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Fumo surrenders to FBI, pleads not guilty

State Sen. Vincent J. Fumo and a former Senate aide surrendered to the FBI today and pleaded not guilty before a federal magistrate judge to scores of fraud charges.

Neither Fumo nor the former aide, Ruth Arnao - nor their lawyers - spoke to reporters.

"Mum's the word," said Ed Jacobs, who represents Arnao.

Fumo, flanked by lawyers Richard Sprague and Mark Sheppard, arrived early for the brief but packed proceeding before U.S. Magistrate Judge Thomas J. Rueter.

Rueter's clerk read a list of charges: conspiracy, mail fraud, wire fraud, conspiracy to obstruct justice, and aiding the filing of a false tax return.

"How say you to the charges?" the clerk asked.

"Not guilty, your honor," replied Fumo (D., Phila.).

A few minutes later, Arnao pleaded not guilty, too.

Fumo, 63, was freed on a routine personal recognizance bond, with a stipulation that he will forfeit $100,000 if he does not reappear for court proceedings.

Assistant U.S. Attorney John J. Pease said that Fumo must reside at his Philadelphia home on Green Street and not travel outside of Pennsylvania, Delaware, New Jersey, Florida and Manhattan. Fumo has already surrendered his passport.

Fumo, a gun collector, must also turn over the more than 100 firearms he owns. They will be stored in vaults controlled by two different firearms dealers, and a court official will maintain the keys to the vaults, Pease said.

A grand jury indictment returned Tuesday alleges that Fumo exploited for his personal and political use: his Senate budget and power; the South Philadelphia charity he helped fund, Citizens' Alliance for Better Neighborhoods; and the Independence Seaport Museum.

The indictment charged that Fumo used taxpayer and charity money to pay for political polls, power tools, cars, farm equipment, personal errands, shopping sprees and more.

The indictment alleges more than $2 million in illicit spending and includes the sensational allegation that Fumo hired private detectives to tail ex-girlfriends and dig up dirt on political rivals - including Ed Rendell, when he first was running for governor.

Grand jurors said Fumo:

- Diverted more than $60,000 from the charity into an effort to block a dune-rebuilding project in South Jersey. Fumo allegedly feared that the project would ruin the ocean view at his Margate home.

- Assigned one Senate aide to oversee renovations at the senator's 33-room mansion in Spring Garden and paid another aide to clean the house.

- Put other taxpayer-paid aides to work organizing political fund-raisers; putting together campaign mailings; paying his personal bills; and packing boxes of Fumo bobblehead dolls.

- Doled out fat state contracts to political consultants and others who did little or no state work.

- Repeatedly cruised on museum yachts at a cost to the museum of more than $100,000.

Fumo arrived at the federal justice complex in Philadelphia shortly before 11 a.m. today to surrender to the FBI.

As he entered the building, Sprague cut off reporters' questions to Fumo. The lawyer said he would hold a news conference at noon tomorrow to talk about the indictment.

"So leave my client alone for the time being," Sprague said.


Contact staff writer John Shiffman at 215-854-2658 or jshiffman@phillynews.com.