Feds Indict Judge And Lawmaker's Aide For Siphoning Money - Philadelphia News, Weather and Sports from WTXF FOX 29

The children and parents who come to Dickinson Square Park at 4th and Tasker in the heart of South Philadelphia love their newly renovated playground, basketball courts and sidewalks.

"The place is wonderful, better than I ever expected," said one parent.

"The kids were all waiting for it to open up and have a good time," another said.

But while they're glad to see the park's recent makeover, they weren't to happy to hear that a traffic court judge and a lawmaker's secretary were indicted Thursday for mail and wire fraud, charged with skimming tens of thousands of dollars from $900,000 in state grants earmarked for the park and local police programs.

"They misused these funds by using them for their own purposes, other improper purposes and paying a number of friends, associates and relatives," said Assistant U.S. Attorney Paul Gray.

"I'm gonna fight the charges," Traffic Court Judge Robert Mulgrew said.

He and Lorraine Dispaldo, an aide to State Rep. William Keller, were arrested at their homes.

Dispaldo's desk was empty at Keller's Second Street legislative office. She was in court answering to the charges. Mulgrew's wife was also busted by the feds for filing false tax returns.

"We will vigorously defend against these charges and look forward to our day in court," said Dispaldo's attorney Katherine Recker.

The arrests came two years after the FBI swooped down on Keller's South Philadelphia office and home along with Mulgrew's residence and Dispaldo's home in an ongoing corruption investigation.

"From the out set he's denied any wrongdoing," said Keller's attorney Fortunato Perri Jr. "I think it's clear from the content of the indictment that Rep. Keller was not involved in any criminal activity in any way."

"Welcome to South Philly," said Re Henning, a grandmother playing with her granddaughter at the park after hearing the news.

One of the defendants allegedly used these funds for everything from cigarettes to cameras. They face prison sentences of about four to eight-years if convicted.

Sources say this investigation could go much higher up the political ladder. Federal authorities would not say who else has been targeted in this investigation or if any more indictments might be on the way.