PHILADELPHIA ― U.S. Rep. Chaka Fattah paid off a campaign loan with charitable donations and federal grants, funneled campaign money to pay down his son’s student loan debt and disguised a lobbyist’s bribe as payment for a car he never sold, prosecutors said Wednesday in announcing a racketeering indictment against the congressman.
The 11th-term Democrat led a conspiracy that engaged in bribery, fraud, money laundering and other crimes and netted him hundreds of thousands of dollars, federal investigators said.
The 29-count indictment describes four distinct schemes, two involving efforts to pay down debt from Fattah’s failed 2007 mayoral bid in Philadelphia. The Justice Department charges that Fattah used federal grants and donations to his educational foundation to pay back part of a wealthy campaign supporter’s $1 million loan and that he helped arrange a $15 million federal grant for a nonexistent nonprofit in lieu of a $130,000 payment to a political consultant toward the campaign debt.
Fattah vowed to remain in office and fight the charges but stepped down from his leadership post as the top Democrat on the House Appropriations subcommittee that oversees spending for Commerce, Justice, Science and related agencies. Fattah’s website describes him as the “architect” of the early college awareness program GEAR UP (Gaining Early Awareness and Readiness for Undergraduate Programs).
“This isn’t Deflategate,” Fattah said of the yearslong investigation. “I’ve never been involved in wrongdoing, any unlawful activity (or) any misappropriation of federal funds.”
House Minority Leader Nancy Pelosi, D-Calif., said in statement the charges “are deeply saddening” but said she would not ask Fattah, 58, to step down.
“Congressman Fattah has been a tireless and effective advocate for America’s hard-working families across more than 20 years of distinguished service in the House,” Pelosi said.
