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investigators raid Springfield city offices


Republican, The (Springfield, MA) (Published as Union-News (Springfield, MA)) - November 9, 2001

Author/Byline: JACK FLYNN; BARRY; STAFF, Union-News (Springfield, Mass.)


Edition: All
Section: News
Page: A01
PHOTO
SPRINGFIELD - Federal investigators hauled away boxes of documents, computer files and other financial records yesterday in raids on
three city agencies.
Two days after Mayor Michael J. Albano's re-election to a fourth term, at least 20 agents from the FBI, Internal Revenue Service and the
U.S. Housing and Urban Development Office converged on City Hall and two other sites in a hunt for evidence of possible corruption in
municipal government.
Agents executed search warrants at the Community Development and City Auditor's offices at City Hall and the nearby Hampden County
Employment and Training Consortium, a city job training agency at 1176 Main St. City officials said the agents were seeking records from
two city loan programs.
Albano said no records were seized from his office, and added he has nothing to hide.
"Everything under my administration is an open book," Albano said.
Agents arrived at City Hall about 10 a.m. and shut down the Community Development office shortly thereafter. At one point, agents could
be seen crawling along the carpet, disconnecting computer cables.
Investigators also carted away records from the city's Economic Development Office, a branch of Community Development located a
block from City Hall.
By noon, a "closed today" sign hung on the door to the auditor's office, and employees at the other agencies had been sent home. Agents
loaded items - including lap top computers and Rolodexes - into a truck outside City Hall.
The raids marked the first time agents seized City Hall records in a yearlong FBI probe into possible influence-peddling, tax evasion and
other wrongdoing by current and former city officials. During the past two months, FBI agents have subpoenaed thousands of city
documents and several city officials have been called to testify before a federal grand jury.
The probe also is focusing on more than $500,000 in city loans, including several to Albano allies, city employees and businesses with
links to organized crime. The money was distributed through two programs: the so-called facade grant program, designed to help
merchants dress up their properties, and the Greater Springfield Entrepreneurial Fund, created to aid budding small businesses.
Albano said HUD had given the city a favorable review in auditing $50 million in loan programs earlier this year; the HUD agents at City
Hall yesterday were from its Inspector General's Office, which looks for fraud in federally funded programs.
Nobody has been charged in the investigation, and no evidence of wrongdoing has been made public. The probe is an offshoot of an
organized crime crackdown that led to the indictments of 16 people, including the alleged leaders of the region's Mafia faction.
City Solicitor Peter P. Fenton said he welcomed the investigators, and offered full cooperation. "I think this is a good thing. We want to get
this behind us, and get on with the taxpayers' business," he said.
City Hall employees entertained different theories about the timing of the raids, carried out less than 48 hours after Albano's re-election.
"I think (the FBI) did not want to interfere with the political will of the people," Fenton said.
However, Albano said he doubted the timing of yesterday's search was merely a coincidence.
"I was told to expect (FBI) retaliation by a congressperson several months ago after I agreed to be a witness," before a congressional
committee investigating the FBI, Albano said. The mayor's testimony before the House Committee on Government Reform was
scheduled for last month, but was delayed after the Sept. 11 terrorist attacks.
Albano, who served on the state Parole Board during the 1980s, has accused the Boston FBI of mishandling evidence against reputed
mob associates Peter Limone and Joseph Salvati. Both men were convicted of a 1965 murder and sentenced to life in prison.

During the 1980s, Albano voted to pardon Limone and Salvati. Earlier this year all charges were dropped against both men after it was
learned FBI agents hid evidence that would have cleared them. Albano has said he had been harassed by the FBI because of his role in
calling for the parole of the two men.
Staff writer Bea O'Quinn Dewberry contributed to this report.(COLOR PHOTO 1) FBI agent Tony Pallone collects documents at a desk in
the Community Development office at City Hall in Springfield yesterday
(PHOTO 2 - SEARCHING FOR EVIDENCE) - FBI agents Cliff Hedges, on phone, and Tony Pallone are seen during a raid at the
Community Development office in Springfield City Hall yesterday.
(PHOTO 3 - PAGE A10) UNSCHEDULED BREAK - Employees of the Hampden County Employment & Training Consortium leave their
Main Street offices yesterday while investigators collect documents inside.
Index terms: INVESTIGATION; BUSINESS
Record: MERLIN_1613813
Copyright: Copyright, 2001, The Republican Company, Springfield, MA. All Rights Reserved. Used by NewsBank with Permission.

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