Stephen E. Stockman, Multi-Year Fraud Scheme, Texas 2017

A former U.S. Congressman and one of his associates were indicted today for their roles in orchestrating a scheme to steal hundreds of thousands of dollars from charitable foundations and the individuals who ran those foundations. Some of the funds were allegedly used to illegally finance the politician’s campaigns for public office and to pay for his personal expenses and those of his associates.

According to the superseding indictment, from May 2010 to October 2014, former U.S. Representative Stephen E. Stockman, 60, of Clear Lake, Texas, solicited approximately $1,250,000 in donations based on false pretenses. In 2010, Stockman diverted a significant portion of $285,000 donated to charitable causes to pay for his and former special assistant Thomas Dodd’s own personal expenses and to further Stockman’s own interests.

The indictment further alleges that in 2011 and 2012, Stockman and Dodd received an additional $165,000 in charitable donations, much of which Stockman used to finance his 2012 congressional campaign. Shortly after Stockman took office in the U.S. House of Representatives in 2013, he and Dodd allegedly used the name of a nonprofit entity to solicit and receive a $350,000 charitable donation. Stockman allegedly used this donation for a variety of personal and campaign expenses, including illegal conduit campaign contributions, a covert surveillance project targeting a perceived political opponent and payments associated with Stockman’s U.S. Senate campaign in early 2014.

The superseding indictment also alleges that Jason Posey, 46, formerly of the Houston, Texas, area, the former director of special projects in Stockman’s congressional office, used a nonprofit entity to secure a $450,571 donation in order to fund a mass-mailing project attacking Stockman’s opponent. Only approximately half of the donation was spent on the mail campaign, and Posey used a portion of the unspent balance to pay for expenses associated with Stockman’s Senate campaign and to fund personal expenses.

The charges and allegations contained in the superseding indictment are merely accusations. The defendants are presumed innocent until and unless proven guilty.

The FBI and IRS-CI conducted the investigation. Trial Attorneys Ryan J. Ellersick and Robert J. Heberle of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney Melissa Annis of the Southern District of Texas are prosecuting the case.

Former U.S. Representative Stephen E. Stockman, 60, of Clear Lake, Texas, and Jason Posey, 46, formerly of the Houston, Texas, area, were charged in a 28-count superseding indictment with mail and wire fraud, conspiracy, making false statements to the Federal Election Commission (FEC), making excessive campaign contributions and money laundering. Stockman is also charged with filing a false tax return that concealed his receipt and personal use of the fraudulent proceeds, while Posey is charged with falsifying an affidavit in order to obstruct an FEC investigation.

Defendant/Respondent: Stephen E. Stockman, Former U.S. Congressman

Exact Criminal Charges: mail and wire fraud, conspiracy, making false statements to the Federal Election Commission (FEC), making excessive campaign contributions and money laundering

City and State: Clear Lake, Texas

Exact Date: May 2010 to October 2014

Sentence or Outcome: pending

Dollar Amounts: $1,250,000, $285,000, $165,000, $350,000, $450,571

MORE FEDERAL CRIME NEWS

Public Corruption

City Council Set to Discuss Hiring of Female Police Officer, Mankato MN, 1921

Jun 3, 1921

Public Corruption

Railroad Rebates Scandal Unleashes Public Frenzy, Department of Justice Threatens Action

Jun 22, 1906

Public Corruption

Six Sheriffs Deputies, Obstruction of Justice, California 2022

Jun 22, 2015

Public Corruption

Watson Embroiled in Scandal, Faces Reprimand, Indiana, 1927

Nov 22, 1927