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Philadelphia Woman Admits Defrauding Pennsylvania Economic Agency

By John McDevitt

PHILADELPHIA (CBS) -- A former Pennsylvania legislator's administrative aide pleaded guilty today in a fraud scheme.

Lorraine Dispaldo, 58, of Philadelphia, pleaded guilty to a number of  mail and wire fraud counts for  hundreds of thousands of dollars in fraud perpetrated upon the Pennsylvania Department of Community and Economic Development.

"Essentially she agreed that she had falsely used grant funds, granted to her and to former Judge (Robert) Mulgrew, to pay a number of individuals who were not permitted under the terms of the contract to receive pay," said assistant US attorney Paul Gray today.

Dispaldo, who worked for an unnamed Pennsylvania legislator not charged in the case, is free on bail as she awaits her sentencing hearing on September 16th.

Former Philadelphia Traffic Court judge Robert Mulgrew is standing trial on June 5th.  His wife, Elizabeth, is also charged in the indictment.


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