HARRISBURG, PA — A Philadelphia political consultant pleaded guilty Thursday in federal court to wire fraud charges tied to pandemic relief loan fraud and a scheme to defraud a healthcare workers union, authorities said.
Tracy Hardy, 52, admitted to filing falsified applications for Paycheck Protection Program and Economic Injury Disaster Loans, federal programs created to help businesses weather the COVID-19 pandemic. Prosecutors said Hardy submitted inflated financial figures and fake documents to secure more than $2 million in loans.
Hardy also pleaded guilty to a separate scheme involving District 1199C, a union representing thousands of healthcare workers in Philadelphia. According to investigators, Hardy used his construction company to submit false bids and inflated invoices for a bar renovation project at the union’s hall, diverting funds for other purposes, including political work.
“The law is very clear about how unions can support candidates and their campaigns, and the state investigation revealed improper use of union funds,” Attorney General Dave Sunday said in a statement. “By holding this man accountable and continuing to prosecute a second defendant, we are sending a clear message that this type of fraud will not be tolerated in Pennsylvania.”
The FBI’s Philadelphia Field Office assisted in the investigation. “The FBI, together with our state, local, and federal partners, remains committed to protecting the public from those who abuse their positions of power for financial gain,” Special Agent in Charge Wayne A. Jacobs said.
Hardy was charged last year along with Christen Woods, a union executive officer accused of working with him on the scheme. With Hardy’s guilty plea, state charges against him were withdrawn, but Woods still faces trial in November, the attorney general’s office said.
Hardy entered his plea before U.S. District Judge Harvey Bartle III in the Eastern District of Pennsylvania. He will be sentenced at a later date.
Woods is scheduled for trial on November 17 and will continue to be prosecuted by the Office of Attorney General’s Public Corruption Section. Criminal charges are allegations, and all defendants are presumed innocent until proven guilty in court.
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