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United States Attorney's Office News Release

 

January 24, 2007 - United States Attorney Pat Meehan today announced the filing of an Indictment* against Joseph Moderski, 69, of Bryn Mawr, Pennsylvania, charging him with evading more than $600,000 in income taxes for the years 1999-2004 and defrauding both the City of Philadelphia and advertising company JCDecaux of approximately $180,000 in advertising fees that he diverted from JCDecaux, half of which would have been passed on to the City of Philadelphia.

Moderski operated company called J.C. Moderski, Inc., whose primary business was marketing was securing and maintaining display advertising business in the Philadelphia metropolitan area and in New Jersey. Moderski also sold his services to companies and individuals interested in securing various types of business at the Philadelphia International Airport (PIA). Defendant Moderski was the 100% shareholder of J.C. Moderski, Inc.

As part of his attempt to evade federal income taxes, Moderski withheld from the accountants he hired to prepare his business and personal tax returns information that would have identified approximately two-thirds of the gross receipts to J.C. Moderski, Inc. and income to Moderski personally. Moderski provided the accountants only with records of the business account, which reflected only approximately one-third of the gross receipts to J.C. Moderski, Inc. He also withheld income he had received in the following forms: business receipts that he deposited into his personal bank account, payments issued directly to his credit card account, checks issued by the Ramada Inn (Philadelphia Airport location) that he deposited into his personal checking account or the account of a third party; and checks issued to third parties on his behalf.

“The defendant understated his income by more than $350,000 and he did it more than once,” said Meehan. “This was simply a deliberate and repeated attempt by the defendant to avoid paying what he owed.”

In addition, Moderski is charged with defrauding the City of Philadelphia and JCDecaux of more than $180,000. Moderski was a consultant paid by JCDecaux to assist the company in obtaining new business along with maintaining and servicing existing business at the PIA. As the company’s consultant to the PIA, Moderski received a fee of several thousand dollars per month plus expenses. Under the terms of the JCDecaux contract with the PIA, the company was required to pay annually to the city the greater of 50% of all gross advertising revenue it received or a guaranteed fee of $400,000.

Moderski allegedly fabricated invoices on the letterhead of TKO Visual Communications purporting to charge the Ramada Inn airport location $1,800 per month for the Ramada advertising on the phone boards at the PIA. After receiving payment, Moderski deposited the Ramada Inn checks payable to TKO Visual Communications that he had fraudulently obtained into bank accounts he controlled, or into the bank account of a third party not authorized to receive payments for advertising by the Ramada Inn at the PIA. Any mention of advertising revenue obtained from the Ramada was therefore omitted from JCDecaux monthly sales reports consequently depriving both the company and the City of Philadelphia of approximately $180,000 in fees paid by the Ramada Inn for advertising on phone boards at the PIA.

If convicted the defendant faces a maximum possible sentence of 91 years in prison, a $5,750,000 fine, a $2,300 mandatory special assessment, and payment of back taxes plus penalties and interest.


DEFENDANT

ADDRESS


AGE [Date of Birth]
Joseph Moderski

Bryn Mawr, PA
 Age 69

The case was investigated by the Internal Revenue Service, the Federal Bureau of Investigation, and the Department of Transportation, Office of the Inspector General, and has been assigned to Assistant United States Attorneys Joan L. Markman and Joan E. Burnes.


UNITED STATES ATTORNEY'S OFFICE
EASTERN DISTRICT, PENNSYLVANIA
Suite 1250, 615 Chestnut Street
Philadelphia, PA 19106
Contact:
RICH MANIERI
Media Contact
215.861.8525

*An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.

Benjamin Franklin Photo by B. Krist for the Greater Philadelphia Tourism Marketing Corporation