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FBI Investigating Postmaster General Louis DeJoy for Possible Campaign Finance Violations

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The inquiry is centered around previously reported allegations that DeJoy pressured employees at his business to donate to Republican candidates and paid them back with bonuses.


Federal Inquiry Into DeJoy

The Department of Justice is investigating Postmaster General Louis DeJoy over possible violations of campaign finance laws involving his former business, a spokesperson for DeJoy confirmed Thursday.

The spokesman, Mark Corallo, corroborated the inquiry’s existence in a statement to the media after several unidentified officials told reporters that the FBI has been interviewing current and former employees of DeJoy’s business about political contributions and company activities.

DeJoy, who was a Republican megadonor before former President Donald Trump tapped him to lead the Postal Service, has also been issued a grand jury subpoena for information, one of the officials said.

“Mr. DeJoy has learned that the Department of Justice is investigating campaign contributions made by employees who worked for him when he was in the private sector,” Corallo said. “He has always been scrupulous in his adherence to the campaign contribution laws and has never knowingly violated them.”

News of the investigation was first reported by The Washington Post, which reported in September that multiple employees of the company, New Breed Logistics, said DeJoy pressured them to donate to his preferred Republican candidates and then reimbursed them with bonuses.

It is not illegal for employers to encourage their workers to donate to political campaigns. However, reimbursing political donations violates both state and federal campaign finance laws that prevent so-called “straw-donor” schemes utilized by wealthy donors to avoid individual contribution limits and conceal donation sources.

Previous Allegations

In an analysis of federal and state campaign finance records outlined in the September report, The Post 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.”

According to the outlet, from 2000 and 2014, 124 individuals who worked for the company collectively gave more than $1 million to federal and state Republican candidates. 

Many of the people who made the contributions had never previously donated to political campaigns before joining New Breed, and many did not make any more contributions after leaving the company.

It is currently unclear what period of time the DOJ investigation is covering. 

DeJoy sold New Breed to the Connecticut-based company XPO Logistics in 2014 — a fact that could complicate the five-year statute of limitations for violations of federal campaign finance laws. The postmaster general, however, did remain on the board of XPO until 2018.

Shortly after The Post published its initial investigation last fall, the Campaign Legal Center, an advocacy organization, alleged in a complaint filed with the Federal Election Commission that suspicious donation activity had continued during the period in which DeJoy remained on the board.

According to the group, between 2015 and 2018, campaign finance records showed “several instances of XPO employees contributing to the same candidate or committee, during the same period of time, and often in similar amounts.” 

DeJoy’s family members, including his college-aged children, “also made contributions on the same day or in the same period as those employees,” the organization claimed. “XPO Logistics employees and DeJoy family members following this pattern together gave over $150,000 to the same candidates and committees, including over $50,000 to Trump Victory, President Donald Trump’s joint fundraising committee.”

Continued Scrutiny

Employees who spoke to The Post in September indicated those fundraising efforts allowed DeJoy to cement his status and rise in the ranks of the Republican Party, ultimately culminating in his appointment as postmaster general.

DeJoy, who himself donated $1.1 million to Trump’s fundraising committees, has long faced scrutiny over whether he used his position to help the former president’s re-election campaign by intentionally slowing mail deliveries last summer to make mail-in voting less reliable.

The embattled Postal Service leader has repeatedly denied he abused his authority or violated any laws prior to his service in the Trump administration.

During an August Congressional hearing, Rep. Jim Cooper (D-Tn.) asked DeJoy if he had repaid employees for making donations to the Trump campaign.

“That’s an outrageous claim, sir, and I resent it,” he responded. “The answer is no.”

When The Post published its report a month later, Rep. Carolyn Maloney (D-N.Y.) said the House Committee on Oversight and Reform, which she chairs, would investigate the reimbursement allegations. Maloney added that DeJoy may have lied to the panel under oath if the claims were true.

See what others are saying: (The Washington Post) (The New York Times) (NPR)

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NY Attorney General Says Investigation of Trump Business Found “Significant Evidence” of Fraud

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The state attorney general’s office accused the former president and his family business of falsely inflating the value of assets and personal worth to lenders, the IRS, and insurance brokers.


New York Attorney General’s Filing

New York Attorney General Letitia James announced late Tuesday she had “significant evidence” that former President Donald Trump and the Trump Organization “falsely and fraudulently” misrepresented the value of assets “to financial institutions for economic benefit.”

The allegations mark the first time James has made specific accusations against Trump and his business. They come as part of a nearly 160-page filing asking a judge to order the former president — along with Ivanka Trump and Donald Trump Jr. — to comply with subpoenas for the investigation after the family sued James to block her from questioning them.

The filing claims that Trump and the company inflated the value of six properties, including several golf courses and Trump’s own penthouse in Trump Tower, on financial statements to obtain favorable loans, tax deductions, and insurance coverage. 

The document adds that many of the financial statements were “generally inflated as part of a pattern to suggest that Mr. Trump’s net worth was higher than it otherwise would have appeared.”

James outlined several specific examples, such as a financial statement where the value of Trump’s Seven Springs estate in Westchester was boosted because it listed seven mansions on the property worth $61 million that did not actually exist.

That resulted in Trump receiving millions of dollars in tax deductions on that property, as well as another in Los Angeles.

In another notable instance, the attorney general’s office said that the $327 million value of Trump’s penthouse in Trump Tower was calculated off a financial statement that falsely reported his home was nearly triple its actual size.

While the statement claimed the apartment was 30,000 square feet, Trump had signed documents stating it was actually 10,996 square feet.

Alleged Direct Involvement

The allegation regarding the apartment is especially significant because it directly ties Trump himself to the accusations of financial wrongdoing. It is also not the only instance where Trump was implicated.

The filing additionally asserts that Trump Organization chief financial officer Allen Weisselberg — who was indicted last summer on multiple criminal charges relating to the business’ tax dealings — implied the former president was involved in finalizing the false valuations. 

According to the documents, Weisselberg “testified that it was ‘certainly possible’ Mr. Trump discussed valuations with him and that it was ‘certainly possible’ Mr. Trump reviewed the Statement of Financial Condition for a particular year before it was finalized.” 

Another top Trump Organization executive also testified that he was under the impression Trump reviewed the statements before they were finalized.

While the filing provides less direct links to Trump’s children, it does detail their involvement. Specifically, it alleges that Ivanka Trump rented an apartment at Trump Park Avenue and was given an option to buy it for $8.5 million, despite the fact that the property was valued at $25 million.

It also connected Donald Trump Jr. to some of the properties flagged by claiming investigators found evidence he “was consulted” on the Statements of Financial Condition.

Response

Citing these connections, James argued in a series of tweets Tuesday that it is necessary for her inquiry to question Trump and his two children on their alleged involvement.

“We are taking legal action to force Donald Trump, Donald Trump, Jr., and Ivanka Trump to comply with our investigation into the Trump Organization’s financial dealings,” she wrote. “No one in this country can pick and choose if and how the law applies to them.”

The former president has not yet addressed the matter, but a Trump Organization attorney representing Donald Trump Jr. and Ivanka Trump responded by arguing the subpoenas violate the constitutional rights of the family and that the filing “never addresses the fundamental contentions of our motion to quash or stay the subpoenas.”

In a statement Wednesday, the Trump Organization denied James’ allegations as “baseless” and accused her of trying to “mislead the public yet again.”

As far as what happens next, James’ office has said it “has not yet reached a final decision regarding whether this evidence merits legal action.”

Because James’s investigation is civil, she can sue Trump, his company, and his children, but she cannot file criminal charges. However, her probe is running parallel to a criminal investigation into the same conduct led by the Manhattan district attorney, who does have that power.

See what others are saying: (The Washington Post) (The New York Times) (The Wall Street Journal)

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Judges Uphold North Carolina’s Congressional Map in Major GOP Win

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The judges agreed that the congressional map was “a result of intentional, pro-Republican partisan redistricting” but said they did not have the power to intervene in legislative matters.


New Maps Upheld

A three-judge panel in North Carolina upheld the state’s new congressional and legislative maps on Tuesday, deciding it did not have the power to respond to arguments that Republicans had illegally gerrymandered it to benefit them.

Voting rights groups and Democrats sued over the new maps, which were drawn by the state’s Republican legislature following the 2020 census.

The maps left Democrats with just three of North Carolina’s 14 congressional seats in a battleground state that is more evenly split between Republicans and Democrats. Previously, Democrats held five of the 13 districts the state had before the last census, during which North Carolina was allocated an additional seat.

The challengers argued that the blatantly partisan maps had been drawn in a way that went against longstanding rules, violated the state’s Constitution, and intentionally disenfranchised Black voters.

In their unanimous ruling, the panel — composed of one Democrat and two Republicans — agreed that both the legislative and congressional maps were “a result of intentional, pro-Republican partisan redistricting.”

The judges added that they had “disdain for having to deal with issues that potentially lead to results incompatible with democratic principles and subject our state to ridicule.”

Despite their beliefs, the panel said they did not have a legal basis for intervening in political matters and constraining the legislature. They additionally ruled that the challengers did not prove their claims that the maps were discriminatory based on race.

Notably, the judges also stated that partisan gerrymandering does not actually violate the state’s Constitution. 

The Path Ahead

While the decision marks a setback to the plaintiffs, the groups have already said they will appeal the decision to the North Carolina Supreme Court.

The state’s highest court has a slim Democratic majority and has already signaled they may be open to tossing the map.

There are also past precedents for voting maps to be thrown out in North Carolina. The state has an extensive history of legal battles over gerrymandering, and Republican leaders have been forced to redraw maps twice in recent years.

A forthcoming decision is highly anticipated, as North Carolina’s congressional map could play a major role in the control of the House in the 2022 midterm elections if they are as close as expected. 

See what others are saying: (Politico) (The New York Times) (The Wall Street Journal)

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Biden Administration Says Private Insurers Will Have to Cover 8 At-Home Tests a Month

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The policy will apply to all the nearly 150 million Americans who have private insurance.


New At-Home Testing Policy

The Biden administration announced Monday that private health insurers will now be required to pay for up to eight at-home rapid tests per plan member each month.

Under the new policy, starting Saturday, private insurance holders will be able to purchase any at-home test approved by the FDA at a pharmacy or online. They will either not be asked to pay any upfront costs or be reimbursed for their purchase through their provider.

The move is expected to significantly expand access to rapid tests that other countries have been distributing to their citizens free of charge for months. 

According to reports, nearly 150 million Americans — about 45% of the population — have private insurance. 

Each dependent enrolled on the primary insurance holder’s account is counted as a member. That means a family of four enrolled on a single plan would be eligible for 32 free at-home rapid tests a month.

Potential Exemptions

All tests may not be fully covered depending on where they are purchased. 

In order to help offset costs, the Biden administration is incentivizing insurance providers to establish a network of “preferred” pharmacies and stores where people in the plan can get tests without paying out of pocket.

As a result, health plans that do create those networks will only be required to reimburse up to $12 per test if they are purchased out of that network, meaning people could be on the hook for the rest of the cost.

If an insurer does not set up a preferred network, they will have to cover all at-home tests in full regardless of the place of purchase.

During a briefing Monday, Press Secretary Jen Psaki said tests should be “out the door in the coming weeks.”

“The contracts [for testing companies] are structured in a way to require that significant amounts are delivered on an aggressive timeline, the first of which should be arriving early next week,” she added.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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