May 27, 2008

Ron Paul's Campaign Is A Family Business

Washington Post: FEC Reports Show Several Relatives Are On Campaign's Payroll

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    Republican presidential hopeful, Rep. Ron Paul, R-Texas, waves during a speech to the Conservative Political Action Conference in Washington in this Feb. 7, 2008 file photo.  (AP Photo/Evan Vucci, File)

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(Washingtonpost.com)  This story was written by Matthew Mosk.


Rep. Ron Paul (R-Tex.) has built a national following largely by preaching an isolationist foreign policy. Stick with your own kind, says the maverick presidential candidate.

And that's more or less what he has been doing over the past few months, putting relatives in a slew of key positions and paying them a total of $169,063, according to the latest campaign finance reports.

Paul's granddaughter Valori Pyeatt helps organize fundraising receptions and has been paid $17,157. Another granddaughter, Laura Paul ($2,724), handles orders for Ron Paul merchandise. Grandson Matthew Pyeatt ($3,251) manages Paul's MySpace profile. Daughter Peggy Paul ($2,224) helps with campaign logistics. The candidate's sons Randall and Robert and his daughter Joy Paul LeBlanc have all been paid for campaign travel and for appearing as surrogates at political events.

Who keeps track of all these finances? Paul's brother and daughter, naturally, who have been paid a combined $62,740 to handle the campaign's accounting.

Campaign aides said they discussed the possibility that involving so many family members could create the impression that nepotism was driving hiring decisions, but ultimately they saw no problem with the practice.

"You always think about those kinds of things," said Jesse Benton, Paul's spokesman and, it just so happens, the fiance of one of the candidate's granddaughters (he has been paid $54,573). "But his family is very important to him. There is something important about having a family element involved in a campaign. Having people around you that you can unconditionally trust."

Paul has received relatively few votes in his insurgent bid for the Republican nomination, but he has attracted an extraordinarily dedicated following that has flooded his campaign coffers with more than $30 million in donations. Even after releasing a video on his Web site in March indicating that he no longer expected to win the Republican nomination, Paul has continued to collect and spend those riches.

Most of the money has gone to typical campaign expenses such as television, radio and Internet ads, travel, and political advice from consultants and strategists. But unlike other presidential candidates, Paul has also made room on his payroll for his extended brood.

There are no laws prohibiting candidates from hiring relatives, though the Federal Election Commission does require family members to be qualified for the job and be paid the going rate for their work. Melanie Sloan of the group Citizens for Responsibility and Ethics in Washington said her organization has twice issued reports critical of the practice among members of Congress.

"This was never intended to be a family business," Sloan said. "The reason this is troubling is that it's not clear to donors whether their campaign donations are really going to support the candidacy or to support the family."

Sloan said this was not the first time Paul has hired relatives to perform campaign work on his behalf. The group found payments to daughter Lori Pyeatt during his three previous congressional races, and payments to grandson Matthew Pyeatt and daughter Joy LeBlanc during Paul's 2004 congressional campaign.

An added concern with the presidential campaign, Sloan said is that Paul has fundamentally transformed his bid for the White House into something more ephemeral. Spending by the campaign has slowed considerably over the past month. Paul spent $470,862 in April, leaving him with $4.7 million remaining.

The way Benton explains it, the candidate has "acknowledged that he is not going to be the nominee" but is "continuing a positive, respectful campaign to influence the policies of the Republican Party."

And this "second phase," as Benton describes it, is financed by the money raised largely during the first phase, when people were sending contributions to fuel Paul's presidential ambitions.

Now, as he tours the country, Paul is drawing attention to his book, "The Revolution: A Manifesto," which currently ranks seventh on the New York Times bestseller list.

The parent company of the book's publisher, Hachette Book Group USA, also turns up as a vendor to the campaign. The Paul campaign paid the publisher $1,115 in April. Asked about the expense, Benton said the campaign "purchased about 60 books to give to supporters."

That practice is also legal, as long as the candidate does not derive any personal benefit from the sales.

While his campaign activity and expenditures have slowed, several relatives continue to get paid, including Laura Paul and the Texas accounting firm Paul, Phipps & Co.

Wayne Paul, who helps run Paul, Phipps, said his firm has maintained an account for all of his brother's employees "to ensure they get checks twice a month and that all reports are properly filed."

The accountant explained that the person who did Paul's books earlier in the campaign was having trouble with payroll.

"It was a matter of ensuring there were no more third parties that attempted to screw up my brother's campaign by not filing proper returns," Wayne Paul explained. "If that's impropriety, by God . . . have at it. It was done out of sheer necessity. Our firm was repaid for purposes of ensuring that everybody got properly paid."

Research editor Alice Crites contributed to this report.


By Matthew Mosk
© 2008 The Washington Post Company

Add a Comment See all 14 Comments
by cfin5 May 27, 2008 12:45 PM PDT
Is this article supposed to somehow "smear" Ron''s ability to be frugal with the campaign money entrusted to him? It only proves his integrity in this matter. These campaign expenditures are MINUSCULE in comparison to any candidates I''ve ever heard of! This guy has proven himself over and over while in public office that he can be trusted. What other answer to all the public treasury PILFERING could a critic come up with? He is the one that "America First" democrats and republicans should vote for. I know I will given the chance. As I''ve said before, my principles are not for sale to ANY party. I would rather loose by voting correctly for America than to win by voting for the lesser of three evils. That would make me an accomplice in the demise of my fellow citizens constitutional rights as well as my own!
Reply to this comment
by lindellk81 May 27, 2008 1:30 PM PDT
Ahh, Ron Paul, a REAL admirable candidate, but the media didn''t say so so the people don''t know that.
Reply to this comment
by usbrit-2009 May 27, 2008 1:39 PM PDT
Any chance Dr. Paul will set up shop with Bob Barr and make a serious run with the Libertarians?
Reply to this comment
by zepa21 May 27, 2008 7:50 PM PDT
This article starts with a lie and damages cbs'' credibility.
Dr. Paul does not advocate an isolationist foreign policy. We currently have an isolationist foreign policy. One of such recklessness, that the entire world must now isolate itself from our folly. The US dollar is broken as the world reserve currency. It''s being replaced by the euro. Our standing in the world has been thrown away for empire.
That is what Dr. Paul has stated his opposition to.
He is opposed to empire, not trade.
But because the likes of exxon and halliburton cant count on the us military to push their agenda under a Paul presidency, this article attempts nothing more than character assassination.

Congratulations Matthew Mosk, you sound like you''re working for P2OG.
Shameless piece of misinformation.
Reply to this comment
by mck1957 May 27, 2008 8:24 PM PDT
Some exposure is better than no exposure .... So what that Dr. Paul hired family members? Evidently, if they''ve helped him in the past, they are experienced. And if his family thinks like Dr.Paul does then I welcome them to the team of Patriotic American''s fighting to keep America free. Furthermore, if Dr.Paul was acknowleged in the same light as the big 3 CFR owned candidates, he''d be winning by a long shot. His message is that of freedom and Sovereginty,not isolation. Just because Dr.Paul is looking out after America''s best interest, doesn''t mean that he is leaving the rest of the world out. He wants to trade with other Nation''s to the benefit of all parties concerned. If not wanting to run the rest of the world and provide fiancial support for other Nations is isolation, then maybe you are correct in your accusations Mr.Mosk. But to be honest, those of us that follow Dr. Paul''s campaign, well we know better. By the way, do you have figures on how much Hillary, Obama, and McCain pay their campaign managers? I am just curious, because the figures stated in the above article look very reasonable to me. But then again, I am blinded by love. That is love for my country and for the man that I think is most fit to be our next President. Thank You Mr. Mosk for giving Dr. Paul some exposure, even if it was in an effort to taint him. Like, I said, we know better. RonPaul2008.com
Reply to this comment
by walker4ron May 27, 2008 11:52 PM PDT
Mr. Matthew Mosk... you obviously have not been reading the #5 book on the NY Times Best Seller''s List. Ron Paul CLEARLY STATES and EXPLAINS the difference between isolationism and nonintervention. I hope you received a lot of disappointed emails. A family BUSINESS? Excuse me? Oh yeah, the business of FREEDOM and LIBERTY. You, my friend, are about to get a rude awakening. You could also be warned if you got your info from him instead of THEM. Haven''t you even cracked open one of his whoop-*** video clips? That''s right, non-intellectuals don''t like Ron Paul. They just smear him because the news them to. Go back to sleep, sheep. BAAAAAAAAA.
Reply to this comment
by walker4ron May 27, 2008 11:53 PM PDT
Mr. Matthew Mosk... you obviously have not been reading the #5 book on the NY Times Best Seller''s List. Ron Paul CLEARLY STATES and EXPLAINS the difference between isolationism and nonintervention. I hope you received a lot of disappointed emails. A family BUSINESS? Excuse me? Oh yeah, the business of FREEDOM and LIBERTY. You, my friend, are about to get a rude awakening. You could also be warned if you got your info from him instead of THEM. Haven''t you even cracked open one of his whoop-*** video clips? That''s right, non-intellectuals don''t like Ron Paul. They just smear him because the news them to. Go back to sleep, sheep. BAAAAAAAAA.
Reply to this comment
by walker4ron May 28, 2008 12:04 AM PDT
Mr. Matthew Mosk... you obviously have not been reading the #5 book on the NY Times Best Seller''s List. Ron Paul CLEARLY STATES and EXPLAINS the difference between isolationism and nonintervention. I hope you received a lot of disappointed emails. A family BUSINESS? Excuse me? Oh yeah, the business of FREEDOM and LIBERTY. You, my friend, are about to get a rude awakening. You could also be warned if you got your info from him instead of THEM. Haven''t you even cracked open one of his whoop-*** video clips? That''s right, non-intellectuals don''t like Ron Paul. They just smear him because the news them to. Go back to sleep, sheep. BAAAAAAAAA.
Reply to this comment
by walker4ron May 28, 2008 12:07 AM PDT
Mr. Matthew Mosk... you obviously have not been reading the #5 book on the NY Times Best Seller''s List. Ron Paul CLEARLY STATES and EXPLAINS the difference between isolationism and nonintervention. I hope you received a lot of disappointed emails. A family BUSINESS? Excuse me? Oh yeah, the business of FREEDOM and LIBERTY. You, my friend, are about to get a rude awakening. You could also be warned if you got your info from him instead of THEM. Haven''t you even cracked open one of his whoop-*** video clips? That''s right, non-intellectuals don''t like Ron Paul. They just smear him because the news them to. Go back to sleep, sheep. BAAAAAAAAA.
Reply to this comment
by jivedadson May 28, 2008 12:31 AM PDT
What a relief!

I donated the maximum to the campaign. Now I know the money was not wasted.

I worked for my dad from age 12 to 17. I started at wenty-five cents an hour. He got a pretty good deal, even four years later when I was knocking down one 90% silver dollar an hour. Good service station help was hard to come by in the 60''s. I imagine good campaign help is even harder to find these days.
Reply to this comment
by jivedadson May 28, 2008 12:38 AM PDT
Ron Paul is not going to run on a third-party ticket. He''s going back to Washington where he is sorely needed.

(What was I thinking when I wrote that last message - $1 an hour? I topped out at $.50 working for my dad. I didn''t make a buck an hour until I left home.)
Reply to this comment
by a340wby May 28, 2008 3:53 AM PDT
Is this an indication the media is seeing Paul as a threat? When I first found out my Senator had hired his daughter in law as a camppaign manager I thought it rather scandulous. I have considerable respect for him though so I did a little research into the matter and found that this is a very common practice. I suppose this is the worst thing this reporter could find on Dr. Paul and in his biased attempts at maligning the most honest candidate running Mosk fails to mention what the other candidates are paying their family members.
Also Paul is not an isolationist, he favors open trade.
GO RON PAUL!!!!
Reply to this comment
by colt-11 May 28, 2008 4:24 AM PDT
Matt Mosk & Alice Crites: You are repugnantly ignorant to the workings of American politics. For your next article, define what "isolationism" actually is, and you''ll want to remove this attempt at politcal punditry from public view ASAP.

The funny thing is, when journalist-hacks such as yourself try to demonize Paul you can find NO legal ground to do so.

How about doing a little research on where Obama''s money is going. Or maybe Clinton''s? At least Paul follows the law.

Congratulations. You have once more furthered CBS''s credibility into the toilet.

No wonder the general public is turning the network news off more and more, and turning to independant internet websites for their news.

Good luck with having a career in 5 years. You''ll need it.
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by simon9_1956 May 29, 2008 11:21 AM PDT
"Paul has received relatively few votes in his insurgent bid for the Republican nomination."

In fact, he''s received over a million. Not bad for a guy the corporate media shuts out on nearly every occasion. And when they deign to mention him, it''s always with slurs such as the article above, or the same tired non-issue questions ("When are you dropping out?" "Why are you bothering to run?" "Will you run as an Independent after you drop out?" "What about that article from 18 years ago that everyone knows you didn''t write that appeared in your newsletter? Care to explain that to us...again?")

Why would the media so tacitly endorse the status quo that is strangling this country? Who do they think they''re helping by pushing economically illiterate candidates who will accelerate our destruction by debt?
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