"Mayor's brother indicted in Philadelphia airport case"

Tuesday, November 28, 2006

Mayor's brother indicted in airport case
The Philadelphia (PA) Business Journal


The brother of Philadelphia Mayor John F. Street was indicted Tuesday on
fraud and tax-evasion charges related to deals at Philadelphia International
Airport, the U.S. Attorney's Office in Philadelphia said. 

The indictment said T. Milton Street did not report to the Internal Revenue
Service more than $2 million in consulting fees and other income he
collected between 2000 and 2004. 
 
The document said an entity called Philadelphia Airport Services paid him
$30,000 a month "in an effort to hold onto the facilities maintenance
contract and obtain additional work at the Philadelphia International
Airport." 

In late 2002, it said, PAS subcontracted out the airport maintenance
contract, which included work on baggage conveyors and passenger
transportation vehicles, to a company Street formed called Notlim Service
Management Co. 

The indictment said Street "had no experience in facilities maintenance
work" and ended up using "PAS employees who already were performing the
work." Street ended up making $33,000 a month on the arrangement, the
indictment said. But when it was reported in the news the next year, Milton
Street withdrew from the deal, citing his brother's wishes that he do so. 

After an attempt to go back on the withdrawal two weeks later didn't work,
he took $80,000 from a company called V-Tech, saying he would get them the
maintenance job at the airport. 

On Sept. 22, 2003, the indictment said, he "signed an agreement purporting
to assign the subcontract to V-Tech." The contract "did not exist and was
never executed." 

In addition to Street, 67, of Moorestown, N.J., two PAS employees were
indicted: John H. Velardi Sr., 53, of Drexel Hill, Pa., and Matthias A.
Schwabe, 38, of Malvern, Pa. None of the defendants or their lawyers could
be reached for comment.

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