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Electrical contractor who pleaded guilty in Johnny Doc probe is barred from Pa. casino work

MJK Electrical's is blocked from further work in Pa. casinos after part-owner George Peltz pleaded guilty to charges related to the ongoing federal investigation of John J. “Johnny Doc” Dougherty and IBEW Local 98.

FBI employees carry out boxes from the offices of the International Brotherhood of Electrical Workers Local 98 in Philadelphia on Friday, Aug. 5, 2016. About 100 boxes - with some labeled "bank statements" and "taxes" - were loaded into a rental truck along with four computers.
FBI employees carry out boxes from the offices of the International Brotherhood of Electrical Workers Local 98 in Philadelphia on Friday, Aug. 5, 2016. About 100 boxes - with some labeled "bank statements" and "taxes" - were loaded into a rental truck along with four computers.Read moreDAVID SWANSON / Staff Photographer

State regulators have revoked permission of MJK Electrical Corp. to work for Pennsylvania casinos after its part-owner, George Peltz, pleaded guilty to tax evasion and other charges related to the ongoing federal investigation of Electricians Local 98. Peltz has extensive ties to labor leader John J. “Johnny Doc” Dougherty.

In an emergency action, the Pennsylvania Gaming Control Board on Wednesday voted unanimously to suspend MJK’s permit as a Gaming Service Provider. MJK, which worked for SugarHouse Casino, was “unsuitable for licensure” following Peltz’s guilty pleas in January, the gaming board said.

Peltz, the first individual criminally charged in the long-running FBI investigation into Local 98, pleaded guilty to counts including tax evasion, failing to pay payroll taxes, theft from employee benefit funds, and making unlawful payments to a union official. He is scheduled for sentencing on Tuesday.

The gaming board, which licenses all suppliers and employees of the state’s casinos, filed papers on Feb. 1 to revoke MJK’s permission after Peltz’s guilty plea. MJK Electrical did not appeal the administrative action.