A close associate of Philadelphia union leader John “Johnny Doc” Dougherty was indicted Wednesday on multiple counts of bank fraud, tax fraud and stealing from the benefits funds for union workers.
Donald “Gus” Dougherty, 54, collaborated with Michael McKale, an accountant working for his company, Dougherty Electric Inc., to alter financial records and lower the amount of federal taxes he was required to pay, according to the indictment filed Wednesday in U.S. District Court.
McKale, 47, has been charged with conspiracy to defraud the IRS and related offenses.
Dougherty’s attorney, Eric W. Sitarchuk, said Wednesday he “intends to vigorously contest the charges.”
Though Dougherty is not related to the prominent Democratic kingmaker, the two have been lifelong friends, and have been linked in the FBI’s ongoing probe against John Dougherty.
Gus Dougherty pleaded guilty in 2008 to defrauding John Dougherty’s Local 98 out of more than $500,000 in