HARRISBURG – Attorney General Dave Sunday announced a Philadelphia man has pleaded guilty in federal court to wire fraud charges tied to falsified loan applications and a scheme to defraud a healthcare workers union through false bids and inflated invoices.
The Office of Attorney General’s Public Corruption Section collaborated with the U.S. Attorney’s Office for the Eastern District of Pennsylvania and the FBI on the union fraud investigation.
Tracy Hardy pleaded guilty Thursday to various counts of wire fraud related to the fraudulent Paycheck Protection Program and Economic Injury Disaster Loan applications.
In addition, Hardy pleaded guilty to one count of wire fraud related to defrauding District 1199C, a subsidiary union of the National Union of Hospital and Healthcare Employees, for inflating prices for a bar renovation of the union hall performed by his construction company. Hardy, a well-known political consultant, is believed to have diverted union funds to political work, according to a state grand jury presentment and state preliminary hearing testimony.
“The law is very clear about how unions can support candidates and their campaigns, and the state investigation revealed improper use of union funds,” Attorney General Sunday said. “By holding this man accountable and continuing to prosecute a second defendant, we are sending a clear message that this type of fraud will not be tolerated in Pennsylvania.”
“This guilty plea highlights the strength of law enforcement collaboration in holding fraudsters accountable,” Wayne A. Jacobs, Special Agent in Charge of the FBI’s Philadelphia Field Office said. “The FBI, together with our state, local, and federal partners, remains committed to protecting the public from those who abuse their positions of power for financial gain.”
Hardy, along with his friend and the union’s executive officer, Christen Woods, were originally charged last year by the Pennsylvania Office of Attorney General regarding the union fraud scheme. Due to Hardy’s guilty plea in federal court, the state charges have been withdrawn against him.
Hardy appeared Thursday before United States District Judge Harvey Bartle III of the Eastern District of Pennsylvania.
Woods will continue to be prosecuted by the Office of Attorney General’s Public Corruption Section, which is currently scheduled for trial on Nov. 17. Criminal charges, and any discussion thereof, are merely allegations and all defendants are presumed innocent until and unless proven guilty.
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