U.S. officials indict mayor's brother
T. Milton Street was charged with mail and wire fraud and tax violations.
PHILADELPHIA (AP) -- The older brother of Mayor John F. Street used his last name to obtain lucrative city contracts and failed to pay taxes on more than 2 million in income, federal authorities charged Tuesday.
Soon after Street took office in 2000, T. Milton Street Sr. began hiring himself out as a high-priced consultant to companies that thought he could help them get city contracts, the indictment charged. One firm paid Milton Street, a longtime hot dog vendor, 30,000 a month for a no-work contract, authorities said.
He and two other businessmen face charges of mail and wire fraud, filing false tax returns and related counts.
"Milton Street wanted the IRS to believe he was a humble street vendor selling hot dogs and soda," U.S. Attorney Patrick Meehan said. "What he didn't tell them was that he was making millions on nothing more than his last name."
Milton Street, a state lawmaker in the 1980s, has long been a colorful character on the local scene. He made news in recent years with entrepreneurial efforts including a startup company that offers "Duck boat" tours, a venture that landed him in court in a fight with an established tour operator.
Proclaims innocence
The 69-year-old vowed he would be vindicated of the charges and blamed poor record-keeping for any problems.
"I think, honestly, that I stayed in bounds [of the law]," Milton Street said as he arrived at a home in Moorestown, N.J., on Tuesday. "Now, I have to tell you, I am the worst record-keeper in the history of the modern man."
The mayor, who was not charged, said he did not know details of his brother's financial dealings but defended his right to pursue city contracts.
"My brother is allowed to do business with the city of Philadelphia just like any other person," Mayor Street said at a news conference. "As far as I know, he has played by the rules."
The indictment stemmed from an investigation into municipal corruption in Philadelphia.
The wide-ranging probe, which ensnared the former city treasurer and several businessmen, became public three years ago when an FBI listening device was discovered in the mayor's office. The mayor was never charged.
Federal prosecutors say Milton Street was awarded consulting contracts with companies doing business at two city-owned airports even though he had no experience in facilities maintenance work.
One company, General Asphalt Paving, paid him 8,000 a month -- and later 12,500 a month -- to get city business, including a contract for maintenance at Philadelphia International Airport and Northeast Philadelphia Airport, prosecutor said.
Milton Street also was accused of defrauding a prospective airport contractor, who gave him 80,000 on a promise from Milton Street that he could get them a 3.2 million contract that didn't exist, prosecutors said.
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