The Justice Division has requested the Federal Election Fee to carry off on any enforcement motion in opposition to George Santos, the Republican congressman from New York who lied about key facets of his biography, as prosecutors conduct a parallel legal probe, in keeping with two individuals acquainted with the request.
Washington
Justice Department asks FEC to stand down as prosecutors probe Santos
The Justice Division request additionally requested that the FEC present any related paperwork to the Justice Division, in keeping with the educated individuals, who spoke on the situation of anonymity due to the matter’s sensitivity.
A Justice Division spokeswoman declined to remark. An FEC spokeswoman stated the regulator “can’t touch upon enforcement.” Neither Santos nor his legal professional responded to requests for remark.
The 34-year-old congressman, whose election to Congress from Lengthy Island final 12 months helped the GOP safe its slender Home majority, has apologized for what he known as “résumé embellishment” whereas rebuffing requires his resignation.
Individually, the Securities and Alternate Fee on Friday interviewed two individuals about Santos’s position in Harbor Metropolis Capital, an funding agency that was pressured to close down in 2021 after the SEC accused it of working a “traditional Ponzi scheme.” SEC curiosity in these individuals got here after they had been quoted Wednesday in The Washington Put up describing how Santos solicited an funding in Harbor Metropolis at an Italian restaurant in Queens in late 2020.
The FEC ordinarily complies with DOJ requests to carry off on enforcement. These requests come up from a 1977 memorandum of understanding between the businesses that addresses their overlapping regulation enforcement obligations.
“Mainly they don’t need two units of investigators tripping over one another,” stated David M. Mason, a former FEC commissioner. “And so they don’t need something that the FEC, which is a civil company, does to doubtlessly complicate their legal case.”
The request “signifies there’s an energetic legal investigation” inspecting points that overlap with complaints in opposition to Santos earlier than the FEC, stated Brett Kappel, a marketing campaign finance lawyer at D.C.-based Harmon, Curran, Spielberg & Eisenberg.
These complaints, together with one filed earlier this month from the Marketing campaign Authorized Heart, direct explicit consideration to greater than $700,000 that Santos claims to have loaned his 2022 marketing campaign. CLC’s criticism alleged that Santos masked the supply of that funding, whereas additionally misrepresenting marketing campaign spending and utilizing marketing campaign sources to cowl private bills.
On Wednesday, the Santos marketing campaign submitted paperwork to the FEC changing treasurer Nancy Marks, a longtime accountant for GOP candidates in New York, with Wisconsin-based Thomas Datwyler. Datwyler’s lawyer beforehand instructed The Put up that his consumer by no means signed or approved the paperwork and had communicated to the marketing campaign that he didn’t intend to function treasurer.
On Thursday, the FEC sought extra details about the disputed submitting. “It has come to the eye of the Federal Election Fee that you will have failed to incorporate the true, appropriate, or full treasurer data,” the regulator wrote to Datwyler in a letter requesting additional data.
Datwyler’s lawyer instructed The Put up on Friday that he plans to inform the FEC that his consumer didn’t submit the submitting and that it ought to be withdrawn.
Marks has not responded to requests for remark.
Over the previous two years, FEC analysts have repeatedly recognized issues with Santos’s filings with the regulator, sending a number of letters in search of clarification or correction of obvious points, together with accepting contributions past the allowable restrict, omitting required donor data and failing to fill out required kinds to report particulars concerning the loans Santos claims to have made to his marketing campaign.
Late final 12 months, the places of work of New York Legal professional Common Letitia James (D), Nassau County District Legal professional Anne T. Donnelly (R) and Queens County District Legal professional Melinda Katz (D) all stated they had been wanting into whether or not Santos broke any legal guidelines of their jurisdictions. Spokespeople for every workplace instructed The Put up this week that they’d no additional updates.
On the SEC, regulators alleged in federal courtroom in 2021 that Harbor Metropolis was operating a Ponzi scheme that raised $17.1 million from greater than 100 victims. Santos, who was not named in that lawsuit, labored for the agency for greater than a 12 months, receiving his final funds in April 2021, the identical month the SEC sought to freeze its belongings, The Put up has beforehand reported. Santos has stated he was unaware of any alleged fraud by Harbor Metropolis.
Christian Lopez, who says Santos pitched him on investing with the agency at a dinner in 2020, stated that SEC officers requested him Friday for his recollections of what Santos had instructed him as properly and for any paperwork and messages Santos despatched him.
“They had been asking issues like ‘What did he speak about? What did he give you? What had been the names that he talked about?’” Lopez stated.
Tiffany Bogosian, an legal professional who says she has recognized Santos since junior highschool and in addition attended the 2020 dinner, stated she additionally was interviewed by SEC officers Friday.
“They needed to know specifics of George’s involvement and the pitch,” Bogosian stated.
An SEC spokeswoman declined to remark. J.P. Maroney, Harbor Metropolis’s founder and a named defendant within the SEC motion, has denied wrongdoing in courtroom. Harbor Metropolis has not responded. Maroney secured a keep final fall in that litigation after disclosing that the identical issues are the topic of an energetic legal probe.
Perry Stein contributed to this report.