March 14, 2008
GOP Committee: Ex-Official Stole Up To $1M
Washington Post: FBI Investigating Massive Fraud By Ex-Treasurer Of The National Republican Congressional Committee
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The former treasurer for the National Republican Congressional Committee diverted hundreds of thousands of dollars -- and possibly as much as $1 million -- of the organization's funds into his personal accounts, GOP officials said yesterday, describing an alleged scheme that could become one of the largest political frauds in recent history.
For at least four years, Christopher J. Ward, who is under investigation by the FBI, allegedly used wire transfers to funnel money out of NRCC coffers and into other political committee accounts he controlled as treasurer, NRCC leaders and lawyers said in their first public statement since they turned the matter over to the FBI six weeks ago.
"The evidence we have today indicated we have been deceived and betrayed for a number of years by a highly respected and trusted individual," said Rep. Tom Cole (R-Okla.), the NRCC chairman.
The committee also announced that it has submitted to banks five years' worth of audits and financial documents allegedly faked by Ward, some of which were used to secure multimillion-dollar loans. It is a violation of federal laws to obtain loans through false statements; the crime is punishable by up to $1 million in fines and 30 years in prison.
Before yesterday, the committee, which raised $49 million in 2007, had not acknowledged that any money was missing. It announced on Feb. 1 that it had discovered "irregularities" that might involve fraud, dismissed Ward and called in federal investigators.
Robert K. Kelner, a lawyer with Covington & Burling, which has been hired to oversee an internal forensic audit, told reporters he is certain only that Ward had made "several hundred thousand dollars" in unauthorized money transfers since 2004. However, he said, the year-end report filed with the Federal Election Commission (FEC) in 2006 overstated the NRCC's cash on hand by $990,000.
That may be the upper level of what Ward allegedly skimmed from NRCC coffers, Kelner said. But the total will not be known until forensic auditors finish "drilling down" to determine how much money might have been misappropriated and how much may be missing as a result of sloppy bookkeeping, he said.
Kelner said Ward was the only NRCC official empowered to use wire transfers to shift money into any account without a second approval. After transferring the money into accounts he controlled, often for dormant fundraising committees associated with the NRCC, Ward allegedly moved it into accounts for his political consulting business or his personal bank accounts, Kelner said.
Kelner said the NRCC has had no contact with Ward since he was fired on Jan. 28. Ronald Machen, Ward's attorney, declined to comment on the investigation yesterday, as did the FBI.
The Washington Post reported Thursday that Ward had served as treasurer for 83 GOP committees this decade. In the past five years, the committees took in more than $400 million in contributions.
Rep. Peter T. King (R-N.Y.) told The Post this week that Ward paid himself $6,000 from King's PAC in 2007 after the congressman thought he had closed down the committee.
Politico.com reported last night that Ward lent himself more than $4,200 from the political action committee of Rep. Jeb Hensarling (R-Tex.), an unusual expenditure for a campaign treasurer to make. Ward repaid the money early last month, after the FBI was called in to investigate his work at the NRCC, Politico.com reported.
According to a source familiar with the investigation, some of those committees were closed down in filings to the FEC but their accounts were left open at banks. That would have allowed Ward to divert money into their coffers and then to his political consulting firm or his personal bank accounts.
Kelner said the NRCC had not met with its outside auditors for nearly five years, describing that as unusual. Rep. Greg Walden (Ore.), who previously served as chairman of the NRCC's audit committee, said he had asked to meet with the outside auditing firm, Deloitte & Touche, and that the fake audits were almost perfect forgeries.
"I sought for several years to meet with the outside auditors," Walden said. "There was always some seemingly legitimate reason why that didn't happen." The scheme began to unravel this year, when Rep. K. Michael Conaway (Tex.), the new head of the audit committee, insisted on meeting the auditors.
The magnitude of the alleged fraud staggered Republicans, who are bracing for the final accounting from the forensic audit in six to eight weeks. Many said they expect a total far greater than the minimum cited yesterday.
The largest confirmed political fraud in the modern campaign finance era, after a 1974 law set strict contribution limits, is believed to be the embezzlement of $1 million from the 1992 presidential campaign of the late Sen. Paul Tsongas (D-Mass.).
Cole told reporters yesterday evening that the NRCC has spent about $370,000 on the audit being conducted by Kelner's firm and accountants from PricewaterhouseCoopers, draining precious dollars from a campaign committee that has badly trailed its Democratic counterpart in fundraising for more than a year.
Kelner said federal election and banking laws, which require proof that such frauds were done "knowingly," are likely to put the legal burden on Ward and not the NRCC. He said the internal probe so far has turned up no signs of "anybody else colluding with" Ward.
Washingtonpost.com staff writer Ben Pershing and Washington Post staff researcher Madonna Lebling contributed to this report.
By Paul Kane
© 2008 The Washington Post Company
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Bush did much worse than that guy to the Republican party ...
There is no excuse of the NRCC to 5 years without an internal audit. They set themselves up for the perfect storm. I can practically guarantee that this is not the only case of embezzlement and/or misappropriation of funds--not for either parties.
don''t expect--simply because the key is handed over to the fox...that he is not going to ever break down and have at all those eggs and chickens...he''ll just do it behind closed doors and we won''t hear about it until the slaughter count is huge. See the toy, auto, telecom, etc and you''ll see that where deregulation is --crime and abuse and misuse is rampant. Expecting companies to operate on the "honor system" is a joke. There is no honor when greed enters the picture.
And the NRCC should be fined for not maintaining an outside audit program, that would have allowed internal audits on a regular, scheduled basis.
Posted by ramos937 at 10:32 AM : Mar 14, 2008
LOL--yeah, as ludicrous as Hillary wanting to run the country when her campaign and finances from her campaign are run like an out of control slophouse, replete with loans from herself, changes in staffing, multiple dismissals and infighting that is a microcosm of what the gov will be if she ever is put as the leader of it.
How high up do you need to be in the GOP before you can thieve legally?
cheney has commented on this and claims this guy has all the missing emails. good thing that they''ve figured out that mystery.
BOY, how true that is all the way around. Go GOP!!!
On the bright side...that is one million less that "Juan McWar"--as Jack Blood terms the Keating Five, open borders supporting War Pig--will have to spend on his campaign.
Lucky he was not working for bush directly than the damage would have been greater,
no oversight in the white house at all
Ohh, McCain secured his loan through another souce than the NRCC. I think it was based on fundraising dollars expected in the next year. Some people actually consider that collateral.
What surprises me is that he wasn''t promoted and moved up into a higher position in the hierarchy!
Will he be seriously dealt with by the legal system? Probably not.
bobnjersey says Cheney has said this is the guy who has all the missing emails! I guess they have their ''sacrificial lamb'' for the Emailgate crisis!
If so, he might go to a mininum security jail for a few months, then return to the world to retire on the ''golden parachute'' he will be given for taking the fall---if he does! Life will work out for this man, don''t anyone cry too hard or long for him!
Notice how fast the Spurtzer story has vanished from the pages......now, we''re treated to ''Let''s meet the girl.'' ''Do you think this will jump start her career?"
LAME, BIASED MSM!!!!
Posted by Infidel_Us at 11:46 AM : Mar 14, 2008
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Another Lame,Brain-dead Moron GOP Sect member
Mad because someone stole More than he did!
The ex-treasurer, Chris Ward, feels that he had the money coming to him, deciding to use the "Ferengi" economic principles used by the Great Emperor Bush II, which sum up to "Where''s the PROFIT in it FOR ME??!". Ward had apparently felt that if BIG OIL companies, BANKS, and MORTGAGE companies could make huge profits through fraud, price gouging, and extortion, why shouldn''t he? Besides, the RNCC is loaded with money, who would miss a measly $1 million?
In fact, the Great Emperor Bush II is so impressed with Ward''s actions that the rumor is the Great Emperor plans to hire Ward (who is now unemployed)to work in the Treasury Department, specifically, at Fort Knox!!!!
SIG HEIL, BUSH!!!!
sig heil, McCain????
Repugs stealing from Repugs!
How funny!
One article, I read, stated that Ward was a boy genius. I beg to differ, since he was wiring money to his accounts and he was the ONLY one that had that authority w/o a second signature. Not the sharpest knife in the drawn.
Posted by shingles1 at 12:00 PM : Mar 14, 2008
Are you? The Vitter story was front and center for almost two weeks. And you didn''t have to read down to the 6th paragraph to find his party affiliation. Enjoy your Kool Aid.
What goes around comes around.
Bwahahahahaha!
What I can do for My Oil Buddies,...But ,How Can I further My Kingdom ?",.. "By telling More Lies,By making Sure each Working citizen is So Far in debt,that ''''''''Corporate America " can Truly Rule!
" By squelching personal Freedoms,and devaluing our currency I Will Destroy the Middle Class! "
" By the end of My Occupation of the White House,each citizen over the age of 18 of this country
will owe over $112,500 due to My war."
" With interest,due to China,this will grow daily,..My legacy will Never end as this country will Never recover from my policies"
" While you morons languish in debt,I`ll be living the high life in Dubai !"
" Always remember as Your King,..I did my best to break each one you,..Of course my friends in big business can`t thank you enough for being led into this situation. "
"Karl Rove will be on Your new currency,The IlliterO ! " ,..Thank You for being such Shrubbies ! "
The only difference is someone(many) were victimized by this guy, he violated the public trust. Spitzer only cheated on his wife. OMG, look at the DOW, gotta go.
Oh, good. As long as you''re here, the racists are represented well this morning.
Before you get too far into one of your hilarious "liberals hate America and you''re all liberals" rants, would you care to repeat to everyone your beliefs on whom should be allowed to vote? I think that belongs in your "greatest hits" collection.
To refresh everyone''s memory: Infidel_US does not believe you should be able to vote unless you own land and have a job. So, apartment dwellers and the unemployed/retired are not included.
Go back to your dog-eared copy of The Turner Diaries and leave this discussion to the adults.
They are also too stupid to think that they would get caught, or that stealing is even wrong.
Hey Republicans! Why don''t we PRINT some more money so we can bail out some more banks and start another unnecessary war somewhere?
liberal conspiracies everywhere!
Seeing as how this story was generated thanks to the GOP officials who ANNOUNCED this crime/fraud yesterday, I guess the National Republican Congressional Committee is now part of your big fat liberal media conspiracy. Either that or the liberal media MADE this guy steal $1 million.
Posted by shingles1 at 12:00 PM : Mar 14, 2008
Are you? The Vitter story was front and center for almost two weeks. And you didn''''t have to read down to the 6th paragraph to find his party affiliation. Enjoy your Kool Aid.
Posted by Infidel_Us at 12:30 PM : Mar 14, 2008
How DUMB do you really have to be - I understand how much you HATE your fellow Americans, especially those that don''t agree with you Politically (believe you call them Libs) - anyhow, the Repug VITTER is still in the senate, while this Dem resigned after taking responsibility for his actions. You don''t even have enough sense to acknowledge what''s really going on, instead of sounding like a FOOL. Infidel in GA, i just don''t like it when posters like you (that know much better) try to lie and post BS. Cheers!
CBS needed to dig up this story after the Spitzer thing, we all can rely on left-wing central to deflect mitigate and marginalize all dem wrong doing by bringing these anti-republiCon stories to the forefront just in the nick of time.
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This GOP MORON Has the answers,...The Media Made him do it to cover Up Elliot Nesster!
Posted by notblue at 01:01 PM : Mar 14, 2008
He represents them WELL!
Posted by jetlizhan at 02:04 PM : Mar 14, 2008----RON PAUL is the only one I can think of. But elections prove honesty to be unpopular these days.
The GOP is so full of criminals and perverts, they should just scrap the party and start over.
They`ll HAVE to start over,After " THE FALL,of the GOP"
In December,they will scratching their heads.Asking themselves " How did we let Shrub and His Culture Club of Corruption drag us ( The GOP) doWn this deep into the mire.",....But,The Fact IS,..SHRUB Destroyed EVERYTHING !
want four more years of thieves?
vote for McBushcain