Philly campaign consultant Tracy Hardy pleads guilty to million in pandemic loan fraud and a union hall scheme.

Tracy Hardy, a well-known political consultant in Philadelphia, pleaded guilty to multiple charges including three counts of wire fraud and one count of making a false claim to the U.S. government during proceedings held on Thursday. The 52-year-old political operative has previously served as an aide to former Mayor John F. Street and as Chief of Staff for State Senator Sharif Street, both positions that highlight his longstanding connection to Philadelphia’s political landscape.

In a scheme that exploited federal pandemic relief initiatives, Hardy inflated the financial status of his businesses to fraudulently secure approximately million in loans. He falsely portrayed his businesses—Lou & Choo’s Lounge, Hardy & Hardy, and Monroe Press—as financially viable to access government assistance during the COVID-19 crisis. Ultimately, he received over .9 million in loans, despite his businesses not meeting the required qualifications, which typically include documented employee counts and operational revenues.

Hardy not only submitted false information regarding the number of employees and wages but also engaged in a separate scheme involving the inflated costs of a renovation project for a local union hall. By creating fictitious competing bids, he added an extra ,000 to the actual cost of the project. This maneuver was designed to mislead stakeholders and secure an unjustified financial advantage for his construction company, Manayunk Construction & Development Corp.

The violations came to light as Hardy was found to have misappropriated funds that were intended for business continuity, using the money instead for personal expenditures such as luxury vehicles, travel, and sporting events. These actions directly contravened the intended purpose of the Paycheck Protection Program (PPP) and the Economic Injury Disaster Loan (EIDL) initiatives, both of which were designed to provide financial support to businesses in distress due to the pandemic.

Moving forward, Hardy’s legal issues will continue, as he has agreed to cooperate in an investigation that is likely to affect his codefendant, Christen Woods, the former leader of District 1199C, who is expected to face charges separately. As part of a federal court agreement, state charges filed by the Pennsylvania Attorney General’s Office against Hardy in connection to the union hall project will be dismissed.

Amidst the legal proceedings, Assistant U.S. Attorney Louis Lappen noted that the situation surrounding Hardy speaks volumes about the misuse of funds designated for vulnerable businesses during a national crisis. The case stands as a reminder of the critical importance of ethical conduct in public service and business operations, especially during unprecedented times.