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Thu Oct 12, 2017, 03:42 AM

Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering Scheme

https://www.justice.gov/opa/pr/former-congressional-staffer-pleads-guilty-extensive-fraud-and-money-laundering-scheme

Department of Justice
Office of Public Affairs

FOR IMMEDIATE RELEASE
Wednesday, October 11, 2017

Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering Scheme

A former congressional staffer pleaded guilty today for his role in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations to pay for personal expenses and to illegally finance a former congressmanís campaigns for public office, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Departmentís Criminal Division and Acting U.S. Attorney Abe Martinez of the Southern District of Texas.

Jason T. Posey, 46, formerly of Houston, and currently residing in Mississippi, pleaded guilty to one count of mail fraud, one count of wire fraud and one count of money laundering before Chief U.S. District Judge Lee H. Rosenthal of the Southern District of Texas. Sentencing is set for March 29, 2018.

According to admissions made in connection with Poseyís plea, Posey served as director of special projects and treasurer of the congressional campaign committee for former U.S. Congressman Stephen E. Stockman, 60, of the Houston, Texas area, from in or around January 2013 until in or around November 2013. Posey admitted that, at Stockmanís direction, he and another congressional staffer, Thomas Dodd, 38, of the Houston, Texas area, illegally funneled $15,000 of charitable proceeds into Stockmanís campaign bank account and caused the campaign to file reports with the Federal Election Commission (FEC) that falsely stated that the money was a contribution from their parents and from the staffers themselves. According to Poseyís admissions, Stockman also directed Posey to send a letter to a charitable donor that falsely stated that the donorís $350,000 donation had been used to support a charitable endeavor, when in fact the funds were actually used for other purposes, including Stockmanís campaigns for public office.

In connection with his plea, Posey also admitted that he and Stockman raised $450,571.65 to support Stockmanís 2014 Senate campaign by falsely representing to a donor that the funds would be used to support a legitimate independent expenditure by an independent advocacy group Posey created. In fact, Posey admitted that Stockman personally directed and supervised the activities of the purportedly independent group, including the printing and mailing of hundreds of thousands of copies of a pro-Stockman publication to Texas voters. Posey also admitted that he submitted a false affidavit to the FEC in order to conceal the scheme.

Dodd pleaded guilty on March 20 to conspiracy to commit mail and wire fraud and conspiracy to make illegal conduit contributions and false statements to the FEC. Stockmanís trial is scheduled to begin on Jan. 29, 2018. The charges and allegations in this case are merely accusations. Stockman is presumed innocent until proven guilty.
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Reply Former Congressional Staffer Pleads Guilty to Extensive Fraud and Money Laundering Scheme (Original post)
nitpicker Oct 12 OP
Paladin Oct 12 #1

Response to nitpicker (Original post)

Thu Oct 12, 2017, 09:45 AM

1. Steve Stockman's involved? That figures. (nt)

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