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thebellcurve
CP’s Quality-o-Life-o-Meter

[0] Federal housing authorities are consid-

ering several options that would give
them more power over the Philadelphia
Housing Authority. “You know what?” says
PHA, hung over in the waiting room at the
clinic, scrolling through its text messages
in an attempt to piece together the night
before. “It probably is time we had a few
boundaries.”

[ - 1] The court releases a Delaware County

restaurant owner who allegedly tried to
damage competitors by releasing mice
inside their eateries. Which really scared
all the rats.

[ - 3] Compared to other big cities, students in

Philly fall behind in science scores. But
according to our calculations, Philly kids
are like a gorillian pavilion times better
FROM THE BAR:
at math. Attorney Leon King is
representing Fiso Lounge
[ + 2] City Council is considering a bill that would owner Frank Funaro in his
guarantee employers provide paid sick suit against the city.
leave for their workers. And a big cash MARK STEHLE
bonus if they never return.

[ + 1] Gov. Tom Corbett names former mayoral [ investigations ] judge), names more than 40 public officials.
candidate Sam Katz to serve on the Penn- It also reveals that city officials had been told about the alleged
sylvania Intergovernmental Cooperation
Authority. But then John Street gets the
position, even though that’s not how being
MAKING A RACKET? activities of Verdi and others more than a year ago. Funaro’s allega-
tions are, of course, only allegations, but they raise questions about
New allegations shed light on a federal probe. how many people are involved in whatever it is, exactly, that the feds
appointed even works.
By Holly Otterbein are investigating — and who knew about it.
[ - 3] Two teens allegedly stole 60 computers Funaro’s troubles began, he alleges, in 2008, after he hired a few
M A R C H 3 - M A R C H 9 , 2 0 1 1 | C I T Y PA P E R . N E T

from West Philadelphia High School in order
to flip them on Craigslist. The good news
is Wharton gave them early enrollment.
[ 6]
- Forbesmagazine calls Greater Philadelphia
the most toxic large-population area in the
U.S. With any luck, those toxins will knock
us down to a lower-population category
soon enough. Come on, toxins!
[ +1 ] Most of the area’s pollution cited in the
Forbes piece is outside the city, in the sub-
urbs. Good lookin’ out, wage tax!
[0 ] Tony Luke opens a cheesesteak shop in
4 | P H I L A D E L P H I A C I T Y PA P E R |
A
few weeks ago, news broke that the FBI is investigating a police officers to work a private security detail at his bar. When some
possible extortion racket that may extend to the Philadelphia of them began acting rude to customers, he complained to their dis-
Police Department, the Department of Licenses & Inspection, trict captain as well as to City Council President Anna Verna’s office.
tow truck companies, strip clubs and a beer distributor believed to That, alleges Funaro, is when the retribution began.
be tied to a longtime city employee. On May 10, 2009, the lawsuit says, Fiso Lounge was visited by
So far, the only solid details that have emerged center around an a group of “numerous heavily-
alleged scheme in which bar and restaurant owners were told to
purchase beer from Chappy’s Beer Butts and Bets, a South Philly The officials armed police officers and other
officials” from the city’s multi-
distributor, to “curry favor” with L&I. “terrified” agency Nuisance Task Force
No charges have been filed; but on Feb. 17, Dominic Verdi, an L&I customers. — includingVerdi.
deputy commissioner on the city’s Nuisance Task Force — and, Funaro said the officials “used
according to a Fox 29 report, a part-owner of Chappy’s — was demot- loud profanity” and “banged their nightsticks on tables … and other-
ed and then abruptly resigned after more than 35 years with the wise terrified and scared customers” before ordering the club closed

Bahrain.“I just heard the name on the news
and was like, ‘Hey all those people party-
ing in the streets look hungry!’ What? No,
I didn’t catch what the story was about.
Now if you’ll excuse me, I’m off to Libya,
where I believe there’s some sort of Mardi
Gras situation going on.”
This week’s total: -9 | Last week’s total: -9
department, adding to the speculation that this investigation is far-
reaching. A lawsuit expected to be filed this week, which City Paper
has obtained an advanced copy of, will likely fuel that speculation.
In the complaint, Frank Funaro, owner of South Street club Fiso
Lounge, claims to have been the victim of harassment by police
officers, state police and L&I workers, including Verdi himself, in
retaliation for reporting bad police behavior and because he failed to
purchase beer from Chappy’s. The suit, filed by attorney and former
Prison Commissioner Leon King (now running for Common Pleas
for fire safety and electrical issues. Funaro says he quickly fixed the
problems. A few weeks later, he was nonetheless served with a cease-
operations order by L&I. Funaro appealed, and the L&I Review
Board sustained his appeal in June 2009, overturning the order.
Shortly thereafter, on July 11, 2009, Funaro says, Nuisance
Task Force members came back with Kenneth Gassman, an L&I
employee later indicted for an extortion scheme. This time, police
and other city officials allegedly pepper-sprayed customers, broke
>>> continued on page 7


Making a Racket?
<<< continued from page 4
A fellow bar owner
advised him to buy
beer from Chappy’s.
the DJ’s equipment and confiscated the cell phone of
a customer filming the raid. CP could find no record
of violations or citations issued against Fiso Lounge
in July. Calls to Verdi and a police officer allegedly
involved were not returned.
Sometime in the middle of all this, Funaro says
a fellow bar owner advised him to buy beer from
Chappy’s. Funaro says he was even given a phone
number for Greg Quigley — according to The Phil-
adelphia Inquirer, a partner at Chappy’s who pled
guilty to a perjury charge related to an organized-
crime gambling scheme — in order to “set this fix.”
At this point, he says, Funaro hired attorney King,
who proceeded to alert public officials of the alleged
extortion racket. On Feb. 3, 2010 King detailed the
alleged scheme in a letter to the heads of the Police,
L&I, the Managing Director, the Inspector General,
Deputy Mayor for Safety and Law departments.
“The Nuisance Task Force has been abusing
[their] authority,” he wrote. “From what I can tell,
the abuse is long-standing and widespread.” King
named names, including Verdi’s. City Paper con-
tacted those city agencies and asked if they took
any action. Inspector General Amy Kurland says
she was aware of a related federal investigation at
the time and referred the letter to the FBI and the
[ arts & entertainment ]
the naked city
U.S. Attorney’s Office. Mayoral
feature | a&e | the agenda | food | classifieds
spokesman Mark McDonald,
commenting on behalf of all
the other city agencies King
contacted, says the city referred
King’s letter to the “appropri-
ate authorities” but declined to
specify which. Police spokesman
Lt. Ray Evers will not comment
on open investigations.
The story gets more convoluted.
In 2010, Funaro’s bar was raided
again, this time by state police,
and Funaro was charged with
three counts of serving alcohol
to minors. Funaro says this, too,
was part of a conspiracy: He
claims to have been apprised of
the raid, and asked for a bribe
by state police. State Police Sgt.
William LaTorre calls assertions
of wrongdoing by state police
“incorrect.” King says his client’s
case shows the city failing to take
action: “The only reason Dominic
Verdi was demoted is because the
feds stepped in.”
(holly.otterbein@citypaper.net)
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