Brother of Philadelphia Mayor Indicted on Tax, Fraud Charges Involving City Contracts

PHILADELPHIA – A brother of Mayor John F. Street was indicted Tuesday on tax and fraud charges involving $2 million worth of city contracts.

Starting in 2000, Milton Street began hiring himself out as a highly paid consultant to area businesses who believed he could help them get city business, according to the indictment. Between 2000 and 2004, he received more than $2 million in consulting and other income that was not reported to the IRS, authorities said.

He and two other businessmen face charges of mail and wire fraud, filing false tax returns and related counts.

The mayor was not charged.

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

The indictment stemmed from an investigation into municipal corruption in Philadelphia.

The wide-ranging probe, which ensnared the former city treasurer and several businessmen, became public three years ago when an FBI listening device was discovered in the mayor's office. The mayor was never charged.

"I am not going to lose any sleep," Milton Street told The Philadelphia Inquirer outside his home in Moorestown, New Jersey, on Tuesday. "Let's face it: They didn't get John, they have to go after somebody."

Federal prosecutors say Milton Street was awarded consulting contracts with companies doing business at two city-owned airports even though he had no experience in facilities maintenance work.

One company, General Asphalt Paving, paid him $8,000 a month — and later $12,500 a month — to get city business, including a contract for maintenance at Philadelphia International Airport and Northeast Philadelphia Airport, prosecutor said.

Milton Street also was accused of defrauding a prospective airport contractor, who gave him $80,000 on a promise from Milton Street that he could get them a $3.2 million contract that did not exist, prosecutors said.