Gus Dougherty pleads not guilty to bilking union, IRS

A South Philadelphia contractor charged Tuesday with stealing from the electricians' union, cheating the IRS out of millions of dollars, and giving sweetheart deals to union honcho John Dougherty surrendered to federal authorities yesterday.

Donald "Gus" Dougherty Jr., 41, pleaded not guilty before U.S. Magistrate Thomas J. Reuter.

Reuter released him on $100,000 personal-recognizance bond.

He also restricted his travel to the Philadelphia region and New Jersey.

Dougherty also was ordered to undergo alcohol treatment as deemed necessary by the U.S. Office of Pre-Trial Services.

"We intend to defend this case. The defense will take place in the courtroom," said his lawyer, Nicholas J. Nastasi.

"What happens outside the courtroom is Gus Dougherty is going to continue to work hard and employ a lot of hard-working families."

Nastasi also said he spoke to a federal prosecutor about the case less than a week ago but didn't learn that Dougherty had been charged until U.S. Attorney Patrick Meehan held a news conference Tuesday and reporters called Nastasi for reaction.

Asked about that, Assistant U.S. Attorney Mike Schwartz declined to comment.

Dougherty is president of Dougherty Electric.

He was charged in a 100-count indictment with theft of employee benefit plans, tax evasion, filing false statements with the Labor Department, filing false and fraudulent tax returns, making unlawful payments to a union leader, bank bribery, and false statements related to health-care matters.

If convicted of all charges, Dougherty could face up to four years in the clink under sentencing guidelines. *