The U.S. Attorney’s Office Eastern District of Pennsylvania
released the below information:
PHILADELPHIA – Acting United
States Attorney Jennifer Arbittier Williams announced that John Dougherty,
Business Manager of Local 98 of the International Brotherhood of Electrical
Workers (“Local 98”), 61, of Philadelphia, PA, and Robert Henon, Philadelphia
City Councilmember, 52, of Philadelphia, PA, were convicted at trial today of
multiple crimes involving public corruption
The
jury convicted John Dougherty of the following crimes: one count of conspiracy
to commit honest services fraud (Count One), and seven counts of honest
services wire fraud (Counts Four, Five, Six, Seven, Eight, Nine, and Ten). The
jury convicted Robert Henon of the following crimes: one count of conspiracy to
commit honest services fraud (Count One), eight counts of honest services wire
fraud (Counts Four, Five, Six, Seven, Eight, Nine, Ten, and Twelve), and one
count of bribery (Count Sixteen).
The
honest services wire fraud convictions against both defendants were premised on
the following schemes proven at trial: L&I/CHOP; Plumbing Code/Building
Trades; Towing; Comcast; and Soda Tax #2. The additional honest services wire
fraud count against Henon (Count Twelve) was predicated on a $5,000 campaign
contribution from CWA to Henon’s campaign bank account. The bribery conviction
against Henon (Count Sixteen) was based on the same $5,000 check, written on
the account of the CWA.
Dougherty,
Henon and others affiliated with Local 98 were charged by Indictment in January
2019. The trials were bifurcated thereafter, leaving Dougherty and the other
defendants to stand trial on the embezzlement and tax fraud charges at a later
date. The Indictment charged that Dougherty and Henon defrauded the City of
Philadelphia and its citizens of the right to Henon’s honest services as a
member of City Council. Evidence presented at trial demonstrated that Henon
received a salary and other things of value from Dougherty and, in exchange,
Henon used his position as a member of City Council to serve Dougherty’s
interests.
“Today’s
verdict is a strong message to the political power players of this city that
the citizens of Philadelphia will not tolerate public corruption as ‘business
as usual',” said Acting U.S. Attorney Jennifer Arbittier Williams. “John
Dougherty is not above the law. He is not entitled, had no right, to pull the
strings of official City business as if he were elected to office. And Bobby
Henon was not elected to represent Local 98 or John Dougherty’s interests on
City Council, or any union for that matter, but to represent all the people of
the City’s 6th Councilmanic
District – a fact which he failed to remember in doing the bidding of his
political godfather, Dougherty. Philadelphians deserve more than a system that
favors the few who have a ‘person they can call’ to get things done. Everyone
deserves equal access to the decision-makers in their government.”
“From
the start, John Dougherty and Bobby Henon sought to tag this as an anti-union
case,” said Jacqueline Maguire, Special Agent in Charge of the FBI's
Philadelphia Division. “Let's be clear. The FBI has no problem with labor
unions. It's criminals we're after, like a local power broker who gives an
elected official a handsome salary and benefits he didn't earn, in exchange for
doing that benefactor's business at City Hall. Today, the jury called it what
it was, a crooked quid pro quo — one that tilted the playing field in Dougherty's
favor, giving him an unfair advantage over every Philadelphian who acts with
fairness and integrity. That is corruption, that is wrong, and this city
deserves so much better.”
“The
consequences to those who betray the public trust by making and receiving bribe
payments are evident by today’s convictions,” said Yury Kruty, Acting Special
Agent in Charge of IRS-Criminal Investigation. “Cases involving betrayal
of the public’s trust are of utmost importance and IRS-CI will continue to be a
partner in the efforts to bring criminals like this to justice.”
“One
of the functions of the U.S. Department of Labor’s Office of Labor-Management
Standards is to see to it that union funds are used for proper
purposes. It is never proper – and is indeed criminal – to do what Mr.
Dougherty did here: use union funds to bribe a politician. Working with our
Federal and state investigative partners, OLMS will hold accountable anyone who
misuses their office and their union’s funds in this way,” said OLMS District
Director Megan Underwood.
“Union
officials must ensure that only those individuals who perform rightful union
work be permitted to participate in union employee benefit plans. EBSA
will vigorously pursue those who arrogate employee benefits intended
exclusively for hard–working union members,” said Michael Schloss, Philadelphia
Regional Director of the U.S. Department of Labor’s Employee Benefits Security
Administration.
“An
important part of the mission of the Office of Inspector General is to
investigate allegations relating to labor racketeering. Today’s guilty
verdict for John Dougherty, Business Manager of Local 98 of the International
Brotherhood of Electrical Workers and City of Philadelphia Councilmember Robert
Henon for conspiracy and honest services fraud is an affirmation of our
commitment to working with our law enforcement partners and the U.S. Department
of Labor’s Office of Labor-Management Standards and Employee Benefits
Security Administration to pursue union-affiliated corruption investigations,” said
Syreeta Scott, Special Agent-in-Charge, Philadelphia Region, U.S. Department of
Labor Office of Inspector General.
The
case was investigated by the Federal Bureau of Investigation, Internal Revenue
Service – Criminal Investigation, the U.S. Department of Labor Employee
Benefits Security Administration, the U.S. Department of Labor Office of Labor
Management Standards, the U.S. Department of Labor Office of Inspector General,
and the Pennsylvania State Police, with assistance from the Pennsylvania Attorney
General’s Office. It is being prosecuted by Assistant United States Attorneys
Frank Costello, Bea Witzleben, and Richard Barrett.