CREW Files FEC Complaint Against GA Rep. Paul Broun
Washington, D.C. – Citizens for Responsibility and Ethics in Washington (CREW) today asked the Federal Election Commission (FEC) to investigate and sanction Rep. Paul Broun (R-GA) and his campaign committee for illegally concealing the source of more than $300,000 in loans to his campaign in 2007 and 2008. CREW also is calling for a full-scale audit of Rep. Broun’s campaign committee.
In reports filed with the FEC, Rep. Broun claimed he had personally loaned his campaign money. Then CREW pointed out in our Family Affair report that Rep. Broun had collected nearly $28,756 in interest from his own campaign. When asked about this by the press, Rep. Broun suddenly claimed an unnamed bank had actually made the loans, so the bank, not the congressman, was paid the interest.
“The problem, however,” said CREW Executive Director Melanie Sloan, “is that even if Rep. Broun’s new version of events is true, failing to tell the FEC you are financing your campaign in part with bank loans is illegal.”
FEC regulations require candidates to report which bank lent the money, how much was lent, and when. The regulations also require the candidate to specify the collateral put up to secure any loan.
At the time Rep. Broun’s campaign received the loans, the congressman was part owner of a bank in Carrollton, Ga. In 2010, the bank failed. The FEC should inquire whether his campaign got the money from that same bank.
Sloan continued: “These loans go back several years. We might never have known they were bank loans at all, if not for the fact that our Family Affair report backed Rep. Broun into a corner. Why did Rep. Broun lie about the source of the loans? What else is he hiding? The FEC should audit Rep. Broun’s campaign committee and find out.”