Originally Posted by Philadelphia Inquirer

Posted on Thu, Apr. 21, 2005
source: http://www.philly.com/mld/inquirer/n...l/11446484.htm

Scrap-metal firm's city file subpoenaed

City Hall sources said federal investigators want records on special tax breaks for Erie Steel Ltd.

By Angela Couloumbis
Inquirer Staff Writer

Federal authorities have subpoenaed records from the city's Commerce Department regarding special tax breaks that a scrap-metal company in City Councilman Rick Mariano's district is receiving, according to City Hall sources familiar with the request.

Investigators want records relating to how Erie Steel Ltd. came to be included in legislation designating it as part of a Keystone Opportunity Zone, those sources said. Businesses in such zones pay virtually no real estate taxes, no local or state business taxes, and no state personal-income taxes.

The subpoena for Commerce Department records, issued earlier this week, is part of a larger inquiry that became public last month, when authorities subpoenaed Mariano for records relating to Erie Steel and two other city businesses, including a real estate firm in the councilman's district called DiPentino Associates.

Federal investigators declined to comment yesterday.

One area of interest for investigators is whether Erie Steel paid a $5,873.75 credit-card bill for Mariano in May 2002. The payment was made a month before the councilman flew to Las Vegas to get married.

Mariano and his attorney, James Becker, have repeatedly declined to discuss the credit-card payment or the subpoenas.

Mariano's spokesman, Frank Keel, said yesterday that "because this is an open investigation, we are not commenting on any aspect of it."

He added: "It's disturbing that these leaks continue. It does a disservice to the councilman, and it does a disservice to the entire process."

Erie Steel's owner, Philip Chartock, has declined to comment. Federal authorities have sought records from Erie Steel, as well as from DiPentino Associates.

Authorities are examining whether the agency, owned by Vincent DiPentino, a longtime friend of the councilman's, was used to funnel $10,900 to pay another credit-card bill for Mariano, according to sources familiar with the investigation.

Those sources said the $10,900 initially came from Erie - with Erie writing a $10,900 check to DiPentino's firm, which then wrote a check for that amount to Mariano's credit-card company.

Neither the councilman nor his attorney would discuss that payment.

DiPentino, through his attorney, Fortunato Perri Jr., has denied any involvement or wrongdoing.
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Contact staff writer Angela Couloumbis at 215-854-2827 or acouloumbis@phillynews.com.

Originally Posted by UncleCranky

Maybe Rick won't need to worry about the Rowhouse mentality anymore....just the jailhouse mentality....

-UC