White Collar Welfare

 

I am sure most of you remember only a few years back when President Clinton was “triangulating” in order to maintain popularity and satisfy to some degree the goals of both sides of the political aisle, he came up with a program designed to remedy flaws in the country’s welfare system which some claimed allowed many to access the welfare system and stay on it for extended periods when they were capable of working and there was job opportunity throughout the country.

 

His remedy was labeled “Welfare to Work” and the government established a system that would help stabilize individuals and families, but then find them suitable employment that would open doors to personal development and take them off the government dole.  Many of these jobs were entry level, but the goal was to match previous skills with opportunity and help instill confidence for the individual.

 

Well, it seems we have a somewhat different kind of welfare system here in Philadelphia, one that skims millions from the higher echelons of government, but it is done with a whole different mechanism.  Some may call it larceny within the legal system, but White Collar Welfare works for me.

 

For you see who would question the integrity of a Philadelphia lawyer, particularly one from those white-shoe firms that have been the backbone of our judicial system and given us generations of judges and elected officials whose names are household words.

 

Well, two household names made the news last week as runoff from an investigation begun through a federal inquiry into the use of federal dollars through Housing and Urban Development (HUD) in the now well known controversy involving Carl Greene, former Philadelphia Housing Authority (PHA) Executive Director; ousted after multiple sexual harassment cases being brought against him and settlement with agency dollars.  Demands by HUD’s Inspector General into the use of HUD funds in paying law firms brought to light what some could easily characterize as White Collar Welfare run through a well known firm to a well known former City Controller.

 

Outside legal services to city firms through PHA amounted to $38.5 million in the last three years, a figure the IG calls “outrageous”.  Included in that funding was $150,000 billed as consultant fees by attorney and former City Controller Jonathan Saidel.  The “arrangement” was structured through Schnader, Harrison, Segal & Lewis, renowned Philadelphia firm by firm member James Eisenhower, former federal prosecutor and regular TV guest with local political discussion groups.  Mr. Eisenhower has been described as Carl Greene’s Chief Legal Advisor and Strategist.

 

The problem is that there is no evidence of what work has ever been performed by attorney Saidel and interested parties are scrambling to justify many of the bills paid to Schnader using HUD dollars.

 

Does all this have a familiar ring?  You bet it does, for we have heard these stories regarding insider dealing on contracts in the PHA and other city agencies, sweetheart deals with developers, campaign contributions that produce massive public money deals with little oversight and compliance - - and the list goes on.

 

Just this week another story breaks where charges surface that funds from city programs went to another attorney close to Congressman Chaka Fattah and State Representative Dwight Evans, who along with 9 others may have had access to city funds through the now-defunct PCDC development corporation and other publically funded projects over the last few years. 

Reports claim these funds were for business start-up but wound  up being used for personal expenditures with no attempt to repay.  It amazing what some lawyers can find in the form of advance welfare payments and billing without backup - -  but do they ever do the work?

 

Well, maybe its time for a little discipline to be enforced on those insiders and political friends to do a little “work” for their generous “welfare” from the taxpayers. But first we need to know how much they were paid and how long they were recipients in order to make the “appropriate arrangements”.  I recommend the arrangements be done through that very judicial system they were sworn to uphold.

 

But why did it take a U.S. Senator from the Midwest to initiate and investigation into the obvious misuse of federal dollars here?  I can think of several standing investigations that are buried in the U.S. Attorney’s office in this city, and a number of law firms with outrageously generous long-term contracts, blank check billing practices and deals that make Schnader’s recent disclosure look small.

 

I would start with Ballard Spahr - - oh, that’s right, they already have, but there is so much to learn.

Jim Foster

Editor/Publisher