What We Know About Louis DeJoy's Campaign Finance Scandal
Postmaster General Louis DeJoy may have violated campaign finance laws by pressuring his employees to make donations to Republican campaigns which he would later reimburse, the Washington Post reported this weekend. Former employees of New Breed Logistics, the North Carolina-based company DeJoy ran for more three decades, have alleged that employees were urged to attend fundraisers at DeJoy’s mansion by him or his aides, then reimbursed for their donations through bonuses. If the allegations are true, it means that at least part of DeJoy’s rise as a major fundraiser for both the GOP and President Trump was facilitated illegally — and further imperils DeJoy’s already embattled position at the USPS.
Below is what we know about the allegations and what they could mean for DeJoy, a major longtime donor to the GOP and President Trump.
The alleged “straw-donor” fundraising scheme
On Saturday, the Washington Post reported that five former employees at Louis DeJoy’s former business, the North Carolina-based New Breed Logistics, said that they were pressured to attend fundraisers for Republican and then reimbursed for the donations they made, which is a violation of both federal and North Carolina election laws. It is not unheard of for employers to ask their employees to make political donations, but it’s illegal to coerce those donations or reimburse employees for them. According to the Post, the “straw-donor” scheme — which would allow donors, like DeJoy, to surpass the legal limits on individual campaign contributions — may have been extensive throughout the company for well over a decade:
A Washington Post analysis of federal and state campaign finance records found a pattern of extensive donations by New Breed employees to Republican candidates, with the same amount often given by multiple people on the same day. Between 2000 and 2014, 124 individuals who worked for the company together gave more than $1 million to federal and state GOP candidates. Many had not previously made political donations, and have not made any since leaving the company, public records show. During the same period, nine employees gave a combined $700 to Democrats.
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