Justice Department asks FEC to stand down as prosecutors probe Santos - The Washington Post

The Justice Department petition besides asked that the FEC supply immoderate applicable documents to the Justice Department, according to the knowledgeable people, who spoke connected the information of anonymity due to the fact that of the matter’s sensitivity.

A Justice Department spokeswoman declined to comment. An FEC spokeswoman said the regulator “cannot remark connected enforcement.” Neither Santos nor his lawyer responded to requests for comment.

The 34-year-old congressman, whose predetermination to Congress from Long Island past twelvemonth helped the GOP unafraid its constrictive House majority, has apologized for what helium called “résumé embellishment” portion rebuffing calls for his resignation.

Separately, the Securities and Exchange Commission connected Friday interviewed 2 radical astir Santos’s relation successful Harbor City Capital, an concern steadfast that was forced to unopen down successful 2021 aft the SEC accused it of operating a “classic Ponzi scheme.” SEC involvement successful those radical came aft they were quoted Wednesday successful The Washington Post describing however Santos solicited an concern successful Harbor City astatine an Italian edifice successful Queens successful precocious 2020.

The FEC ordinarily complies with DOJ requests to clasp disconnected connected enforcement. Those requests originate from a 1977 memorandum of knowing betwixt the agencies that addresses their overlapping instrumentality enforcement responsibilities.

“Basically they don’t privation 2 sets of investigators tripping implicit each other,” said David M. Mason, a erstwhile FEC commissioner. “And they don’t privation thing that the FEC, which is simply a civilian agency, does to perchance complicate their transgression case.”

The petition “indicates there’s an progressive transgression investigation” examining issues that overlap with complaints against Santos earlier the FEC, said Brett Kappel, a run concern lawyer astatine D.C.-based Harmon, Curran, Spielberg & Eisenberg.

Those complaints, including 1 filed earlier this period from the Campaign Legal Center, nonstop peculiar attraction to much than $700,000 that Santos claims to person loaned his 2022 campaign. CLC’s ailment alleged that Santos masked the root of that funding, portion besides misrepresenting run spending and utilizing run resources to screen idiosyncratic expenses.

On Wednesday, the Santos run submitted paperwork to the FEC replacing treasurer Nancy Marks, a longtime accountant for GOP candidates successful New York, with Wisconsin-based Thomas Datwyler. Datwyler’s lawyer antecedently told The Post that his lawsuit ne'er signed oregon authorized the documents and had communicated to the run that helium did not mean to service arsenic treasurer.

On Thursday, the FEC sought much accusation astir the disputed filing. “It has travel to the attraction of the Federal Election Commission that you whitethorn person failed to see the true, correct, oregon implicit treasurer information,” the regulator wrote to Datwyler successful a letter requesting further information.

Datwyler’s lawyer told The Post connected Friday that helium plans to archer the FEC that his lawsuit did not taxable the filing and that it should beryllium withdrawn.

Marks has not responded to requests for comment.

Over the past 2 years, FEC analysts person repeatedly identified problems with Santos’s filings with the regulator, sending aggregate letters seeking clarification oregon correction of evident issues, including accepting contributions beyond the allowable limit, omitting required donor accusation and failing to capable retired required forms to study details astir the loans Santos claims to person made to his campaign.

Late past year, the offices of New York Attorney General Letitia James (D), Nassau County District Attorney Anne T. Donnelly (R) and Queens County District Attorney Melinda Katz (D) each said they were looking into whether Santos broke immoderate laws successful their jurisdictions. Spokespeople for each bureau told The Post this week that they had nary further updates.

At the SEC, regulators alleged successful national tribunal successful 2021 that Harbor City was moving a Ponzi strategy that raised $17.1 cardinal from much than 100 victims. Santos, who was not named successful that lawsuit, worked for the steadfast for much than a year, receiving his past payments successful April 2021, the aforesaid period the SEC sought to frost its assets, The Post has antecedently reported. Santos has said helium was unaware of immoderate alleged fraud by Harbor City.

Christian Lopez, who says Santos pitched him connected investing with the steadfast astatine a meal successful 2020, said that SEC officials asked him Friday for his recollections of what Santos had told him arsenic good and for immoderate documents and messages Santos sent him.

“They were asking things similar ‘What did helium speech about? What did helium connection you? What were the names that helium mentioned?’” Lopez said.

Tiffany Bogosian, an lawyer who says she has known Santos since inferior precocious schoolhouse and besides attended the 2020 dinner, said she besides was interviewed by SEC officials Friday.

“They wanted to cognize specifics of George’s engagement and the pitch,” Bogosian said.

An SEC spokeswoman declined to comment. J.P. Maroney, Harbor City’s laminitis and a named suspect successful the SEC action, has denied wrongdoing successful court. Harbor City has not responded. Maroney secured a enactment past autumn successful that litigation aft disclosing that the aforesaid matters are the taxable of an progressive transgression probe.

Perry Stein contributed to this report.