Stephen E Stockman, Charitable Foundation Embezzlement, TX 2023

HOUSTON – A former U.S. Congressman and one of his associates have been indicted for orchestrating a massive fraud scheme that siphoned hundreds of thousands of dollars from charitable foundations. The funds were allegedly used to finance political campaigns and personal expenses.

Stephen E. Stockman, 60, of Clear Lake, and Jason Posey, 46, formerly of the Houston area, are charged with mail and wire fraud, conspiracy, making false statements to the Federal Election Commission (FEC), excessive campaign contributions, and money laundering. Stockman is also accused of filing a false tax return.

According to the superseding indictment, from May 2010 to October 2014, Stockman solicited nearly $1.25 million in donations under false pretenses. He allegedly used part of the proceeds to pay for his and others’ personal expenses and to fund his congressional campaigns. His former aide, Thomas Dodd, pleaded guilty to involvement in the scheme in 2017.

The indictment further alleges that Stockman misused a $350,000 charitable donation from a nonprofit entity to cover personal and campaign costs, including an illegal conduit contribution and a covert surveillance project. Posey is accused of securing a $450,571 donation to fund a mail campaign attacking Stockman’s opponent, with only half used for the intended purpose.

The investigation was conducted by the FBI and IRS-CI, with Assistant U.S. Attorney Melissa Annis and Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section handling the prosecution.