Investigations

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Former Executive of Advertising Company Pleads Guilty in Corruption Scheme Involving $15 Million in Philadelphia Airport Concession Contracts

On March 6, Eric Selby, former regional vice president for Sky Sites, Inc. (Sky Sites), pled guilty in U.S. District Court in Philadelphia to charges related to a corruption scheme involving FAA-regulated advertising concession contracts at the Philadelphia International Airport. Selby was one of four people indicted by a federal grand jury in February on charges of conspiracy, mail fraud, and wire fraud in connection with approximately $15 million in such contracts awarded by the City of Philadelphia. Selby admitted that, in an effort to secure or extend airport advertising contracts, the conspirators used Sky Sites to illegally fund $40,000 in contributions to the campaign fund for the mayor of Philadelphia and to a political action committee supporting the mayor.

One of the conspirators used his certified disadvantaged business enterprise (DBE) as a conduit to create a false $30,000 invoice that was paid by Sky Sites; Selby and two other conspirators subsequently each paid $10,000 of these funds to a PAC supporting the Philadelphia mayor. Selby also admitted that he and two other conspirators agreed to disguise the source of a $10,000 contribution to the campaign fund for the mayor of Philadelphia by creating a sham $10,000 consulting bonus which was paid by Sky Sites to one of the conspirators.

The DBE owner, Terry Crockett, pled guilty on March 2 to conspiracy and wire fraud. Sentencing for Crockett is set for July 31, 2006 and for Selby on August 2, 2006. The continuing investigation is being conducted jointly with the FBI.