Two hotel managers accused of fraud

Federal prosecutors Tuesday accused two employees of a campus hotel at the University of Pennsylvania of stealing more than $3 million over four years.

Kenneth Kapikian, the hotel's former general manager, and Dennis Gagliardi, who was chief engineer, allegedly took more than $710,000 in kickbacks paid to them by contractors who overbilled for services at the Sheraton University City Hotel, according to government court filings.

Federal authorities also accused the pair of submitting nearly $2.5 million in false invoices to the hotel from a washing-machine company they co-owned.

Lawyers for both men said their clients intend to plead guilty to charges of wire fraud and conspiracy to commit money laundering.

"It has always been his intent to take full responsibility for his actions," said George Yacoubian, lawyer for Kapikian. "We will be pleading guilty at the earliest possible stage with the hope that this will, in some small but meaningful way, lessen the impact these charges may have on the University of Pennsylvania."

Lawyer Mark Cedrone said much the same of his client, Gagliardi.

"Mr. Gagliardi has cooperated with the U.S. government in the investigation," he said. "He accepts responsibility for his conduct."

Prosecutors allege Kapikian, 57, of Wayne, and Gagliardi, 60, of Chester Springs, instructed vendors - including an interior designer, a technology company, and a construction contractor - to pad invoices they submitted for work they did at the hotel between 2009 and 2013. The men then collected the surplus in the form of kickbacks.

Both worked for Meyer Jabara Hotels, the management company running the hotel for the University of Pennsylvania. Both had left their jobs by the time the allegations came to light in February 2014.

University officials did not return calls for comment Tuesday.