UPDATED: 1 p.m.
According to the indictment, Dougherty used his control as business manager of Local 98 "to repeatedly and persistently steal from Local 98 and put his own self-interests over that of the membership of the union."
He used Local 98 as his personal bank account, utilizing three Local 98 credit cards in his name to purchase groceries, household goods, and meals, as well as a way to pay contractors who worked on his home and other personal properties, including a tavern pub that he owned. He also used the account to divert union funds to others for personal use.
Prosecutors say Henon accepted a salary from the union for certain services, as did Dougherty. Henon used his position to threaten others, because Dougherty told him to, officials say.
U.S. Attorney Bill McSwain has been recused from the investigation to prevent conflict, said First Assistant Attorney Jennifer Williams.
Williams said Henon and Dougherty were in a position of trust, and they violated that trust.
"The indictment alleges that this exchange of contracts for personal gifts was an abuse of the trust placed in Dougherty as a leader of a labor organization and that it was a federal crime," Williams said.
"This indictment charges that Robert Henon received a Local 98 salary and other benefits from John Dougherty in exchange for Henon advancing Dougherty's personal, professional and financial agenda," she continued. "This indictment charges that John Dougherty used Local 98 dollars to pay Philadelphia Councilman Robert Henon so that Henon would do his bidding from his seat on City Council. This indictment does not allege that city councilmen are prohibited from receiving private income, but it does allege that a public official, who accepts that money in exchange for taking actions on behalf of a third-party, breaches the duty of honest, faithful and disinterested service the public official owes to the people he serves."
Henon accepted the personal benefits from Dougherty, "knowing that the benefits were given in exchange for Henon's performance of official acts at the direction of" Dougherty, the indictment read.
Henon is also accused of having L&I shut down construction work at locations where non-union labor was happening, as well as "allowing Dougherty to demand concessions by Comcast during the franchise contract negotiations between the city and Comcast," which resulted in Comcast hiring a contractor Dougherty favored.
If convicted of all charges, the defendants will face decades in prison. The investigation is ongoing.
An arraignment is scheduled for Friday at 1:30 p.m.
After the two-and-a-half-year investigation, two people were charged last week in connection with the probe. Prosecutors indicted Dougherty's chiropractor James Moylan Tuesday, claiming he stole more than $45,000 for a nonprofit he set up, called Neighborhoods for Fair Taxes. The money, prosecutors say, came from IBEW Local 98's charitable fund.
In court documents, officials say Moylan wrote a letter to Dougherty and asked for support for his nonprofit. He then received a $50,000 check from the union. They say it was mostly spent on Moylan's personal and business expenses.
IBEW Local 98 released a statement on Wednesday afternoon.
Henon also released a statement following the press conference, emphasizing he has "done nothing wrong."
Mayor Jim Kenney said Wednesday the investigation is "disappointing."
City Council President Darrel Clarke responded to the charges, calling them "grave," saying they must be taken seriously, and advising faith in the justice system to reveal the truth.