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.
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 ➡