Posted on 01/13/2005 6:01:22 PM PST by hipaatwo
PHILADELPHIA - Mayor John F. Street has been subpoenaed to appear as a witness at the trial of a financial services executive charged with lying to FBI agents investigating alleged government corruption.
The subpoenas were issued by a lawyer for Denis Carlson, a former senior vice president at Janney Montgomery Scott LLP. Carlson is one of two executives at financial services firms scheduled to go on trial next week on charges related to the investigation. A third defendant pleaded guilty Thursday.
Carlson is accused of trying to mislead FBI agents by denying that he had tried to drum up government contracts for his firm by arranging thousands of dollars in payments to a charity, a printing company and a political fund controlled by one of Street's close friends and political advisers, Ronald A. White.
The case is part of a broader federal anti-corruption investigation that became public when police discovered an FBI bug in the mayor's City Hall Office.
Speaking to reporters Thursday, Street said he knew little about Carlson's business dealings, but had no intention of fighting the subpoena.
"If anyone wishes me to testify, I will be there," Street said. "I will have my say and I will tell the truth."
He repeated his pledge to cooperate in the criminal probe, and said he had nothing to fear by exposing himself to questioning.
"I've said over and over, I've not done anything wrong," said Street.
Carlson's attorney, William DeStefano, told KYW-AM radio Thursday that he hadn't yet decided whether to call Street as a witness, but subpoenaed him so he would have the option of doing so at the trial. Carlson also issued a subpoena to one of Street's top aides, George Burrell. DeStefano did not return a phone message from The Associated Press.
Street and Burrell have not been charged with any wrongdoing, but the trial is one of two scheduled in the next two months that will focus on alleged attempts by companies to curry favor with the administration by making payments to White, a lawyer who also raised money for Street's campaigns.
Former J.P. Morgan vice president Anthony Snell pleaded guilty Thursday to allegations that he arranged a $50,000 payment to White in exchange for his help getting the firm more city business.
Investigators said Snell, who worked in the Atlanta office of J.P. Morgan Securities Inc., submitted a false invoice to make it appear as if White had performed legal work for the company, when he hadn't actually done anything.
"I'm pleading guilty because I love my family and I am accepting my responsibility," Snell told a judge Thursday.
Under the terms of the deal, Snell could receive between six months and a year in prison. He might serve less time for agreeing to cooperate with authorities.
Snell must also pay J.P. Morgan $50,000 in restitution.
Federal investigators have examined a number of city business dealings, according to court documents, including bond sales and the awarding of certain government contracts at Philadelphia International Airport.
More than a dozen people have been indicted during the investigation, including employees of financial services firms, a mayoral aide, an aide to a city councilwoman and former city Treasurer Corey Kemp.
Prosecutors said Kemp accepted payments and gifts from White in exchange for allowing the lawyer to dictate which companies got lucrative government contracts.
White died in November while he was awaiting trial. Kemp is scheduled to be tried next month. Snell's supervisor at J.P. Morgan, Charles E. LeCroy, pleaded innocent to wire fraud charges and is scheduled to be tried next week.
As part of the investigation, the FBI has also examined how a company with financial ties to the mayor's brother was awarded a multimillion-dollar maintenance contract at the airport. No charges have been filed in that matter.
T. Milton Street Sr. recently revealed in court papers in an unrelated civil case that he had been making $30,000 a month as a consultant for the company, Philadelphia Airport Services.
Milton Street had sought to be a Philadelphia Airport Services subcontractor, but his brother, the mayor, publicly promised that he would cut him out of the deal because it smacked of nepotism. Philadelphia Airport Services ended up paying Milton Street more than $1 million in consulting fees after the company was awarded a four-year, $50 million city contract at the airport.
Beginning of the end for Street?
Boy do I hope so! Him and his brother have been crooked ever since I can remember.
A guy I know from a car board seems really plugged into PA/Philly politics. He thinks Street is history.
Street will land on his feet as he always does. The corruption link died with the lawyer for all Streets deals dies last year of pancreatic cancer. Mr White is dead and so is any hope of indicting Mayor Street. Watch how this
slick Mayor Street bobs and weaves. They will never catch him.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.