Prosecutors stated Wednesday that U.S. Rep. George Santos, the New York Republican famed for creating important sections of his life story, has been indicted on counts of embezzling campaign funds, lying to Congress about his income, and cheating his way into unearned unemployment benefits.
According to the indictment, Santos deceived supporters into donating to a corporation under the false impression that the funds would be utilized to assist his campaign. Instead, he allegedly utilized money for personal purposes such as purchasing fancy clothing and making credit card and auto payments.
Santos is also accused of lying about his financial situation on congressional disclosure forms, as well as asking for and receiving unemployment benefits while working as a regional director for an investment firm that the government shut down in 2021 over allegations that it was a Ponzi scheme.
U.S. Attorney Breon Peace said the indictment “seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations.”
“Taken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself,” Peace said.
Santos turned himself in Wednesday and was brought to a federal courthouse on Long Island, where he was scheduled to appear in court later that day on counts of wire fraud, money laundering, theft of public monies, and making false statements to Congress.
George Santos told The Associated Press on Tuesday that he was ignorant of the charges.
Deceptive background and alleged financial misrepresentations of George Santos
Santos, 34, was elected to Congress last November following a campaign that was partially based on lies. He pretended to be a wealthy Wall Street dealmaker with a sizable real estate portfolio, as well as a star volleyball player in college.
In actuality, Santos did not work at the large financial organizations he said he had worked for, did not attend college, and struggled financially before running for public office. He claimed that he funded his run primarily with his own money, which he acquired by brokering agreements on luxury toys for wealthy clients, but the indictment contends that such statements were similarly overstated.
Santos claimed in regulatory documents that he loaned his campaign and allied political action organizations more than $750,000, although it was unclear how he came into that type of income so rapidly after struggling to pay his rent and facing several eviction proceedings for years.
George Santos acknowledged earning $750,000 per year from a family company, the Devolder Organization, on a financial disclosure form, but the accusations released Wednesday allege that he never got that money, nor the $1 million and $5 million in dividends he listed as coming from the firm.
Santos has defined the Devolder Organization as a broker for the sale of high-end commodities such as yachts and planes. Santos founded the company in Florida shortly after leaving his job as a salesman for Harbor City Capital, the corporation suspected by federal authorities of running an unlawful Ponzi scheme.
George Santos faces criminal charges for alleged deception and misuse of funds
Santos founded Redstone Strategies, a Florida corporation that federal authorities claim he exploited to deceive donors into funding his lifestyle, in November 2021. According to the indictment, Santos instructed an associate to seek contributions to the company using emails, text messages, and phone calls, and he gave the associate contact information for possible contributors.
According to the indictment, emails to prospective donors allegedly claimed that the corporation was founded “exclusively” to benefit George Santos’ election campaign and that there would be no limits on how much they could contribute. The complaint alleges that Santos falsely stated the money would be utilized for television commercials and other campaign expenses.
According to the accusation, Santos transferred around $74,000 from company coffers to bank accounts he held last October, a month before his election. According to the report, he reportedly sent money to some of his associates.
After his history of fabrications was discovered, many of Santos’ fellow New York Republicans called for his resignation. As word of the criminal case circulated, others renewed their criticism of him.
“Listen, George Santos should have resigned in December. George Santos should have resigned in January. George Santos should have resigned yesterday. And perhaps he’ll resign today. But sooner or later, whether he chooses to or not, both the truth and justice will be delivered to him,” said U.S. Rep. Marc Molinaro, a Republican representing parts of upstate New York.
House Speaker Kevin McCarthy, R-Calif., was more circumspect, saying “I think in America, you’re innocent till proven guilty.”
Santos has already faced criminal charges
When George Santos was 19, he was the subject of a criminal investigation in Brazil on suspicion of using stolen checks to purchase products from a clothing store. The case has been reopened, according to Brazilian authorities.
Santos was charged with theft in Pennsylvania in 2017 after officials claimed he used hundreds of dollars in forged cheques to purchase puppies from dog breeders. That lawsuit was dismissed after Santos claimed his checkbook had been stolen and the dogs had been taken by someone else.
Separately, federal authorities have been investigating accusations about Santos’ work gathering funds for a group that purported to aid abandoned and abused pets. One New Jersey veteran accused Santos of neglecting to provide $3,000 he had raised for his pet dog’s surgery.
