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Philly mayor’s brother pleads not guilty to fraud

The older brother of Mayor John F. Street pleaded not guilty Thursday to charges that he failed to pay taxes on $2 million in income and took consulting fees from companies that wanted city contracts.
/ Source: The Associated Press

The older brother of Mayor John F. Street pleaded not guilty Thursday to charges that he failed to pay taxes on $2 million in income and took consulting fees from companies that wanted city contracts.

Prosecutors said that soon after his brother took office in 2000, T. Milton Street Sr., 67, began working as a high-priced consultant to companies that later won city contracts. One firm paid Street, a longtime hot dog vendor, a $30,000-a-month consulting fee and required him to do no work, authorities said.

The mayor has not been charged.

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

One of the businessmen, Matthias Schwabe, plans to plead guilty to mail fraud and filing a false tax return and plans to testify against Street, his lawyer said.

The other man who was indicted, John Velardi Sr., 53, intends to fight the charge, said his lawyer, Guy Scioll.