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Postmaster General Urged to 'Immediately Step Aside' as North Carolina AG Backs Probe Into Campaign Finance Fraud Allegations

"It is extraordinarily disturbing that megadonor Louis DeJoy is abusing his power as Postmaster General to help President Trump win reelection, meanwhile apparently demonstrating disregard for key campaign finance laws designed to promote the integrity of our democratic elections," said Common Cause president Karen Hobert Flynn.

Louis DeJoy, the Republican Party megadonor tapped to be Postmaster General of the U.S. Postal Service earlier this year, is accused of illegally reimbursing employees at his logistics company for donations to GOP causes or candidates which he urged them to make. (Photo: Elon University)

Louis DeJoy, the Republican Party megadonor tapped to be Postmaster General of the U.S. Postal Service earlier this year, is accused of illegally reimbursing employees at his logistics company for donations to GOP causes or candidates which he urged them to make. (Photo: Elon University)

With less than two months before U.S. elections in November and amid demands for his immediate firing, high-level Democrats in Congress and the Attorney General of North Carolina called for both state and federal investigations into Postmaster General Louis DeJoy after explosive reporting Sunday afternoon contained allegations that the GOP megadonor now running the U.S. Postal Service criminally violated campaign finance laws.

"It is against the law to directly or indirectly reimburse someone for a political contribution. Any credible allegations of such actions merit investigation by the appropriate state and federal authorities."
—North Carolina Attorney General Josh Stein
First reported by the Washington Post, the story included claims from former employees of DeJoy, most notably from his human resources director David Young, who said DeJoy—a major donor to the Republican Party and President Donald Trump—would reimburse workers using payroll bonuses for political giving, an arrangement that is unlawful under both federal law and in North Carolina, where his logistics company, New Breed, is located.

North Carolina Attorney General Josh Stein responded to the news Sunday evening by backing an investigation.

"It is against the law to directly or indirectly reimburse someone for a political contribution," Stein said in statement on social media. "Any credible allegations of such actions merit investigation by the appropriate state and federal authorities. Beyond this, it would be inappropriate for me as Attorney General to comment on any specific matter at this time."

While Rep. Gerry Connolly (D-Va.) called for DeJoy—described as "Trump's crony"—to be fired Sunday afternoon in response to the allegations, Senate Minority Leader Chuck Schumer endorsed the idea of an immediate probe. Schumer said Trump's Justice Department under U.S. Attorney General William Barr should be left out.

"These are very serious allegations that must be investigated immediately, independent of Donald Trump's Justice Department," Schumer said. "The North Carolina Attorney General, an elected official who is independent of Donald Trump, is the right person to start this investigation."

Speaking on behalf of the Democratic Association of Attorneys General (DAGA), co-chairs AG Maura Healey of Massachusetts and AG Ellen Rosenblum of Oregon said that with the election fast-approaching—and DeJoy's role as Postmaster General so pivotal in terms of securing the integrity of the vote—the best option would be for DeJoy to step down while a thorough probe is conducted.

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"The allegations that Postmaster DeJoy engaged in an extensive scheme to violate federal and state campaign finance laws are profoundly troubling," Healey and Rosenblum said in a joint statement. "If true, they call into question DeJoy's leadership and compliance with the law yet again, this time revealing a pattern of potentially criminal misconduct. This matter will require time to resolve—time that DeJoy does not have with the election just 60 days away. Postmaster DeJoy should immediately step aside, pending an independent investigation."

"If true, they call into question DeJoy's leadership and compliance with the law yet again, this time revealing a pattern of potentially criminal misconduct."
—Karen Hobert Flynn, Common Cause
Common Cause—which along with other groups filed a lawsuit against DeJoy less than three weeks ago that alleged his actions to undercut the delivery of mail amounts to a constitutional violation of Americans' right to vote—said the revelations of his alleged campaign finance violations are just the latest reason that DeJoy cannot be trusted during such a crucial time.

"Megadonor Louis DeJoy seemingly broke multiple campaign finance laws, continuing a dangerous pattern of turning our institutions of government upside-down, from the postal service to our election campaigns," said Karen Hobert Flynn, president of Common Cause. "It is extraordinarily disturbing that megadonor DeJoy is abusing his power as Postmaster General to help President Trump win reelection, meanwhile apparently demonstrating disregard for key campaign finance laws designed to promote the integrity of our democratic elections."

Hobert Flynn said her organization was considering legal action to hold DeJoy accountable for these alleged criminal violations.

Bob Phillips, executive director of Common Cause North Carolina, added that if proven true, "the fundraising scheme allegedly perpetrated by Louis DeJoy is extremely troubling."

Such "big money in politics" operations, he added, erode "public confidence in the integrity of our political system and fuels cynicism. Concealing the source of campaign donations is even worse, because it deprives voters of information they could otherwise use to inform their votes."

"These are serious allegations of illegal activity that warrant a thorough investigation," said Phillips, "and there must be full accountability from Mr. DeJoy."

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