FBI Investigating Postmaster General DeJoy’s Political Fundraising
The FBI is conducting a criminal investigation of Postmaster General Louis DeJoy’s political fundraising activities while he was the head of his former company, New Breed Logistics. The Washington Post reports that the agency in recent weeks has interviewed current and former employees of the company and subpoenaed information from DeJoy himself.
A spokesperson for DeJoy confirmed the investigation and denied that DeJoy had ever knowingly violated campaign finance laws.
Questions about DeJoy’s political activities first were raised at an August 2020 hearing when Rep. Jim Cooper (D-Tenn.) asked if he had ever repaid employees of New Breed Logistics for their hundreds of thousands of dollars of contributions to the Trump campaign. DeJoy was indignant in his reply: “That’s an outrageous claim, sir, and I resent it. . . . The answer is no.”
But a subsequent report in WaPo revealed that five people who worked for New Breed say they were strongly urged by company executives or DeJoy himself to write large checks and attend GOP fundraisers at his 15,000-square-foot mansion in Greensboro, N.C. WaPo goes on to report:
“Two other employees familiar with New Breed’s financial and payroll systems said DeJoy would instruct that bonus payments to staffers be boosted to help defray the cost of their contributions, an arrangement that would be unlawful.”
“Louis was a national fundraiser for the Republican Party. He asked employees for money. We gave him the money, and then he reciprocated by giving us big bonuses,” said David Young, DeJoy’s longtime director of human resources, who had access to payroll records at New Breed from the late 1990s to 2013 and is now retired. “When we got our bonuses, let’s just say they were bigger, they exceeded expectations — and that covered the tax and everything else.”
While it’s legal to encourage employees to make donations, reimbursing them for those contributions is a violation of North Carolina and federal election laws. Such “straw-donor schemes” are illegal because they allow donors to evade individual contribution limits and obscure the true source of money used to influence elections.