Suarez Corp. official pleads guilty in Ohio campaign-fundraising case
One of the two men accused of illegally funneling about $200,000 to the 2012 federal campaigns of GOP state Treasurer Josh Mandel and U.S. Rep. Jim Renacci pleaded guilty in Cleveland yesterday in what was a major shake-up in a case set for trial on June 2.
Michael Giorgio, 62, chief financial officer of Suarez Corp., the North Canton direct-marketing company of Ohio GOP campaign contributor Benjamin Suarez, admitted to recruiting company employees and their spouses to contribute money to Mandel’s failed bid to unseat Democratic Sen. Sherrod Brown and to Renacci’s re-election campaign — at Suarez’s direction. The employees were encouraged to contribute $5,000 and then, as promised by Giorgio, were reimbursed with company money.
Giorgio’s guilty plea is a key moment in the case for multiple reasons. He and Suarez initially pleaded not guilty when they were charged in September. As part of Giorgio’s plea agreement, he is to testify against Suarez and could see a possible sentence of 31⁄ years
2 in prison and a $250,000 fine reduced to a prison term of
Michael Giorgio is to testify against Benjamin Suarez in the company founder’s trial involving the illegal funneling of $200,000 to the 2012 campaigns of U.S. Rep. Jim Renacci and Josh Mandel, Ohio’s treasurer running for U.S. Senate. Prosecutors have not accused the officeholders or their campaigns of wrongdoing.
less than two years if he cooperates.
Giorgio’s cooperation also could lead to discussions in court about what the politicians and their campaign aides knew about what was going on, Mandel is linked to Suarez in several ways.
The Giorgio plea agreement filed in U.S. District Court in Cleveland says: “Based upon his interactions with Suarez, Giorgio further had no doubt that Suarez also understood such contributions ... were prohibited and that Suarez thus intended to circumvent the law. Suarez told Giorgio that he was authorizing (his company) to reimburse contributors in full for the amount of money they contributed, and Giorgio understood that the contributors were not expected to repay (the company).”
Giorgio said Suarez told him to raise about $100,000 for a U.S. House campaign (Renacci’s) in April 2011, and then to do the same thing for a U.S. Senate campaign (Mandel’s) two months later. In both instances, Suarez indicated to Giorgio that he had “agreed to” raise the money for the two campaigns, and he instructed Giorgio on how to do it.
Giorgio also said that he and Suarez covered up the conspiracy, including withholding correspondence with Mandel and Renacci’s campaigns from a federal grand jury, and that he intimidated employees who were interviewed.
Court records show that Mandel campaign aide Scott Guthrie was corresponding with Suarez officials in March 2011. Mandel also asked Suarez to raise $100,000 for him. A May 2011 memo to Suarez from Mandel’s campaign that outlined the request for money included a handwritten note from Mandel and a form that stated that “corporate contributions are prohibited by law.”
In October, The Dispatch reported that Mandel wrote two letters on Suarez’s behalf seeking relief from legal challenges against his company in California; one went to Renacci in March 2011, and one went to California’s treasurer, Bill Lockyer, in May of that year. The Suarez money began to flow to Renacci just after Mandel sent his letter to the Wadsworth congressman, and to Mandel shortly after he wrote to Lockyer on Suarez’s behalf.
The federal government has not accused Mandel, Renacci or their campaigns of wrongdoing.
Rebecca Wasserstein, spokesman for Mandel’s treasurer’s campaign and his appointed contact for the Suarez case, said in an email: “Neither Treasurer Mandel nor anyone associated with him has done anything improper ... and our cooperation with the authorities will continue.”
In a statement responding to Giorgio’s guilty plea, Ohio Democratic Party Chairman Chris Redfern said that “it’s time for Josh to finally answer the questions of what he knew and when.”