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July 29, 2015

Dem Rep. Chaka Fattah indicted on racketeering charges

By Thomas Lifson

In a move that surprised no one familiar with the guilty plea last year of his close aide, Gregory Naylor, U.S. representative Chaka Fattah of Philadelphia was indicted today.

Rep. Fattah, 58, and four associates were charged with bribery; conspiracy to commit wire, honest services, bank and mail fraud; money laundering and other charges.

Prosecutors said the charges covered several schemes, including the use of federal grants and charitable contributions to Fattah's educational foundation to pay back part of a $1 million loan from a wealthy campaign supporter and arranging a federal grant in lieu of a $130,000 payment to a political consultant.

According to U.S. Attorney Zane Memeger, the other four people charged are: Lobbyist Herbert Vederman, 69, of Palm Beach, Florida; Fattah's Congressional District Director Bonnie Bowser, 59, of Philadelphia; Robert Brand, 69, of Philadelphia; and Karen Nicholas, 57, of Williamstown, New Jersey

Further details:


The allegations, as released by the U.S. Attorney, are as follows:

"The indictment alleges that, in connection with his failed 2007 campaign to serve as mayor of Philadelphia, Fattah and certain associates borrowed $1 million from a wealthy supporter and disguised the funds as a loan to a consulting company. After he lost the election, Fattah allegedly returned $400,000 to the donor that the campaign had not used, and arranged for Educational Advancement Alliance (EAA), a non-profit entity that he founded and controlled, to repay the remaining $600,000 using charitable and federal grant funds that passed through two other companies, including one run by Brand. To conceal the contribution and repayment scheme, the defendants and others allegedly created sham contracts and made false entries in accounting records, tax returns and campaign finance disclosure statements.

In addition, the indictment alleges that after his defeat in the mayoral election, Fattah sought to extinguish approximately $130,000 in campaign debt owed to a political consultant by agreeing to arrange for the award of federal grant funds to the consultant. According to the allegations in the indictment, Fattah directed the consultant to apply for a $15 million grant, which he did not ultimately receive, on behalf of a then non-existent non-profit entity. In exchange for Fattah's efforts to arrange the award of the funds to the non-profit, the consultant allegedly agreed to forgive the debt owed by the campaign.

The indictment further alleges that Fattah misappropriated funds from his mayoral and congressional campaigns to repay his son's student loan debt. To execute the scheme, Fattah and Bowser allegedly arranged for his campaigns to make payments to a political consulting company, which the company then used to lessen Fattah's son's student loan debt. According to the allegations in the indictment, between 2007 and 2011, the consultant made 34 successful loan payments on behalf of Fattah's son, totaling approximately $23,000.

In another alleged scheme, beginning in 2008, Fattah communicated with individuals in the legislative and executive branches in an effort to secure for Vederman an ambassadorship or an appointment to the U.S. Trade Commission. In exchange, Vederman provided money and other items of value to Fattah. As part of this scheme, the indictment alleges that the defendants sought to conceal an $18,000 bribe payment from Vederman to Fattah by disguising it as a payment for a car sale that never actually took place.

Finally, the indictment alleges that Nicholas obtained $50,000 in federal grant funds that she claimed would be used by EAA to support a conference on higher education. The conference never took place. Instead, Nicholas used the grant funds to pay $20,000 to a political consultant and $10,000 to her attorney, and wrote several checks to herself from EAA's operating account."

But don't worry for the Democrats.  The district is so overwhelmingly Democratic that Fattah could easily win from prison, or, more likely, another Democrat will step in if he is convicted. 
      

May 12, 2013

Scenes from the Democrat ruling class

By Thomas Lifson

A lengthy criminal investigation of the son of prominent Congressman Chaka Fattah is underway in Philadelphia. It is always a bad thing to have the feds looking into throwing you in the slammer, but if it's going to happen, then it really helps to have blood ties to the Democratic Machine. They know how to shake money out of trees.

We learn from the Philadelphia Inquirer's Craig R. McCoy and Mark Fazlollah,

Former Gov. Ed Rendell and former Mayor W. Wilson Goode have launched a fund-raising effort to pay the legal bills of U.S. Rep. Chaka Fattah's son, who has been under federal investigation for months.

Rendell said he agreed to pitch in after Rep. Fattah contacted him for help.

Chaka Fattah Jr.png

Rendell, in an interview, estimated that the Philadelphia congressman and his wife had spent $250,000 to help Chaka "Chip" Fattah Jr., 30, and said the costs had become a "little bit of a struggle" for the family.

Imagine that: he's not even under indictment, but they have laid out a quarter mill for legal talent. Must be the best, the kind of guys who charge $500 and up for an hour of their time, so maybe 500 hours or so of legal attention so far, with multiples of that to come should criminal indictments lead to a trial.  It kind of sounds like that's what they're expecting.

Dad earns almost $175k as a Rep, and stepmom is a news anchor on Channel 10 in Philly. So this glamour couple, this Philly Power Elite Pair, probably pull down at least mid six figures.

Well, if you have a former governor and a former mayor asking you, I guess it will be difficult to say no, especially if you do business with, are regulated by, pay taxes to, or otherwise come on the radar screen of government, especially in the Commonwealth of Pennsylvania. I mean, Ed Rendell says Chip is a "wonderful kid" and assures you that this has nothing, absolutely nothing to do with his father, the powerful congressman who has been a bedrock of the Congressional Black Caucus since 1995.

"I'm not doing it because he is Chaka Fattah's son, though I have a good relationship with Chaka. I'm doing it because I have a good relationship with him."

Late in February, the public first learned of the investigation via the Inquirer:

Federal authorities are investigating why a company owned by the son of U.S. Rep. Chaka Fattah was paid $450,000 by an education firm that has received millions in contracts from the Philadelphia School District, according to sources familiar with the probe.

Agents from the FBI and U.S. Treasury Department served two search warrants early Wednesday for Chaka Fattah Jr.'s records, the first at his apartment at the Residences at the Ritz-Carlton. They also seized Fattah's records and a computer from the Logan Square law office of David T. Shulick. He is president of Delaware Valley High School, a for-profit company that contracts with school districts to educate students with discipline problems.

The younger Fattah, 29, known as "Chip," is owner of a consulting company called 259 Strategies L.L.C. that works as a subcontractor for Shulick's companies. Fattah Jr. has working space at the law office.

The $450,000 payment from Shulick's company is more than 10 percent of the approximately $4 million that Delaware Valley will receive from the School District this year.

Now, I am certain it is just a coincidence that finding money for education - especially money for those labeled "disadvantaged" -- happens to be one Chaka Fattah, Sr.'s principal legislative accomplishments. He staked out that territory first with the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP) which, even though you may never have heard of it has passed out a cool 4 billion bucks to help "disadvantaged" youth get ready for college. Since those early days, the Congressman has been busy getting more federal money for targeted recipients.

It may be that this investigation will result in no indictment. Or even if an indictment is issued, Chip will be found not guilty. In which case, he will be very lucky indeed to have found some good friends to help him out. What I find noteworthy is how cushy it can be to be born into the Democrat ruling class.

You might assume that because he had working space at a law firm that Chip was a lawyer. Sorry, not even a college grad; dropped out of Drexel. Before he got into "consulting," he ran a "concierge firm catering to the wealthy, such as by chartering them private jets on short notice." A high end gofer. I wonder what other sorts of things he procured for people rich enough to chargetr a jet but not quite rich enough to own one? Maybe some of his ex-clients there will kick in. In any event, it helps to have friends in powerful places.

Living at the Residences at the Ritz Carleton in Philly is not exactly slumming, either. "The 48-story contemporary masterpiece accented by a dramatic crystal spire, the new tower has transformed Philadelphia's skyline and forever redefined condominium living"

Rendell and Goode have already badly bungled this project, at first laughably claiming that the donor list would be kept private, and that the Congressman would not know who had contributed:

Craig Holman, a lobbyist with Public Citizen, a nonprofit organization that advocates for more transparency in Washington, said the Fattah Jr. fund could be a magnet for "businesses and special interest groups who have a lot of money and who are looking at ways to throw more money at the feet of the congressman by any means possible."

Holman said any plan short of full disclosure would have had problems. Even if a donor list had been kept from Rep. Fattah, Holman said, he would likely learn the donors anyway. "You can bet the lobbyist for the [donating] company is going to let the congressman know about it," Holman said.

Under congressional rules, legal defense funds that benefit officials must disclose donations, and the size of donations is capped. Those rules apply to funds for the officials, not their relatives.

On Friday, Burrell said all donations, amounts of donations, and all fund expenditures would be made public "to be fully transparent."

Making no judgment as to the merits of the possible case against Chip Fattah, it should be obvious that the massive amount of spending on government education (we spend more money per student than any other major country) has become a piggy bank for the Democratic Machine. The recycling of money through union dues laundered into political contributions for the Democrats is the mostly (but not completely) visible component. Grants, contracts, administrative fees and the like are another target of opportunity for politicians seeking bucks, and maybe for their offspring with no professional education.

The Democrats and corruption: Perfect together

By Jack Hellner

In June, Democratic representative Chaka Fattah of Pennsylvania was found guilty of money laundering, bank fraud, mail and wire fraud.

In July, Corrine Brown, a Democratic representative from Florida, was charged with running a fake charity, mail and wire fraud, and conspiracy and tax fraud.

On August 4th Democratic Mayor Richard Silverhorne of Fairfax, Virginia was arrested for trying to trade meth for group sex.

On August 15th, Kathleen Kane, the Democratic attorney general from Pennsylvania was found guilty of leaking Grand Jury information and committing perjury.

Maybe the courts have hit their quota on charging Democrats with perjury or charity fraud and that is why Hillary, Eric Holder, and Lois Lerner are allowed to skate.

Of course Bill Clinton, known perjurer, is still a hero for Democrats and the convicted felon George Soros is a well-known advisor to Bill, Obama, Hillary, and Kaine and major supporter of groups like Black Lives Matter.

I am sure the media will focus like a laser beam on how many Democrats have been found guilty or been charged lately

They will focus as much as they have on the four strange deaths related to the Democrats who have died since June 22nd.

I would think reporters might at least be curious, but they aren’t, for the same reason they have no time to focus on Hillary’s scandal. They have to focus 100% on taking down Trump.