Cain's bigger problem, illegal campaign financing

Discussion in 'Politics' started by Chris, Oct 31, 2011.

  1. Chris
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    Chris Gold Member

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    Republican presidential hopeful Herman Cain, hit with a barrage of questions Monday about allegations of sexual harassment, also faced new questions about financial ties between his campaign and a private charity run by two of his top aides.

    Citing internal financial documents, the Milwaukee Journal Sentinel reported that a Wisconsin tax-exempt charity called Prosperity USA footed the bill for about $40,000 worth of iPads, chartered airplanes and other expenses as Cain’s campaign got off the ground early this year.

    Expenses totaling $37,372 are listed in the group’s financial records as “due from FOH,” or Friends of Herman Cain, the name of his campaign committee, the newspaper said. It is not clear whether Cain repaid the alleged debts, which are not listed in his personal or campaign disclosures.

    Such payments are forbidden under federal tax and election laws, because nonprofit charities are not allowed to donate money or services to political campaigns, according to election law experts.

    “It looks like a law school exam on potential campaign finance violations,” said Lawrence H. Norton of Womble Carlyle, a former general counsel at the Federal Election Commission. “Many of these payments would be prohibited contributions under federal election law.”

    Cain told Fox News Channel that neither he nor his staff was aware of the allegations. “I didn’t even know about the report until you brought it up on the show,” he said.

    Prosperity USA was founded by Mark Block, Cain’s chief of staff, and Linda Hansen, his deputy chief of staff. Block launched Prosperity USA and a related group after he headed the state chapter of Americans for Prosperity (AFP), a tea-party-aligned organization based in Washington.

    Herman Cain campaign’s financial ties to Wisconsin charity questioned - The Washington Post
     
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  2. Lakhota
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    Lakhota Diamond Member

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    I just started a similar thread, but let's go with yours. I only provided a couple links.
     
  3. Chris
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    Chris Gold Member

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    These are felony charges.

    The kind people go to jail for.

    Like Tom Delay.
     
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  4. Lakhota
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    Lakhota Diamond Member

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    After watching MSNBC tonight, it sounds like the illegal campaign financing story is much more damaging.
     
  5. truthsaga
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    truthsaga Economic and BlowBack Ace

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    +rep, great post. I have not heard about this until reading your post. Herman Cain has big banking written all over him. It's frustrating reading all the posts of people flocking to him because the news started pumping him. I believe as these weaker candidates dissolve the election will be between Romney, Paul, and a third maybe Perry.
     
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  6. Avorysuds
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    Avorysuds Gold Member

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    I'll have to see what happens before I comment but it does not shock me at all.
     
  7. tinydancer
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    tinydancer Diamond Member

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    If it's a loan, how is it a donation? The article cited called it specifically an "alleged debt".

    Can anyone clarify how a loan is a donation?
     
  8. Jackson
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    Jackson Gold Member Supporting Member

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    Wonder if they bought him that hat. Can't stand the hat! :doubt:
     
  9. Grampa Murked U
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    Grampa Murked U Diamond Member

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    Chris, did you get out of Hacks Anonymous early?
     
  10. tinydancer
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    tinydancer Diamond Member

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    Anyone able to explain how a loan is an illegal donation? Genuine question here.
     

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