98 in Philadelphia used to be an open cash register for certain members and outside persons. Now the register has been closed. Last Wednesday, January 30, local Business Manager John Dougherty and seven other persons, including a Philadelphia city councilman, were charged in U.S. District Court for the Eastern District of Pennsylvania in a 116-count indictment alleging a wide range of offenses including embezzlement, wire fraud and bribery. The defendants, all of whom have pleaded not guilty, during April 2010-August 2016 allegedly used union funds for unauthorized uses. It was in August 2016 that FBI agents raided over a dozen union construction sites, homes and offices following a joint probe by the FBI, the IRS, several agencies within the Department of Labor, and Pennsylvania State Police.
Electrical Workers Local 98 is no stranger to Union Corruption Update. More than a decade ago, a unionized … Read More ➡
Being 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 ➡