PHILADELPHIA (KYW Newsradio) — Seven SEPTA maintenance managers and two vendors have been federally indicted on corruption charges for allegedly overbilling SEPTA through two vendors over the course of six years.
The alleged schemers are accused of exploiting a credit card-like system and taking cash payments for themselves and their businesses, totaling hundreds of thousands of dollars in all.
The nine charged include two vendors, Mark Irvello of Broomall, who owned MSI Tool Repair and Supply, and Stanley Woloff of Philadelphia, who owned Advantage Industrial Supply. The following SEPTA managers were charged:
James Turner, 59, of Horsham
John Brady, 60, of Blue Bell
Stephen Kish, 65, of Philadelphia
Jesse Fleck, 43, of Philadelphia
Rodney Martinez, 50, of Blackwood, New Jersey
Peter Brauner, 58, of Kintersville, Pennsylvania
David Abell, 72, of Chincoteague Island, Virginia
According to the U.S. Attorney’s Office for the Eastern District of Pennsylvania, the scheme went on under the radar between 2013 and 2019 among management-level workers in SEPTA’s Bridges and Buildings Department (BBD), which maintains SEPTA facilities across the region.
Related
SEPTA issues what are called procurement cards to BBD managers, which essentially operate as SEPTA credit cards.
In 2013, Abell, a SEPTA senior director of maintenance, allegedly agreed with vendors Irvello and Woloff to solicit their businesses for regular cash payments, about $1,000 to $2,000 a month. In exchange, the vendors would fraudulently overbill SEPTA or charge items the transit agency didn’t need.
The false payments covered payouts to Abell as well as money for the vendors.
The U.S. Attorney’s Office said Abell encouraged other SEPTA managers to do the same with Irvello and Woloff, which in turn grew their vendor operations. Irvello and Woloff allegedly included fake and credible bills in procurement card statements to SEPTA, making the scheme difficult to detect.
As a result, Irvello and Woloff’s businesses became one of SEPTA’s largest billers. Irvello allegedly defrauded SEPTA of more than $540,000, and Woloff more than $330,000.
Martinez, who took over Abell’s role as SEPTA senior director of maintenance in 2016, raked in more than $144,000 in cash payments.
Another BBD manager, Kish, made more than $225,000. He reportedly asked Irvello to buy different valuable gold coins, each worth thousands of dollars. Kish is also accused of money laundering for using the fraudulent funds to buy real estate.
Related
Other managers received expensive tractor or ATV equipment, electronics, clothing, and money spent on car repairs.
If convicted, each defendant faces a least 20 to 40 years in prison.
In a statement, SEPTA said an internal investigation was launched following tips from employees.
The statement continues: “SEPTA is a public trust. Employees who engage in fraud and intentional misuse of funds violate that trust and will face serious consequences. The vast majority of our workforce are honest, hard-working individuals who are dedicated to providing critical public transportation service to our region. We will continue to do right by them, the taxpayers, and the riding public by holding those who engage in illegal activity accountable for their actions.”