Rep. Steven Palazzo is using campaign money to pay for legal fees in ethics investigation
U.S. Rep. Steven Palazzo has used $61,000 in campaign finance dollars to cover the costs of legal fees to defend himself in an investigation into his alleged misuse of campaign money for personal expenses.
As first reported by Forbes, Palazzo doesn’t appear to be violating any federal election law by using the money from his campaign coffers to cover legal costs.
“Yes, those are legal fees, and that is how we will describe them (to the FEC),” Justin Brasell of the campaign consultancy Triumph Campaigns said in an email to Forbes. When asked by Forbes, Brasell confirmed the legal fees are for Palazzo’s representation in the ethics investigation over his campaign spending.
On June 6, the FEC sent a letter to Palazzo to ask for further information about the money the campaign paid to the Jackson law firm of Watkins & Eager. Attorney Gregg Harper, a former U.S. representative in Mississippi, is representing Palazzo in the ethics investigation.
The FEC permits candidates to use campaign funds for legal fees related to their position.
In an advisory opinion issued in 1998 says that candidates are not allowed to use campaign funds for personal use but they are permitted to use the money for “any legal expense that relates directly to allegations arising from campaign or officeholder activity would qualify for 100% payment with campaign funds.”
In November, the Sun Herald broke the story on how Palazzo had been cooperating since June on the ethics investigation into his campaign spending.
His campaign spokesman confirmed the information.
The investigation by the OCE centered on two allegations outlined in a March 26 letter to the OCE from the Campaign Legal Center, a nonpartisan organization that specialized in election law:
- $60,000 in campaign payments to a Palazzo-owned LLC for rental of office space and to cover costs for maintenance at a riverfront property.
- $127,933 in payments to Palazzo & Co. LLC, an accounting firm he transferred to his wife after taking office in 2011. The couple divorced in 2016 but payments continued.
In addition, the report says Palazzo uses his position to help his brother, Kyle Palazzo, by contacting the assistant secretary of the Navy for a new military reenlistment code for his brother. He’s also accused of using staff to run personal errands.
Federal election law and House rules prohibit converting campaign funds to personal use. The OCE referred its finding to the House Committee on Ethics for action or to dismiss the complaint as unfounded.
Palazzo’s attorney said in March his client has done nothing wrong.
This story was originally published June 16, 2021 at 2:06 PM.
