This article is from the source 'washpo' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.washingtonpost.com/local/crime/jeffrey-thompson-alleged-shadow-campaign-funder-is-charged-in-federal-court/2014/03/10/7bf6ca14-99a8-11e3-80ac-63a8ba7f7942_story.html?wprss=rss_homepage
The article has changed 14 times. There is an RSS feed of changes available.
| Version 6 | Version 7 |
|---|---|
| Jeffrey Thompson, alleged ‘shadow campaign’ funder, is charged in federal court | Jeffrey Thompson, alleged ‘shadow campaign’ funder, is charged in federal court |
| (35 minutes later) | |
| A D.C. businessman was set to plead guilty Monday to funneling more than $2 million in illegal contributions to federal and local political campaigns, including Vincent C. Gray’s 2010 bid to become mayor. | A D.C. businessman was set to plead guilty Monday to funneling more than $2 million in illegal contributions to federal and local political campaigns, including Vincent C. Gray’s 2010 bid to become mayor. |
| In a hearing in federal court, prosecutors alleged for the first time that Gray (D) knew about the “shadow campaign” — a secret and illegal effort to bolster Gray’s mayoral run. They also said Gray personally asked for businessman Jeffrey E. Thompson’s help. In fact, in a June 2010 meeting, Thompson reminded Gray that his support would have to be secret. The two agreed to refer to Thompson as “Uncle Earl” to hide the campaign dealings, they said. | In a hearing in federal court, prosecutors alleged for the first time that Gray (D) knew about the “shadow campaign” — a secret and illegal effort to bolster Gray’s mayoral run. They also said Gray personally asked for businessman Jeffrey E. Thompson’s help. In fact, in a June 2010 meeting, Thompson reminded Gray that his support would have to be secret. The two agreed to refer to Thompson as “Uncle Earl” to hide the campaign dealings, they said. |
| During an interview at his office Monday, Gray denied the allegations. | |
| "It's shocking to me. Lies. These are lies," Gray said. | |
| The case is a highly anticipated development in a long-running federal investigation that began with improprieties in Gray’s 2010 campaign but later expanded greatly in scope. The investigation has tarnished Gray’s tenure as mayor, and threatened his quest for a second term in the April 1 Democratic primary. | |
| In court Monday, prosecutors laid out a detailed new set of allegations that portrayed the mayor as having intimate knowledge of Thompson’s campaign finance schemes and the need for them to be secret to protect Thompson’s business interests. | In court Monday, prosecutors laid out a detailed new set of allegations that portrayed the mayor as having intimate knowledge of Thompson’s campaign finance schemes and the need for them to be secret to protect Thompson’s business interests. |
| “Mayoral candidate A is Vincent Gray,” Asst. U.S. Attorney Michael Atkinson said, before laying out months of intermittent conversations between Gray and Thompson. After Gray launched his campaign, he personally appealed to Thompson three days before a campaign finance deadline to “accelerate his fundraising,” prosecutors said. Thompson came through with checks, many of them “straw donations” from other individuals that were later reimbursed by Thompson. | |
| Later in the campaign, a key figure in the shadow effort asked Thompson for more than $400,000 to fund a get- out-the-vote campaign, Atkinson said. Thompson insisted that Gray ask for funds himself, and the two men met at a Gray associate’s apartment. There, Gray presented him with a one-page budget and “expressed gratitude” to Thompson for his assistance as the meeting ended. | Later in the campaign, a key figure in the shadow effort asked Thompson for more than $400,000 to fund a get- out-the-vote campaign, Atkinson said. Thompson insisted that Gray ask for funds himself, and the two men met at a Gray associate’s apartment. There, Gray presented him with a one-page budget and “expressed gratitude” to Thompson for his assistance as the meeting ended. |
| After the election, prosecutors say, Thompson continued to spend to Gray’s benefit, cutting a $10,000 check to a “close family member” of Gray’s to settle debts with campaign workers and spending another $10,000 at Gray’s request to fund a unnamed union election campaign. Later, after Gray was inaugurated, Atkinson said, Thompson paid $40,000 for home improvements to benefit a “close personal friend” of Gray’s. | |
| After all this, Atkinson said, Thompson appealed to Gray, through an associate, to “expedite” a pending settlement involving his firm, D.C. Chartered Health Plan. | |
| Thompson is charged with subverting campaign finance laws to steer money to mayoral and D.C. Council candidates from 2006 to 2012. He reached a deal to plead guilty to one count each of conspiring to break federal and local campaign finance laws during a six-year period through illegal conduit contributions and off-the-books spending, totaling more than $2 million. | |
| Under terms discussed in court Monday, Thompson could face at most six months in prison, followed by three years of supervised release. The plea agreement is subject to approval by the judge in the case, Colleen Kollar-Kotelly. | Under terms discussed in court Monday, Thompson could face at most six months in prison, followed by three years of supervised release. The plea agreement is subject to approval by the judge in the case, Colleen Kollar-Kotelly. |
| Thompson’s defense team and prosecutors had been negotiating a deal for weeks, according to several people familiar with the talks. | Thompson’s defense team and prosecutors had been negotiating a deal for weeks, according to several people familiar with the talks. |
| Beyond Gray’s 2010 campaign, prosecutors say, Thompson secretly spent $812,146 in support of seven candidates for mayor and D.C. Council. | Beyond Gray’s 2010 campaign, prosecutors say, Thompson secretly spent $812,146 in support of seven candidates for mayor and D.C. Council. |
| For three years prosecutors have been building a case against Thompson, whom associates have identified as the financier of an illegal campaign on Gray’s behalf and as the mastermind behind secret contributions to a long list of other local and federal political candidates. | For three years prosecutors have been building a case against Thompson, whom associates have identified as the financier of an illegal campaign on Gray’s behalf and as the mastermind behind secret contributions to a long list of other local and federal political candidates. |
| The new court filing estimates that Thompson spent about $668,80o on campaign materials and services for Gray — more than has been previously reported. | The new court filing estimates that Thompson spent about $668,80o on campaign materials and services for Gray — more than has been previously reported. |
| Seven people connected to Thompson or affiliated with Gray’s last campaign have pleaded guilty in federal court in the past two years. Thompson, 58, has been alluded to in case after case, but until now he had been identified in court documents only as an unnamed co-conspirator. | Seven people connected to Thompson or affiliated with Gray’s last campaign have pleaded guilty in federal court in the past two years. Thompson, 58, has been alluded to in case after case, but until now he had been identified in court documents only as an unnamed co-conspirator. |
| The charges against Thompson reignite questions for Gray about campaign finance irregularities in his first mayoral campaign as he faces a crowded Democratic primary field on April 1. The mayor has not been accused of any crime, but he has apologized to D.C. residents and acknowledged the “misdeeds and missteps” of his associates. | The charges against Thompson reignite questions for Gray about campaign finance irregularities in his first mayoral campaign as he faces a crowded Democratic primary field on April 1. The mayor has not been accused of any crime, but he has apologized to D.C. residents and acknowledged the “misdeeds and missteps” of his associates. |
| On Monday before the hearing, Gray said he had only scanned the court papers but said he had no involvement in the shadow campaign. | On Monday before the hearing, Gray said he had only scanned the court papers but said he had no involvement in the shadow campaign. |
| “I’ve said all that I know,” the mayor said. “I’ve said this repeatedly. I’ve said I didn’t do anything — that I had nothing to do with this.” | “I’ve said all that I know,” the mayor said. “I’ve said this repeatedly. I’ve said I didn’t do anything — that I had nothing to do with this.” |
| The federal investigation has loomed over Gray as he seeks a second term. More than 40 percent of Democrats say the probe will be a major factor in how they vote this year, a Washington Post poll found. And the survey found that concerns about Gray’s trustworthiness are his most significant weakness among a public that generally approves of the job he’s doing as mayor. | The federal investigation has loomed over Gray as he seeks a second term. More than 40 percent of Democrats say the probe will be a major factor in how they vote this year, a Washington Post poll found. And the survey found that concerns about Gray’s trustworthiness are his most significant weakness among a public that generally approves of the job he’s doing as mayor. |
| Thompson, who did hundreds of millions of dollars in city business through his health-care firm, has not commented on the investigation since March 2012, when federal agents searched his home and offices. His attorneys were not immediately available to comment Monday. | Thompson, who did hundreds of millions of dollars in city business through his health-care firm, has not commented on the investigation since March 2012, when federal agents searched his home and offices. His attorneys were not immediately available to comment Monday. |
| During much of the investigation, Thompson lawyer Brendan V. Sullivan Jr. had publicly shown no interest in negotiating with the office of U.S. Attorney Ronald C. Machen Jr. He had fought the government over certain documents seized in the 2012 raids, appealing late last year to the Supreme Court. | During much of the investigation, Thompson lawyer Brendan V. Sullivan Jr. had publicly shown no interest in negotiating with the office of U.S. Attorney Ronald C. Machen Jr. He had fought the government over certain documents seized in the 2012 raids, appealing late last year to the Supreme Court. |
| In recent weeks, however, Thompson’s defense team has been sharing information with prosecutors as part of plea talks, according to two people familiar with the private discussions. | In recent weeks, however, Thompson’s defense team has been sharing information with prosecutors as part of plea talks, according to two people familiar with the private discussions. |
| Thompson’s associates have described in early court proceedings a tag-team effort by Thompson and public relations consultant Jeanne Clarke Harris to avoid campaign finance laws, which place strict limits on donations. Thompson funneled hundreds of thousands of dollars through companies owned by Harris to benefit candidates he did not want to support publicly. | Thompson’s associates have described in early court proceedings a tag-team effort by Thompson and public relations consultant Jeanne Clarke Harris to avoid campaign finance laws, which place strict limits on donations. Thompson funneled hundreds of thousands of dollars through companies owned by Harris to benefit candidates he did not want to support publicly. |
| Court papers filed Monday do not name any candidates. | Court papers filed Monday do not name any candidates. |
| But the documents and interviews with people familiar with the contributions show that Thompson spent about $278,000 for the 2006 mayoral campaign of Democrat Linda W. Cropp. He also spent smaller amounts on behalf of former council member Michael A. Brown in 2007 and 2008, and the insurgent council candidacy of Mark H. Long, an independent, in 2008. | But the documents and interviews with people familiar with the contributions show that Thompson spent about $278,000 for the 2006 mayoral campaign of Democrat Linda W. Cropp. He also spent smaller amounts on behalf of former council member Michael A. Brown in 2007 and 2008, and the insurgent council candidacy of Mark H. Long, an independent, in 2008. |
| In 2010, Thompson backed Democratic council hopefuls Jeff Smith ($140,000) and Kelvin Robinson ($26,000), and he spent about $148,146 for council member Vincent B. Orange (D-At Large) in 2011. None of the contributions were reported as required by local campaign finance laws. | In 2010, Thompson backed Democratic council hopefuls Jeff Smith ($140,000) and Kelvin Robinson ($26,000), and he spent about $148,146 for council member Vincent B. Orange (D-At Large) in 2011. None of the contributions were reported as required by local campaign finance laws. |
| Earlier documents and interviews also show that Thompson secretly spent more than a half-million dollars on get-out-the-vote efforts for Hillary Rodham Clinton in 2008 during Democratic primaries in at least four states. | Earlier documents and interviews also show that Thompson secretly spent more than a half-million dollars on get-out-the-vote efforts for Hillary Rodham Clinton in 2008 during Democratic primaries in at least four states. |
| Separately, prosecutors have said in court papers that Thompson used his former accounting firm to direct illegal “straw” contributions to scores of political campaigns for nearly a decade. Machen has characterized the firm as an “assembly line” for such donations. | Separately, prosecutors have said in court papers that Thompson used his former accounting firm to direct illegal “straw” contributions to scores of political campaigns for nearly a decade. Machen has characterized the firm as an “assembly line” for such donations. |
| In the new court filing, Thompson is accused of arranging illegal conduit donations to at least 13 federal candidates. The $250,000 in contributions were made with Thompson’s money, according to prosecutors, but were reported as coming from employees and other associates. | In the new court filing, Thompson is accused of arranging illegal conduit donations to at least 13 federal candidates. The $250,000 in contributions were made with Thompson’s money, according to prosecutors, but were reported as coming from employees and other associates. |
| The donations went to candidates for the Senate and House of Representatives, including to Del. Eleanor Holmes Norton (D-D.C.) and then-Sen. Arlen Specter (D-Pa.). | The donations went to candidates for the Senate and House of Representatives, including to Del. Eleanor Holmes Norton (D-D.C.) and then-Sen. Arlen Specter (D-Pa.). |
| Aaron C. Davis and Matt Zapotosky contributed to this report. | Aaron C. Davis and Matt Zapotosky contributed to this report. |
| Get updates on your area delivered via e-mail | Get updates on your area delivered via e-mail |