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With Roger Sollenberger, Political Reporter

Pay Dirt is a weekly foray into the pigpen of political funding. Subscribe here to get it in your inbox every Thursday.

 

This week’s Big Dig . . .  Emails Reveal Top Trump Accountant Had Secret Campaign Role

As Donald Trump’s first criminal trial continues, the prosecution is calling witnesses that can attest to Trump’s personal involvement in the crime the case is built on—but one witness won’t be at their disposal, and documents obtained by The Daily Beast suggest that he could provide pivotal information about that very crime.

 

That witness is longtime Trump Organization financial controller Allen Weisselberg, whose perjury plea deal reportedly took his testimony off the table. But Weisselberg left behind a potentially priceless paper trail.

 

The prosecution has already said that they will present the accountant’s notes documenting the allegedly fraudulent reimbursement scheme Trump is charged with carrying out. But other documents obtained by The Daily Beast suggest Weisselberg was not only handling the Trump Org’s books, he was also apparently advising the campaign at the same time.

 

However, Federal Election Commission records don’t show any campaign payments to Weisselberg, raising the prospect that Trump’s right-hand man may himself have made unreported contributionsin the form of services for the 2016 bid.

 

According to internal Trumpworld emails, Weisselberg was an “enormous help” to the campaign—a fact that hasn’t been previously reported. Additionally, these records suggest that the bookkeeper was quite familiar with FEC filings. This cuts to the heart of the case: That the hush-money payoff to adult film star Stormy Daniels ahead of the election was a campaign finance crime, which Trump went to allegedly criminal lengths to hide.

Grossed Out

 

Prosecutors have already said that they will present handwritten documents where Weisselberg—who in March pleaded guilty to perjury—lays out the plan to reimburse former Trump attorney Michael Cohen for paying off Daniels, with those reimbursements coming via checks from the Trump Organization. The checks were “grossed up” for tax purposes and disguised as “retainers” for legal work Cohen never performed.

 

However, Weisselberg was not previously reported to have had any deep simultaneous involvement with the campaign. But in an introductory email sent to the Presidential Inaugural Committee treasurer in April 2017, a former senior Trump campaign aide—Rick Gates—lauded Weisselberg’s talents.

 

The documents are significant because they put Weisselberg on both sides of the hush-money affair. They also show that Weisselberg was comfortable with FEC reports—so comfortable that Trump’s aides turned to him to help audit them. 

 

#Gatesgate

 

In Spring 2017, Trump’s political team was scrambling to smooth out the accounting for his Presidential Inaugural Committee (PIC), which almost immediately drew scrutiny for apparent self-dealing to the Trump Organization. Three months after the event, they brought Weisselberg in.

 

“I would like to introduce you to Allen Weisselberg who is with the Trump Organization and was an enormous help to us on the campaign,” Gates wrote in an April 19 email. “Please reach out to Allen and walk him through [the] auditing process for PIC.” 

 

A printed copy of that email contains notes in Weisselberg’s scrawl confirming that he “spoke to Rick Gates today about the inauguration accounting.” 

 

Neither Gates nor a Trump spokesperson returned The Daily Beast’s comment requests.

 

In another email chain one month later, Weisselberg revealed that his audit work on behalf of the PIC involved a review of the committee’s FEC reports.

 

“After reviewing the FEC filing dated 4/18/17 the net donations on line 7 of $106,715,308.29 and the PIC revenue on your report of $105,133,603.00 differ by $1,581,706.29,” Weisselberg wrote to PIC budget director Heather Martin. “What caused this difference?”

 

In-Kind Regards

 

Weisselberg may run into trouble for assisting with the audit without reporting his help as an in-kind contribution. Trump defenders have portrayed the laws around such contributions as too complicated to follow. But Jordan Libowitz, communications director for Citizens for Responsibility and Ethics in Washington, explained that in-kind contributions are standard fare.

 

“In-kind contributions are pretty simple,” Libowitz told The Daily Beast. “It’s something you give to a campaign or candidate that isn’t a monetary contribution.”

 

He explained that if supporters donate things like furniture, or provide free services, those must be accounted for. The value of in-kind contributions cannot exceed the individual donation limit—which in 2016 was $5,200.

 

Asked about the revelation that Weisselberg had advised the 2016 campaign and audited FEC reports, Libowitz said the veteran accountant would have certainly understood regulations around in-kind contributions.

 

“It’s not hard for anyone to understand, let alone a controller for a multibillion dollar corporation,” he said. 

 

FEC filings show that Trump himself understood in-kind contributions. He reported making more than $630,000 worth to his 2016 campaign. Last year, The Daily Beast reported that Trump had once personally signed a detailed affidavit demonstrating a deep understanding of in-kind contributions specifically. 


However, FEC data shows no in-kind contributions from Weisselberg for the services, nor do they show him receiving any campaign payments for that work. 

 

Read more details in the full story posted here.

 

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MORE FROM ROGER AND MINI’S NOTEBOOKS

A to Z. The Arizona Republican Party is in hot water. Shortly after the state brought charges last week against a number of party leaders and top Trump advisers related to their alleged roles in the state’s 2020 fake electors scheme, a few FEC filings rolled in suggesting that other issues may lie in wait.

 

For one, the FEC wants to know why the party committee didn’t reveal the names of any employees in its latest filing—despite reporting payroll and insurance lump outlays for staff, made through third parties. The party apparently hasn’t itemized its employee roster since the end of 2022, per FEC records.

 

But that letter was just one of nine notices the FEC sent the Arizona GOP this week. Most of the others concern an unclarified $12,500 increase in newly reported debt that the party listed across a number of amended filings, but some of the letters also inquire about administrative spending.

 

However, a separate letter this week to the unaffiliated “Patriot Freedom PAC” raised a potentially more problematic issue. In that letter, an FEC analyst flagged impermissibly large contributions of $265,000 from a single megadonor in September. On the same day those donations came in, the letter shows, Patriot Freedom PAC transferred $200,000 to the Arizona GOP, which the analyst cited as an impermissibly large contribution to a state committee—in other words, Patriot Freedom appears to have tried to wash an excessive donation to the financially troubled state party.

 

The person behind the $265,000 is Caryn Borland—a MAGAfied megadonor whose support for QAnon in 2020 forced then-Vice President Mike Pence to cancel a fundraiser that she and her husband were staging for the Trump campaign. The couple has also gifted large sums to legal defense funds for Trump and Rudy Giuliani, who was among the people indicted last week.

 

Shooting blanks. Rep. Lauren Boebert (R-CO) has failed in one attempt to vanquish her nemesis. On Thursday, the FEC released a unanimous decision tanking a complaint the Boebert campaign had filed against “American Muckrakers,” a super PAC run by Democratic operative and longtime Boebert agitator David Wheeler.

 

The complaint—filed with the FEC in August 2022—accuses the super PAC of improperly reporting independent expenditures and failing to include required disclaimers. But the FEC’s Office of General Counsel recommended dismissal, and the commissioners agreed in a 6-0 decision, saying, essentially, that the allegations aren’t worth the agency’s time and resources.

 

Wheeler—who is tangling with Boebert in an ongoing and unrelated lawsuit over allegedly defamatory statements she made about the PAC—crowed about the decision in a statement to Pay Dirt, saying his group is now 3-0 against her in legal proceedings.

 

“Thank you to the FEC Commissioners and professional staff for seeing through Lauren Boebert’s fake complaint and ruling unanimously for us,” the statement said, noting that his group is eager to move forward in court after a Denver judge tossed Boebert’s motion to dismiss.

 

“Federal depositions of Jayson Boebert and Lauren Bobert are going to be lit! We look forward to taking those depositions, and more, soon,” the statement said. “We look forward to garnishing her Congressional wages when we beat her in that case too.”

 

J’accruz. Sen. Ted Cruz’s (R-TX) super PAC podcast has presented a seemingly endless list of problems—including potential issues with the way those problems get resolved.

 

New reporting from The Dallas Morning News this week revealed that Trey Trainor, a Republican Trump-appointed FEC commissioner, is a big fan, with a Cruz campaign sign planted in the yard of his family’s Texas home. But it’s not just Trainor: current FEC Chair Sean Cooksey, another Trump appointee, served as the Senator’s deputy chief counsel and donated to his 2018 campaign.

 

This means that two of the six commissioners charged with reviewing a recent FEC complaint from watchdog Campaign Legal Center concerning Cruz’s podcast—which has generated hundreds of thousands of dollars in revenue for a super PAC that supports him—are outwardly politically aligned with him. But while this has raised concerns among observers about potential political favoritism or the appearance thereof, Trainor and Cooksey seem unmoved.

 

According to The Dallas Morning News, Trainor recently reposted a photo his wife shared of the Cruz campaign sign. While political engagement is generally permissible under FEC regulations, it could raise concerns about potential bias. Asked whether Trainor would recuse himself from the complaint, an FEC representative said that the commissioner had no comment.

 

Cooksey, for his part, told the paper that he wasn’t required to recuse himself and wouldn’t do so. 

 

Cruz has lately been the subject of scrutiny over the podcast, “Verdict with Ted Cruz.” The Daily Beast previously reported that the company that distributes the podcast, iHeartMedia, has directed about $630,000 in advertising revenue to his allied “Truth and Courage” super PAC. 

 

The details of the deal between the PAC and iHeart, as well as Cruz’s personal involvement, remain unknown, with legal and ethics questions thriving in that information vacuum. Those questions include the main focus of the recent FEC complaint—whether Cruz is illegally coordinating with the supposedly outside group—as well as potential ethics violations at the center of a second complaint, also from CLC, filed with the Senate Ethics Committee.

 

It’s up to the FEC to sort out whether Cruz broke the rules, a decision that could also set new precedents for similar revenue schemes applied more broadly. But if he slips the hook, the commissioners’ personal support for Cruz—who faces a potentially tight re-election race this year—will at the very least color how the decision is received.

 

More From The Beast’s Politics Desk

Since last week, everyone’s been talking about the story that South Dakota Gov. Kristi Noem told in her forthcoming memoir about shooting and killing her dog—including insiders in Trumpworld. As Reese Gorman and Jake Lahut reveal, Noem’s voluntary revelation also just euthanized her VP chances.

 

Trump’s third week on trial featured the judge threatening jail time for violating the court’s gag order, along with a fine of $9,000—which, as Jose Pagliery reported from the Manhattan courthouse, just so happens to match the cost of a single suit from Trump’s preferred designer. 

 

Meanwhile, Trump is running into problems on another legal front—the firm that unsuccessfully defended him in his fight with E. Jean Carroll just told a federal court that it now wants to abandon him in the longrunning sex discrimination suit from 2016 campaign aide A.J. Delgado. William Bredderman brings you the details about the “irreparable breakdown.”

 

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