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Philadelphia Woman Sentenced for Role in Fraud Scheme Involving Former Traffic Court Judge
PHILADELPHIA – Lorraine Dispaldo, 58, of Philadelphia, was sentenced to 18 months in prison for her role in a fraud conspiracy with then-Philadelphia Traffic Court Judge Robert Mulgrew.
Dispaldo pleaded guilty to a total of 36 counts, including conspiracy to commit mail and wire fraud, mail fraud, wire fraud, filing false personal income tax returns, and bankruptcy fraud.
According to the investigation, Dispaldo and Mulgrew carried out a scheme to defraud the Pennsylvania Department of Community and Economic Development, with Dispaldo helping to orchestrate the scheme to fraudulently receive and misuse Pennsylvania state grant funds awarded to non-profit groups.
Between 1996 and 2008, the DCED awarded hundreds of thousands of dollars in grants to two community groups with which Mulgrew and Dispaldo were associated. Dispaldo signed the grant contracts with DCED, but admitted that the grant contracts she submitted misrepresented how the funds would be used.
Dispaldo admitted that instead of using grant funds exclusively for materials and equipment, as agreed, she paid tens of thousands of dollars in CPC and FDS grant funds to Mulgrew’s relatives and associates, including the teenage sons of his friends, and to the State Representative’s life-long friends.
Dispaldo was sentenced by U.S. District Court Judge C. Darnell Jones, II, who also ordered restitution of $120,865, a $3,600 special assessment, and three years of supervised release.
Dispaldo’s crimes included filing false personal income tax returns for tax years 2006 through 2009, and concealing her true income for 2008 and 2009 in a 2010 bankruptcy filing.
Between 1997 and 2007, DCED awarded approximately $460,000 in grants to the Friends of Dickinson Square (FDS) to be used for the maintenance of Dickinson Square, at 4th and Tasker Streets, and the surrounding neighborhood.
Dispaldo’s codefendant, Mulgrew, signed the FDS grant contracts with DCED, but is awaiting sentencing.
Dispaldo admitted that the grant contracts she submitted misrepresented how the funds would be used, and instead paid tens of thousands of dollars in CPC and FDS grant funds to Mulgrew’s relatives and associates.
Key Facts
- State: Pennsylvania
- Category: White Collar Crime
- Source: DOJ Press Release â†â€â€
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