In March, the Campaign Legal Center requested that OCE investigate Palazzo’s use of campaign funds to pay his former spouse and himself nearly $200,000. On Friday, a Palazzo campaign spokesperson stated that Palazzo has provided documents and “cooperated fully” with OCE inquiries and that Palazzo’s campaign’s spending was above-board. He stated that Palazzo is confident of being cleared from any wrongdoing, and that the allegations are political motivated. The Sun Herald reported the confirmation on Friday. Federal law and U.S. House rules ban conversion of campaign funds for personal use. Federal Election Campaign Act violations can lead to felony criminal penalties. These complaints are investigated by the OCE. They can be referred to the Department of Justice or the House Ethics Committee for further review. CLC filed a complaint stating that Palazzo’s campaign committee paid $60,000 in monthly payments of $3,000 for Greene Acres MS, Palazzo’s property in Perkinston. CLC’s complaint stated that Palazzo’s campaign committee paid $60,000 in monthly payments of $3,000 for rent at Greene Acres MS, Palazzo’s property in Perkinston. CLC complained that Palazzo paid $3,000 per month for rent and that there was no public information about Palazzo’s use of the farm as an office. It also said that Palazzo’s campaign paid nearly $128,000 to his ex-wife’s accounting firm while it paid another accounting company “for apparently similar services.” This is in contrast to other similar campaigns. The CLC complaint stated that Palazzo handed over ownership of his accounting company to his wife after he was elected to Congress in 2011. This was due to House rules restricting outside income. Palazzo and his wife divorced in 2016. However, she still owns the company. Justin Brasell, Palazzo’s campaign spokesperson, stated that Palazzo and his wife divorced in 2016, but she still owns the firm. Brasell stated that Palazzo handled all of the campaign’s accounting, including paying bills and keeping track of the ledger. The other firm was responsible for reporting and compliance with the FEC. Kedric Payne is the general counsel and director for ethics at the Campaign Legal Center. He stated that the use of campaign money to fund a personal slush funds by a congressman diminishes public trust. It is encouraging that there is an investigation into it,” Payne stated. If that fails, there will be a second stage. OCE may refer any criminal offense to the Department of Justice. “Yes, I believe there is a high probability that this has found personal usage, given how long the investigation has been going. That would mean criminal conduct occurred.” The nonpartisan, nonpartisan Campaign Legal Center was established by Republican Trevor Potter. Potter is also a former President George H.W. Bush appointee to Federal Elections Commission. It has also received donations from the Open Society Institute, a billionaire liberal political activist George Soros. The CLC has a history filing complaints against candidates and PACs from both parties. The Sun Herald reported that Palazzo’s opponent in the March GOP Primary spotted questionable campaign expenditures, hired a private investigator, and handed the findings to the Campaign Legal Center (and the U.S. Attorney’s Office). According to the newspaper, Dane Maxwell, Southern District Public Service Commissioner, said that he was aware of the situation and would consider running for the seat in the event Palazzo has to resign. Brasell stated that Palazzo has not received any inquiries from the DOJ or Attorney General’s Office regarding campaign finance issues. Three members of Congress have resigned or been charged with using campaign money for personal gain. Former Rep. Jesse Jackson Jr. from Illinois pleaded guilty in 2013 to using campaign money to purchase a Rolex watch and fur coats as well as mounted elk heads, fur coats and other items. He was sentenced to 30 month imprisonment. Rep. New Jersey Rep. Rob Andrews resigned in 2014 amid allegations that he used campaign money for personal trips and used the graduation party of his daughter to raise money. Former Rep. Duncan Hunter, California was sentenced in March to 11 months federal prison. He was accused of corruption in the misuse of hundreds of thousand of dollars in campaign funds._x000D
