Philadelphia Airport Contract is Focus of Probe

Jan. 20, 2006
Federal authorities are investigating an alleged link between campaign contributions and a multimillion-dollar contract at Philadelphia International Airport.

An architect, an advertising executive, and a business consultant whose clients have included mobsters and the clergy are at the center of the latest City Hall corruption investigation.

In their latest assault on Philadelphia's pay-to-play culture, federal authorities are investigating an alleged link between campaign contributions and a multimillion-dollar contract at Philadelphia International Airport, according to people familiar with the probe.

The authorities are focusing on an indoor advertising contract and three $10,000 payments to a political action committee with ties to one of Mayor Street's biggest fund-raisers.

Authorities are considering filing fraud charges by month's end, those familiar with the probe said.

The contract under investigation is worth millions a year to a French firm that has the rights to advertising signs inside two airport terminals.

Sources said authorities are looking at three people who contributed to a PAC controlled by lawyer and power broker Ronald A. White around the time the deal was consummated in 2001.

Authorities suspect that the $30,000 came from a consulting fee paid by the French firm to a Philadelphia architect, Terry Crockett. He was a consultant for Sky Sites, an American subsidiary of the French advertising firm JCDecaux.

Sources said one target of the investigation is Joseph Moderski Sr., a local businessman with airport connections who described himself to authorities as a longtime friend of White's.

Moderski is one of three people, including Crockett, who worked on the JCDecaux advertising deal and gave $10,000 to White's PAC. Crockett is a former airport employee who told the FBI he had known Moderski for 20 years.

All three contributions were made to White's Citizens Action PAC on June 26, 2001, records show.

Moderski's lawyer, William Spade, said he would not comment on the investigation.

"My client has been a respected businessman in this community for 40 years," Spade said.

A lawyer for Crockett, Joel Slomsky, declined to comment.

The third person who gave $10,000 to the PAC is Eric Selby, a JCDecaux regional vice president. His lawyer said he is assisting authorities.

"My client has been cooperating completely and fully since he was contacted, and he will continue to cooperate fully and completely," said his lawyer, Richard L. Scheff.

FBI agent Jerri Williams, a bureau spokeswoman, said she could neither confirm nor deny that agents are investigating the matter.

Authorities were drawn to Moderski's activities at the airport in part because of wiretaps placed on the phones of other targets of the City Hall corruption probe, including a senior airport administrator.

Those include wiretaps on the phones of White, who was indicted on corruption charges but died before trial; Imam Shamsud-din Ali, a prominent Muslim cleric who was convicted last year on racketeering and corruption charges; and James Tyrrell, deputy director of aviation, who has not been charged with any crimes.

In September 2001, agents watched as Moderski met with Ali and Tyrrell at the Saloon Restaurant, according to a source.

This is at least the second time the FBI monitored one of Moderski's meetings at the popular South Philly restaurant. He was also observed meeting with Ali, labor leader Sam Staten, and reputed mob boss Billy D'Elia during the corruption investigation.

Moderski has described himself as a "business consultant" to jailed mob boss Ralph Natale and said he attended the Saloon meeting at Ali's request.

Last year, Tyrrell was questioned by the FBI about Moderski and, according to an FBI summary of the interview, described Moderski as a consultant for JCDecaux.

In that same interview, Tyrrell told the FBI that White had asked him on several occasions to "meet with individuals who have an interest in obtaining work" at the airport.

According to the FBI agent's summary, Tyrrell also said he "didn't think it would be prudent not to give White what he wanted since he was good friends with the mayor of Philadelphia."

Tyrrell's lawyer, Brian McMonagle, said the city employee had done nothing wrong.

"Jim Tyrrell is a hardworking, honest and dedicated public servant," McMonagle said. "He was questioned and told them everything he knew concerning the circumstances involving these contracts."

When JCDecaux obtained the contract in 2001, it had been operating at the airport for 14 years. According to city records, JCDecaux SkySites earned $15 million from 1998 to 2003 from airport advertising revenues.

It was one of only two bidders for the 2001 contract to oversee the advertising in the new international terminal and the commuter terminal, which JCDecaux won over competitor Interspace Airport Advertising.

The contract was signed in May 2001, and the agreement took effect the following July.

Under the contract, JCDecaux operated under a joint venture and subcontracted all of its planning, design, construction and installation work to Crockett's architecture firm.

The advertising firm pays the airport 75 percent of the revenue it generates. In 2003, for example, the city was paid $1.8 million, records show.

Philadelphia Inquirer

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