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Rep. Chaka Fattah allegedly misused campaign, taxpayer funds

By Danielle Haynes
U.S. Rep. Chaka Fattah, D-Pa., was indicated Wednesday on racketeering charges for allegedly misusing campaign and taxpayer funds. Photo: U.S. Congress
U.S. Rep. Chaka Fattah, D-Pa., was indicated Wednesday on racketeering charges for allegedly misusing campaign and taxpayer funds. Photo: U.S. Congress

WASHINGTON, July 29 (UPI) -- U.S. Rep. Chaka Fattah, D-Pa., was indicted Wednesday on racketeering charges linked to a number of schemes in which he allegedly misused campaign funds and taxpayer dollars.

Fattah and four of his associates are accused of using multiple tactics to divert hundreds of thousands of dollars in campaign money, non-profit donations and federal grants to their own benefit.

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Fattah; Bonnie Bowser of Philadelphia; Karen Nicholas of Williamstown, N.J.; Herbert Vederman of Palm Beach, Fla.; and Robert Brand of Philadelphia each face a number of charges including racketeering conspiracy, bribery, conspiracy to commit wire, honest services and mail fraud, money laundering conspiracy, money laundering, bank fraud, false statements to a financial institution, and multiple counts of mail fraud, wire fraud and falsification of records.

The indictment says Fattah borrowed $1 million in 2007 for his failed mayoral campaign, but was only able to return $400,000 of the unused funds. He is accused of arranging for Educational Advancement Alliance, a non-profit entity he founded, to pay back the other $600,000 from charitable and federal grant funds. Fattah and Brand allegedly created fake contracts and make fake accounting entries to cover up the scheme.

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Fattah is also accused of promising to repay a political consultant $130,000 in debt by securing a federal grant for the other person. In another alleged incident, Fattah used funds from his mayoral and congressional campaigns to repay his son's student debts to the tun of about $23,000.

Beginning in 2008, Fattah also allegedly promised to secure an ambassadorship or an appointment to the U.S. Trade Commission for Vederman in exchange for bribes, including an $18,000 cash payment for a car sale that never happened.

The indictment also outlines an instance in which Nicholas allegedly secured $50,000 in federal grants to pay for a conference on higher education on behalf of EAA, but the conference never took place.

"The public expects their elected officials to act with honesty and integrity," said U.S. Attorney Zane David Memeger. "By misusing campaign funds, misappropriating government funds, accepting bribes and committing bank fraud, as alleged in the indictment, Congressman Fattah and his co-conspirators have betrayed the public trust and undermined faith in government."

Fattah denied the allegations, saying the Department of Justice has been attempting to charge him with wrongdoing for eight years.

"As I have previously stated, I have never participated in any illegal activity or misappropriation of taxpayer dollars as an elected official," Fattah said in a statement. "For the last 21 years, I have represented the people of Philadelphia in Congress with honor and dignity, helping millions of families through my efforts focused on education, employment, mortgage relief, and health care. I will proudly continue to serve my constituents and look forward to helping millions more."

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In response to the indictment, he said he is stepping away from his role as ranking member on the Appropriations Subcommittee on Commerce, Justice and Science.

Fattah's son, Chaka Fattah Jr., has faced his own legal troubles over fraudulent activities. In 2014 he was indicted for allegedly defrauding banks of thousands of dollars in bad loans. He is scheduled to go to trial in September.

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