PHILADELPHIA — A friend of imprisoned former state Sen. Vincent Fumo admitted Tuesday that the powerful lawmaker steered him nearly $290,000 in state funds through phony senate contracts.
In a conditional plea, S. Michael Palermo said he conspired with Fumo to commit mail fraud.
Palermo, 69, of Philadelphia was a close friend and top Senate aide who helped run Fumo’s farm near Harrisburg and did myriad other personal favors for the Philadelphia Democrat.
Fumo is serving a 55-month sentence for defrauding the Senate and two nonprofits of several million dollars. Jurors in March found he used their staff and resources to perpetuate a lavish lifestyle that featured four homes, three drivers, round-the-clock assistants and other luxuries.
Palermo would get five years’ probation under the negotiated plea agreement, which U.S. District Judge Stewart Dalzell must approve before the Jan. 22 sentencing.
Prosecutors say there’s no evidence Palermo did any work for the $150-an-hour transportation consulting contracts. Instead, Fumo had several other people in Harrisburg working as transportation analysts.
“In essence, they did the job that this contract said Mr. Palermo was going to do,” Assistant U.S. Attorney Robert Zauzmer said.
Palermo maintains he did some work but nothing close to the 2,000 hours over five years for which he was paid.
Defense lawyer Robert Scandone declined to comment after the hearing.
Palermo once served as chief of staff at Fumo’s district office in Philadelphia. Fumo awarded him Senate Democratic Appropriations Committee contracts from 1999 to 2004 that netted Palermo $45,000 to $66,000 a year.
Fumo was convicted of fraud for the Palermo contracts and will pay most of the $287,000 in related restitution. Palermo, charged six months after Fumo’s conviction, would pay the remaining $50,000.
Palermo is only the latest Fumo associate charged in the case. Longtime aide Ruth Arnao was convicted at trial with Fumo and is serving a one-year prison term, while two computer technicians pleaded guilty before trial to destroying e-mail evidence.
Arnao’s husband, a former state turnpike commissioner, remains under FBI investigation for $150,000 in alleged no-work contracts awarded by Fumo.
Local News
Fumo friend admits fraud in $287K Pa. contracts
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