Developer convicted of illegal donations to Swalwell campaigns
James Tong could face two years in prison; congressman not accused of wrongdoing
A federal jury convicted East Bay real estate developer James Tong on Tuesday of making tens of thousands of dollars of illegal contributions to two of Rep. Eric Swalwell’s congressional campaigns.
Tong was convicted of funneling $38,000 to Swalwell’s first campaign in 2012 and his reelection campaign in 2014 through a series of straw donors — a scheme designed to evade the federal donation limits, which were then $2,500 and $2,600.
The network of illegal donors included “dozens of conduits who agreed to write checks in exchange for a commensurate amount” passed in envelopes of cash from Tong, prosecutors said in a statement.
Swalwell, D-Dublin, who was not accused of wrongdoing in the case, said he donated the money to charity and learned about the straw donor setup only when he was told by the FBI in 2017.
“Justice was served for a campaign supporter of mine who violated the law,” Swalwell said in a statement. “From the moment I was notified that my campaign was a victim of fraud, I assisted the FBI to obtain the records they needed to conduct their investigation.”
Swalwell testified at the trial, a spokesman for the U.S. Attorney’s Office said.
Tong’s lawyers had argued in court filings that prosecutors violated an agreement with him, asking for the case to be dismissed. His lawyers did not respond to a request for comment Wednesday.
Tong, 74, is scheduled to be sentenced before Judge Jon Tigar in December. He faces a maximum penalty of two years in prison and a fine of 10 times the amount of the illegal donations.
It isn’t the first time the developer has run afoul of the law.
In 2016, Tong, president of the development company Wildlife Management LLC, pleaded guilty to violating the Endangered Species Act in connection with the Dublin Ranch North real estate project.
Tong and his company — which was found guilty of securities fraud — were ordered to pay a combined $1 million in state and federal restitution, split among several environmental agencies. Tong was ordered to create a 107-acre conservation easement in Contra Costa County known as Brown Ranch.
He also was sentenced to probation for one year and home confinement for four months.