State Rep's business partner sentenced to prison term

Federal agents remove boxes of evidence from K&O Sporting Goods in South Philly in August, 2010. (Ed Hille / Staff Photographer)

Mark Olkowski, business partner to state Rep. Bill Keller of South Philly, was sentenced today to three months in federal prison for filing false taxes and unemployment claims.

Olkowski, who runs K&O Sporting Goods with Keller, pleaded guilty in April to 19 counts, including $148,078 in unreported income and $16,046 in bogus unemployment claims.  K&O prints t-shirts and other items for labor unions and political campaigns.

Keller's former chief of staff, Lorraine Dispaldo, is scheduled to be sentenced on Sept. 16 for unrelated financial crimes. 

Dispaldo, indicted with former Traffic Court Judge Robert Mulgrew and his wife in September, pleaded guilty in April to 36 counts for misusing $70,000 to $120,000 in state grant money meant for non-profits in Keller's district and for filing false tax returns and bankruptcy court filings that hid $46,779 in income.

Federal agents in August 2010 raided the homes, offices and businesses of Olkowski, Dispaldo, Mulgrew and Keller.  Keller has not been accused of any wrongdoing in the federal probe.