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Jason Posey

Stockman gets ten years

Fitting.

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Former Congressman Steve Stockman, a Tea Party stalwart who represented East Texas during two non-consecutive terms, was sentenced to 10 years in federal prison on Wednesday for his role in a wide-ranging scheme that included a spy operation aimed a fellow Republican challenger and $1.25 million in campaign funds pilfered from conservative megadonors.

Stockman, 61, of Clear Lake, said nothing in court after Chief U.S. Judge Lee H. Rosenthal sentenced the former beltway firebrand who in April was convicted by a jury on 23 felony counts stemming from unlawful use of charitable donations.

Stockman, who was wearing an orange jail uniform and beige rubber clogs and was chained at the ankles, faced the potential of more than 20 years on each of seven mail and wire fraud charges, as well as 10 years on each of 11 money laundering counts, five years apiece on two counts of making false statements, plus five years for making coordinated campaign contributions and up to three years for filing a false tax return.

His new defense lawyer, Marlo Cadeddu, asked for a 13-month sentence, which she said was average for a corruption case.

But Rosenthal said the short sentence “doesn’t come close to capturing this unique violation of public trust.”

“You stole money and used it for personal gain and you used it to violate the public trust,” Rosenthal told Stockman before he was sentenced. “You cheated the American taxpayer.”

She said her sentencing took into account that he sneaked around and had people go through trash of his perceived opponent, that he cheated taxpayers and tried to cover up his acts and continued to seek the political spotlight.

[…]

In addition to the 10-year federal jail term, Stockman faces three years of supervised release. He was also ordered t pay $1.014 million in restitution.

See here for some background, or just search the archives for “Stockman”. Sorry, but I’m fresh out of sympathy for grifters. He got what was coming to him. Jason Posey and Thomas Dodd, who pled out and testified against their former boss, will be sentenced on December 12. The Trib has more.

Stockman asks for his verdict to be set aside

Never know till you ask, right?

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Attorneys representing former U.S. Rep. Stephen Stockman, R-Texas, who was found guilty in April of funneling what were solicited as charitable contributions into accounts that instead funded political campaigns and personal expenses, have asked the court to set aside the jury’s conviction in the case citing a lack of evidence.

Stockman’s defense team filed the motion asking Chief U.S. District Judge Lee Rosenthal for an acquittal on Monday. A jury convicted Stockman, 60, who was indicted in March 2017, on 23 of 24 counts, acquitting him on one count of wire fraud. Jurors deliberated for a little more than 15 hours over three days before returning their unanimous verdict in the trial that began with jury selection on March 19.

[…]

The former congressman’s attorneys argued in the motion that he’s entitled to an acquittal because the evidence presented at trial “could not be accepted by a reasonable-minded jury as adequate and sufficient to support a guilty verdict beyond a reasonable doubt.” Instead, the evidence showed that the wealthy conservative mega-donors Stockman was accused of defrauding — the now-deceased Stanford Z. Rothschild Jr. and Richard Uihlein — knew what Stockman was intending to use the funds for, according to the motion.

“With respect to fraudulent intent, the evidence must show Mr. Stockman had a conscious, knowing intent to defraud and that he contemplated or intended some harm to the property rights of the victim,” the motion argued. “The government has not established this.”

Sean Buckley, who represents Stockman, had told reporters immediately after the verdict there would be an appeal in the case. He reiterated arguments presented for the jury that the funds came from donors who knew the congressman would be using the money “to finance Mr. Stockman’s political work and his projects.”

See here for the background. The motion was made to the trial judge, Judge Lee Rosenthal, who I presume will rule on it before sentencing, which is scheduled for August 17. I can’t imagine this sort of motion works very often, but I suppose it’s a prelude to the eventual appeal. I’ll keep my eyes open for further developments.

Stockman convicted

Turn out the lights, the party’s over.

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Former U.S. Congressman Steve Stockman — a political maverick once viewed as a champion of right-wing causes — was taken into federal custody Thursday after a jury convicted him of masterminding a wide-ranging fraud scheme that diverted $1.25 million in charitable donations from wealthy conservative philanthropists to cover personal expenses and campaign debts.

After deliberating more than 15 hours over three days, the jury found Stockman guilty on 23 counts of mail and wire fraud, conspiracy, making false statements to the Federal Elections Commission and money laundering. The jury found him not guilty on one count of wire fraud.

Stockman, 61, of Clear Lake, who served two non-consecutive terms as a Republican congressman in separate southeast Texas districts, showed no reaction to the jury’s verdict. His wife, Patti, watched from the courtroom gallery, as did U.S. Attorney Ryan Patrick.

Chief U.S. District Judge Lee H. Rosenthal ruled that Stockman was a flight risk and she ordered him taken into custody by U.S. marshals. Stockman faces a maximum of 20 years in prison on each of the fraud charges alone. Sentencing is set for Aug. 17.

I feel like my whole life has been leading up to this moment. I may have some coherent thoughts about this in a day or so, but until then let me go a little medieval Latin on you:

O Fortuna
velut luna
statu variabilis,
semper crescis
aut decrescis;
vita detestabilis
nunc obdurat
et tunc curat
ludo mentis aciem,
egestatem,
potestatem
dissolvit ut glaciem.

That’s all I’ve got for now. The Trib and RG Ratcliffe, who recalls some of Stockman’s greatest hits, have more.

Stockman trial update: Defense rests

And we’re done.

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The defense rested its case Thursday in ex-GOP congressman Steve Stockman’s federal campaign fraud trial, after calling only two witnesses who together testified for less than an hour.

The former Republican lawmaker from Clear Lake told the judge presiding over his trial that he did not intend to testify in his own defense.

[…]

After court adjourned, Stockman’s defense team explained to reporters they would have called many more than two witnesses if the rules of evidence didn’t preclude Stockman to put on broader testimony about his reputation, work ethic and charitable work.

On Thursday, the final witness in the trial was Stevie Bidjoua Sianard-Roc, who had flown in from Africa to testify and took the stand for 38 minutes. She testified about several trips Stockman made to the Republic of Congo and Democratic Republic of Congo to meet with government ministers, discuss social issues and in one case deliver three boxes of medicine to a local hospital in which she served as his translator. In one instance, she said, Stockman donated an iPad to her husband.

“In Africa, Steve is like family to us,” Sianard-Roc told the jury.

Under cross-examination by Assistant U.S. Attorney Ryan Ellersick, the Sianard-Roc said she was not aware that Stockman was also working on a deal in the region with an oil company and hoped to meet with an oil minister there.

See here for the previous update. This whole trial has been amazing, but the thing that really stands out to me is how unimpressive the defense seems to be. Maybe it just hasn’t come through in the reporting, but I haven’t seen much to rebut any of the prosecution’s evidence. The defense seems to boil down to twenty-plus-year-politician Stockman is a naive dupe, and people in Africa like him. It feels more like what you’d put on during the sentencing hearing. Like I said, maybe there was more to it than the stories conveyed. Closing arguments are Monday, and then we’ll see. What do you think?

Stockman trial update: The prosecution abides

From Monday:

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The second of two key government witnesses took the stand late Monday in Houston in the federal fraud trial of former U.S. Congressman Steve Stockman, telling jurors his main duty on the ex-lawmaker’s staff was to “just do what I’m told.”

[…]

On the stand Monday, [Jason] Posey told the jury he had previously pleaded guilty to wire fraud, mail fraud and money laundering.

Both [Thomas] Dodd and Posey knew Stockman through his work with the conservative Leadership Institute, an Arlington nonprofit that trains youth in grassroots organizing.

Posey, 47, who now works as a fry cook at Spuds in Tupelo, Miss., said he worked for Stockman on-and-off since his unsuccessful bid for re-election to the U.S. House of Representatives in 1996. He helped with Stockman’s failed campaign for Texas Railroad Commissioner in 1998 and lived among other volunteers in Stockman’s ramshackle campaign headquarters, a former motorcycle repair shop in Webster, during Stockman’s victorious 2012 campaign for the Congress.

Stockman then tapped him to be a congressional staffer in Washington. But when new employees were going around the room introducing themselves by their new titles at a preliminary staff meeting, Posey did not mention that he would be a liaison working on special projects.

Instead, he testified,“I stood and said, ‘I’m Jason Posey and I just do what I’m told.’”

He told the jury he knew nothing about Stockman’s major donors, although he helped the ex-congressman set up a failed charity, which Stockman later used to solicit donations, according to testimony from other witnesses.

See here for the last update. I don’t have anything to add to this, so let’s move on. From Tuesday:

After two and a half years dodging federal investigators by fleeing to Egypt, former congressional aide Jason Posey came to the painful realization that his boss, two-time Republican congressman Steve Stockman, was going to blame him for the elaborate fraud scheme they had orchestrated, he told a federal jury Tuesday.

“He told me, ‘You’re going to take the blame for everything’ and he was going to run for office,” Posey testified, adding that Stockman promised to look after him after Posey was convicted. “That was when I realized that I had been a complete fool for trusting Mr. Stockman and he never intended to keep his pledge.”

That pledge, according to Posey, was that if their questionable use of charitable donations came to light Stockman “would come clean about everything” and protect him and another devoted congressional staffer.

[…]

During Stockman’s successful 2012 campaign for the House of Representatives and his failed 2014 bid to unseat Texas Republican John Cornyn for Senate, Posey said he helped filter charitable donations to conservative 501c3 nonprofit groups. Posey testified he helped Stockman set up sham charities and associated bank accounts, which Stockman directed him to use to pay off campaign expenses and personal debts.

He wrote checks, set up bank accounts and moved the money, as Stockman told him, into shadowy charities, including one called the Egyptian American Friendship Society and another entitled Life Without Limits, supposedly dedicated to helping people recover from trauma, so the spending would look like it was coming from charitable groups, according to his testimony.

You really have to admire the dedication to these schemes. There’s no length Stockman (allaegedly) wouldn’t go to for the money. Imagine how much he could have gotten done if he’d applied that kind of work ethic to something productive.

And finally, from Wednesday, when the prosecution finished and the defense got started.

The prosecution ended its case by calling back to the stand FBI Special Agent Leanna Saler, to explain to the jury how Stockman used Bitcoin to forward funds to Posey who had fled to Egypt to avoid investigators and the purchases of so-called “burner phones” which were used to discuss an improper campaign donation, according to Posey’s testimony. Both were difficult for law enforcement to trace, Saler testified.

Defense lawyer Sean Buckley asked whether the Bitcoin transactions were charged in Stockman’s indictment. Saler said no. The ATM withdrawals Stockman made in Switzerland and Cairo were also not included in the charges, she testified.

Under further questioning from Buckley, the agent stated that the FBI never investigated the two mega-donors who gave Stockman the charitable contributions that were later diverted to pay personal and campaign editors.

After the government ended its presentation, Stockman’s lawyers called Callie Beck as their first witness to begin their defense of the charges. The court adjourned shortly after Beck’s testimony to await the expected arrival of another witness who Stockman’s lawyers said was flying in from the Republic of Congo to testify about the GOP lawmakers work shipping medicine to developing countries.

Beck was on the stand less than 10 minutes in all, detailing what she did during a summer program Stockman paid for with a charitable donation. She said the Summit, a two-week camp in Colorado run by a Christian organization, involved lectures and team building for youths before entering college.

Under cross examination by Assistant U.S. Attorney Melissa Annis, Beck acknowledged she was not familiar with Freedom House, a housing and training program for Capitol Hill interns.

Yes of course I blogged about it when Stockman announced he would accept Bitcoin for his campaign. I mean, come on. The defense is expected to take just a couple of days, with the case wrapping up early next week. I can’t wait to see what this other witness has to say.

Stockman trial update

From Tuesday:

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“This case is the story of how the defendant over the course of four years exploited the trust and charity of others to pull off a massive scam,” Assistant U.S. Attorney Robert Heberle, of the Justice Department’s public integrity division, told jurors during opening statements in the federal corruption trial.

“It is the story of a man who thinks that the rules are for other people,” Heberle said. “And it is the story of how, dollar by dollar, investigators followed the money and unraveled the defendant’s fraud scheme.”

Heberle said Stockman pulled off the scheme by cheating federal election law, lying to donors and blaming mistakes on his staff.

Heberle outlined several major donations Stockman, a trained accountant, solicited on behalf of charitable groups he was involved in, and said the evidence would show that with the help of two aides, Stockman quickly moved that money from one account to another and spent it to cover personal and campaign expenses.

Defense attorney Sean Buckley, however, had a drastically different take on the same series of financial transactions.

“The core is question of whether Mr. Stockman lied with the intent to steal money” from two major donors, Buckley said.

Buckley described his client as a scrappy, naive and idealistic outsider who lost track of his finances.

See here for the previous update. Just as a reminder, that “scrappy, naive outsider” was first elected to Congress in 1994, and the crimes he is accused of stem from his 2012 House campaign and his unsuccessful 2014 primary bid against Sen. John Cornyn. That’s an awfully long time to remain naive.

From Wednesday:

Former U.S. Congressman Steve Stockman and two aides used a major charitable donation to a cover credit card debt, two spots at a Christian summer camp, a friend’s stint in rehab and a funeral for employee’s wife, according to testimony Wednesday from an FBI agent at Stockman’s federal fraud trial in Houston.

But they didn’t spend any of the $350,000 gift — as Stockman had promised he would at a pitch meeting with a conservative Midwestern mega-donor — on the renovation of a house near Capitol Hill in Washington, D.C., to be used as living quarters and a training facility for young conservatives.

A series of witnesses called by federal prosecutors in the second day of Stockman’s corruption trial traced the path of that $350,000 donation, testifying that Stockman and his associates spent it on an extensive array of expenses, which the donor said he never meant to cover.

[…]

[Conservative megadonor Richard] Uihlein said after spending less than an hour meeting with Stockman at his corporate offices in Pleasant Prairie, Wis. on Jan. 24, 2013, he wrote a check from the Ed Uihlein Family Foundation to the newly elected representative’s charitable foundation for $350,000.

One month prior, at the urging of Larry Pratt, CEO and founder of Gun Owners of America, Uihlein had donated $5,000 to help pay for a group of home-schooled children to be in Washington for Stockman’s swearing in ceremony.

And a year after he made the Freedom House donation, Uihlein would write a $450,000 check to cover a mailing in Stockman’s unsuccessful bid to unseat U.S. Sen. John Cornyn in the Republican Primary, court records in the case show.

And now the GOP legislator and an aide, Thomas Dodd, had arrived with an impressive brochure about Freedom House and asked for money to create their training center for young congressional interns. Uihlein, the CEO of a moving supplies empire, said he liked the idea of helping cover the house’s renovation.

“I felt they were trustworthy,” Uihlein told the jury, under questioning from a federal prosecutor. “And I trusted that they would spend the money the way they said.”

He said he understood from the brochure that Stockman was soliciting the money for a charitable cause through a 501c3 organization, and stressed he would not have given it if he knew it would be spent on the former lawmaker’s personal and campaign costs.

This post has more about the Stockman/Uihlein relationship. Uihlein may have been duped, but he’s far from innocent, or sympathetic. As for Stockman, his defense is to blame everything on the two former aides that have since taken plea deals for their actions in this saga. One of those aides, Jason Posey, has been an associate of Stockman’s since his first Congressional term in the 90’s. Like I said, that’s an awfully long time to remain naive. The prosecution still has more to present, and then we get to the defense, which ought to be amazing. Stay tuned.

Steve Stockman’s trial has begun

Hope you have your popcorn ready.

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A year after he was charged with running a wide-ranging scheme to divert charitable donations to pay for campaign and personal expenses, former U.S. Rep. Steve Stockman is scheduled to begin a month-long trial Monday in a Houston federal courtroom.

Jurors could hear testimony in Chief U.S. District Judge Lee H. Rosenthal’s courtroom from about 75 witnesses and sift through thousands of pages of evidence in what prosecutors have characterized as a “white-collar crime spree,” according to court documents.

[…]

“The evidence at trial will show that over a four-year period (Stockman) used a series of sham nonprofit entities to raise over $1 million in fraudulent donations,” according to trial brief filed recently by Justice Department prosecutor Ryan Ellersick, who alleged the former congressman “funneled the fraud proceeds through a web of shell bank accounts before ultimately using the funds to pay for personal expenses and to illegally finance his campaign for federal office.”

Stockman, 61, a resident of Clear Lake, faces 28 criminal counts, including allegations of mail and wire fraud, conspiracy, making false statements to the Federal Election Commission, making excessive campaign contributions, money laundering and filing a false tax return.

Stockman’s lawyer, Sean Buckley, said he expects his client to be fully vindicated. He plans to argue that the upstart lawmaker, who opposed big government and failed to unseat Sen. John Cornyn in the 2014 Republican primary, did nothing intentionally wrong.

“We are absolutely adamant that he didn’t intend to defraud donors or anyone else,” Buckley said. “There’s no allegation of an extravagant lifestyle. He was always one step away from the poverty line.”

See here for the previous update. Gotta love the “I didn’t mean it!” defense. Jury selection is underway. I’ll be checking in periodically as we go.

Stockman’s trial set to start

Get ready.

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Former U.S. Congressman Steve Stockman stood before a federal judge in a mostly empty Houston courtroom Friday and confirmed he wants a jury to decide if he diverted nearly $1.25 million in charitable donations intended for conservative organizations.

Chief U.S. District Judge Lee H. Rosenthal first determined that he had not entered into plea negotiations with federal prosecutors, and then asked, “Mr. Stockman, I assume you want to go to trial?”

“Yes, your honor,” he replied.

Stockman, whose trial is now set for March 19, has been free on $25,000 unsecured bond. The judge made a point to insist that he be present in court for the entire proceeding. He assured her he would.

[…]

Defense attorney Sean Buckley said his client is confident and he’s ready to address and refute the allegations.

“As they always say, there are two sides to every story and there are most certainly two sides to this one,” Buckley said.

Buckley said he plans to argue that the two aides pleaded guilty to better their own situations, not because they or Stockman are guilty or did anything wrong.

See here for some background. The aides in question are Jason Posey and Thomas Dodd, both of whom have already taken pleas. Stockman’s trial was supposed to have started in January, after having been delayed from June of last year. This time it looks like it may finally get going. I can’t wait.

Stockman aide takes a plea

The walls are closing in.

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A longtime confidant and aide to former U.S. Rep. Steve Stockman pleaded guilty to Wednesday to fraud charges in a corruption scheme that also targeted the former congressman. The alleged scheme involved diverting hundreds of thousands of dollars — meant as contributions from conservative foundations — to fund political campaigns and cover personal expenses.

Jason T. Posey, a former campaign treasurer for Stockman, pleaded guilty before Chief U.S. District Judge Lee Rosenthal to one count each of wire fraud, mail fraud and money laundering. The government will presumably dismiss nearly a dozen additional charges and seek a reduced sentence if Posey agrees to cooperate with the government at Stockman’s trial.
He faces up to 45 years in federal prison and a fine of more than $4.8 million plus hundred of thousands of dollars in restitution, Rosenthal said. She set sentencing for Mar. 29.

He remains free on bond.

“My guy was a player, but he’s not the only player involved,” said Posey’s lawyer Phil Hilder. He accepted responsibility for his misdeeds and is prepared to cooperate, Hilder said.

[…]

[Stockman defense attorney Sean] Buckley said this week he believes that Posey and Dodd operated outside of Washington, D.C., on various political and non-profit projects that Stockman knew little about. The defense attorney contends his client trusted the pair to use contributions they received for the proper purposes.

“I will say that the evidence will show that Steve Stockman did not defraud any donors. He spent the funds in a way that he thought were in furthered the donors’ intentions. To the extent that (funds were diverted) he was either unaware of it or he misunderstood it,” Buckley said.

Stockman has said told the court he is innocent and a victim of a deep state conspiracy.

Buckley said he expects Posey to provide information against his former boss and mentor. Dodd has already pleaded guilty to two related conspiracy charges and has agreed to cooperate with prosecutors.

Hilder, who represents Posey, said, “I do not know what a ‘deep state conspiracy’ is, but I do know what constitutes a criminal conspiracy.”

“Mr. Posey freely and voluntarily admits being involved in criminal activity that is the subject of the indictment,” he said. “By pleading guilty at this stage of the proceedings, Mr. Posey accepts his responsibility for his misdeeds and seeks to move forward becoming a productive member of society.”

See here for a good overview of this saga. Jason Posey returned to the US from abroad back in May, and I presume has been talking to the feds for some time. Another former Stockman aide, Thomas Dodd, pleaded guilty in March to two related conspiracy charges and has already agreed to testify. The trial, originally set for September, will begin January 29. Get your popcorn ready, this is going to be amazing.

Former Stockman aide returns to US

The gang’s all here.

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Federal agents quietly arrested Jason Posey, a former congressional aide who’d been wanted for two months on charges that he helped ex-U.S. Rep. Steve Stockman carry out a criminal conspiracy to bilk millionaire donors, violate elections laws, and illegally divert hundreds of thousands in campaign cash.

Posey and Stockman were both indicted March 28 on 28 federal charges including mail and wire fraud, conspiracy, making false statements to the Federal Elections Commission, excessive campaign contributions and money laundering.

Stockman was arrested at the airport on his way out of the country by federal agents. But it appears government agents spent weeks negotiating with Posey – who’d been living abroad in the Middle East for more than two years.

Posey voluntarily returned to Houston to turn himself in on May 23, according to Philip Hilder, a Houston lawyer appointed to represent Posey.

“He voluntarily came back to the United States to face the allegations levied against him,” said Hilder, who is known for his work representing whistle-blowers and other witnesses and defendants in high-profile white-collar crime cases, including Enron.

In his recent federal court appearance, Posey pleaded not guilty to all 28 charges, according to federal court records. Stockman also pleaded not guilty.

[…]

Another former Stockman aide, Thomas Dodd, pleaded guilty in March to two related conspiracy charges and has agreed to cooperate with prosecutors.

But in indictments, prosecutors describe Posey as Stockman’s primary accomplice . State and county business filings show that Posey set up some of the companies that federal prosecutors say were used to divert campaign contributions through suburban Houston post office boxes and an array of bank accounts.

See here for the background. As noted in that earlier post, Posey has been a close associate of Stockman’s for a long time. I can’t wait for this trial to get underway.

Stockman trial delayed

Alas.

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Former U.S. Rep. Steve Stockman’s trial on federal corruption charges has been pushed back to next year.

The trial, originally scheduled to begin June 5, will now kick off on Jan. 29, 2018, according to an order issued Wednesday by Chief U.S. District Judge Lee Rosenthal.

Stockman’s lawyer had requested the delay last week, asking the judge to put off the trial until “at least January 2018.” The motion to push back the trial had been unopposed.

The lawyer, Richard Kuniansky, said he needed more time to review 142,378 pages of evidence, apparently gathered by the government over the past three and a half years. Kuniansky said he may need the help of a forensic accountant and paralegal.

See here for the background. The request is fair enough, as lawyer Kuniansky is new to the case. I think Stockman is guilty, guilty, guilty, but that’s my opinion and the man deserves a fair trial just like anyone else. Let his attorney get up to speed, we can wait till January.

Stockman pleads not guilty

And we’re off.

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Standing tall, with his hands hanging loosely at his sides, former U.S. Congressman Steve Stockman told a federal magistrate in Houston Monday he understood the criminal charges against him and pleaded not guilty to theft of about $800,000 in charitable donations intended for conservative organizations and associated charges.

Upon Stockman’s request, U.S. Magistrate Judge Nancy Johnson had appointed him a lawyer last week to be paid for by the government until he can land a job. Stockman said he needed to dismiss his hand-picked lawyers because he can’t work while under indictment: His job requires him to travel overseas, which is not permitted under his bond.

Stockman was indicted on 28 federal corruption charges. He said publicly that he expects to be fully vindicated. He is free on bond.

Robert J. Heberle, an attorney from the public integrity division of the Justice Department, told the magistrate Monday he anticipated the trial would last one month and as many as 40 to 50 witnesses could be called for the prosecution. Johnson encouraged the government to whittle down the list. Stockman’s trial is set for June 5 before Chief U.S. District Judge Lee H. Rosenthal for the Southern District of Texas.

Stockman’s new attorney, Richard B. Kuniansky, who defended former accountant Mark Kuhrt in the massive Stanford prosecution several years ago, said after Stockman’s plea that he felt news reports had been unfair in their portrayal of the former lawmaker.

“It’s my understanding that pretty much been a pattern of attack on the character of Mr. Stockman,” Kuniansky said. “We’re looking forward to the truth coming out.”

See here for the background, and here for the pre-hearing version of the story. All I have to add at this point is that I too look forward to the truth coming out.

Steve Stockman claims he’s broke

Pobrecito.

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Former Congressman Steve Stockman told a federal magistrate Wednesday he can’t afford to pay for a lawyer to represent him against allegations he helped steal about $800,000 in charitable donations intended for conservative organizations.

U.S. Magistrate Judge Nancy Johnson agreed to appoint a lawyer for him and postponed a hearing on his case until Friday.

Stockman told the judge he needed to dismiss his hand-picked lawyers from the elite firm of Smyser Kaplan & Veselka and ideally he wanted the court to re-appoint them to the case at the government’s expense. She said she’d consider the request.

He confirmed for the judge details on a disclosure form he’d filled out in front of a roomful of defendants in shackles and jail uniforms, indicating he owned a home, a rental property and two vans.

“But you have no assets?” Johnson asked.

“This is a four-year case,” the former lawmaker said, indicating he’d been paying for legal support on these matters for a long time.

See here and here for some background. I would have asked him “what, you can’t use some of that money you stole to pay your lawyers?”, which is no doubt why I’m not a US Magistrate. Well, that and the lack of a law degree. But seriously, this guy. I don’t know why anyone believes a word he says.

In the meantime, feast on this.

The fact that the former congressman is facing multiple felony counts made national news. But one of the most interesting details in the 46-page Stockman indictment escaped notice: The suggestion that Richard Uihlein, one of the country’s biggest conservative political donors, personally wrote a check for $450,571.65 to mail a fake newspaper called The Conservative News to voters across Texas. The paper, which prosecutors say was part of a Stockman-run, secretly funded operation intended to take down Cornyn, included the dubious claims that Cornyn wanted to ban veterans from having guns, had voted to fund abortion, and was secretly working with Democrats to grant amnesty to illegal immigrants.

Mailing a fake newspaper is not a crime, nor is secretly funding a candidate to do so. Thanks to a series of court decisions now known collectively as Citizens United, billionaires are allowed to fund anonymous attacks as long as they abide by an arcane set of tax and campaign finance rules. And Uihlein, who has given more than $43 million to conservative candidates and super PACs since 2011, is a particularly big fish. He is the chief executive of a family-owned shipping and packing materials company that’s confusingly named “Uline,” which Forbes estimated was worth at least $700 million in 2014. And through his private foundation, Uihlein has given millions more to nonprofits that push a conservative policy agenda and train a new generation of political operatives to sell it.

It’s not clear what, if anything, Uihlein knew about Stockman’s fake-news scheme. He is described as a victim in the Stockman case: Prosecutors say Stockman and his staffers fraudulently diverted hundreds of thousands of dollars Uihlein had donated. Uihlein’s funding of the fake-news operation would likely never have become public had Stockman not gotten tangled up with an FBI investigation — meaning this episode exposes a side of the U.S. campaign finance system we don’t often get to see.

[…]

Larry Barry, director of legal affairs at Uline, refused to answer questions about the case, but said in an emailed statement that “we are deeply troubled by the allegations … that certain contributions made in good faith may have been used for unintended personal and political purposes.” Barry referred to Uihlein as “a victim of this alleged misconduct” and said that “we have and will continue to fully cooperate with the Department of Justice in this investigation.”

[…]

One of the biggest unanswered questions in the Stockman case is how he apparently fooled Uihlein twice.

Prosecutors say Posey told Uihlein’s accountant in a May 13, 2014, email ― sent two months after Stockman lost the election ― that some of the money that was supposed to be used for Freedom House had gone to delivering medical supplies to “third world” countries. The email, which also included an attached tax exemption letter for Life Without Limits, allegedly constituted wire fraud ― though prosecutors don’t spell out exactly why.

What the documents don’t clear up is why Uihlein would fund Stockman’s direct mail campaign a year after his donation for Freedom House ― especially since it seemed like so little progress had been made on that first project. “You raise a good question, but it’s not one I can talk about today,” said Dane C. Ball, a Houston lawyer defending Stockman.

An answer may be in the offing if the case goes to trial. If that happens, it’s likely Uihlein would be called to testify, said D.C. campaign finance lawyer Brett Kappel.

“Get your popcorn,” he quipped.

There’s not enough popcorn in the world. Also, I am unreasonably amused by the fact that Uline’s director of legal affairs is named “Larry Barry”. I cannot wait for this trial to begin.

A closer look at the Stockman saga

Chron reporter Lise Olson takes a deep dive into the charges against former Congressman and fulltime hot mess Steve Stockman.

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Steve Stockman was soon to board a plane for the United Arab Emirates this month when his unorthodox life took a sudden detour. The outspoken two-time former congressman from Houston was met at the airport by federal agents holding an arrest warrant.

In his own colorful campaign literature, Stockman, 60, has portrayed himself as a gun-loving, abortion-hating activist and philanthropist who has used frequent travels abroad to deliver Christian charity and medical supplies to developing nations.

But a 28-count federal indictment handed down Wednesday describes Stockman as the head of a complex criminal conspiracy. It alleges that he and two aides collected $1.2 million from three U.S.-based foundations and individuals, laundered and misspent most of that money, spied on an unnamed opponent, accepted illegal campaign contributions, funneled money through bogus bank accounts and businesses, and failed to pay taxes on his ill-gotten gains.

Some of that money went for trips to try to “secure millions of dollars from African countries and companies operating” in Africa, the indictment says.

[…]

Jason Posey, 46, has been described as Stockman’s primary accomplice in the scheme to divert donations through companies linked by federal investigators to suburban Houston post office boxes and an array of bank accounts. He has not been arrested. Thomas Dodd, the other former staffer, pleaded guilty earlier this month to two charges related to the same conspiracy and agreed to testify as part of his plea deal.

The purpose of their conspiracy was “to unlawfully enrich themselves and to fund their political activities by fraudulently soliciting and receiving hundreds of thousands of dollars,” the indictment says.

Prosecutors say Stockman used hundreds of thousands of pilfered funds to pay campaign and credit card debts, to cover personal expenses – and to politically attack Sen. John Cornyn (R-Texas).

Stockman’s long-shot Republican primary against Cornyn was the subject of one the scams outlined in the indictment.

In February 2014, Posey solicited and received a $450,000 charitable contribution from an Illinois-based donor that was supposed to finance 800,000 mailings to Texas voters of a campaign publication resembling a “newspaper.” The mass mailings for the Senate primary were part of what Posey later swore in an affidavit was an entirely “independent election expenditure” that was handled entirely by Posey and not by Stockman, one of the candidates.

Those mailings, made to look like real newspapers, championed Stockman’s candidacy and opposed Cornyn.

Posey received the donation through a company he controlled called the Center for the American Future, but he coordinated the mass mailings directly with Stockman in violation of federal campaign finance laws, the indictment says. Stockman and Posey also sought a partial refund of the mailing costs – $214,718.51 – without the donor’s knowledge and split the money, the indictment says.

Prosecutors allege Posey used the money to pay Stockman’s Senate campaign debts and his own personal expenses, including “airfare on a flight departing the United States.”

See here for the most recent update, and here for a large sample of my Stockman archives. A lot of people have been motivated to get involved in politics this year after the Trump debacle of 2016. It was Steve Stockman who provided my motivation to get more involved in politics, after his upset (and upsetting) Congressional victory in 1994. I’ve noted before that former Congressman Nick Lampson was the first candidate I ever donated to, and the first candidate whose fundraiser I attended, back in 1996. That was at least as much about Stockman as it was about Lampson.

The thing about Stockman is that, all politics aside, he has long acted in a shady manner. Do a search of the Houston Press’ archives for Stockman stories and peruse what they were writing about him during that 1995-96 Congressional term of office (Google on “steve stockman site:houstonpress.com”, for example) to see what I mean. In doing that myself, I came across this little nugget, which shows that the past is never truly past:

The squirrelly adventures of Congressman Steve Stockman’s frat-house band of consultants who call themselves Political Won Stop seem to know no limits. The Hill, a Congress-covering weekly in the nation’s capital, first revealed that Stockman’s re-election campaign had paid more than $126,000 to the consultancy, which is owned by 26-year-old Chris Cupit and 25-year-old Jason Posey and is listed on the congressman’s campaign disclosures as having the same Whitman Way address as Stockman’s combination home and election headquarters just outside Friendswood.

Emphasis mine. The fact that Stockman has had a long association with Jason Posey is not suggestive of anything. The fact that Stockman has been involved in at least two questionable-if-not-actually-illegal ventures with Posey is. Whatever we know now, I feel confident there’s more to be uncovered.

Stockman indicted

And here the troubles begin.

Steve Stockman

Former U.S. Rep. Steve Stockman and a former congressional aide were indicted Tuesday by a federal grand jury on charges they stole hundreds of thousands of dollars from charitable foundations to fund campaigns and pay personal expenses.

Stockman, 60, and his former director of special projects, Jason Posey, 46, were charged with 28 criminal counts, including mail and wire fraud, conspiracy, making false statements to the Federal Election Commission, making excessive campaign contributions and money laundering.

Acting U.S. Attorney Abe Martinez in Houston called the indictment “a very significant case” for the office in a brief statement. “The indictment returned by the grand jury today is a significant case alleging serious violations involving use of official positions for personal gain. Violations of the public trust will not be tolerated,” he said.

The case is being jointly prosecuted by the Southern District of Texas and the Washington DC-based Public Integrity Section.

Stockman also faces a charge of filing a false tax return, and Posey is charged with falsifying a sworn statement to obstruct an investigation by federal elections officials.

[…]

Federal investigators say in the indictment that between from May 2010 and October 2014, Stockman brought in about $1.25 million in donations based on false pretenses. He then diverted nearly $285,000 donated to charitable causes to pay for his and Dodd’s personal expenses.

Stockman and Dodd also are accused of receiving $165,000 in charitable donations, which Stockman largely spent to fund his 2012 congressional campaign.

See here, here, and here for the background. Just a thought here, but defending oneself against these kinds of charges is an expensive prospect, and there were questions about how exactly Stockman was supporting himself back when he was in office. I don’t know how he’s going to pay for his lawyers, and I kind of doubt he’s going to be able to raise the money. We’ll see how it goes. The Trib has more.