Fattah Jr. expected to mount his defense today

CHAKA FATTAH JR., who is battling federal prosecutors and agents in a trial in which he is both the defendant and the defense attorney, is expected to mount his case sometime today.

The son of U.S. Rep. Chaka Fattah Sr. is not a lawyer and didn't graduate from college. He is representing himself against charges that he defrauded banks, the IRS and the Philadelphia School District.

"Yes, the defense case will start [today]," Fattah, 32, said yesterday after another long court day. He said he expects to call witnesses to the stand. "I intend to offer evidence to counter the government's case," he said.

One witness, expected to testify tomorrow, is a current or former elected official who is "prominent in Philadelphia politics," Fattah said.

He wouldn't say who, but listed groups for which he said he had done photography work - campaigns for state Sen. Vincent Hughes, former Gov. Ed Rendell, former Mayor John Street and U.S. Rep. Bob Brady.

Asked if he expects to take the witness stand himself, Fattah said, "No, but we'll see."

Fattah, who has been appointed backup counsel from the federal defenders' office, said he intends to show that statements made by the feds "are blatantly incorrect" and that his various businesses were at times successful.

Among the businesses he started were FattahGraphy, in 2002, while he was a student at Drexel University; and later, American Royalty, which billed itself as a luxury concierge service, and 259 Strategies, a consulting company.

The case presented by federal prosecutors so far to a jury of nine men and three women has been substantial - evidence has included documents, recordings and a wide array of witnesses, including a former roommate and business partner of Fattah's who has cooperated with the feds. There has also been testimony from American Royalty "customers" who said they gave Fattah money but received nothing in return.

Yesterday afternoon, on the eighth day of Fattah's trial, FBI Special Agent Richard Haag, the lead agent on the investigation, testified to various examples of alleged fraud by Fattah.

The feds contend Fattah, to obtain his first $26,000 business line of credit at Citizens Bank in 2005, filed, with the help of an "unwitting accountant," a 2004 income-tax return falsely claiming he had $140,000 in revenue.

Haag testified that part of the "income" was refunds Fattah had received from Drexel University after he had paid for his tuition with student loans, but then dropped classes.

Fattah received the refunds from those dropped classes and deposited them into his bank account, Haag said.

Haag also testified that Fattah, in 2010, in correspondence to attorneys representing banks from which Fattah had obtained loans that still needed to be repaid, wrote that he was making $2,500 a month (or $30,000 a year).

But in reality, Fattah, in 2010, was working with the for-profit Delaware Valley High School, which received federal funds from the school district to run two alternative schools in the city.

Fattah started off receiving $75,000 a year as a grant writer with DVHS in 2009, and by the end of 2010, had a contract with DVHS, through his 259 Strategies company, in which he received $450,000 a year.

In an email the feds obtained, written by Fattah in August 2011, Fattah listed among his accomplishments at DVHS that he created a school-year budget for 2011 for DVHS' school in Southwest Philadelphia, which was the "most accurate and realistic school year budget to date."

The feds, though, contend that Fattah had a hand in two false budgets sent to the school district for DVHS' Southwest school that inflated salary figures for a director, teachers, administrative staff and nonexistent employees.

Haag testified that a spreadsheet found on Fattah's computer showed different salary figures for employees than what was submitted to the school district. For instance, it listed no salary for a counselor. Prior witnesses have testified that the Southwest school did not have a counselor.

The budget submitted to the school district, however, listed that the school was paying a counselor $50,000 a year.

Fattah is expected to cross-examine Haag today.

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