By JULIE HIRSCHFELD DAVIS, Associated Press
Writer
June 12, 2008
WASHINGTON - A former treasurer apparently stole at least
$725,000 from the committee that runs House Republican campaigns,
investigators for the group said Thursday.
An internal probe alleged that the former treasurer, Christopher
Ward, used his authority to order wire transfers to siphon
money meant for the National Republican Campaign Committee
and other GOP groups into his own accounts. The funds were
taken between 2001 and 2007, according to investigators.
Ward also appears to have taken at least $28,000 from the
committee in charge of Senate Republican campaigns, said lawyer
Robert K. Kelner, one of a team of lawyers hired by NRCC to
investigate.
Ronald Machen, Ward's lawyer, said they had no comment on
the investigation's findings.
Kelner detailed a scheme whereby Ward, 39, allegedly used
his position at the committee to filter money to himself, either
directly or through various other GOP committees. He submitted
five years' worth of false financial audits for the NRCC, keeping
others in the dark about his activities, Kelner said.
Citing documents filed in federal court by government prosecutors,
The Washington Post reported last week that Ward allegedly
used money from the scheme to pay for renovations and mortgage
bills for his home in Bethesda, Md.
Despite the scope of the fraud, however, the investigators
believe Ward acted alone.
A trusted hand who had been at the committee for a dozen years,
he exploited his broad powers including the ability to wire
money through major banks without anyone else's authorization
rather than concocting an elaborate ruse to mask his misdeeds,
investigators said.
"He doesn't appear to have undertaken a particularly
clever fraud. This isn't a case where you have somebody who
was being really thoughtful about covering his tracks or cloaking
what he did," said Kelner, whose team spent more than
four months investigating.
The case has been referred to the FBI, whose probe is ongoing.
The details on the extent of the NRCC's losses emerged at
a punishing time for the GOP campaign committees, which are
lagging badly behind Democrats in fundraising and facing a
darkening political outlook.
On top of the losses it suffered because of the alleged embezzlement,
the NRCC has shelled out some $530,000 for the investigation,
and another $300,000-plus to beef up its accounting operations
a key recommendation of its lawyers.
"We got dealt a bad hand. We handled it as well as we
could," said Rep. Tom Cole, R-Okla., the NRCC chairman.
The NRCC losses amount to less than GOP officials initially
feared. Kelner emphasized, though, that the full scope of Ward's
fraud could be larger. Investigators didn't have access to
his bank records or detailed documentation on some of the accounts
to which Ward had high-level access.
Ward's activities came to light in late January after he aroused
the suspicion of top NRCC officials by repeatedly making excuses
to avoid showing audit information to an oversight panel or
arranging a meeting with auditors. He ultimately admitted that
there had been no audit, and the NRCC ended its relationship
with him, alerting the FBI.
Although Ward left his post as treasurer last summer, he stayed
on as a consultant and continued to enjoy high-level access
to NRCC accounts including his wire transfer authority through
the end of 2007. Kelner said his last fraudulent transaction
was in October.
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