An indictment unsealed Thursday alleges that a Philadelphia Traffic Court Judge was involved in a scheme to defraud the Pennsylvania Department of Community and Economic Development.
The announcement was made Thursday morning by United States Attorney Zane David Memeger.
According to the indictment, Traffic Court Judge Robert Mulgrew and Lorraine Dispaldo, an administrative aide to Pennsylvania State Rep. William Keller, allegedly committed mail fraud in a scheme to fraudulently receive and misuse state grant funds awarded to non-profit groups.
In a statement sent Thursday afternoon, a spokesperson for the First Judicial District said they were made aware of the indictments.
"We have no other information than that which already has been released by federal authorities. It is important to note that today's indictments are unrelated to the ongoing federal investigation of allegations of ticket-fixing within Philadelphia Traffic Court and the First Judicial District's own internal investigation of the same allegations, ordered and directed by the Supreme Court of Pennsylvania," Spokesperson Frank Keel said in a statement.
The indictment alleges that between 1996 and 2008, the DCED awarded hundreds of thousands of dollars in grants to two community groups Mulgrew and Dispaldo were associated with.
The pair is accused of misrepresenting their intentions to the DCED and the misuse of grant money, where thousands of dollars were paid to Mulgrew's relatives and associates, including the teenage sons of his friends, according to the indictment.
Dispaldo, Mulgrew and his wife, Elizabeth were arrested Thursday morning. They also face false tax return charges, according to the indictment.
Tonight look for cloudy and foggy skies with spotty showers N&W. Lows in the 50s.
Our next cold front comes through tomorrow, with rain, in the morning and then especially Friday evening. With the blast of cold air that follows, we'll probably have a dry day on Saturday, and the chance of a Sunday wintry mix into the afternoon and evening. A light coating could occur for some before a changeover to rain. Stay tuned!