Right on the tail of the Cain sexual harassment story, comes the Cain…
Campaign Finance debacle.
Moving money between a charity and a political campaign is definitely illegal, a big no-no – and should result in prosecution.
But the thing that caught my eye was near the bottom of the article – where it is reported that Cain paid $100,000 to speak to a black conservative organization. In the strange world of black conservative front organizations – “Cornbread“, didn’t get paid to speak as you would normally expect…. Cornbread had to pay a black conservative group $100,000 to listen to him!
Republican presidential hopeful Herman Cain, whose candidacy is under siege followingsexual harassment allegations, also faces new questions about financial ties between his fledgling campaign and a private charity launched by two of his top aides.
Citing interviews and internal financial documents, the Milwaukee Journal Sentinel reportsthat a Wisconsin tax-exempt charity called Prosperity USA footed the bill for about $40,000 worth of iPads, chartered jet services and other expenses as Cain’s campaign got off the ground this year.
Expenses totaling $37,372 are listed in the group’s financial records as “due from FOH,” or Friends of Herman Cain, the name of his campaign committee. It is not clear whether Cain repaid the alleged debts, which are not listed in his personal or campaign disclosures.
Such payments are forbidden under federal tax and election laws, because nonprofit charities are not allowed to participate or donate money or services to political campaigns, according to election-law experts.
“It looks like a law school exam on potential campaign-finance violations,” said Lawrence H. Norton of Womble Carlyle, former general counsel at the Federal Election Commission. “Many of these payments would be prohibited contributions under federal election law.”
Prosperity USA was founded by Mark Block, Cain’s chief of staff, and Linda Hansen, deputy chief of staff. Block launched Prosperity USA and a related group after he had headed the state chapter of Americans for Prosperity, a tea party-aligned organization based in Washington.
Block said Monday that the campaign has requested an independent investigation of the allegations. He did not provide further details.
“As with any suggestions of this type, we have asked outside counsel to investigate the Milwaukee Journal Sentinel’s suggestions and may comment, if appropriate, when that review is completed,” Block wrote in an e-mail…
Cain began taking donations for his then-quixotic presidential campaign in January. Bank records cited by the Journal Sentinel show Prosperity USA paid for $15,000 for a trip to Atlanta, $17,000 for chartered flights and $5,000 for travel and meeting costs in Iowa, Las Vegas, Houston, Dallas and Louisiana. The newspaper also said the Cain campaign was billed $3,700 for iPads purchased Jan. 4.
Records obtained by the Milwaukee newspaper also appeared to show a $100,000 payment to the Congress on Racial Equality, a conservative black group, shortly before Cain served as the keynote speaker at the group’s annual dinner, the newspaper said. The expense was apparently covered by $150,000 worth of loans to Prosperity USA by unidentified supporters, the report said…