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Johnny Doc, others must repay $1.7 million to Local 98, court rules

A judge ordered Dougherty and his codefendants to reimburse the union for money they stole and for legal expenses Local 98 incurred during the investigation of their crimes.

John Dougherty (center) arrives at the federal courthouse in Reading for his sentencing hearing in July.
John Dougherty (center) arrives at the federal courthouse in Reading for his sentencing hearing in July.Read moreAlejandro A. Alvarez / Staff Photographer

Former labor leader John Dougherty and his codefendants must pay nearly $1.7 million back to the union he led for nearly three decades, a federal judge has ruled.

In an order Monday, U.S. District Judge Jeffrey L. Schmehl said Dougherty must reimburse Local 98 of the International Brotherhood of Electrical Workers for money he and others were convicted of draining from its coffers between 2010 and 2016 as well as for nearly $1.1 million in legal expenses the union incurred during the eight-year FBI investigation into their crimes.

But Dougherty, who was sentenced to six years in federal prison in July, won’t have to pay it alone.

Under a schedule set out by the judge, Dougherty will be jointly liable with six other convicted former union officials, employees, and allies for portions of that debt. That means that they will all make payments on parts of that sum — corresponding to the severity of their crimes — until the total amount is satisfied.

For instance, Dougherty and former Local 98 president Brian Burrows — who is serving a four-year sentence at a federal prison camp in Lewisburg, Pa. — are both on the hook for the $1.1 million in union legal fees.

But Burrows will only have to pay up to just over $471,000 of that amount. Dougherty, as the ringleader of the embezzlement scheme, is responsible for the full sum, less any payments Burrows makes first, Schmehl ruled.

Meanwhile, Dougherty is on the hook for more than $590,000 to cover the money he and the others stole from the union. But Burrows and their five codefendants will also make some payments toward that sum.

Both Dougherty and Burrows had objected to many of the legal bills Local 98 turned in to the court for reimbursement. And in a statement Tuesday, Dougherty’s lawyer Greg Pagano balked at the fact that only his client and Burrows had been ordered to cover the union’s legal bills.

“It should be shared by all [seven] defendants — including Anthony Massa,” he said, referring to the New Jersey contractor who had been charged alongside both men and accused of improperly billing Local 98 for hundreds of thousands of dollars of home renovations he provided to union officials.

Massa pleaded guilty and testified against Dougherty and Burrows, incurring their wrath throughout their trial. He was sentenced to probation last month.

And in the end, Schmehl concluded Monday that repayment from Dougherty and Burrows was warranted for work done to provide union officials with legal representation, to gather documents and business records subpoenaed by federal prosecutors, and to prepare Local 98 employees who served as witnesses in Dougherty’s and Burrows’ trial last year as well as for other related expenses.

Several union staffers testified during the six-week proceeding, at which the government accused Dougherty, Burrows, and the other officials of spending hundreds of thousands of dollars in Local 98 cash on the home renovations, pricey restaurant meals, travel expenses, groceries, and other home goods.

And though Dougherty and Burrows maintained their innocence, both men were convicted.

» READ MORE: Johnny Doc spent thousands on his friends and family with Local 98 money. Here’s what he bought.

A spokesperson for Local 98, now run by business manager and Dougherty rival Mark Lynch, declined to comment.

Dougherty is set to report to federal prison on Sept. 24 to begin serving his sentence for both the embezzlement case and separate bribery charges on which he was convicted alongside former City Councilmember Bobby Henon during a 2021 trial.