The son of local Congressman and 1986 Fels graduate Chaka Fattah Sr. (D-Pa.) has been charged with defrauding private banks and the Internal Revenue Service of hundreds of thousands of dollars.
Chaka Fattah Jr. turned himself in to federal authorities this morning after he was indicted earlier today.
The indictment filed by the U.S. Attorney’s Office for the Eastern District of Pennsylvania alleges that Fattah Jr. filed false statements with several banks claiming that he wanted to secure a line of credit for his consulting firm 259 Strategies, when instead he planned to use the money for himself.
Approximately $206,000 in loans was secured through fraud, according to the indictment. In one instance, Fattah Jr. allegedly used a $50,000 loan from United Bank for 259 Strategies to make car payments, pay off credit card debt and settle over $33,000 in gambling debts with local casinos.
If convicted of all charges, Fattah Jr. faces a fine of up to $13,000,025, as well as a substantial prison sentence.
Outside the Philadelphia federal courthouse on Tuesday, Fattah Jr. told Action News that he had done nothing wrong. "I'm going to fight all these charges," Fattah Jr. told The Daily Pennsylvanian on Wednesday.
The indictment comes after an over two-year investigation by federal authorities. The investigation was ongoing as early as February 2012, when federal agents subpoenaed Fattah Jr. at his Center City residence.
Following the visit to Fattah Jr.’s home by federal agents, media outlets reported that federal officials were investigating Fattah Jr. In February of this year, Fattah Jr. filed a nearly $10 million lawsuit against the IRS, FBI and the U.S. Department of Justice alleging that these authorities damaged his reputation by alerting the media of the ongoing investigation into his company’s financials.
Fattah Jr.’s case against the federal government is currently ongoing.