Twelve people were charged on Tuesday with defrauding the City of Philadelphia, ending speculation that started almost nine months ago when an FBI wire-tap device was found in Mayor John F. Street's office.
According to the indictment issued by the U.S. Attorney's office, Attorney Ronald White and former City Treasurer Corey Kemp conspired to allow White to make major decisions on city business matters in exchange for monetary and other benefits.
If convicted, Kemp faces up to 798 years in prison and a $10.75 million fine, while White faces 555 years of imprisonment and a $8.25 million fine.
The indictment is based on conversations taped by the FBI during 2003.
In one conversation, Kemp describes himself as White's "boy sitting in, in the treasurer's seat."
"That's what we do, man, take care of each other," Kemp said, according to the indictment.
Kemp was appointed treasurer in April 2002, and resigned in late November 2003, when it was first alleged that he accepted Superbowl tickets from White.
But the Superbowl tickets were just the tip of the iceberg.
The exchanges began with a payment of $10,000 in 2002, and continued with the Superbowl trip -- including a private jet, tickets and a limousine -- a new deck for Kemp's house, as well as numerous other meals, parties and tickets.
In return for these gifts, Kemp took White's instructions on which companies should get city contracts -- and which should not -- "on a daily basis," according to the indictment.
Kemp also recommended White as an attorney for city bond deals more often than any other attorney, earning White a total of $633,594 in fees during the time Kemp held office.
"The nameplate on the desk of the City Treasurer may have read Corey Kemp, but Ron White was calling the shots," said U.S. Attorney Patrick Meehan in a press release.
Meehan also indicated that the allegations reveal problems that go deeper than just Kemp and White.
"This is an indictment not only of the defendants but of a 'pay to play' culture that can only breed corruption," Meehan said.
According to the indictment, Street -- who was not formally charged with a crime -- instructed his staff to "award the city business White sought, and provide White with inside information he sought regarding the operations of City agencies otherwise unavailable to the public."
Street denied these allegations, and claimed he had no knowledge of the illegal activity.
"A mayor can't micromanage the government," he said. "Corey Kemp's supervision was not my responsibility."
Street also promised to fight corruption, citing a line in the proposed 2005 budget which would allow the city investigator's office to hire six new employees "to investigate allegations of official misconduct."
"Nobody in this government will tolerate even the slightest corruption," Street said. "To be the mayor of this city and to have this undercurrent happening is a very distressing thing."
According to the indictment, White wasn't the only one seeking influence with Kemp.
The indictment also named two Commerce Bank executives, two former J.P. Morgan executives, a pastor and his employee from Reading, Pa., a Detroit fast-food executive, a local attorney, a local executive and White's girlfriend.
The Commerce Bank executives -- Commerce Bank Pennsylvania President Glenn Holck and Regional Vice President Stephen Umbrell -- are charged with granting Kemp "favorable and otherwise unavailable loans" for personal use. In return, Kemp granted Commerce Bank a deal to provide the city with $30 million worth of credit.
Former J.P. Morgan executives Charles LeCroy and Anthony Snell are charged with paying White $50,000 in legal fees for services he never provided, in return for White's help in obtaining business for J.P. Morgan.
The FBI probe was first discovered by the Philadelphia police in Mayor Street's office on Oct. 7, 2003. On Oct. 16, the FBI raided White's offices.
The investigation originated with a focus on a drug ring led by 29-year-old North Philadelphia resident Kaboni Savage.
The FBI picked up long-time Street supporter Imam Shamsud-din Ali's name in wiretapped conversations, and White's name was in turn suspected when the FBI began investigating Ali.
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