Louis DeJoy May Have Reimbursed Employees For Donating To Trump, Watchdog Alleges

Topline

Postmaster General Louis DeJoy’s alleged practice of pressuring and illegally reimbursing employees who donated to Republican candidates may have stretched into 2018 and included donations to the Trump campaign, a new watchdog complaint with the Federal Elections Commission claims—which, if true, would make the postmaster general at risk for federal prosecution, and raise the likelihood that DeJoy committed perjury in his recent testimony to Congress.

Key Facts

Chief Critic

DeJoy spokesman Monty Hagler previously said in a statement about the initial Post report that DeJoy worked with the FEC while at New Breed “to ensure that he, New Breed Logistics and any person affiliated with New Breed fully complied with any and all laws,” though the Post notes Hagler “did not directly address the assertions” about reimbursing employees despite “repeatedly being asked.” When reached for comment about the CLC complaint, XPO Logistics spokesman Joe Checkler reiterated to Forbes an earlier statement made to the Post, which notes XPO “stays out of politics but our employees have the same individual right as anyone else to support candidates of their choosing in their free time. When they do so, we expect them to adhere strictly to the rules.”

Key Background

DeJoy’s background in the private sector has come under heavy scrutiny amid his tenure as postmaster general, as he’s garnered controversy by implementing changes at the USPS—which were recently struck down in federal court—that have resulted in nationwide mail delays and sowed fears about the November election. DeJoy has also come under fire for court documents alleging that DeJoy forged his brother’s signature while in the private sector in an effort to oust his brother from co-leading New Breed, as well as for a history of alleged worker mistreatment and his continued financial ties to XPO, which is a USPS contractor. The postmaster general has long been a prolific GOP fundraiser and Trump donor, and critics have raised speculation that DeJoy’s changes at the USPS were undertaken in conjunction with Trump in a bid to undermine mail-in voting, which DeJoy has vehemently denied. “It is easy to conclude that the recent Postal Services’ changes is an intentional effort on the part [of] the current Administration to disrupt and challenge the legitimacy” of the November election, U.S. District Judge Stanley Bastian wrote in a nationwide injunction reversing DeJoy’s changes.

What To Watch For

DeJoy’s alleged campaign finance violations as previously reported by the Post have already become a major source of controversy, and the CLC filing is the third federal or state watchdog complaint to be filed regarding the allegations. The House Oversight Committee is also investigating the allegations, and North Carolina Attorney General Josh Stein has suggested he may open a state investigation into the alleged violations, as there would be no statute of limitations on the charges under state law.

Further Reading

Watchdog group calls on FEC to investigate donations to Trump and others by relatives and associates of Louis DeJoy (Washington Post)

Watchdog Files FEC Complaint Against Louis DeJoy As Outrage Over Alleged Campaign Finance Violations Grows (Forbes)

Louis DeJoy’s Former Company New Breed Logistics May Have Overcharged Postal Service By $53 Million, Audit Found (Forbes)

House Oversight Committee To Investigate Postmaster General Louis DeJoy (Forbes)

Here Are All The Postal Service Leaders’ Ties To Trump And The GOP (Forbes)