Philadelphia official convicted of fraud
Former treasurer guilty on 27 counts in city corruption case
From Rob Frehse
CNN
(CNN) -- Former Philadelphia city treasurer Corey Kemp was convicted of fraud and conspiracy Monday for taking tens of thousands of dollars in gifts and cash from people seeking city contracts, said assistant U.S. Attorney Rich Manieri.
The conviction on 27 counts came in federal district in Philadelphia. The charges stemmed from a wide-ranging investigation into municipal corruption made public in 2003 when police found an FBI listening device in Philadelphia Mayor John Street's office.
Two Commerce Bank executives also were found guilty of federal corruption charges after orchestrating highly lenient home and auto loans for Kemp despite his bad credit history.
Glenn Holck and Stephen Umbrell gave the loans to win city work for the company's Pennsylvania bank, according to prosecutors.
Prosecutors said Kemp gave much of his official power as treasurer to Philadelphia Democratic fund-raiser Ronald A. White in exchange for a new deck on his house, an all-expenses paid trip to the 2003 Super Bowl, parties in his honor and $10,000.
White was a board member at Commerce Bank and a former fund-raiser for Street. White died of cancer in November while awaiting trial.
The convictions came more than three years after the FBI opened a corruption investigation into Street's office.
Though Street was not charged, the FBI said the bug was placed in hopes of learning whether Street and White had conspired to trade city contracts for campaign contributions.
The discovery drew national attention because it coincided with the last month of Street's successful campaign for re-election.
Kemp's lawyer argued he acted on orders from Street, who has consistently denied any wrongdoing.
Street issued a statement Monday saying he was "deeply saddened" by the verdict but that it "should send a strong message that people who violate the public trust will be prosecuted, tried and convicted. That is the way it should be," The Associated Press reported.
He said the conviction shows the need to change government ethics laws, the AP said.
Kemp could be sentenced to a maximum of nearly 800 years in prison.
Holck and Umbrell could be sentenced to 185 years in prison.
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Associated Press contributed to this report.
