Rep. Chaka Fattah Indicted On Multiple Charges
By Pat Loeb
PHILADELPHIA (CBS) -- Congressman Chaka Fattah was named in an indictment filed today, along with four other people: two businessmen and two members of his staff.
They are charged with multiple counts of conspiracy, racketeering, bribery, and other charges.
"Congressman Fattah and his associates conspired to use his office to further personal and political aspirations and personally enrich themselves at the expense of the very people they serve," said Ed Hanko, special agent in charge of the Philadelphia office, at a news conference to announced the charges.
Fattah maintains his innocence, in a statement released by email:
"As I have previously stated, I have never participated in any illegal activity or misappropriation of taxpayer dollars as an elected official. 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."
The indictment details five schemes going back to 2007 when the congressman ran unsuccessfully for Mayor of Philadelphia.
At that time, the indictment says, he accepted an illegal million dollar loan from a supporter, identified as Person D, and concealed it by filtering it through the consulting company of his associate Thomas Lindenfeld.
Then, to pay it back, the indictment alleges, he used funds from his non-profit, Educational Advancement Alliance-- funds which had been donated by NASA and Sallie Mae.
The indictment charges that he paid off another loan to his mayoral campaign from Lindenfeld by promising to use his influence to help Lindenfeld get a $15 million federal grant (a grant Lindenfeld did not receive).
Fattah is also charged with using campaign money to pay off his son's student loans, again concealing them as payments to a political consultant, in 34 payments from 2007 to 2011 totaling about $23,000.
In another alleged scheme, Fattah is charged with accepting $18,000 for a vacation home from alleged co-conspirator Herb Vederman in exchange for trying (unsuccessfully as it turned out) to help Vederman get a federal ambassadorship or appointment to the U.S. Trade Commission. In that count, Fattah's wife, an anchor at a Philadelphia TV station, is alleged to have arranged for a paper sale of her car to Vederman to conceal that the money was a gift. Her employer did not respond to a request for comment.
Justice Department officials lamented the loss of trust that may accompany the indictment.
"The public expects their elected officials to act with honesty and integrity. The public does not expect their elected officials to misuse campaign funds, misappropriate government funds, accept bribes or commit bank fraud. These type of crimes and criminal acts betray the public trust and undermine faith in government," said U.S. Attorney Zane David Memeger.
Assistant Attorney General Leslie Caldwell says, "Public corruption takes a particularly heavy toll because it really undermines people's basic belief that their elected leaders are committed to serving the public interest, not to lining their own pockets."
The indictment was not entirely unexpected.
Fattah's son had previously been charged in the student loan scheme and Lindeman, as well as Fattah's long time chief of staff, Greg Naylor, previously pleaded guilty to fraud and conspiracy.
Fattah, himself, in his statment cites "an eight-year effort by some in the Department of Justice to link my public service career to some form of wrongdoing. With today's charges, this misguided campaign has now moved from speculation to specific allegations."
Hanko says, in fact, the investigation began in 2013, with a "tip."
