Federal Prosecutors Charge Campaign Treasurer with Wire Fraud
Federal prosecutors in the Eastern District of New York have charged Erlene King, the treasurer of a losing 2021 campaign for Brooklyn borough president, with wire fraud for her role in a straw-donor scheme.
Scheme Allegations
According to an eight-page indictment, King repeatedly sent money through CashApp to prospective donors and they put the same sums into donations to the campaign of Anthony Jones, who ran in the 2021 race to replace Eric Adams as Brooklyn borough president. The scheme brought in at least $25,000 in false donations while forging corresponding records that were hoping to generate at least $400,000 in public matching funds.
Consequences
As a result of the alleged scheme, the city’s Campaign Finance Board refused to grant Jones’ campaign any matching funds, writing that money given in another person’s name is "not only prohibited but also illegal."
Reactions
Neither King nor Jones returned requests for comment. Tim Hunter, the press secretary of the New York City Campaign Finance Board, stated, "The priority of the New York City Campaign Finance Board is to uphold our city’s campaign finance rules and protect taxpayer dollars."
Background
The Brooklyn borough president campaign was a failed one, with Jones ending his campaign in the red, spending $728,000 more than he’d brought in. The campaign was also marred by allegations of forged signatures in an attempt to oust political rivals from volunteer party positions.
Additional Context
The case against King is the latest example of state and federal law enforcement honing in on the city’s generous public matching campaign finance program. Last week, federal prosecutors in the neighboring Southern District charged Eric Adams, who was term-limited out and running for mayor, with crimes including wire fraud, for allegedly participating in a scheme to fraudulently obtain matching funds.
Conclusion
The alleged scheme by King and others highlights the importance of vigilance in ensuring the integrity of the city’s campaign finance system. As federal and state authorities continue to investigate and prosecute cases of fraud and malfeasance, it is crucial that candidates and their campaigns uphold the highest ethical standards to maintain public trust.
FAQs
Q: What is the alleged scheme that King is accused of?
A: King allegedly sent money through CashApp to prospective donors and they put the same sums into donations to the campaign of Anthony Jones, who ran in the 2021 race to replace Eric Adams as Brooklyn borough president.
Q: How much did the scheme allegedly bring in?
A: The scheme brought in at least $25,000 in false donations while forging corresponding records that were hoping to generate at least $400,000 in public matching funds.
Q: What are the consequences of the alleged scheme?
A: As a result of the alleged scheme, the city’s Campaign Finance Board refused to grant Jones’ campaign any matching funds, writing that money given in another person’s name is "not only prohibited but also illegal."
