A libertarian organization that paid for plane tickets and other expenses for Rep. Ron Paul says after an audit that the Texas Republican defrauded the group for about $20,000. The group is pushing Paul for repayment and exploring legal remedies.
The Liberty Committee, a nonprofit headed by former Paul aide David James, said in an April 16 letter that about two-thirds of the 63 airline tickets the group reimbursed Paul for were also paid for by taxpayers.
“In short, this practice of double or duplicate billing enriched you while draining funds intended for legitimate projects,” the letter read.
Paul spokesman Jesse Benton said James, who worked for Paul for 18 years and says he still supports the lawmaker’s political message, is “pursuing a personal grudge” against the Texas Republican. Benton said Paul will be “happy” to review the allegations.
Paul announced today that he was suspending active campaigning in the GOP presidential race but will continue to campaign for delegates at state conventions.
As reported by Roll Call in February, Paul was paid twice on several occasions for flights between Washington, D.C., and his Congressional district, receiving reimbursement from taxpayers and also from a network of political and nonprofit organizations he controlled, according to public records and Paul’s credit card statements.
Handwritten notations on credit card statements indicate Paul billed the Liberty Committee, his campaign, his political action committee and another nonprofit, the Foundation for Rational Economics and Education, for plane tickets and other expenses for which he also billed taxpayers.
In all, Roll Call found 26 flights from 1998 to 2005 for which several layers of documentation show double payments.
But the Liberty Committee audit revealed a new set of flights that it said were reimbursed twice, bringing the total number of such instances to 52.
James said the Liberty Committee is exploring legal options to press for repayment in court, including researching whether the statute of limitations has expired.
Melanie Sloan, the president of Citizens for Responsibility and Ethics in Washington, said the House Ethics Committee should investigate.
Although the double-billed flights from 1998 to 2005 “fall outside of the Ethics Committee’s statute of limitations, given the long-standing pattern of behavior, the Ethics Committee should investigate on its own as to whether Paul continued this conduct in more recent years,” Sloan said.
The April 16 Liberty Committee letter demanded repayment within 10 business days. Paul responded in an April 26 letter, writing, “My records do not show any mistaken reimbursements, but I do take these matters very seriously. Please send me copies of all the record [sic] you refer to — invoices, receipts and tickets — and I will have my staff review them thoroughly to determine if any mistakes were in fact made.”
On Saturday, Benton said that James “has not sent any records or documentation of any kind to back up his claims of decade-old double reimbursement, only a letter demanding $20,000.”
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Each year since 1990, CQ Roll Call has reviewed the financial disclosures of all 541 senators, representatives and delegates to determine the 50 richest members of Congress. This year's report, derived from forms covering the calendar year 2012, shows it took a net worth of $6.67 million to crack the exclusive club.