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Philadelphia Airport Advertising Supplier Pleads Guilty to Tax Fraud

On November 3, Thomas Ortalano, owner of TKO Visual Communications (TKO), a nationwide manufacturer and supplier of advertising displays for airports, pled guilty to tax fraud charges in U.S. District Court in Reading, PA. TKO was a supplier to a prime contractor on an FAA-regulated airport concessions contract at Philadelphia International Airport worth approximately $15 million. Ortalano, through TKO, paid commission and interest income to consultants who referred airport advertising business to him, which he failed to report to the IRS. This prosecution stemmed from a wider investigation pertaining to both the airport and corruption in Philadelphia city government. Sentencing is set for January 2007. This investigation was worked jointly with the FBI and IRS-CID.