2009.04.21: April 21, 2009: Headlines: Figures: COS - Fiji: Politics: Congress: Politico: Five months after voters ended his 22-year congressional career, Connecticut Republican Chris Shays is living what he calls a post-election “nightmare”

Peace Corps Online: Directory: Fiji: Special Report: Former Congressman Chris Shays: RPCV Congressman Chris Shays: Newest Stories: 2009.04.21: April 21, 2009: Headlines: Figures: COS - Fiji: Politics: Congress: Politico: Five months after voters ended his 22-year congressional career, Connecticut Republican Chris Shays is living what he calls a post-election “nightmare”

By Admin1 (admin) (151.196.7.28) on Sunday, May 24, 2009 - 3:16 pm: Edit Post

Five months after voters ended his 22-year congressional career, Connecticut Republican Chris Shays is living what he calls a post-election “nightmare”

Five months after voters ended his 22-year congressional career, Connecticut Republican Chris Shays is living what he calls a post-election “nightmare”

He’s out of the job he loved and — worse — stuck with at least $200,000 in debt that his campaign says is the result of wrongdoing by a trusted longtime adviser. Shays has been forced to hire law firms in Washington and Connecticut to help unravel his campaign accounts, and he owes $100,000 in legal bills to those attorneys, according to his most recent disclosure report filed with the Federal Election Commission. By law, Shays cannot shut down his campaign while it still reports a debt. In the end, Shays is likely to spend far more figuring out what happened, and when, than he says he’s lost through any alleged wrongdoing. “The legal bills are now outstripping the debt,” Shays said in an interview. “The campaign fraud and deficit and legal fees will be well over $300,000.” Congressman Chris Shays of Connecticut served as a Peace Corps Volunteer in Fiji in the 1960's.

Five months after voters ended his 22-year congressional career, Connecticut Republican Chris Shays is living what he calls a post-election “nightmare”

Chris Shays living a 'nightmare'

By JOHN BRESNAHAN | 4/21/09 4:11 AM EDT

Five months after voters ended his 22-year congressional career, Connecticut Republican Chris Shays is living what he calls a post-election “nightmare.”

He’s out of the job he loved and — worse — stuck with at least $200,000 in debt that his campaign says is the result of wrongdoing by a trusted longtime adviser.

Shays has been forced to hire law firms in Washington and Connecticut to help unravel his campaign accounts, and he owes $100,000 in legal bills to those attorneys, according to his most recent disclosure report filed with the Federal Election Commission. By law, Shays cannot shut down his campaign while it still reports a debt.

In the end, Shays is likely to spend far more figuring out what happened, and when, than he says he’s lost through any alleged wrongdoing.

“The legal bills are now outstripping the debt,” Shays said in an interview. “The campaign fraud and deficit and legal fees will be well over $300,000.”

The allegations against former Shays campaign manager Michael Sohn center on the alleged unauthorized diversion of funds during the 2007-08 election cycle; in documents filed with the FEC, the Shays campaign has claimed that Sohn used the money for numerous personal needs, including meals, tickets to a Boston Red Sox game and a donation to his synagogue. But Shays said an audit of previous cycles is being conducted, as well.

Sohn has not been charged with any wrongdoing. But in a filing with the FEC, Shays’ campaign committee and its treasurer say that “the FBI has been informed [of the alleged embezzlement] and has begun a criminal investigation.” The FBI did not return a call seeking comment.

Sohn’s attorney did not respond to calls seeking comment. Sohn’s attorney, Alex Hernandez, told The Hartford Courant in February that he and his client “look forward to reviewing any available evidence or information and responding in the appropriate forum at the appropriate time.”

After loaning $22,000 to his campaign committee in late December, Shays has been forced to go back to his old supporters to ask for money to pay off his debts. The campaign has paid back $7,000 to Shays so far. But as of March 31, the campaign recorded slightly more than $199,000 in debts and obligations.

“I had one promise more than any other promise to my wife in my 34 years of public service: It was — cross my heart, on bended knee — I will never, ever run a deficit to win a campaign. Never,” Shays said.

“I first lost the election. Then my property taxes went up $15,000. Then, the day before Thanksgiving, I learned I had a [campaign] deficit, and the day after Thanksgiving, I learned it was caused by embezzlement by my, really, most trusted employee. November is the month I’ll never forget.”

Further complicating Shays’ money problems, the former lawmaker cannot now request more money from any donor who maxed out to him last cycle.

Shays raked in more than $3.77 million last cycle, including $953,689 from political action committees and another $219,000 from fellow Republicans and their leadership PACs, according to the Center for Responsive Politics.

But if those individuals or PACs gave the maximum under federal campaign law, as was often the case, Shays cannot seek more financial help from them at this point. This is because Shays is not running for office again, just retiring an existing debt from the previous cycle.

Shays has kept his campaign office open so he can continue to raise money. Under FEC rules, he is limited to $4,600 per individual donor, versus the adjusted $4,800 allowed this year.

“I almost gave serious thought to running again so I could pay off the debt from this fraud,” Shays said. “If I was a member of Congress, I could go to the ethics committee and they would allow me to set up a legal fund. Not a legal defense fund, but a legal fund, to pay for attorneys’ fees and a forensic audit and all that. But I’m not a member of Congress.”

Shays is not the only current or former member to have to deal with allegations of fraud or embezzlement by former staffers. The National Republican Congressional Committee is still digging itself out from under what it says was the misappropriation of at least $750,000 by its former treasurer. Over the past several years, former Sens. Joe Biden (D-Del.) and Elizabeth Dole (R-N.C.), House Minority Leader John Boehner (R-Ohio), Reps. Lois Capps (D-Calif.) and Lloyd Doggett (D-Texas), and former Rep. Henry Bonilla (R-Texas) have all claimed to be the victims of financial wrongdoing.

In 2007, because of a “dramatic increase” in the number of cases where campaign aides allegedly misappropriated funds, the FEC issued guidelines for campaigns so they could avoid being fined by the agency for filing incorrect disclosure reports. A campaign must have in place minimum “internal controls,” including multiple signatures on campaign checks worth more than $1,000, as well as frequent reviews of bank statements and other restrictions on the use of campaign cash, in order to qualify for a “safe harbor” from such fines.

Because of its own uncertainty over the amounts involved, Shays’ campaign committee has declined to affirm whether the numbers in its latest campaign filing are “accurate or complete.”

According to documents filed with the FEC by Shays’ campaign, Sohn diverted $83,000 in Shays’ campaign checks for his own use, as well as withdrawing at least $70,000 from the campaign account via ATM.

Additional diversions included $16,000 in payroll funds, $11,000 in cell phone charges and $11,000 in other unapproved spending, according to the documents the Shays campaign filed with the FEC. It is unclear whether the Shays campaign had the necessary controls in place to avoid these diversions.

Larry Noble, a longtime general counsel for the FEC, is now working with the Shays campaign as it attempts to sort out the damage from the alleged embezzlement and avoid an FEC fine. Noble declined to comment for this article.

Sohn was Shays’ campaign manager for three cycles, joining his staff in 2001. A 1998 graduate of Fairfield University, Sohn was the “face” of the Shays campaign in Connecticut when Shays wasn’t available.

Shays says he has not spoken to Sohn since the alleged diversions were discovered.

“The amount of pain that he’s inflicted on the campaign employees and the staff — it’s very hurtful, actually,” Shays said of Sohn.




Links to Related Topics (Tags):

Headlines: April, 2009; RPCV Chris Shays (Fiji); Figures; Peace Corps Fiji; Directory of Fiji RPCVs; Messages and Announcements for Fiji RPCVs; Politics; Congress; Connecticut





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Story Source: Politico

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