Gingrich accused of illegally profiting off campaign
Former House Speaker Newt Gingrich became the target on Monday of a Federal Election Commission (FEC) complaint filed by the non-profit watchdog group Citizens for Responsibility and Ethics in Washington (CREW), which accused the Georgia Republican of illegally profiting off his campaign.
The complaint is based on a revelation by The Washington Post‘s Dan Eggen, who discovered that Gingrich had personally sold a mailing list to his campaign and profited to the tune of $47,005, then failed to report the transaction on a key FEC document. That’s count one, according to CREW.
That mailing list did not belong to Gingrich personally, CREW said. It instead belonged to Gingrich Productions, Inc., a private business that sells Gingrich’s books. Since he paid himself instead of Gingrich Productions, CREW alleged that a second count of using campaign money for personal expenses is called for as well. The treasurer who signed off on the deal is also accused of violating campaign finance laws.
CREW explained in their complaint (PDF) that Gingrich Productions often stages events at the same time as Newt 2012, Inc., his non-profit group and principal campaign committee, which could constitute improper corporate contributions to a political campaign in that the campaign directly benefits from Gingrich Productions’ events.
It goes on to note that the mailing list Gingrich moved from his book company to his campaign was actually a list of people who were waiting at Gingrich events to have their books signed, showing even further how Gingrich Productions and Newt 2012 work in tandem to help each other.
Finally, CREW alleges that the whole scheme is patently illegal under campaign finance law, in that Gingrich is personally profiting off his campaign by staging dual-purpose events. They cited The New York Times, which reported earlier this month that customers buying products at Gingrich events believe they are supporting his campaign, when the profits are really going to Gingrich personally.
Gingrich insists his campaign and private business are kept separate, as required by law.
(H/T: The Washington Post)