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Fumo pal pleads guilty to conspiracy to defraud Pennsylvania senate
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S. Michael Palermo, 69, of Philadelphia plead guilty today of conspiring with former state senator Vince Fumo to defraud the Pennsylvania Senate Democratic Appropriations Committee (SDAC). Palermo was an aide to Fumo during the 1970's and later served as chief of staff for Fumo's South Philadelphia legislative office.
In 1999, Palermo's firm, M.P. Consulting, Inc., obtained a contract to provide SDAC with consulting services concerning the fiscal and operational issues of interstate transportation. The firm was to be paid $150 per hour for its services.
As part of his plea agreement, Palermo admitted that beginning in 1999, he fraudulently submitted invoices to SDAC claiming the firm was entitled to payment for services that it did not, in fact, provide. The firm was paid $287,000 under the terms of the contract between 1999 and 2004.
Palermo is scheduled to be sentenced on January 22, 2010.
As they did in Fumo's case, Assistant United States Attorneys John Pease and Robert Zauzmer handled the prosecution.
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