PHILADELPHIA _ Labor leader and political kingmaker John J. Dougherty and Philadelphia City Councilman Bobby Henon were federally charged Wednesday with embezzlement, bribery, and theft, along with six other people who are affiliated with Local 98 of the International Brotherhood of Electrical Workers.
The sprawling 116-count indictment alleges that Dougherty persistently stole from Local 98, using the union's funds as his "personal bank account and as a means to obtain employment for himself, his family, and his friends."
Both Dougherty _ widely known as "Johnny Doc" _ and Henon, who holds a paid position with the union, have repeatedly denied wrongdoing.
Nonetheless, the case against them threatens to destabilize not only the leadership of one of the region's most politically influential unions but also the futures of dozens of Local 98 allies in elected office and the landscape of organized labor in one of the last American cities in which unions remain a powerful force.
In his 25 years at the helm of Local 98, Dougherty has built the 4,700-member organization into a potent political force, spending millions to place numerous allies _ mostly Democrats _ in elected and appointed municipal positions and developing it into the biggest independent source of campaign money in the state. The union was a crucial early supporter of Mayor Jim Kenney in 2015.
Kenney, who appeared Wednesday morning at John F. Hartranft Elementary School in North Philadelphia for a celebration of city schools' achievements, said he could not comment on an indictment he had not read. Kenney said that he had been in contact with the U.S. Attorney's Office, and that neither he nor anyone in his administration would be indicted.
"It's certainly sad and disappointing that this is happening," the mayor said. "The process will play itself out."
When asked if Henon should resign, the mayor said: "Bobby Henon should make the decision based on what's best for his constituents."
Lawyers for both Dougherty, 58, and Henon, 50, declined to comment on the looming indictments Tuesday. In a statement, Henon's office said he had no plans to resign.
"He is confident that his colleagues will respect any possible upcoming legal process and support him," the statement read. "Councilman Henon is a dedicated public servant and will continue to serve as councilman."
Men who exited Local 98's headquarters on Spring Garden Street on Wednesday morning were mostly tight-lipped. "It's just lousy," one said of the looming indictments. "Sucks."
A glimpse of the unfolding drama emerged late Tuesday afternoon when prosecutors charged James E. Moylan _ who is Dougherty's chiropractor, a South Philadelphia neighborhood activist, and Mayor Jim Kenney's former appointee to lead the city's Zoning Board of Adjustment _ with stealing from a nonprofit he founded as well as from Local 98's charitable arm.
A day earlier, George Peltz, a New Jersey electrical contractor and a childhood friend of Dougherty's, became the first person to plead guilty as part of the case.
Those charges came more than two years after the joint investigation by the FBI and IRS burst into public view with simultaneous August 2016 raids on more than a dozen union sites as well as homes and offices of key Local 98 officials and allies.
Since then, several sources familiar with the probe who were not authorized to discuss it publicly have described the case as a multifaceted examination of the methods by which the union has exerted its considerable clout _ with Dougherty at its center.
Union money and manpower have helped elect mayors, City Council members, county commissioners, members of Congress, state legislators, governors, and more than 60 judges _ including the union leader's brother, Pennsylvania Supreme Court Justice Kevin Dougherty.
John Dougherty vowed last week in an interview with Fox29 to fight any charges.
"Some people are vindictive. Most people just don't understand my industry, and I play with a lot of powerful people who aren't fond of me," Dougherty said. "A lot of people in this town _ most of the greedy elite _ they don't think much of me, OK? I'm white trash to them guys."
Still, in the years since the FBI raids, Local 98 has taken steps to clear up any potential vulnerabilities that could draw investigators' interest.
Dougherty repaid his union nearly $280,000 in 2018 _ an amount it said, in a filing with the U.S. Labor Department, that he had inadvertently used over the previous six years to cover personal expenses and legal fees.
Misspent union money also was at the heart of the charges filed Tuesday against Moylan, the chiropractor who has known Dougherty for more than 20 years. Moylan resigned from the Zoning Board of Adjustment days after FBI agents searched his home and office in 2016.
According to his indictment, Moylan also ran a nonprofit called Neighborhoods for Fair Taxes, which received $50,000 in donations from Local 98's coffers in 2013 after he wrote a letter to Dougherty.
Prosecutors said Moylan embezzled most of those funds, spending more than $45,000 on his personal credit card bills and home mortgage. He did not respond to calls for comment Tuesday.
Moylan joins Peltz _ the New Jersey electrical contractor who pleaded guilty Monday _ as the second ally of Dougherty's to face criminal counts.
Peltz admitted to providing more than $57,000 in home and office improvements _ such as TV and security system installations _ to an unnamed union official at no charge.
That work included security systems installed at a business co-owned by the official and the installation of large-screen TVs in homes of the official and the official's relatives.
Peltz also acknowledged giving the same official $4,500 in gift certificates to Boyds, the Chestnut Street clothing store, in 2013 and 2016.
A spokesperson for Dougherty declined to say whether Dougherty was the union official mentioned in court filings.
