Postmaster General DeJoy Reportedly Reimbursed Employees After Bundling Donations

TOPLINE

Postmaster General Louis DeJoy, a GOP mega-donor whose operational changes at the U.S. Postal Service have led to allegations that he is intentionally sabotaging mail-in voting, reimbursed employees from whom he solicited political donations, according to a Washington Post report.

KEY FACTS

DeJoy’s changes sparked a political firestorm in August when the USPS warned 46 states that a slow-down in service could lead to mail-in ballots being delivered too late to be counted, with Democrats accusing him of acting as a partisan operative on Trump’s behalf.

Not helping DeJoy’s image is his status as a Republican mega donor who has contributed millions to Republicans up and down the ballot, including $1.2 million to Trump Victory Fund, the president’s joint fundraising committee with the RNC.

The Post report suggests his status as a bundler may have been built on illegal fundraising practices, with former employees of New Breed Logistics, DeJoy’s former business, alleging he “pressured” them to make political contributions to GOP candidates which were later “reimbursed” through bonuses.

The Post found a pattern of New Breed employees making uniform donations to candidates, often on the same day, with donations from employees dwindling after DeJoy’s departure in 2015 and one former employees telling the Post they “felt little choice” but to donate due to DeJoy’s “heavy-handed demeanor” and reputation for angering easily.

David Young, a longtime director of human resources at the company, told the Post that DeJoy “reciprocated by giving us big bonuses” that “exceeded expectations” and “covered the tax,” and another former employee said DeJoy would tell employees “I’ll get it back to you down the road,” while the Securities Exchange Commission reportedly scrutinized the firm’s bonus structure and demanded more information about it.

DeJoy spokesman Monty Hagler told the Post that DeJoy consulted a former Federal Election Commission general counsel to ensure that he “complied with any and all laws” and that DeJoy was “never notified” about employees feeling pressured, and several employees told the Post on the record they didn’t feel pressured and bonuses were “rigid and well-established.”

Key Background

The practice DeJoy is alleged to have engaged in is known as a “straw-donor” scheme, and has resulted in felony convictions for prominent donors, such as conservative filmmaker Dinesh D’Souza. Straw donations are illegal under both North Carolina and federal laws, though the federal violations have a five-year statute of limitations, according to the Post

Crucial Quote

“The law is clear: Under the Federal Election Campaign Act, making campaign contributions in the name of another person or otherwise concealing the true source of the funds is a felony if the contribution exceeds $2,000. In fact, both the person soliciting the contribution and the person who agrees to be reimbursed for it could be investigated. Even if neither is aware of the law,” the FBI’s website says. North Carolina Attorney General Josh Stein tweeted, “It is against the law to directly or indirectly reimburse someone for a political contribution” and said any credible allegations “merit investigation” by state and federal authorities.

Chief Critic

Questioned by Rep. Jim Cooper (D-Tenn.) at a House oversight committee hearing in August over whether he repaid executives for campaign donations, DeJoy responded, “That’s an outrageous claim, sir, and I resent it… The answer is no.”


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