Contractor with ties to Johnny Doc indicted for tax fraud and defrauding union benefit fund

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.


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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

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Construction contractor from N.J. admits defrauding IRS out of nearly $1M in taxes

A construction business owner from Monmouth County pleaded guilty Tuesday in federal court to defrauding the Internal Revenue Service out of nearly $1 million, authorities said.

Bilal Salaj, 55, of Morganville, defrauded the IRS by evading payroll taxes for his business and personal income taxes, according to Audrey Strauss, the Acting United States Attorney for the Southern District of New York.

“To carry out the scheme, Salaj lied to his own accountant and caused false tax returns to be filed with the IRS,” Strauss said in a statement.

Salaj operated a construction business in Manhattan and in July 2014 placed the company in the name of an unnamed third party who worked for him, Strauss said.

“Despite this purported change in ownership, Salaj continued to exercise principal control and decision-making authority over the business and its financial affairs,” Strauss said.

In particular, Salaj was a responsible person under federal

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