Former Texas congressman, associate indicted for multi-year fraud scheme

Former Texas congressman, associate indicted for multi-year fraud scheme

A former U.S. Congressman and one of his associates were indicted March 28 for their roles in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations. Some of the funds were used to illegally finance the politician’s campaigns for public office and to pay for his personal expenses and those of his associates. Acting U.S. Attorney Abe Martinez of the Southern District of Texas and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division made the announcement along with Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office and Special Agent in Charge D. Richard Goss of IRS – Criminal Investigation (CI), Houston Field Office.

Former U.S. Rep. Stephen E. Stockman, 60, of Clear Lake and the former director of special projects in Stockman’s congressional office, Jason Posey, 46, formerly of the Houston area, were charged in a 28-count superseding indictment with mail and wire fraud, conspiracy, making false statements to the Federal Election Commission (FEC), making excessive campaign contributions and money laundering. Stockman is also charged with filing a false tax return that concealed his receipt and personal use of the fraudulent proceeds, while Posey is charged with falsifying an affidavit in order to obstruct an FEC investigation. Thomas Dodd, a former special assistant in Stockman’s congressional office, pleaded guilty to his involvement in the scheme on March 20.

According to the indictment, from May 2010 to October 2014, Stockman solicited about $1.25 million in donations based on false pretenses. The indictment alleges that in 2010, Stockman diverted a significant portion of $285,000 donated to charitable causes to pay for his and Dodd’s own personal expenses and to further Stockman’s own interests. The indictment further alleges that in 2011 and 2012, Stockman and Dodd received another $165,000 in donations, much of which Stockman used to finance his 2012 campaign.

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