Money keeps pouring into the U.S. Marshals Service from federal political campaigns and committees who received funds from FTX, the now-defunct cryptocurrency company, according to a Raw Story analysis of federal campaign records.
Another five political campaigns sent $15,500 in campaign cash to the government agency best known for hunting down suspected criminals, adding to at least $160,000 collected from 30 federal political candidates and party committees, as Raw Story first reported.
The five new campaigns that gave up the money are fundraising entities for Rep. Marc Molinaro (R-NY), Rep. Elise Stefanik (R-NY), Rep. Lori Chavez-DeRemer (R-OR), Rep. Bob Latta (R-OH) and Rep. Brian Fitzpatrick (R-PA).
Stefanik is chairwoman of the House Republican Conference, the GOP’s fourth most powerful position in the U.S. House of Representatives.
RELATED ARTICLE: Why big-time politicians are surrendering gobs of campaign cash to an unlikely source
These mass “disgorgements” to the U.S. Marshals — an extraordinary development with almost no precedent in politics — stem from the Department of Justice urging politicians to return contributions made by FTX executives, including Sam Bankman-Fried, the company’s former CEO. Bankman-Fried faces 13 charges in federal court, including fraud, breaking campaign finance laws and violating the Foreign Corrupt Business Practices Act with an alleged $40 million bribe to Chinese authorities.
“Based on our office's investigation, we have cause to believe these donations represent the proceeds of Bankman-Fried's crimes and accordingly are forfeitable under applicable provisions of the federal asset forfeiture statutes,” said a letter sent by the Department of Justice to a member of Congress’ campaign committee, which in turn shared its contents with Raw Story.
The letter continued, “It is the intent of this office to request any funds forfeited be made available to compensate the victims of Bankman-Fried's crimes pursuant to the Department of Justice's restoration and/or remission regulations."
These letters seem to indicate the DOJ taking a harder stance on campaigns taking money from suspected criminals — and could be considered an “aggressive practice,” said Kevin O’Brien, a partner at Ford O’Brien Landy LLP and former assistant U.S. Attorney for the Department of Justice.
“Forced forfeiture is a very onerous process. It's not fun, and I think that might have something to do with why they're so eager to send the money back,” O’Brien said. “Investors pretty much lost their shirt, and so the government has an obligation to collect what it can from other sources, including people who are required under the law to forfeit the proceeds of a crime.”
As for sending the money to the U.S. Marshals, O’Brien called it “unusual” and “weird.” He wasn’t sure why the funds were directed to the U.S. Marshals but theorized it could be a bureaucratic decision. The Marshals could be taking the funds as a part of its Asset Forfeiture Program, which allows the USMS to manage and sell assets seized and forfeited by the DOJ, according to the U.S. Marshals website.
“The Molinaro campaign sent the contribution it received from an FTX Executive to a U.S. Marshals recovery fund. It will benefit those defrauded by FTX,” said Dave Catalfamo, an adviser to the Molinaro campaign.
Four of the five new disgorgements came from FTX executive, Ryan Salame, a frequent political donor, according to Raw Story’s analysis of FEC records.
Salame’s house was searched by the FBI on April 27, but he has not been charged with a crime.
“Since news broke, I have waited on guidance from the bankruptcy court on what to do with the funds I received connected to FTX. Having received said guidance, I have tendered the funds to the court. It is up to the court to decide what to do with the money,” Rep. Morgan Griffiths (R-VA), who previously returned $2,900 in FTX-related contributions, said in a statement.
Among the political contributions that federal political committees have sent the U.S. Marshals to date, according to federal records:
Democratic Senatorial Campaign Committee — $36,500
Republican National Committee — $25,000
Former Republican Sen. Ben Sasse — $5,800
Rep. Mike Simpson (R-ID) — $5,800
Former Rep. Lee Zeldin (R-NY) Campaign Fund — $5,800
Sen. Maggie Hassan (D-NH) — $5,800
Sen. John Boozman (R-AR) — $5,800
Rep. Ruben Gallego (D-AZ) — $5,800
Rep. Marc Molinaro (R-NY) — $2,900
Rep. Elise Stefanik (R-NY) — $2,900
Rep. Bob Latta (R-OH) — $2,900
Rep. Brian Fitzpatrick (R-PA) — $2,900
Rep. Eli Crane (R-AZ) — $2,900
Rep. Larry Bucshon (R-IN) — $2,900
Rep. Chuck Edwards (R-NC) — $2,900
Rep. Alex Mooney (R-WV) — $2,900
Rep. Julia Letlow (R-LA) — $2,900
Rep. Greg Casar (D-TX) — $2,900
Rep. Salud Carbajal (D-CA) — $2,900
Rep. Jeff Duncan (R-SC) — $2,900
Rep. Dan Crenshaw (R-TX) — $2,900
Rep. Morgan Griffith (R-VA) — $2,900
Rep. Maxwell Alejandro Frost (D-FL) — $2,900
Rep. Bill Johnson (R-OH) — $2,900
Rep. John Moolenaar (R-MI) — $2,900
Rep. Joyce Beatty (D-OH) — $2,900
Rep. Kay Granger (R-TX) — $2,900
Sen. Tim Scott (R-SC) Presidential Exploratory Committee — $2,900
Rep. Gary Palmer (R-AL) — $2,900
Rep. Buddy Carter (R-GA) — $2,900
Rep. Mario Diaz-Balart (R-FL) — $2,900
Rep. Kathy Castor (D-FL) — $2,900
Rep. Sean Casten (D-IL) — $2,700
Athena PAC (Democratic Rep. Kathy Castor of Florida) — $2,500
Axne PAC (Democratic Rep. Cynthia Axne of Iowa) — $1,618
Rep. Lori Chavez-DeRemer (R-OR) — $1,000
Screen capture of verified FAA email