Three GOP ex-congressmen’s private club expenditures appear to violate federal law
Attorney Brett Kappel, an expert in election law, said the spending violates a federal prohibition against the personal use of campaign funds.
“The concern with former members using excess campaign funds to pay their dues at the Capitol Hill Club is that they are deriving a private benefit from donor funds that were never intended to be used for that purpose,” Kappel said. “That concern is greatly magnified if the former member is now a lobbyist and is using excess campaign funds to benefit his or her lobbying firm and its clients.”
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The Federal Election Commission’s definition of “personal use” of campaign cash includes “dues, fees or gratuities at a country club, health club, recreational facility or other nonpolitical organization, unless they are part of the costs of a specific fundraising event that takes place on the organization's premises.”
The Federal Election Commission stated its position about payments to the Capitol Hill Club in a 2019 agreement with former congressman Cliff Stearns, who left office in 2013.
Stearns admitted that more than $4,100 he had spent at the Capitol Hill Club from 2014 to 2017 for "membership fees and club expenses" was improper. He agreed to personally repay his campaign committee, and Stearns and his committee agreed to pay a $6,900 federal fine, according to FEC records. Stearns was a registered lobbyist during that time.
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“Stearns was neither a candidate nor a Federal officeholder at the time the disbursements were made, and the expenses would have existed irrespective of Stearns's position as a former officeholder,” the agreement between Stearns and the FEC stated. “Therefore, these disbursements made to the Capitol Hill Club were made for Stearns's personal use.”
Shimkus, Denham and LoBiondo each registered as lobbyists after leaving office.
Volunteers for Shimkus, the ex-congressman’s campaign committee when he served in the U.S. House of Representatives from 1997 to 2021, has this year paid $2,000 to the Capitol Hill Club this year for what it labeled a “501c7 Donation.” The club is indeed what the IRS calls a nonprofit “social and recreational club,” as organized under section 501(c)(7) of the federal tax code.
It’s uncertain, though, if the “donation” amounted to paying dues, which would apparently be a violation of campaign law, or if Shimkus received anything else of value from the transaction. Raw Story’s repeated messages to Shimkus for comment were not answered.
Shimkus is listed as a lobbyist on the KBS website and is also listed in the company’s July filing with Congress disclosing its lobbying activity. The former congressman has this year represented the interests of Ameren Corp., a power generation company.
Denham, who served in Congress from 2011 to 2019, spent $900 of leftover campaign cash at the Capitol Hill Club in 2021 and 2023. His FEC filing listed the purpose as “dues.”
Denham also became a lobbyist, now working for Dentons. His clients include the social media giant TikTok, Inc., according to federal records.
LoBiondo, who served from 1995 to 2019, spent $500 in 2021 for “membership dues” at the Capitol Hill Club. After leaving office, he started LoBo Strategies. Although he said in a 2019 story in The Press of Atlantic City that he would be a consultant, not a lobbyist, LoBiondo filed lobbying disclosures from 2020 to 2022. He terminated his registration in October of last year.
Neither Denham nor LoBiondo responded to Raw Story’s request for an interview. The Capitol Hill Club also did not respond to a request for comment.
The Capitol Hill Club has long been popular with Republican politicians. A Raw Story analysis of Federal Election Commission records showed that in the first half of 2023 alone, campaign money paid for almost $1 million worth of meals, meeting space, and catering for politicians and political action committees at this redoubt of the right wing.
Then-Rep. Frank LoBiondo (R-NJ) speaks before the U.S. House of Representatives in November 2018. Courtesy: C-SPAN
Election law experts said these kinds of Capitol Hill Club expenses do not run afoul of the law because the expenses can be seen as part of the job for sitting members of Congress or someone actively seeking elected office through fundraisers and other campaign activities.
It becomes a potential problem, however, when a former member continues to dip into excess campaign money to pay the club, which also means access to the powerful people inside.
Members of the Capitol Hill Club have included presidents, vice presidents, congressmen and governors, and, as the club’s website notes, “The Eisenhower Lounge alone boasts 458 elephants of the Club’s collection as well as an 1887 Steinway.”
It’s also the ultimate conservative safe space, too, as pictures, video and audio recordings are strictly forboden.
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