IN THE UNITED STATES DISTRICT COURT FOR THEEASTERN DISTRICT OF PENNSYLVANIA

UNITED STATES OF AMERICA : CRIMINAL NO. 16-

Y. : Date Filed: '2016

ELLENCHAPMAN : VIOLITiONS:LAWRENCE FARNESE 18 U.S.C. $ 371 (Conspiracy-l count)

: 18 U.S.C. SS 1343, 1346,2 (Wire Fraud-5 counts)

: 18 U.S.C. S$ 1341,1346,2 (Mail Fraud-lcount)

: l8 U.S.C. $$ 1952(aX3) and 2 (TravelAct-6 counts)

INDICTMENT

THE GRAND JURY CHARGES THAT:

GENERAL ALLEGATIONS

At all times relevant to this Indictment:

l. For purposes oforganizing the activities ofthe Democratic and Republican

political pa(ies in the City of Philadelphia, the city is divided into approximately 66 wards.

2. The Philadelphia Democratic Party (the "Democratic Party") has a committee in

each ward ("ward committee").

3. The members of the Democratic Party ward committees are typically elected by

the neighborhoods that compose the ward ("divisions"), with each division electing two persons

to serve on the ward committee. [n the case of a vacancy between elections, ward commiftee

members can be appointed.

4. The ward committee members elect a ward leader, who is responsible for

organizing the political activities ofthe party within the ward and who represents the ward on the

Democratic Party's City Committee.

5. The duties and responsibilities of ward commiltee members are set lbrth in the

Rules of the Democratic Party of the City and County of Philadelphia, which provide that ward

commiftee members are obligated to be faithful to the Democratic Party and to act in the "best

interests of the party."

6. Defendant ELLEN CHAPMAN was a member of the Eighth Ward Democratic

Committee.

7. Defendant LAWRENCE FARNESE was a Pennsylvania State Senator and a

candidate for Democratic Ward Leader of the Eighth Ward in 201 l.

8. Friends of Famese was a political committee organized to support defendant

FARNESE's campaign for the Pennsylvania State Senate.

9. Person A was a political consultant; one of Person A's clients was Friends of

Famese.

COUNT ONE

CONSPIRACY18 u.s.c. s 371

Paragraphs I through 9 of this Indictment are re-alleged as if fully set forth

herein.

I I . From in or about May 201 I to in or about December 201 I , in the Eastem District

of Pennsylvania, the defendants,

ELLEN CHAPMAN ANd

LAWRENCE FARNESE,

did knowingly and willfully conspire and agree with one another and Person A, and others

known and unknown to the Grand Jury, to commit offenses against the United States, that is:

10.

b.

Mail and Wire Fraud: to devise and intend to devise a scheme and artifice to

defraud and to deprive the Democratic Party. the members olthe Democratic

Party, the Democratic Eighth Ward, and the Eighth Ward Democratic Committee,

of their intangible right to the honest services of CHAPMAN tfuough bribery, and

to detiaud and to obtain money fiom the Friends ofFarnese campaign by means

offalse and fraudulent pretenses, representations and promises, in violation of l8

U.S.C. $$ l34l, I 343, and 1346; and

Bribery in Violation of the Travel Act: to use, and aid, abet. and cause to be

used, a facility in interstate and foreign commerce with the intent to promote,

manage, establish, carry on, and facilitate the promotion, management,

establishment, and carrying on of an unlawful activity, namely, bribery, contrary

to Title l8 Pa. Cons. Stat. Ann. $ 4701, and thereafter to perform and to attempt

to perform such promotion, management, establishment, carrying on, and

facilitation of the promotion, management, establishment and carrying on of the

above unlawful activity, in violation of l8 U.S.C. $$ 1952(a)(3) and 2.

PURPOSE OF THE CONSPIRACY

It was a purpose of the conspiracy for CHAPMAN to enrich herself by soliciting

and accepting $6,000 from FARNESE and Person A to pay for a college study-abroad progam

tbr CHAPMAN's daughter, in exchange for which CHAPMAN agreed to use her position as a

party official on the Eighth Ward Democratic Committee to vote for FARNESE for Democratic

Ward Leader of the Eighth Ward.

13. It was a purpose ofthe conspiracy for FARNESE and Person A to buy

GHAPMAN's vote for FARNESE for Democratic Ward Leader of the Eighth ward by providing

12.

CHAPMAN with a $6,000 payment from Friends of Famese to pay the tuition for CHAPMAN's

daughter's study-abroad program.

MANNER AND MEANS

14. The manner and means ofthe conspiracy included the following:

a. CHAPMAN agreed and intended to take action in her capacity as Eighth Ward

Democratic Committee Member, including voting for FARNESE for Democratic

Ward Leader of the Eighth Ward.

b. In exchange for CHAPMAN's vote, FARNESE and Person A provided

CHAPMAN with funds from Friends of Famese for CHAPMAN's daughter's

study-abroad program.

c. FARNESE and Person A attempted to conceal and did conceal their crimes by,

among other things, causing Friends of Famese to file a campaign finance report

with the City of Philadelphia and the Commonwealth of Pennsylvania falsely

listing the tuition payment as a "donation".

OVERT ACTS

15. In lurtherance of the conspiracy, and to accomplish its purposes, CHAPMAN,

FARNESE, Person A and others known and unknown to the Grand Jury, committed the

following overt acts, among others, in the Eastem District of Pennsylvania:

a. On or about May 18, 201 l, in anticipation of the upcoming election for

Democratic Ward Leader of the Eighth Ward, a position for which FARNESE

was a candidate, FARNESE and CHAPMAN had a conversation in which

CHAPMAN, who had intended to support another candidate, Person B, agreed to

vote for FARNESE for Democratic Ward Leader for the Eighth Ward and

FARNESE agreed to help fund the tuition for CHAPMAN's daughter's study-

abroad program through Bard College.

b. On or about May 18, 201l, after her conversation with FARNESE, CHAPMAN

had a conversation with Person B in which CHAPMAN advised Person B that

CHAPMAN was switching her position to vote fbr FARNESE for Democratic

Ward Leader for the Eighth Ward instead of Person B, as CHAPMAN had

previously intended.

c. On or about May 19, 201 l, FARNESE sent CHAPMAN an email that read, "Hi

Ellen, Just wanted to thank you again for taking the time to chat with me

yesterday. Your support and vote for me as Ward leader is something I sincerely

appreciate it [sic.]."

d. On or about May 23,20 I I , CHAPMAN sent FAI(NESE an email with

information about CHAPMAN's daughter's study-abroad program, including the

fact that CHAPMAN's daughter had received a $10,000 scholarship but still

needed'Just over $14,000" to cover the tuition for the study-abroad program.

e. On or about May 23,2011, FARNESE sent an email to CHAPMAN with the

subject line "Funding" that read, "Ellen, When does she actually need the money

in hand? If it's later I have an idea."

f. On or about May 24,201I, FARNESE called CHAPMAN.

g. On or about May 24,2011, shortly after CHAPMAN and FARNESE spoke by

phone, Person A called CHAPMAN.

h. On or about May 24,201l, after his conversation with CHAPMAN, Person A

wrote an email to FARNESE with the subject line ''Re: Chapman daughter

money" that read, "ok,just spoke to both ellen and her daughters father...they are

going to get back to us with details on who the check should be *ritten too [sic].

She said 'I told famese I'd support him for ward leader and I'm going to honor

that'-though she had some suggestions about some things we could say and

she's going to get back to me in the next day or two,.ts I was calling at a bad time

for her to chat more." (ellipses in original)

i. On or about May 24,201I, FARNESE responded to Person A's email, "ok.

Good. Did she get mad?"

j. On or about May 24,201l, Person A responded to FARNESE, "no not at all, she

was cool."

k. On or about July 12,2011 , Person A emailed an invoice for the tuition for

CHAPMAN's daughter's study-abroad program to the treasurer of Friends of

Famese, instructing the treasurer to put CHAPMAN's daughter's name and

student identification number in the memo line of the check.

l. On or about Jtly 12,2011, FARNESE, through Person A, caused the treasurer of

Friends of Famese to send a check in the amount of$6,000 drawn on the Friends

of Farnese bank account by U.S. mail from Pennsylvania to Bard College in

Annandale, New York to help pay the tuition for CHAPMAN's daughter's study-

abroad program.

m. In or about 2012, FARNESE and Person A caused Friends of Farnese to file a

campaign finance report with the City of Philadelphia and the Commonwealth of

Pennsylvania reporting the $6,000 expenditue to Bard College for CHAPMAN's

daughter's study-abroad tuition as a "donation" without mentioning either

CHAPMAN or her daughter.

In violation of Title I 8, United States Code, Section 3 7l .

COUNTS TWO THROUGH SIX

WIRE FRAUDl8 U.S.C. $S 1343, 13,16, and 2

16. Paragraphs I through 15 of this lndictment are re-alleged as if fully set forth

herein.

17. From in or about May 201I to in or about December 201 l, in the Eastem District

of Pennsylvania, the defendants,

ELLEN CHAPMAN ANd

LAWRENCE FARNESE,

aided and abetted by Person A, devised and intended to devise a scheme and artifice to defraud

and to deprive the Democratic Party, the members of the Democratic Party, the Democratic

Eighth Ward, and the Eighth Ward Democratic Committee, of their intangible right to the honest

services of CHAPMAN through bribery, and to defraud and to obtain money tiom the Friends of

Famese campaign by means offalse and fraudulent pretenses, representations and promises.

18. On or about the dates listed below, in the Eastem District ofPennsylvania, the

defendants, for the purpose ofexecuting the above-described scheme and aflifice to defraud,

deprive. and obtain money, and attempting to do so, sent and caused to be sent by wires in

interstate commerce the following wire communications:

Count Date Wire) May 23,2011 Email communication from EARNESE to CHAPMAN with the

subject line, "Funding."

3 May 24,2011 Email communication f'rom Person A to FARNESE with the subjectline ''Re: Chapman daughter money."

.+ July 12,201I Email communication from Person A to treasurer of Friends ofFamese with the subject line "Fwd: Bard invoice."

5 July I 2, 201 I Email communication from Person A to treasurer of Friends ofFamese with the subiect line "Fwd: Fw: Fwd: info for famese's

person."

6 July 19,201I Wire transfer in the amount of 56,000 liom Friends of Famese

account in Philadelphia, PA to Bard College account in Annandale,

NY.

In violation of Title 18. United States Code, Sections 1343,1346. and2.

COUNT SEVEN

MAIL FRAUD18 U.S.C. $S 1341, 1346,a.nd2

19. Paragaphs I through l5 olthis [ndictment are re-alleged as iffully set forth

herein.

20. From in or about May 2011 to in or about December 2011, in the Eastem District

of Pennsylvania, the defendants,

ELLEN CHAPMAN ANd

LAWRENCE FARNESE,

aided and abetted by Person A, devised and intended to devise a scheme and artifice to defraud

and to deprive the Democratic Party, the members of the Democratic Party, the Democratic

Eighth Ward, and the Eighth Ward Democratic Committee, of their intangible right to the honest

services of CHAPMAN through bribery, and to defraud and to obtain money from the Friends of

Farnese campaign by means offalse and fraudulent pretenses, representations and promises.

21. In or about July 201 l, in the Eastem District of Pennsylvania, the defendants, for

the purpose ofexecuting the above-described scheme and artifice to defraud, deprive, and obtain

money, and attempting to do so, knowingly placed and caused to be placed in an authorized

depository for United States Mail, to be sent and delivered by the United States Postal Service, a

check to Bard Cotlege for $6,000 drawn on the bank account of Friends of Famese.

In violation of Title 18, United States Code, Sections 1341,1346,and2-

l0

COUNTS EIGHT THROUGH THIRTEEN

TRAVEL ACT18 U.S.C. $$ 1952(aX3) and 2

22. Paragraphs I through I 5 of this Indictment are re-alleged as if fully set forth

herein.

23. From in or about May 201'l to in or about December 201I' in the Eastem District

of Pennsylvania, the defendants,

ELLEN CHAPMAN ANd

LAWRENCE FARNESE,

aided and abetted by Person A, knowingly and willfully did use, and aid, abet, and cause to be

used, a facility in interstate and foreign commerce with the intent to promote, manage, establish,

carry on, and facititate the promotion, management, establishment, and carrying on of an

unlawful activity, namely, bribery, contrary to Title l8 Pa. Cons. Stat. Ann. $ 4701' and

thereafter performed and attempted to perform such promotion, management, establishment,

carrying on, and facilitation of the promotion, management, establishment and carrying on of the

above unlawful activity:

Count Date Facility in Interstate and Foreign Commerce

8 May 23,2011 Email from FARNESE to CHAPMAN with the subject line,"Funding."

9 May 24,2011 Email from Person A to FARNESE with the subject line "Re:

Chapman daughter money."

l0 July 12,201 I Email from Person A to treasurer of Friends of Farnese withthe subject line "Fwd: Bard invoice."

ll Juty 12,201I Email from Person A to treasurer of Friends of Famese withthe subject line "Fwd: Fw: Fwd: intb lor famese's person."

t2 July 12, 201I Check mailed from Philadelphia, Pennsylvania to Annandale,New York.

l3 July 19, 2011 Wire transfer in the amount of $6,000 from a Friends ofFamese account in Philadelphia, Pennsylvania to a BardCollege account in Annandale, New York.

In violation of Title 1 8, United States Code, Sections 1952(a)(3) and 2.

A TRUE BILL:

Trial AttomeysPublic Integrity Section

1Z