James Stevens, Bribery and Extortion, Pennsylvania 2018

In a shocking case of corruption, James Stevens, 69, of Somerdale, NJ, and Robert Welsh, 59, of Arizona, have been charged with conspiracy, bribery, extortion, and fraud charges related to a scheme to pay off Stevens in exchange for helping Welsh’s businesses.

According to the indictment, from March 2014 until July 2018, Stevens, the Director of the Video Evidence Unit with SEPTA, demanded financial and other benefits from Welsh, owner and operator of Spector Logistics, Inc., in exchange for his role in maintaining and growing Spector’s business with SEPTA.

The benefits Welsh provided to Stevens included over $100,000 in cash payments, donations to an alleged charity that Stevens pocketed, lodging and meals during the 2015 Papal Visit, frequent meals and drinks, tickets to a 2016 Barbra Streisand concert, and funds for SEPTA annual holiday parties.

As Stevens demanded, Welsh also offered Stevens future employment with Spector when Stevens retired from SEPTA. During the time of this corrupt relationship, Spector maintained and obtained millions of dollars in contracts with SEPTA.

Stevens played a significant role in facilitating and approving contracts for Spector and Blue Zebra, a second company Welsh owned and established with Stevens’ assistance, and helped Spector win bids by giving Welsh inside information about SEPTA’s financial analyses and otherwise collaborating with Welsh in the contracting process.

‘Philadelphians deserve public employees who do their jobs honestly, without corrupting the system to line their own pockets,’ said U.S. Attorney Jacqueline C. Romero. ‘As alleged in the indictment, the defendants’ participation in this scheme was extensive: using millions of dollars in public contracts to fraudulently benefit themselves.’

The case was investigated by the Federal Bureau of Investigation, and is being prosecuted by Assistant United States Attorney Louis D. Lappen.

An indictment, information, or criminal complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.

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