Cain's bigger problem, illegal campaign financing

Chris

Gold Member
May 30, 2008
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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
 
+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.
 
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?
 
Of course it sounded damaging on MSNBC lol

How can anyone watch Rachel Kudrow, I can handle the other characters on their even though they say some dumb things, like every news station, but her personality isn't tolerable.
 
This is an interesting smear campaign for true. It's not very DNC. Especially with that new twit at the helm who couldn't manouever her ditzy way out of a wet paper bag.
 
This thread will grow to ridiculous proportions. The hack threads with half truths and lies always do.

Sad really.....

True, I've noticed the legitimate threads usually end up the same or only go on for a page or so.

I've only been on here a month or so but it gets old.
 
Cain may dodge the 'harrassment" accusation, but somebody in his campaign may have to "fall on his sword" over the felony charge (as in the case of Scooter Libby) and then hope that a Republican wins the Presidential Election in 2012 so he/she can have it dismissed.
 
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Cain may dodge the 'harrassment" accusation, but somebody in his campaign may have to "fall on his sword" over the felony charge (as in the case of Scooter Libby) and then hope that a Republican wins the Presidential Election in 2012 so he/she can have it dismissed.
Cain has been charged?

Link?
 
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?

Even a loan to a candidate by a charitable organization is verboten.

501c3s cannot get directly involved in politics.
 

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