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Former State Sen. Vincent J. Fumo is in federal prison ; he was convicted in March of defrauding the charity.
Former State Sen. Vincent J. Fumo is in federal prison ; he was convicted in March of defrauding the charity.
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Fumo excused from Citizens' Alliance lawsuit

A Commonwealth Court judge excused former State Sen. Vincent J. Fumo from a civil suit against Citizens' Alliance for Better Neighborhoods because he was not an officer or director of the South Philadelphia nonprofit that he once said under oath was "my baby."

Judge Dan Pellegrini ruled yesterday that Fumo, now in federal prison, had no fiduciary duty to Citizens' Alliance because he had no official role with the nonprofit, which Fumo and his aides founded in 1991.

The ruling was directed at a suit filed by Pennsylvania Attorney General Tom Corbett in April against Fumo and others seeking a full accounting of the nonprofit's assets and spending and repayment of any wasted or mismanaged money.

Corbett's suit alleged that Fumo and Ruth Arnao, former executive director of Citizens' Alliance and a longtime Fumo friend, had "unlawfully diverted" $1.9 million from the nonprofit for "personal use and political advantage."

Arnao, who is named in Corbett's suit, is also serving time in federal prison. Fumo and Arnao were found guilty in March by a federal jury of defrauding the charity out of about $1.4 million.

Pellegrini said that Corbett is allowed to reargue his case that Fumo controlled Citizens' Alliance.

But for now, Pellegrini has ruled that Fumo is not legally responsible for what Citizens' Alliance did.

"That's exactly how this whole thing should have come down," said Fumo lawyer Dennis J. Cogan, referring to Fumo's guilty verdicts related to the nonprofit.

"In terms of Citizens' Alliance," Cogan said last night of Pellegrini's ruling, "that's exactly correct."

Chief Deputy Attorney General Mark A. Pacella declined to comment last night.

Joseph Lundy, an attorney for Citizens' Alliance, also declined to comment.

Corbett wants to shut down the nonprofit, or at least have all current officers and board members replaced.

Citizens' Alliance was formed to revitalize neighborhoods in South Philadelphia by sweeping streets, and removing snow and graffiti. It grew with infusions of public and private money to purchase real estate and invest millions in a brokerage run by a Fumo friend.

Corbett's suit contends that the federal convictions established that the nonprofit used its money to buy power tools and household items for Fumo, and to provide cars and equipment for Fumo and his staff. Citizens' Alliance also paid for political work.


Contact staff writer Robert Moran at 215-854-5983 or bmoran@phillynews.com.

This article contains information from the Associated Press.

Comments   
Posted 06:07 AM, 11/11/2009
FJG JR
You gotta be kidding!! Put this judge on the Vote them out list.
Posted 07:31 AM, 11/11/2009
topaj
now johnny just wait until it your turn turn around and look there almost here........
Posted 07:31 AM, 11/11/2009
topaj
now johnny just wait until it your turn turn around and look there almost here........
Posted 09:11 AM, 11/11/2009
johduk
Fumo's abuse of the public continues. Are all judges on the take?
Posted 09:45 AM, 11/11/2009
dSmith
um.. the judge apparently is reading the law and evidence correctly. Just like I said during the federal trial.. Fumo wasn't a board member of Citizens! Not involved..
Posted 10:48 AM, 11/11/2009
feudi
What rubbish! There is a HUGE difference between "legal control" and de facto control and Pelligrini konws it! Vinny Smoke was not a board memebr for the exact same reason that Mafia wiseguys put their property in their wives name... namely, to escape prosecution. How long will the public allow our laws to be flaunted in this manner?
Posted 10:53 AM, 11/11/2009
feudi
what rubbish
Posted 03:20 PM, 11/11/2009
JStocker
This will continue as long as the US attorneys hands are tied. Damned shame.
Posted 03:20 PM, 11/11/2009
Vinnie Gambone
Fumo was not a corrupt individual, his was a corrupt organization,and it has been the likes of Jim Kenney, and Frank Diciccoo,who helped to perpetrate the image of CA as doing community service, when it was in fact self service for Alli Babba Fumo and his 40 thieves. And then ther's the 13 million disappeared in bad investments.
Posted 03:30 PM, 11/11/2009
bottomline
This is the message that reaches the ears of our children, then we expect them to respect the law. I knew Philly had a corruption problem before I attended kindergarten, long, long ago.
Posted 06:42 PM, 11/11/2009
philly68
Fumo is a convicted felon due to his abuse of power and control over Citizen's Alliance. The PA Commonwealth Court has made its share of bad rulings in the past. However, as the article makes clear: 1) Judge Pellegrini only ruled that Fumo was not an officer or director and 2)the State Attorney General will have the opportunity to argue that Fumo in fact controlled Citizen's Alliance. (hint hint). Since the facts in the criminal trial established that Fumo did control C.A. and Fumo admitted this in private conversations and emails, it is likely Vinny "the Felon" Fumo will lose this argument. ALthough his denial of reality continues, his likelihood of redemption does not.
11 comments
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