{"id":159741,"date":"2023-05-10T09:16:52","date_gmt":"2023-05-10T16:16:52","guid":{"rendered":"https:\/\/new.thepinetree.net\/?p=159741"},"modified":"2023-05-10T09:16:52","modified_gmt":"2023-05-10T16:16:52","slug":"congressman-george-santos-charged-with-fraud-money-laundering-theft-of-public-funds-and-false-statements","status":"publish","type":"post","link":"https:\/\/new.thepinetree.net\/?p=159741","title":{"rendered":"Congressman George Santos Charged with Fraud, Money Laundering, Theft of Public Funds, and False Statements"},"content":{"rendered":"

Central Islip, NY…A 13-count indictment was unsealed today in the United States District Court for the Eastern District of New York charging George Anthony Devolder Santos, better known as \u201cGeorge Santos,\u201d a United States Congressman representing the Third District of New York, with seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the House of Representatives.<\/p>\n

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The indictment was returned yesterday under seal by a federal grand jury sitting in Central Islip, New York. Santos was arrested this morning and will be arraigned this afternoon before U.S. Magistrate Judge Arlene R. Lindsay at the federal courthouse in Central Islip, New York.<\/p>\n

Breon Peace, United States Attorney for the Eastern District of New York, Kenneth A. Polite, Jr., Assistant Attorney General of the Justice Department\u2019s Criminal Division, and Michael J. Driscoll, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Anne T. Donnelly, District Attorney, Nassau County, announced the charges.<\/p>\n

<\/a><\/a>\u201cThis indictment seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations,\u201d stated United States Attorney Peace.\u00a0 \u201cTaken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself.\u00a0 He used political contributions to line his pockets, unlawfully applied for unemployment benefits that should have gone to New Yorkers who had lost their jobs due to the pandemic, and lied to the House of Representatives.\u00a0My Office and our law enforcement partners will continue to aggressively root out corruption and self-dealing from our community\u2019s public institutions and hold public officials accountable to the constituents who elected them.\u201d<\/p>\n

<\/a>\u201cThe Criminal Division\u2019s Public Integrity Section is committed to rooting out fraud and corruption, especially when committed by our elected officials,\u201d said Assistant Attorney General Kenneth A. Polite, Jr. of the Justice Department\u2019s Criminal Division. \u201cAs alleged, Santos engaged in criminal conduct intended to deceive and defraud the American public. As this indictment reflects, the Department of Justice will hold accountable anyone who engages in such criminality.\u201d<\/p>\n

\u201cAs today’s enforcement action demonstrates, the FBI remains committed to holding all equally accountable under the law.\u00a0 As we allege, Congressman Santos committed federal crimes, and he will now be forced to face the consequences of his actions.\u00a0 I would like to commend the diligent efforts of the investigative and prosecutorial teams in this matter,\u201d stated FBI Assistant Director-in-Charge Driscoll.<\/p>\n

\u201cAt the height of the pandemic in 2020, George Santos allegedly applied for and received unemployment benefits while he was employed and running for Congress,\u201d stated District Attorney Donnelly.\u00a0 \u201cAs charged in the indictment, the defendant\u2019s alleged behavior continued during his second run for Congress when he pocketed campaign contributions and used that money to pay down personal debts and buy designer clothing. This indictment is the result of a lengthy collaboration between law enforcement agencies, and I thank our partners at the U.S. Attorney\u2019s Office, the Department of Justice and the Federal Bureau of Investigation for their dedication to rooting out public corruption.\u201d<\/p>\n

Mr. Peace also thanked the U.S. Department of Labor, Office of Inspector General, the New York State Department of Labor (NYS DOL), and the Queens County District Attorney\u2019s Office for their assistance.<\/p>\n

As alleged in the indictment, Santos, who was elected to Congress last November and sworn in as the U.S. Representative for New York\u2019s Third Congressional District on January 7, 2023, engaged in multiple fraudulent schemes.<\/p>\n

Fraudulent Political Contribution Solicitation Scheme<\/u><\/p>\n

Beginning in September 2022, during his successful campaign for Congress, Santos operated a limited liability company (Company #1) through which he allegedly defrauded prospective political supporters.\u00a0 Santos enlisted a Queens-based political consultant (Person #1) to communicate with prospective donors on Santos\u2019s behalf.\u00a0 Santos allegedly directed Person #1 to falsely tell donors that, among other things, their money would be used to help elect Santos to the House, including by purchasing television advertisements. In reliance on these false statements, two donors (Contributor #1 and Contributor #2) each transferred $25,000 to Company #1\u2019s bank account, which Santos controlled.<\/p>\n

As alleged in the indictment, shortly after the funds were received into Company #1\u2019s bank account, the money was transferred into Santos\u2019s personal bank accounts\u2014in one instance laundered through two of Santos\u2019s personal accounts.\u00a0 Santos allegedly then used much of that money for personal expenses.\u00a0 Among other things, Santos allegedly used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.<\/p>\n

Unemployment Insurance Fraud Scheme<\/u><\/p>\n

Beginning in approximately February 2020, Santos was employed as a Regional Director of a Florida-based investment firm (Investment Firm #1), where he earned an annual salary of approximately $120,000.\u00a0 By late-March 2020, in response to the outbreak of COVID-19 in the United States, new legislation was signed into law that provided additional federal funding to assist out-of-work Americans during the pandemic.<\/p>\n

In mid-June 2020, although he was employed and was not eligible for unemployment benefits, Santos applied for government assistance through the New York State Department of Labor, allegedly claiming falsely to have been unemployed since March 2020.\u00a0 From that point until April 2021\u2014when Santos was working and receiving a salary on a near-continuous basis and during his unsuccessful run for Congress\u2014he falsely affirmed each week that he was eligible for unemployment benefits when he was not.\u00a0 As a result, Santos allegedly fraudulently received more than $24,000 in unemployment insurance benefits.<\/p>\n

False Statements to the House of Representatives<\/u><\/p>\n

Finally, the indictment describes Santos\u2019s alleged efforts to mislead the House of Representatives and the public about his financial condition in connection with each of his two Congressional campaigns.<\/p>\n

Santos, like all candidates for the House, had a legal duty to file with the Clerk of the House of Representatives a Financial Disclosure Statement (House Disclosures) before each election. \u00a0In each of his House Disclosures, Santos was personally required to give a full and complete accounting of his assets, income, and liabilities, among other things.\u00a0 He certified that his House Disclosures were true, complete, and correct.<\/p>\n

In May 2020, in connection with his first campaign for election to the House, Santos filed two House Disclosures in which he allegedly falsely certified that, during the reporting period, his only earned income consisted of salary, commission, and bonuses totaling $55,000 from another company (Company #2), and that the only compensation exceeding $5,000 he received from a single source was an unspecified commission bonus from Company #2.\u00a0 In actuality, Santos allegedly overstated the income he received from Company #2 and altogether failed to disclose the salary he received from Investment Firm #1.<\/p>\n

In September 2022, in connection with his second campaign for election to the House, Santos filed another House Disclosure, in which he allegedly overstated his income and assets.\u00a0 In this House Disclosure, he falsely certified that during the reporting period:<\/p>\n