Johnny Doc Gets 6 Years For Embezzling Electrical Union Funds

PHILADELPHIA — Former business manager for Local 98 of the International Brotherhood of Electrical Workers in Philadelphia John "Johnny Doc" Dougherty will spend time in federal prison after being found guilty of crimes related to embezzling union funds.

United States Attorney Jacqueline C. Romero Thursday said Dougherty, 64, of Philadelphia, was sentenced to 6 years in prison and three years of supervised release. He was also ordered to forfeit $353,941.35, as well as pay a $7,100 special assessment and $50,000 in restitution now, with full restitution to be determined later.

In January 2019, a federal grand jury issued a sweeping indictment against Dougherty, the longtime business manager of Local 98, then-Philadelphia City Council Member Robert Henon, and others employed by or affiliated with Local 98.

Authorities alleged that between May 2015 and September 2016, Dougherty and Henon deprived the City of Philadelphia and its citizens of their right to Henon’s honest services as a member of City Council. It further alleged that Henon received a salary and other things of value from Dougherty and, in exchange, that Henon used his position as a member of City Council to serve Dougherty’s interests.

In addition, Dougherty, then-Local 98 President Brian Burrows, and other union officers and employees were charged with conspiracy and embezzlement arising from their theft of approximately $600,000 in Local 98 funds from April of 2010 through August of 2016. The indictment also charged Dougherty and Burrows with concealing the embezzlement of Local 98 funds by causing false labor management reports, known as LM-2s, to be filed with the U.S. Department of Labor, and with filing false federal income tax returns by failing to report the funds they stole on their tax returns.

Following the indictment, separate trials were held for the crimes involving public corruption and those involving embezzlement.

On Nov. 15, 2021, a federal jury convicted Dougherty on one count of conspiracy to commit honest services fraud and seven counts of honest services wire fraud. The jury convicted Henon on one count of conspiracy to commit honest services fraud, eight counts of honest services wire fraud, and one count of federal program bribery.

The honest services wire fraud convictions against both defendants included official acts that Henon performed or promised to perform in connection with schemes involving the City of Philadelphia’s Department of Licenses and Inspections and stopping the installation of MRI machines at the Children’s Hospital of Philadelphia; using the proposed Plumbing Code to assist the election of Dougherty as the Business Manager of the Building Trades; drafting towing legislation that Dougherty requested because a tow truck driver refused to accept payment by credit card after Dougherty had parked illegally; and allowing Dougherty to make demands on Comcast as a condition of the City’s renewal of the Franchise Agreement.

On Dec. 7, 2023, a federal jury convicted Dougherty and Burrows of conspiracy to embezzle the funds of Local 98. Dougherty was also convicted of 33 counts of embezzlement of funds from Local 98, 24 counts of wire fraud by participating in a scheme to defraud Local 98 of its money, two counts of causing false statements to be made on the form LM-2 that Local 98 was required to file annually with the Department of Labor for 2015 and 2016, two counts of causing false information to be reflected in the books and records of Local 98 for those years, and three counts of filing false federal income tax returns.

"Labor union officials occupy a position of trust and fidelity with respect to the faithful stewardship of the membership’s funds. John Dougherty betrayed the trust of the IBEW Local 98 membership by using union funds for his own benefit," U.S. Department of Labor’s Office of Labor-Management Standards Acting District Director Nicole Spallino said. "The Office of Labor-Management Standards remains committed to working with our law enforcement partners to protect the financial integrity of labor unions and to ensure there are consequences for individuals who deprive union members of honest services."

"John Dougherty, the former business manager of IBEW Local 98, conspired with other IBEW officials to embezzle funds from the union’s dues-paying members," Syreeta Scott, Special Agent in Charge, Mid-Atlantic Region, U.S. Department of Labor, Office of Inspector General, said. "He enriched himself at the expense of the IBEW Local 98 members whom he was elected to serve. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards and Employee Benefits Security Administration to safeguard the assets of union members."

Related coverage:

• Guilty Pleas From 4 Electrical Union Workers In Federal Case
• Ex Philly Councilman Bobby Henon Gets Prison In Corruption Case
• Philly Councilman Bobby Henon Resigns After Corruption Conviction
• Philly Union Boss John Dougherty Accused Of Intimidation
• Philly Union Boss, Councilman, More Indicted In Federal Probe