Monday, June 07, 2010

FBI probes Family Court deal

The Philadelphia Inquirer reports:
The FBI has begun a criminal investigation into the botched deal to develop a Family Court building in Center City, according to sources familiar with the matter.

The probe, still in its early stages, is examining $12 million in fees spent thus far on the project, without bids and without a final development deal, the sources said.

The payments were authorized by Supreme Court Chief Justice Ronald D. Castille, who has said that he approved the spending in a gamble to keep the $200 million project alive. Castille acknowledges having no idea where much of the money went.

Castille terminated the deal two weeks ago after The Inquirer reported that Jeffrey B. Rotwitt, a real estate attorney hired to represent the courts, ended up as a partner with the project developer.