Feds: 2 former Philadelphia officials charged with fraud, embezzlement

PHILADELPHIA - U.S. Attorney William McSwain announced fraud and embezzlement charges against two former City of Philadelphia officials. Separately, a city contractor and manager of a meal program for HIV/AIDS patients was charged with theft.

Federal investigators say Leo Dignam, 61, was charged with two counts of wire fraud and one count of embezzling from a program receiving federal funds.  His brother, Paul Dignam, 58,  was charged with one count of mail fraud and one count of embezzling from a program receiving federal funds.

Leo Dignam worked for the City of Philadelphia for 38 years as an Assistant Managing Director in the Managing Director's Office and Deputy Commissioner for Program with the Philadelphia Parks and Recreation department.

He oversaw Philadelphia Marathon, Broad Street Run and Mummers Parade. Paul Dignam was the Regional Manager for the South Region of Philadelphia Parks and Recreation.

Leo Dignam allegedly engaged in a scheme to defraud the City of Philadelphia of approximately $150,000 by misusing two bank accounts he controlled on behalf of the city that existed to support the work of Philadelphia Parks and Recreation, investigators said.

Authorities say his brother Paul Dignam opened a bank account that purported to be for use by a recreation advisory council, a commonly used governance structure in PPR that exists to support local recreation centers and playgrounds by helping to raise funds, develop programs, and maintain play sites.

Beginning in 2012 and continuing through 2019, he allegedly misused this bank account by repeatedly writing checks on the account made payable to himself. Investigators say Paul Dignam wrote himself approximately 102 checks worth approximately $119,000.

In a separate case, Barbara Conway, 61, allegedly stole more than $39,000 worth of food vouchers intended for HIV/AIDS patients receiving services through the Food Voucher Program.

She was employed as the Food Voucher Coordinator for the Philadelphia Health Management Corporation (PHMC), an organization contracted by the City to manage a Food Voucher Program designed to provide emergency assistance to people living with HIV/AIDS. 

Conway was charged with one count of theft of funds from a program receiving federal funds.

“All three of these defendants allegedly made the same bad choice to steal funds from federally-funded programs,” said U.S. Attorney McSwain. “Further, in all three cases, the defendants stole money from programs designed to benefit groups that desperately needed the assistance – from patients struggling with HIV/AIDS who require emergency assistance to meet basic necessities to a youth baseball organization serving many underprivileged children. The callousness that the defendants displayed by stealing from these programs is stunning.”

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