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Feds: DC mayor knew of illegal shadow campaign

Published on NewsOK Modified: March 10, 2014 at 3:49 pm •  Published: March 10, 2014
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WASHINGTON (AP) — District of Columbia Mayor Vincent Gray was aware of an off-the-books "shadow campaign" to support his 2010 bid and personally requested the funds from an influential district businessman, federal prosecutors said Monday.

Assistant U.S. Attorney Michael Atkinson disclosed the details in court when reading a document that described the activities of Jeffrey Thompson, the multimillionaire former owner of a well-connected accounting firm who pleaded guilty Monday to two conspiracy charges.

The allegations against Gray were included in a document detailing crimes alleged against Thompson.

Atkinson said "Gray presented Mr. Thompson with a 1-page budget for $425,000. He asked Mr. Thompson to pay for a get-out-the-vote campaign. Mr. Thompson agreed." Gray agreed to let Thompson fund his campaign while concealing the source of those funds, prosecutors said.

Thompson's plea to conspiring to violate federal and district campaign finance laws comes as Gray seeks re-election against seven challengers in the Democratic primary, which is set for April 1. Gray has not been charged with a crime and has denied any wrongdoing in the 2010 campaign.

Robert Bennett, Gray's lawyer, said he had not yet reviewed all the allegations made Monday and could not discuss them in detail. But he said the mayor continued to maintain his innocence and denies knowledge of the "shadow campaign."

"The mayor's position on that is that it is absolutely not true," Bennett said. "That has not changed one bit."

He referred to Thompson's assertions in court Monday as mere "allegations."

In the "shadow campaign," off-the-books payments were used to pay for consultants, supplies and other expenses supporting Gray. The expenditures were never reported.

According to a criminal information filed in the case, Thompson funded illicit campaign activity for Hillary Rodham Clinton, Gray and seven other candidates for local office in the district. All told, the efforts, described previously by prosecutors as "shadow campaigns," were valued at more than $2 million.

Prosecutors also said Thompson exceeded contribution limits by using straw donors and funneling money from his corporation through intermediaries. Thompson contributed more than $500,000 to local candidates and more than $250,000 to federal candidates and political-action committees over a six-year period, according to the 10-page document.

Thompson, 58, had long been suspected of giving money to Gray's 2010 campaign to fund get-out-the vote and other efforts, and the document put the value of the shadow campaign at $668,000. He was also charged with pouring $608,750 into Clinton's 2008 presidential bid. The efforts to help Clinton were detailed in a previous case against a Thompson associate.

The charging document details shadow campaigns for eight candidates for office in the district, with a total value of nearly $1.5 million. The most recent race Thompson sought to influence, the document shows, was a race for an at-large council seat in 2011, which Vincent Orange won with support from Thompson's network of donors. Orange, who has acknowledged handing over documents related to his 2011 campaign to federal investigators, is also running for mayor this year. He did not immediately return a call seeking comment, but he has previously denied all wrongdoing.

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