The Congressman’s son was indicted earlier this month for defrauding the IRS and stealing from Philadelphia schools.
Now, his former Chief of Staff Gregory Naylor has pleaded guilty to several counts of campaign finance fraud.
“Naylor was aware that large amounts of money from an unexplained source were being spent on Elected Official A’s campaign, and Naylor helped to conceal the source of those funds by preparing a false invoice for services rendered by his consulting firm,” a Department of Justice report states. “Naylor subsequently learned that Elected Official A and others orchestrated the theft of federal grant funds to repay the outstanding balance of the campaign debt, and he agreed to the falsification of campaign finance reports to further conceal Elected Official A’s activities.”
The DOJ also found that Naylor used campaign funds to pay off the college debts of his candidate’s son. Jeremy Roebuck of the Inquirer reported that $22,663 was spent in this scheme.
“Some of the payments originated directly from the local campaign fund, and some were illegally sourced from Elected Official A’s federal campaign election committee and passed through the local campaign fund account to Naylor,” the DOJ release detailed.
“Naylor made approximately $22,000 in improper payments between August 2007 and April 2011 at Elected Official A’s request,” it continued. “Naylor also falsely claimed on IRS forms that the payments made towards the college debt were earned income to Elected Official A’s son for services rendered as an independent contractor to Naylor’s consulting firm. When confronted by federal agents in investigative interviews about the payments, Naylor lied on two occasions and repeated his cover story that the son of Elected Official A was an independent contractor working for his political consulting firm.”
The report was very careful not to name who “Elected Official A” was, but obviously it appears Rep. Fattah’s troubles may have only just begun.