PHILADELPHIA (KYW Newsradio) — Two brothers admitted to federal authorities that they intentionally set their Old City business on fire three years ago and committed tax fraud.
In February 2018, a fire broke out inside a restaurant and hookah lounge at Third and Chestnut streets. The building was destroyed and approximately 160 people were displaced. The entire block of Chestnut Street was closed for months, and some neighboring businesses never reopened.
Acting U.S. Attorney Jennifer Arbittier Williams announced 40-year-old Imad Dawara of Swathmore and his brother, 33-year old Bahaa Dawara of Woodlyn, both entered guilty pleas before a U.S. district court judge. They admitted to conspiring to commit arson.
“The fire on Chestnut Street permanently altered many people’s lives, some losing their homes and livelihoods,” Williams said in a statement. “If not for the heroism of the Philadelphia Fire Department, the devastation from that night would have been unthinkable and much more extensive.”
The brothers are accused of setting a gasoline-fueled fire in the basement of their
business, RCL Management LLC, located at 239 Chestnut St. About two weeks prior, Williams said they purchased a $750,000 accidental fire insurance policy.
They owed $64,000 in back rent to the landlord. They were asked to vacate the premises but didn’t. The Dawaras also had a years-long history of fighting with their landlord.
In addition, the brothers admitted to evading the assessment of their income tax liabilities between 2015 and 2017.