A Little Less Philliness

Milton Street indicted on corruption, tax charges
By Marcia Gelbart, John Shiffman and Joel Bewley
INQUIRER STAFF WRITERS

What?? Me Worry??

Mayor Street's brother - T. Milton Street Sr. - and two others were indicted this afternoon on corruption and tax charges related to their contract at Philadelphia International Airport.

A federal grand jury alleged that after John F. Street took office in January 2000, Milton Street "began hiring himself out as a highly paid consultant to area businesses who believed that Milton Street could help them obtain business with the city of Philadelphia."

From 2000 to 2004, Milton Street received about $2 million in consulting and other non-vending income, none of which he reported to the Internal Revenue Service, the grand jury charged. He was hired by a company called Philadelphia Airport Services to be a consultant for $30,000 a month, the grand jury said.

In an interview outside his Moorestown home, Milton Street said that he had done nothing wrong.

"I am not going to lose any sleep," Milton Street told The Inquirer. "Let's face it: They didn't get John, they have to go after somebody.

"It's sort of like a football game," Milton Street said. "There are two sides. We will go to court. They will present their side, and I will present my side. And 12 people will decide. It will work out. I've been through lots of battles, lots of battle scars. I'll be OK."

Milton Street, a former hot dog vendor, was also the president of a company called Notlim, which was certified with the city's Minority Business Enterprise Council.

Also charged were John H. Velardi Sr. and Matthias A. Schwabe, both officials with Philadelphia Airport Services.

U.S. Attorney Patrick Meehan detailed the charges at an afternoon news conference with IRS and FBI agents.

"Milton Street wanted the IRS to believe he was a humble street vendor selling hot dogs and soda," Meehan said. "What he didn't tell them is that he was making millions on nothing more than his last name."

Milton Street, former state representative and state senator, has long been a subject of controversy, dabbling in a number of entrepreneurial ventures.

Two years ago, he teamed with a local investor to operate amphibious tour boats, called Super Ducks.

And in the summer of 2005, the night before the Live 8 concert in Philadelphia, the city disclosed that it had hired him as the minority partner to the prime vending contractor, giving him control of at least 17 percent of the vending locations set aside for women and minorities.

The mayor at the time defended his brother, noting his 30 years of vending experience.

"I don't believe any opportunity he got, he got because of his relationship with me. I think he got it because he earned it, and paid the money," the mayor said.

It has never been clear how much profit Milton Street earned from his jobs.

Last November, he filed for bankruptcy, saying that he had $75,000 in unsecured debt and that his only income was $900 a month from an unidentified source. A judge later dismissed the claim, in part because Street, who lived in New Jersey, filed it in Pennsylvania.

Despite his financial woes, however, last spring Street attempted to again capture a seat in the Pennsylvania House. But a judge eventually threw him off the ballot because the bankruptcy documents showed his actual residence to be in New Jersey.

Contact staff writer Marcia Gelbart at 215-854-2338 or mgelbart@phillynews.com.

The Trekmedic thinks:

The Teflon coating on Mayor John "The Department of" Street must be getting a little thinner every day!