Accused of campaign fraud, Rep. George Santos keeps asking donors for more money

The federal charges filed against Rep. George Santos this week alleging that he scammed campaign donors are renewing questions and conversations about whether the freshman Republican can continue to serve in Congress and fundraise for his re-election.

Santos, who represents a sliver of eastern Queens and portions of Long Island, faces a 13-count indictment for defrauding donors, the federal government and misusing money raised to support his campaign for personal expenses.

But the embattled lawmaker, who lied and embellished his resume and background, is unlikely to get the boot from his colleagues in Congress, especially as they hold a slim five-seat majority.

Campaign experts say there is a twist in the Santos case beyond the misuse of campaign funds. Santos is accused of setting up an entity that was billed as supporting his election, but instead the entity funneled money elsewhere — a sign that prosecutors may be taking a more aggressive approach toward scams against campaign donors.

“There's been plenty of instances where an elected official has misused lawfully raised money. If you raise it and decide to take a shopping spree of Bergdorf’s, that's illegal,” said Daniel Weiner, former senior counsel at the Federal Election Commission and now a director of the elections and government program at The Brennan Center for Justice.

In this case, Santos stands accused of defrauding donors on the false pretense that their money was going to fund his election activities, like television ads, when instead it was going to his personal accounts that prosecutors say he used for cash withdrawals, luxury clothes, and making credit card and car payments.

“A sitting congressman is accused of basically running a criminal enterprise, a fraudulent scheme where it’s not just that he misused money, but he raised it under false pretenses,” said Weiner. “I'm not aware of any other sitting federal office holder who has been indicted for that sort of offense.”

That type of fraud is not punishable under campaign finance statutes, but it is under the more general criminal fraud laws.

Weiner tweeted a thread on Wednesday where he unpacked charges against Santos noting the rise of “scammy behavior” and so-called “scam PACs,” or groups that appeal to donors for a particular candidate or cause only to pocket the money themselves.

Santos pleaded not guilty to 13 charges including wire fraud, money laundering, stealing public funds and lying to Congress. In addition to allegedly defrauding donors, Santos is also accused of misrepresenting his income on congressional disclosure forms and receiving unemployment benefits when he was still being paid.

Santos now joins some more than two dozen other congressmembers who have been indicted since 1980, according to reports in Roll Call and The Washington Post.

Despite the multiple investigations looming over the 34-year-old congressmember and the new federal charges, there’s no indication that Santos is leaving office anytime soon. Here’s what is —and is not—coming next.

Can voters remove Santos from office?

The short answer is no — at least not until the next election.

As Gothamist previously reported, there is no recall provision in New York for local officials, nor is there one in the U.S. Constitution for federal officeholders. Despite his numerous fabrications, Santos continues to hold his seat in the 3rd Congressional District.

He can keep his seat even after being indicted?

Yes. The only way for Santos to be removed from office is for two-thirds of the House to vote to expel him.

On Wednesday, Speaker Kevin McCarthy once again declined to call for Santos to resign, a position that underscores his tenuous five-vote grasp on the majority. However, later in the day McCarthy said he would not support Santos’s re-election bid.

“That’s what I said,” McCarthy confirmed to cameras on Capitol Hill.

Wait, Santos is still running for re-election?

You bet. He announced his re-election bid last month and reiterated his position outside a courthouse on Long Island this week where the indictment was unveiled. Then, just hours after he was arraigned in a federal courthouse in Central Islip and posted a $500,000 bond, he sent out fundraising solicitations via Twitter.

Santos can keep raising money even though he’s accused of misusing money he raised?

As long as he is a candidate on record with the FEC, Santos can continue to raise money. In an ironic twist, since the accusations relate to Santos’ status as a candidate, he can use campaign funds he raises to pay the lawyers who are defending him.

“There's a variety of other reasons a political figure who's been indicted may want to continue putting on a face in public, proclaiming their innocence,” said Weiner. “But he does also have a pretty direct personal self-interest in continuing to raise money.”

Does this indictment mean these are the only charges Santos will face?

Not necessarily. The Nassau County district attorney’s office and the Federal Election Commission still have ongoing investigations. The House Ethics Committee also established a subcommittee dedicated specifically to investigating charges against Santos related to his 2022 campaign and whether he lied to Congress on official disclosure forms, among other allegations.

McCarthy has said that action will be taken against Santos if the House investigation finds Santos broke the law.

Santos signed an agreement on Thursday with prosecutors in Brazil to settle a case related to allegations he used bad checks based on charges that date back to 2011, the Associated Press reported.

The terms of the settlement, which are under seal, require Santos to pay approximately $5,000 to a local shopkeeper where he used the bad checks and other local charities, according to the Associated Press, based on details reported in a local Brazilian newspaper, Folha de S.Paulo. It also means that Santos no longer faces the prospect that he would need to travel to another country to address outstanding charges.

What happens next?

Santos is back to work. He returned to Capitol Hill on Thursday, where he was actively casting votes. That includes voting in favor of a contentious immigration bill championed by Republicans, which seeks to clamp down on unlawful entry through the U.S. border and would institute new policies, like making visa overstays of more than 10 days a criminal offense.

The bill passed 219-213, with all Democrats and two Republicans voting against it. Those narrow margins are likely to continue to be an issue for Republicans especially with the ongoing fight over the debt ceiling still in play. Last month, McCarthy narrowly passed the GOP version of a debt ceiling bill with support from Santos, even though the issue is far from resolved.

Santos returns to court next month. A hearing in his case is scheduled for June 30. If the case goes to trial, it could drag on well into next year, when the entire House and the president will be up for election. If Santos is found guilty, he faces up to 20 years in prison.