Feds link Fattah Jr. to defunct, for-profit education firm

Federal prosecutors made a sharp turn Friday afternoon in the bank- and tax-fraud trial of Chaka "Chip" Fattah Jr., portraying him as a budding executive being groomed as the "right-hand man" of a Philadelphia School District contractor.

Earlier in the week, government witnesses focused on his throwing huge Super Bowl parties, enjoying fancy clothes, and spending afternoons lounging on his couch, eating pizza and watching Law and Order.

But on Friday, government witness Mattie Thompson told the jury of his managing school budgets, finances, grants, and banking for Delaware Valley High School Inc., a now-defunct for-profit network of schools for students with disciplinary problems.

Thompson, a former Delaware Valley executive, testified that Fattah was tapped as a protégé of Delaware Valley's owner, lawyer David T. Shulick.

"He appeared to be Mr. Shulick's right-hand man," Thompson said, detailing how Fattah, son of Philadelphia Democratic Rep. Chaka Fattah, did everything from managing building contractors to overseeing banking.

Fattah Jr. has been charged with defrauding local banks by submitting false information about his finances to obtain business loans for which he did not qualify.

In addition to being charged with cheating on his income tax returns, Fattah Jr. has also been accused of defrauding the School District by shortchanging it on services that he and Shulick promised to provide. The School District has cut ties with Shulick.

Earlier this week, prosecutors played secretly recorded audiotapes that suggested how Fattah Jr.'s life changed after meeting Shulick.

In a 2011 conversation between Fattah Jr. and then-roommate Matthew Amato, Fattah Jr. spoke of how the congressman had joined him in a business meeting with Shulick.

After that meeting, Shulick hired Fattah Jr. as a grant writer.

In February 2012, the FBI raided Shulick's Center City law office, searching for documents related to Delaware Valley's relationship with Fattah Jr.

Shulick, who could not be reached for comment Friday, said at the time the FBI was searching for documents related to Fattah Jr.

Rep. Fattah, who is charged with multiple felony counts under a wide-ranging federal indictment, has denied wrongdoing. His trial is scheduled for May.

Apart from Thompson's testimony, two other former Delaware Valley employees testified Friday, one giving a positive view of the firm's former school in East Falls, and the other portraying its school in Southwest Philadelphia as an abysmal failure.

Earlier, there was extensive testimony from FBI forensic accountant Rene Michael about how Fattah Jr. moved money after getting loans.

Fattah Jr., who is acting as his own lawyer, extracted a concession from Michael that the FBI specialist was unable to clearly track thousands of dollars in transactions that he made.

mfazlollah@phillynews.com 215-854-5831