Postal chief accused of campaign law violations
WASHINGTON — Postmaster General Louis DeJoy is facing increased scrutiny as House Democrats investigate allegations he encouraged employees at his former business to contribute to Republican candidates and then reimbursed them in the guise of bonuses, a violation of campaign finance laws.
Five people who worked for Mr. DeJoy’s former company, New Breed Logistics, say they were urged by Mr. DeJoy’s aides or by Mr. DeJoy himself to write checks and attend fundraisers at his mansion in Greensboro, N. C., The Washington Post reported. Two former employees told the newspaper that Mr. DeJoy would later give bigger bonuses to reimburse for the contributions.
Mr. DeJoy was already under fire amid allegations that operational changes he made since taking the postal job in June have delayed mail, sparking concern over the agency’s ability to process a flood of mailin ballots expected this fall due to coronavirus fears. The House Oversight Committee recently subpoenaed Mr. DeJoy for records about widespread delays that have pushed the Postal Service into the political spotlight.
Rep. Carolyn Maloney, who chairs the oversight panel, said in a statement Tuesday that if the allegations about campaign finance violations are true, “DeJoy could face criminal exposure — not only for his actions in North Carolina but also for lying to our Committee under oath.”
She was referring to Mr. DeJoy’s testimony before her committee last month, when he forcefully denied he had repaid executives for contributing to President Donald Trump’s campaign.
Campaign finance disclosures show that between 2000 and 2014, when New Breed was sold, more than 100 employees donated over $ 610,000 to Republican candidates that Mr. DeJoy and his family supported. The figure excludes more than $ 1 million that Mr. DeJoy and family members gave to Republican politicians.
GOP Sen. Thom Tillis of North Carolina, who is facing a tough re- election race this year, was a top recipient, collecting more than $ 190,000 from over 35 company workers ahead of his 2014 election, records show. The contributions were all made during a short window of time, between the end of September and the first week of October.
Former North Carolina Sen. Elizabeth Dole collected over $ 88,000 from New Breed employees between 2002 and her losing 2008 re- election bid, records show.
GOP presidential candidates Mitt Romney, John McCain, George W. Bush and Rudy Giuliani all collected tens of thousands more from New Breed employees during their campaigns, records show.
It’s not illegal to encourage employees to contribute to candidates, but it is illegal to reimburse them as a way of avoiding federal campaign contribution limits.
Ms. Maloney, a New York Democrat, urged the Postal Service Board of Governors to immediately suspend Mr. DeJoy, whom, she said, “they never should have selected in the first place.”
Senate Democratic Leader Chuck Schumer also urged Mr. DeJoy’s suspension, saying Americans had lost faith in him.
Rep. Jim Cooper, D- Tenn., who asked Mr. DeJoy about employee contributions at an Aug. 24 hearing, said reimbursing workers for making political contributions “softens the coercion, but it’s still coercion. No oligarch or CEO should tell you how to vote or who you should give money to.”
Mr. Cooper said Tuesday that he asked Mr. DeJoy about employee contributions after receiving a tip from someone in North Carolina, where Mr. DeJoy’s former company is based. “The tip fell on fertile ground,” he said, adding that lawmakers will likely issue subpoenas for top executives at the company and examine payroll records to determine if bonuses were paid, as the employees claim.
Mr. Cooper, a lawyer, said CEOs of many private companies are “tempted to use the company as a piggy bank” but said forcing employees to make political contributions crosses a clear legal line. “It’s wrong. It should not be happening in America,” he said.
Monty Hagler, a private spokesperson for Mr. DeJoy, said in a statement that Mr. DeJoy was unaware any workers felt pressure to make donations.