yawn. On Feb 8, 5:46 am, "liberal mike532 !" <[email protected]> wrote: > New RNC Chairman's Campaign Spending Questionedhttp://www.truthout.org/020709E > Henri E. Cauvin, The Washington Post: "Michael S. Steele, the newly > elected chairman of the Republican National Committee, arranged for > his 2006 Senate campaign to pay a defunct company run by his sister > for services that were never performed, his finance chairman from > that > campaign has told federal prosecutors." > Federal agents in recent days contacted Steele's sister, a > spokesman > for Steele said yesterday. > > The claim about the payment, one of several allegations by Alan > B. > Fabian, is outlined in a confidential court document. Fabian offered > the information last March as he was seeking leniency for himself > during plea negotiations on unrelated fraud charges. It is unclear > how > extensively his claims have been pursued. Prosecutors gave him no > credit for cooperation when he was sentenced in October. > > Steele spokesman Curt Anderson said he did not know what > information the federal agents were seeking, but he dismissed > Fabian's > allegations as patently false. "It's from, what, a convicted felon? > And it has no substantiation in fact," he said. > > Fabian's claims emerge as Steele begins his new role at the RNC, > where he oversees the raising and spending of hundreds of millions of > dollars in party money. The former Maryland lieutenant governor has > faced questions about his handling of campaign money in prior > elections and was twice fined for missing filing deadlines. > > The recent allegations outlined four specific transactions. In > addition to the payment to Steele's sister, Fabian said that the > candidate used money from his state campaign improperly; that Steele > paid $75,000 from the state campaign to a law firm for work that was > never performed; and that he or an aide transferred more than > $500,000 > in campaign cash from one bank to another without authorization. > > The bank transfer was made against the explicit wishes of other > Maryland Republicans, who had hoped to use it to support the > campaigns > of state legislators, said aides to Steele and former governor Robert > L. Ehrlich Jr. > > The U.S. attorney's office inadvertently sent the confidential > document, a defense sentencing memorandum filed under seal, to The > Washington Post after the newspaper requested the prosecution's > sentencing memorandum. > > U.S. Attorney Rod J. Rosenstein declined to comment. Fabian could > not be reached, and his attorney, James Wyda, declined to comment. > > According to the filing, Wyda gave prosecutors "documents > supporting [the] allegations." Wyda wrote in the memorandum that the > government declined to credit Fabian for cooperating "presumably > because its investigation is ongoing." > > The Post corroborated some details of Fabian's claims through > public records and interviews with former staff workers. Other > details > were disputed by people involved in the transactions. > > In one of his allegations, Fabian points to a February 2007 > payment by Steele's Senate campaign of more than $37,000 to Brown > Sugar Unlimited, the company run by Steele's sister, Monica Turner. > Campaign finance records list the expense as having been for > "catering/ > web services." Turner filed papers to dissolve the company 11 months > before the payment was received. > > Turner, a doctor and the former wife of Mike Tyson, declined > yesterday to describe any services she provided to the campaign. "Ah, > it's the 'sabotage Michael Steele' story," she told a reporter before > closing the door of her home in Potomac. "No, I'm not with that > program.... I'm not going to do this." > > Anderson, Steele's spokesman, said Turner "did a lot of media > stuff" for the campaign. He later provided a copy of an invoice for > nearly $15,000 for catering services for one event in October 2006 > and > for another in July 2007. The invoice was dated December 2006, a > discrepancy Anderson said was a typographical error. > > Federal election law permits a candidate's family members to be > paid for work on a campaign. Any compensation must be for actual > services and must be at a fair market rate. > > In a separate allegation, Fabian described the bank withdrawal. > After the 2006 election, an aide transferred the funds that had been > raised for Steele's lieutenant governor campaign - more than $600,000 > - out of what had been the campaign's bank account. > > Fabian characterized the transfer as improper because the aide > lacked signatory authority over the account. Anderson said it was > appropriate because Steele had authorization and the aide was acting > on his behalf. > > Either way, the transfer strained relations between Ehrlich and > Steele. > > The money had been raised for Steele in concert with Ehrlich. > Much > of it, in fact, had been brought in by Ehrlich's team, said a senior > Republican fundraiser and as well as a former Steele aide, each > speaking on condition of anonymity because of the sensitivity of the > matter. > > Because Steele had decided to run for Senate rather than state > office, Ehrlich wanted to turn the money in Steele's state account > over to the state party for distribution to legislators, the sources > said. > > But Steele, who was keeping open the option for a run for > governor > in 2010, wanted to keep the money in his own account, the sources > said. After installing a new treasurer, he had the money transferred > to solidify his control, the sources said. > > "I think it's fair to say the Ehrlich folks weren't happy," > Anderson said. "That's all internal political stuff, but there's no > legal angle." > > Ehrlich did not respond to messages yesterday seeking comment. > > In another allegation, Fabian claimed that payments to two > vendors > in 2006 for work on the Senate campaign were made from Steele's state > account rather than from his federal coffers. > > Campaign finance reports show that printers billed the Senate > campaign late in 2006. The state campaign paid the bills early the > next year - nearly $30,000 to GOP Shoppe and almost $8,000 to Form > Masters. The Senate campaign reported several months later that it > had > been billed in error. > > Anderson said any payments from the state campaign were for > services related to his state office. Brian Harlin, owner of GOP > Shoppe, said it is common for candidates to move invoices from one > campaign committee to another after discovering billing errors. > > It is a violation of federal campaign finance regulations for a > candidate to use funds raised for a state campaign to pay for > expenses > associated with a federal campaign. > > Fabian also alleged that Steele paid the law firm Baker & > Hostetler $75,000 for services that were not provided. The > expenditure > is listed in campaign finance records as an in-kind contribution to > the state Republican Party. > > Baker & Hostetler attorney Michael Braden, a former chief counsel > for the RNC, said the payment was for services he and other attorneys > at the firm provided in challenging legislative redistricting in > Maryland in 2002. > > The state party paid Braden's firm more than $60,000 between June > 2002 and December 2003 to cover "redistricting legal fees," and > Braden > said the subsequent $75,000 was to cover the balance for the firm's > work. Such late payments are not unusual, he said. > > None of the people interviewed by The Post said they had been > contacted by federal agents, and it is difficult to evaluate the > extent of the government's inquiry. > > In addition, the allegations came from a person who hoped to > benefit by trading on the information. Fabian, 44, was sentenced to > nine years in prison for swindling millions of dollars from > businesses > and banks. Prosecutors alleged that a series of frauds totaled almost > $40 million. > > In the memorandum, Wyda asked the court sentencing his client to > "consider Mr. Fabian's willingness to assist the government and, if > necessary, to testify against a prominent Maryland Republican and > rising star on the national stage as evidence of his good character > and efforts to redeem himself." > > Over the years, money trouble has been a persistent problem for > Steele. His first race for public office, a 1998 bid for the > Republican nomination for state comptroller, ended nearly $35,000 in > debt, much of it to his sister. He was fined twice by state officials > for missing deadlines to file campaign finance reports and was in > debt > and had faced foreclosure in 2001, the year before he was selected as > Ehrlich's running mate. The state party threw Steele a financial > lifeline, awarding him an unusual $30,000 consulting contract. > > -------- --~--~---------~--~----~------------~-------~--~----~ Thanks for being part of "PoliticalForum" at Google Groups. For options & help see http://groups.google.com/group/PoliticalForum
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