U.S. Attorney William McSwain announced that two brothers, Leo and Paul Dignam, were charged with fraud and embezzlement.
Leo Dignam, 61, was charged with two counts of wire fraud and one count of embezzling from a program receiving federal funds. Paul Dignam, 58, was charged with one count of mail fraud and one count of embezzling from a program receiving federal funds.
Leo Dignam was an assistant managing director and, prior to serving in that position, was the deputy commissioner for programs with the city Department of Parks and Recreation. In these positions, he oversaw the administration of major events in the city, such as the Philadelphia Marathon, the Broad Street Run and the Mummers Parade. Dignam worked for the city for about 38 years.
Over the course of several years, from 2012 through 2019, Leo Dignam allegedly engaged in a scheme to defraud the city of about $150,000 by misusing two bank accounts he controlled on behalf of the city that existed to support the work of parks and rec, namely, recreational activities for citizens. In particular, he opened a bank account purportedly to support the activities of parks and rec in connection with a nonprofit organization, the Junior Baseball Federation. The JBF partnered with the Phillies to raise most of its funds through the sale of tickets for Phillies games.
Instead of using the JBF bank account solely for its intended public purpose, Leo Dignam allegedly misused the account by converting funds from the account to pay for personal expenses he incurred on an American Express credit card that he opened in connection with the JBF account. He is charged with using the AMEX card, and sharing it with family members, for purchases from retail stores, grocery stores, pharmacies, gas stations, online retailers and service providers and other businesses. He then allegedly used the funds in the JBF bank account to pay off the personal expenses on the credit card.
According to the charges, he similarly misused another account, the Program Advisory Fund Account. The defendant is charged with using this account to pay personal expenses by transferring funds directly to a personal account, solely for his own benefit, and by using it to pay personal expenses on a Verizon Wireless account.
Paul Dignam, of Tacony, was the regional manager for the South Region of Parks and Recreation. In this position, he oversaw the administration of local recreation centers and playgrounds and supervised the activities of several district managers. In 2011, Paul Dignam opened a bank account that purported to be for use by a recreation advisory council, a commonly used governance structure 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. He is charged with helping to conceal this fraud by having bank statements mailed to his personal residence and having another individual act as a signatory on the account. The defendant, according to the government, then forged the other individual’s signature on the misappropriated checks and falsely noted in the memo line of the checks that they were “reimbursements” for expenses he incurred by making purchases on behalf of parks and rec. In sum, the U.S. Attorney alleges, Paul Dignam wrote himself about 102 checks worth some $119,000.
“We share a collective and longstanding devotion to integrity in city government, and I wish to thank the United States Attorney’s Office and the FBI for their partnership in the investigation of the Dignam brothers and our broader mission,” said city Inspector General Alexander DeSantis.
If convicted, Leo Dignam faces a maximum possible sentence of 50 years in prison, Paul Dignam faces a maximum possible sentence of 30 years in prison.
The cases were investigated by the FBI and the city Office of the Inspector General. The cases of Paul and Leo Dignam are being prosecuted by Deputy United States Attorney Louis D. Lappen. ••
