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With Roger Sollenberger, Political Reporter

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

 

This week’s Big Dig is… The Kentucky GOP Star Took Cash From a Recovery Center He’s Investigating

Last month, when Kentucky attorney general turned Republican gubernatorial candidate Daniel Cameron discovered that an elected state judge had accepted a campaign contribution of $250 from an attorney in a case before him, Cameron cited the donation as a reason that the judge must recuse.

 

“These facts, individually and together, could cause a reasonable observer to question the impartiality or bias of the presiding judge,” Cameron said.

 

But previously unreported public records information obtained by The Daily Beast shows that Cameron was in the same position at the time and never acknowledged it.

A headshot of Rep. Lauren Boebert (R-CO) appears on the embellished pages of a storybook. In front of her are piles of golden coins.

Nice.

 

In March and April, Cameron had accepted $6,900 from officials at an addiction recovery center tied to an ongoing state investigation. Despite the donations, Cameron did not recuse himself from that investigation before he attacked the judge. He only withdrew a week later—two days after an open records request threatened to reveal the existence of that investigation.

 

The full timeline of events raises further questions about the conflict of interest, and what Cameron knew and when. It will also almost certainly add fuel to bipartisan accusations that the outspoken and politically polarizing Trump-supporting Republican has abused the power of his office during his tenure.

 

One day at a time

 

The company in question is Edgewater Recovery Center, a Kentucky-based addiction resource provider. According to the open records correspondence obtained by The Daily Beast, Edgewater is currently party to an investigation run by Kentucky’s Office of Medicaid Fraud and Abuse, a division of the office of attorney general. The Cameron donors include Edgewater’s owner, its general counsel, and its medical, human resource, and clinical directors.

 

No Edgewater employee has given to Cameron previously, Kentucky campaign finance records show. They all came in March and April, but Cameron only recused himself on May 19—two days after his office received a May 17 request for a list of his recusals. It took another week for Cameron’s office to answer the request, which included a copy of Cameron’s notice of recusal, dated May 19 and citing “an abundance of caution.”

 

Three days earlier, Cameron won the GOP primary, which the donations were designated to support, according to state campaign finance filings.

 

The campaign eventually returned the money on June 14, campaign finance filings show—nearly a full month after the primary. However, the refunds came five days after Cameron’s office received a follow-up request for more details about the probe. The OAG didn’t reply to that June 9 request until two days after the Cameron campaign issued the refunds.

 

The investigation opened in 2022, according to the records, and appears to be in the late stages, when charging decisions are made.

 

It is not immediately clear whether any Edgewater officials are targets. Edgewater did not immediately reply to an emailed request for comment; neither did Cameron’s office nor his campaign.

 

Back on the wagon

 

This would not be the first ethical quandary Cameron has faced while running Kentucky’s law enforcement operations. Cameron first drew national attention—and condemnation—after he defended the no-knock police shooting death of Breonna Taylor in 2020, calling the killing “justified.”

 

In April, Cameron’s campaign and office defended a combined $130,000 in political donations from Pace-O-Matic, a gaming company that is currently suing the state, with Cameron named as one defendant. The donations were conspicuously timed with the company’s efforts to block a new state law—Pace-O-Matic had spent extravagantly on lobbying, then sued the state when it passed.

 

The $100,000 gift came weeks after the bill was blocked and before the company filed the lawsuit. Additionally, Pace-O-Matic executives and their family members—16 people in all—also gave nearly $30,000 directly to Cameron’s campaign, according to the Louisville Courier-Journal. All 16 contributions came on March 27—the day before the company filed its lawsuit. The donations prompted a lawyer and donor to Cameron’s primary opponent Kelly Craft to file an ethics complaint. Pace-O-Matic, the attorney general’s office, and Cameron all rejected suggestions of impropriety.

 

Last year, Kentucky Democrats alleged that Cameron violated state ethics rules when he announced his gubernatorial campaign while his office investigated sitting Democratic Gov. Andy Beshears. But Cameron, who denied wrongdoing, also attacked the federal indictment against ally Donald Trump as “political weaponization of government power.” 


Read the full story here.

 

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From Roger’s Notebook...

Alito goes a long way. ProPublica just landed another stunner in its ongoing ethics investigation into Supreme Court justices. The latest report revealed that uber-conservative Samuel Alito failed to report a private fishing trip to Alaska footed by billionaire Republican megadonor Paul Singer, who later had business before the court. The news comes on the heels of the outlet’s deep reporting on a billionaire’s unreported longtime largesse to Alito ally Clarence Thomas.

 

Alito tried to get ahead of the story with a rare op-ed in The Wall Street Journal, claiming that ProPublica, a six-time Pulitzer winner, was “misleading” its readers. (The Journal itself won awards for reporting on ethical conflicts in the federal judiciary, which led to bipartisan reforms.) Conservatives also rushed to Alito’s defense, as they had with Thomas, but Singer’s sweeping generosity might undercut their sincerity. For instance, Sen. Tom Cotton (R-AR) attacked the “leftwing hacks trying to intimidate the Supreme Court,” but Federal Election Commission records show his campaign has received nearly $20,000 from Springer and his family, with maximum donations going back a decade.

 

Hunter gatherers. On Tuesday, conservatives rejoiced at Hunter Biden’s guilty plea—and then quickly reconsidered. The Trump-appointed prosecutor who had handled the case from the jump hit the Biden black sheep with only three counts, deflating right-wingers thirsty for vengeance from coast to coast. Two of the counts regarded Biden’s failure to pay about $1 million in taxes (which he has since repaid), and the third was for purchasing a gun while addicted to a controlled substance (a girlfriend trashed the gun two weeks later, and Biden didn’t try to replace it).

 

In return, Biden received probation and an order to enter a diversion program in connection with the gun charge—which prosecutors will drop if he fully complies. While critics dismissed the punishment as a “slap on the wrist,” former federal prosecutors with experience in the realm countered that if anything, he was treated too harshly.

 

By comparison, Trump ally Roger Stone and his wife were never even criminally charged for their failure to pay $2 million in federal taxes. They settled a civil lawsuit with the DOJ last year, and established a payment plan.

 

All in the family. Disgraced congressman and liar George Santos failed to block a federal court from revealing the names of the two people who allegedly underwrote his $500,000 bond. The names were unsealed on Thursday, and, at least on the surface, it appears that Santos—whose lawyer claimed in court that the backers were Santos family members—was telling the truth for once.

 

According to the newly public records, the bond was secured by Santos’ father and an aunt. While neither family member appears wealthy, bond rules don’t require ready access to liquidity. Guarantors aren’t required to pay up front; they only swear to cover the money if the defendant skips out on court. However, they must prove they’re good for the money by providing collateral—such as a house. (Or, say, a condo in Rio.)

 

No booze, Cruz. While enduring weeks of weird right-wing attacks for running a Bud Light social media promo featuring a transgender influencer, Anheuser-Busch stopped serving politicians. Its corporate PAC’s latest filing showed only one contribution last month—$5,000 to the leadership PAC belonging to Sen. Alex Padilla (D-CA).

 

There’s no place like home. After submitting a bizarre quarterly report in April, the campaign for failed GOP Pennsylvania senatorial candidate Dr. Mehmet Oz is trying to explain itself.

 

In March, as Pay Dirt previously reported, the Oz campaign’s treasurer—veteran political accountant Sal Purpurra—signed off on a filing that doubled as a time machine, reallocating tens of thousands of dollars of general election donations back to the primary. In a letter to the FEC this week, Purpurra—who according to a previous campaign client is a “savant” and “obsessive perfectionist”—blamed a database error, and claimed the numbers would be corrected post-haste. Purpurra was also recently the target of an FEC inquiry regarding a reallocation scandal involving Oz’s fellow failed celebrity counterpart in Georgia, Herschel Walker.

 

About that “It’s not a Ponzi scheme” T-shirt… According to new research from Forex Suggest, a platform that tracks stock trades and foreign exchange markets, cryptocurrency lobbying is on an inverse trajectory with crypto’s actual value. Lobbying expenditures have soared 54 percent over the last 12 months, the data shows, revealing nearly $12 million spent in 2022. Coinbase leads the pack, spending nearly $4 million, and the Chinese-based crypto platform Binance—which this month got hit with 13 charges from the Securities and Exchange Commission—increased its spending by 594 percent as it launched its nominally U.S. venture, according to the data.

 

In other crypto news, the Justice Department last week severed a handful of charges from its indictment against FTX co-founder Sam Bankman-Fried, to be tried separately at a later date. Those counts were all connected to activity based in the Bahamas; no campaign finance charges were affected.

 

Out of the Carolina blue. Longtime Mark Meadows ally Lynda Bennet was sentenced to a year of probation on Tuesday after pleading guilty to a campaign finance charge—reporting a “personal” loan to her unsuccessful North Carolina House primary campaign that in reality came from another person. During the sentencing hearing, a DOJ prosecutor told the court that the FBI had initially discovered the crime as “part of a larger investigation.”

 

“We just were reviewing records,” the prosecutor said, but didn’t offer more about the FBI probe or its connection to Bennett.


Calling all masochists. The Federal Election Commission has announced it is now accepting applications for the position of General Counsel. The Republican commissioners have for years routinely ignored OGC recommendations to pursue investigations and punish violators, choosing instead to exercise “prosecutorial discretion.”

 

More From The Beast’s Politics Desk

Steven Bannon appears in the foreground of the seal of the US Department of Justice. Behind him is a quote from a recent court affidavit of his.

Congressional Republicans are already slamming special prosecutor Jack Smith, but he’s been there before and lived to tell the tale. Jose Pagliery’s reporting dresses the new attacks in an old hat.

 

At the center of a federal probe into Sen. Bob Menendez (D-NJ), you’ll find a real estate mogul with mob ties. Will Bredderman, who has been ahead of basically everyone on this investigation, unearthed the story this week.

 

Tough to ignore this nuff-said headline from Zach Petrizzo and Sam Brodey: Marjorie Taylor Greene Calls Boebert a “Little Bitch” on the House Floor.

 

We’ll be back next week with more Pay Dirt.  Have a tip? Send us a note and subscribe here.

 
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