While Rep. Matt Gaetz fights allegations of engaging in a sexual ring, the latest Florida Republican campaign funding report reflects a public relations conflict that began even before he acknowledged it was the center of ‘a federal investigation.
The presentation, which covers the three months between January and March, shows that Gaetz has taken on unprecedented fundraising expenses over a typically quiet period. At the time, Gaetz dropped six figures in a direct email post, which shelled out more for fundraising services than it did throughout 2020.
Gaetz also paid $ 5,000 in “strategic consulting” fees to notorious political agent Roger Stone, and gave money to several Florida state lawmakers he had never supported. The report also indicates that Gaetz – who cites his lack of friends in Washington as a point of pride – may be increasingly isolated; has not received any contributions from his GOP colleagues.
More than anything, the presentation reflects a concerted effort to bolster support before the dragging shadow of research. Gaetz has spent approximately $ 170,000 on direct mail disclosure this year, $ 116,543 in one day, on March 31st. The day before, The New York Times gave the news that the Justice Department was studying whether the third-term congressman had sex with a 17-year-old girl and paid for her trip, a possible violation of federal sex trafficking laws.
Gaetz has also invested heavily in fundraising, paying Nevada-based Red Rock Strategies about $ 160,000 for fundraising advice. That’s about $ 10,000 more than the campaign spent on fundraising services in 2019 and 2020 combined, according to The Daily Beast’s analysis of the files in the FEC database.
Last week, Politico also reported that Gaetz recently spent six figures on television commercials dismissing the allegations. The 30-second sites, slated to air in his hometown and on certain national cable networks, are asking supporters to “fight” against “a multi-week fake news cycle,” aimed specifically at CNN. Ad purchases occurred after the quarterly submission deadline and are not included in the latest report, but should appear in the next submission, which is due in July.
However, one expense in particular will raise eyebrows: a $ 5,000 fee for “strategic political advice” to Drake Ventures, the company owned by missing GOP artist and Gaetz partner Roger Stone. On Friday, the DOJ sued Stone and his wife, Nydia, alleging the couple paid ten million in unpaid taxes and that they used Drake Ventures to shelter more than a million dollars.
The campaign paid off for Stone’s company on March 24, just days before Gaetz’s father held a face-to-face meeting with a former DOJ prosecutor, according to someone familiar with the meeting. In a strange March 31 interview with Fox News’ Tucker Carlson, Matt Gaetz claimed that his father recorded that conversation in the direction of the FBI, alleging without evidence that the former prosecutor was at the center of a convoluted scheme. to extort the congressman. Gaetz’s campaign had never paid for Drake Ventures until then.
The report also suggests that Gaetz has few friends in Washington. While Gaetz swore corporate PAC donations, he kept the door open to donations from candidate committees. But so far he has not reported any financial support in 2021 from some friends of Congress like Jim Jordan and Stephen Scalise, who both donated to his 2020 campaign. And even though he made donations of $ 4,000 the same day in Sens Mike Mike (R-UT) and Rand Paul (R-KY) in mid-February, Gaetz did not give money to any members of the House.
However, Gaetz sent $ 1,000 donations to five GOP Florida state senators on January 26th. Gaetz had not previously given any of his campaigns.
One of the contributions reflects Gaetz’s ties to Joel Greenberg, his lifelong friend, the federal indictment on various crimes — including sex trafficking — led to Gaetz’s investigation. The contribution went to Jason Brodeur, a longtime Gaetz ally who was also close to Greenberg through local GOP circles. Brodeur’s campaign examined the dirty tricks, including an alleged simulated candidate scheme. Brodeur has denied his involvement and won that race, now representing Greenberg’s Seminole County statewide.
Gaetz has also continued to accrue legal fees, a pattern set last summer around the time the DOJ investigation began. The Daily Beast reported earlier this month that weeks after Greenberg was first indicted – in June 2020 – Gaetz paid $ 38,000 to the Venable LLP law firm, nearly double the combined amount of legal fees incurred. in the previous five years. The new filing reveals a $ 21,000 payment to Venable in February, a total legal expense of up to $ 85,000 since Greenberg was charged.
Caleb Burns, a Wiley Rein partner who specializes in campaign financing law, told The Daily Beast that legal fee hikes are often accompanied by a parallel hike in fundraising.
“The law allows candidates and positions to use campaign contributions for legal expenses arising from their obligations and responsibilities of candidates and positions,” Burns explained. “But if an office owner has a traffic accident on the way to the grocery store – which has nothing to do with showing up or taking office – the law prohibits the use of campaign funds to cover the resulting legal expenses. Therefore, it is not uncommon for candidates and officials facing scrutiny of their political activities to raise additional funds in their campaigns to help offset the associated legal costs. ”
While Gaetz’s research approach is said to focus on allegations of sex trafficking, CNN reported earlier this month that federal investigators were also examining irregularities in campaign funding as part of the his more extensive research. Gaetz can take advantage of his campaign expenses legally.
The congressman has already raised money from the scandal. On April 7, Talking Points Memo published a fundraising email in which Gaetz wielded “The Far Left New York News“To denounce“ serious accusations against me in an attempt to end my career fighting for the forgotten men and women of this country. ”The email added that it was“ a pity that the left tried to drag my married life to their political attacks “and included a donation link asking supporters to” fight the fake news. “
Gaetz donor Richard Bell, who handed the congressman late last month, told The Daily Beast that while he has liked Gaetz’s policies since he came to DC, Gaetz “should pay the price. “if the allegations are true.
“I know there’s a big expense in defense and I felt like I wanted to help,” Bell said.
Another recent Florida-resident donor, Jerry Klinger, told The Daily Beast that he gave Gaetz because he agreed with the congressman’s “small government philosophy.” However, Klinger said that “the shadows that have come out since then may have given me a break to reconsider.”
Klinger expressed his skepticism about the merits of the DOJ’s investigation and said he has “no objection” if Gaetz uses his donation for legal fees. But he noted that the congressman comes from a wealthy and influential family.
“If the father wants to pay the junior, that’s a different story,” he said.