Delco Brothers Get Prison In Old City Arson, Fraud Case: Feds

DELAWARE COUNTY, PA — Brothers from Delaware County will spend nearly 10 years in federal prison on arson, fraud, and tax evasion charges after they burnt down their Old City Philadelphia business.

Acting United States Attorney Jennifer Arbittier Williams said Imad Dawara, 40, of Swathmore, and Bahaa Dawara, 32, of Woodlyn, were both sentenced this week to nine years in prison and ordered to pay more than $22 million in restitution for conspiracy to commit arson and conspiracy to defraud the United States.

The brothers pleaded guilty and admitted to planning and causing the arson of their business, RCL Management LLC, at 239-241 Chestnut St. in Philadelphia on Feb. 18, 2018, and to evading the assessment of their income tax liabilities from 2015-2017.

Imad Dawara also admitted to fraud in connection with his receipt of health care and other government benefits.

From around December 2012 until February 18, 2018, the brothers owned and operated various restaurants and entertainment establishments in Philadelphia, including a restaurant and hookah lounge in the 200 block of Chestnut Street.

According to the Indictment, the Dawara brothers were struggling in their Chestnut Street business and had a years-long history of fighting with their landlord.

By October 2017, the Dawara brothers had ceased all business operations at the Chestnut Street location and attempted to sell the business, but as they had failed to renew their lease or pay rent, no one would buy it.

On January 31, 2018, their landlord directed the brothers to vacate the premises by February 2, and advised them that they owed over $64,000 in overdue payments.

The Dawaras failed to vacate the premises, and on the same day they were to leave, RCL Management purchased a $750,000 insurance policy providing coverage in the event of an accidental fire at the Chestnut Street property.

On Feb. 18, a fire was intentionally started with gasoline in the basement of 239 Chestnut Street, which destroyed the entire building, displaced approximately 160 people, closed the 200 block of Chestnut Street for months, and closed numerous businesses.