Feds Probe Fumo, Citizens Alliance - PhillyBlog

hillabeans · #1 (**permalink**) 03-14-2005, 10:17 AM

Quote:

What do feds want from Fumo?Source: Ties to nonprofits eyed

FBI AGENTS recently seized documents - including records from a computer hard drive - from legislative offices of one of the city's most powerful politicians, state Sen. Vince Fumo, according to a source familiar with the ongoing federal probe.

The FBI's move ratcheted up what is reportedly a wide-ranging probe of the longtime Democratic power-broker that has been ongoing for well over a year.

It wasn't immediately clear what the feds were looking for on Fumo's office computers. Federal agents have been looking into Fumo's ties to a South Philadelphia nonprofit, the Citizens Alliance for Better Neighborhoods, and his actions relating to the new IKEA store on Delaware Avenue - among other things.

Fumo's main spokesman, Gary Tuma, declined to offer any comment. "I don't as a rule comment on reports, rumors or allegations from anonymous sources," he said. "Further, on this topic, we've decided we won't be commenting on FBI investigations."

Earlier in the week, Fumo's capital chief of staff, Paul Dlugolecki, said he spoke with Fumo and quoted the senator as saying word of confiscated computers or data is "a wild rumor."

Fumo earlier this week told the Daily News, in a far-ranging interview, he has no idea what the feds are looking for. "I don't know what they're doing. I don't know where they're going," he said.

Fumo, whose district includes the eastern half of South Philly, Center City, and the lower river wards, has been a fixture of Philadelphia politics since the 1970s. As the ranking Democrat on the Senate Appropriations Committee, he's built a reputation as the go-to guy for Philadelphia on issues relating to state government.

One area that's known to be of interest to federal prosecutors is the Citizens Alliance, the non-profit that has connections to Fumo, which received a $17 million grant from Peco, the energy company, in 1998 as Fumo was active in challenging a proposed utility deregulation plan.

Investigators reportedly have been asking questions about Fumo's unsuccessful bid for a similar donation from Verizon Communications, the phone company.

Last May, the Daily News reported that the feds had served grand jury subpoenas on the Citizens Alliance and four other community organizations or nonprofits with ties to Fumo - Penn's Landing Corp., the Delaware Valley Regional Economic Development Fund, the Spring Garden Community Development Corp., and Jefferson Square Community Development Corp.

Sources said at the time that IKEA was also served with a subpoena for documents about its South Philadelphia project. Fumo and other public officials delayed plans to build the 300,000-square-foot furniture store on Columbus Boulevard because they wanted to preserve more waterfront space for future port uses.

After months of public wrangling, a complex land swap cleared the way for the new store. In addition, IKEA gave $500,000 to several community organizations, including $150,000 to the Jefferson Square group.

Also last May, the Inquirer reported that FBI agents visited Harrisburg asking questions about Fumo's role in the awarding of state grants to the Independence Seaport Museum.

One lawyer familiar with the probe said the feds are investigating whether Fumo's charity funneled money illegally to support the political campaigns of the senator's buddies, and whether Fumo used charity employees to do work on his shore home.

"I know there's a grand jury that's taking testimony," said another attorney. This source said the grand jury is looking into Fumo's relationship with certain corporations and allegations that Fumo "misused his Senate position."

A government source indicated that Fumo had approached others in the Senate about joining him in an institutional defense of computers belonging to the Senate. It was unclear what had become of the initiative.

He should join Street and take his "buddies" Kenney and DiCicco with him and resign NOW.

CabbagePatch · #2 (**permalink**) 03-14-2005, 10:58 AM

I don't know, it looks like Fumo is taking the heat for his boy Frankie, judging by the reports below:

From Phila. Weekly Press:
In 1999, DiCicco claimed income on his candidate's financial interest form from Citizens Alliance, a civic organization he founded, but refused to make public the organization's sources of funding

From Hallwatch:
In 1998, however, the organization raised more than $1 million in anonymous donations. And on its tax forms for the following year, Citizens Alliance reported receiving $5.6 million from unnamed contributors. DiCicco resigned as head of the group's board soon after the media began pressing for an explanation of who has been writing the checks.

And guess who took Frankie's place once he stepped aside?
His son, Christian DiCicco.

If you ask me, it looks like Vinny is protecting someone here.

mikeg · #3 (**permalink**) 03-14-2005, 12:36 PM

As a buyer of a JSCDC house not yet started, I want my house completed in a reasonable timeframe, regardless of the outcome of this.

Apparently, when a politician goes out on a limb to help a neighborhood in his district, everyone goes ballistic. This is not going to help give confidence to other politicians who want to go to battle for development/redevelopment in their districts. What happened when Society Hill was rebuilt in the 1960s? Did deals have to be struck? I bet.

Unless it can be proven that people personally benefitted from some of the tactics to revitalize this neighborhood, what harm is there?

It takes a spark to make change happen, and it seems people want to pounce on the one holding the match, even if a very desirable outcome is achieved.

I say take a longrun view on this one, although yeah, you can make that argument to justify a lot of actions.

hillabeans · #4 (**permalink**) 03-14-2005, 02:21 PM

I think Jefferson Square is a great neighborhood project. And I think we all agree we want more redevelopment in Philadelphia. NTI has been good too. But that doesn't excuse the corruption in City Hall. The FBI doesn't confiscate files unless there's probable cause. I think this has more to do with Citizens Alliance handing out dollars in exchange for votes. That's what the Daily News suggested, anyway.

eldondre · #5 (**permalink**) 03-14-2005, 07:55 PM

bought and sold.
what harm is there? why do you think so few people wnat to do business in Philly? how can you defend a guy strong-arming companies into ponying up funds for his pet projects to solidify his power? I think, morally, you give up the right to b*tch about suburban districts getting things too. regardless, it's wrong to force companies to contribute to charities that you directly benefit. It's wrong to threaten companies like verizon that they will have to pay you off (contribute to a group controlled by your cronies) to get yoru vote. is he the only one? no. but it's still wrong and it is one of the big reasons most people pass over the city unless they have the wherewithal to conduct this kind of business. the biggest joke is that it's probably harder to get away with bribing a foreign government (as a US business) than a domestic municipal.

SPM · #6 (**permalink**) 03-14-2005, 11:15 PM

I thought the unnamed contributors are PECO ratepayers----everyone pays an extra $0.001 on their monthly bills and it gets scoooped up to benefit my neighborhood......did I miss something???

hillabeans · #7 (**permalink**) 03-15-2005, 03:02 PM

You're missing plenty, actually. Besides sounding like Marian Tasco (ethics is just fine so long as it doesn't pertain to my neighborhood and me), you forget that the FEDS already know about PECO ratepayers. This seems to be more about what the charity does after it gets the money from companies that are shaken down by Fumo and the DiCiccos. The questions are: How many community groups were given blown-up checks from Citizens Alliance just weeks before the council primaries by DiCicco and Kenney? And was it for political purposes? How many of the leaders of those groups actively worked for them during the election? Also, how many community groups in areas that didn't support his candidates were denied funds? I think that's what this is all about.

SPM · #8 (**permalink**) 03-15-2005, 09:24 PM

Hillabeans---you have to be careful not interpretting an observation or objective question as a normative statement...... I never noted that I thought anything was OK about any behavior in my post....so you could be more discriminating when you throw the Marian Tasco comparison!
And, my neighborhood is Spring Garden, so I suspect it falls into the category of community groups supporting VF, et al.
That's what I meant. and thanks for filling me in on the part I was missing!