House ethics office: ‘substantial reason to believe’ Rep. Palazzo misused funds

A House ethics panel says there is “substantial reason to believe” that Rep. Steven Palazzo, R-Miss., misused his campaign and congressional funds, according to a report made public Monday.

The Office of Congressional Ethics (OCE), which produced the 47-page report last summer after a months-long probe, also said that Palazzo “may have performed official actions to assist his brother,” Kyle Palazzo, in potential violation of House rules and federal law.

The probe was prompted by a complaint last March from the nonprofit Campaign Legal Center, which accused Palazzo of using his campaign contributions as a “personal slush fund” through which he paid “himself and his spouse nearly $200,000,” including $60,000 in rent to his own farm.

In its report, the OCE said that it had found “limited

evidence of campaign use of the property, especially to justify $60,000.00 in rent and thousands of dollars of additional charges to maintain the home and improve its marketability.”

The ethics office also said there was evidence that Palazzo “may have asked official staffers to perform campaign work and personal errands during the congressional workday.”

“And finally,” the report states, “the OCE found evidence that Rep. Palazzo may have used his official position and congressional resources to contact the Assistant Secretary of the Navy in order to assist his brother’s efforts to reenlist in the military.” It notes that, according to a former Palazzo staffer, Kyle Palazzo “was separated from the Navy for affecting a fraudulent enlistment.”