Delco Brothers Accused Of Arson Charged With Tax Fraud: Feds

DELAWARE COUNTY, PA — Two Delaware County brothers who are facing arson charged related to a 2018 fire in Philadelphia are now facing tax fraud charges, according to federal authorities.

United States Attorney William M. McSwain Friday said Imad Dawara, 39, of Swarthmore, and Bahaa Dawara, 31, of Woodlyn, were charged by indictment with conspiracy to defraud the United States by evading the assessment of their income tax liabilities from 2015-2017.

This indictment is the second Indictment charging the brothers in criminal activities.

On July 18, 2019, a grand jury returned a 10-count indictment charging both Dawara brothers with planning and causing the arson of their business at 239-241 Chestnut Street in Philadelphia's Old City neighborhood on February 18, 2018 to get insurance money from the destruction, as well as mail and wire fraud.

The new Indictment alleges that the brothers co-owned and operated multiple businesses including B-Side Complex, a nightclub and hookah lounge located at 927 N. Delaware Ave., Noche, and Baba Restaurant, which generated income that they concealed from the IRS by underreporting the gross receipts of the businesses. The defendants are both currently in federal prison because of the July 2019 Indictment for arson and fraud.

If convicted, each defendant faces a maximum possible sentence of five years’ imprisonment, a $250,000 fine, and three years of supervised release.