A former vendor for multiple PACs, campaigns, and nonprofit organizations has pleaded guilty to steering more than $1 million away from political entities and using the funds for purchasing the likes of fine jewelry, vacation homes, and luxury vehicles.
Samuel K. Pate, the former owner and operator of Virginia-based Stonewood Marketing, appeared before a U.S. District Court on Monday and pleaded guilty to three charges of mail fraud for stealing more than $1.1 million worth of donations and contributions intended for organizations and committees, the Justice Department announced.
Pate oversaw record keeping and deposits for Republican groups that included the PACs of Senate Majority Leader Mitch McConnell (R., Ky.) and Sen. David Vitter (R., La.), Christians in Defense of Israel, and the Republican Majority Campaign.
"Samuel Pate, while working in a position of trust for political campaigns, political action committees and non-profit groups, stole more than a million dollars," stated U.S. Attorney John Kuhn. "These organizations—as well as earnest citizens trying to participate in the political process through contributions—were unknowingly victimized by Pate’s selfishness and avarice."
From February 2008 to November 2014, Pate was responsible for diverting client funds from their intended accounts and transferring money to bank accounts he personally operated.
According to the DOJ, Pate stole a total of $1,124,274.35 from various political PACs, campaigns, and non-profits that included: $118,294 from the McConnell Senate Committee; $319,691.09 from Christians in Defense of Israel; $30,614 from the House Conservative Fund; $480,821.26 from Vitter for Senate (La.); $153,445 from Catholic Advocates; $150 from Jewish Voice; $1,025 from Reagan Action; $2,098 from the Ten Commandments Commission; $11,300 from the Republican Majority Campaign; $2,280 from the Policy Issues Institute; $100 from Defund Obamacare; $100 from the National Republican Senatorial Committee; $6 from Randall Terry for Senate; $990 from Freedom Defense Advocates; $1,150 from Frontline Ministries; $2,020 from the Christian Anti-Defamation League; and $190 from Live Prayer.
After Pate transferred the contributions and donations into his accounts, he then used the money to purchase vacation condominiums in Myrtle Beach, S.C., pay off credit card bills, and buy vehicles and diamonds, among other purchases.
"Mr. Pate intentionally diverted campaign contributions and political action committee donations for his own personal financial gain. As such, Mr. Pate's actions subverted the political process by denying individuals their right to participate in the political process," stated Howard S. Marshall. "In a democracy, there is simply no greater right than to elect our political leaders. Anyone attempting to corrupt the political process, in this way or any other, will be investigated as a top priority for our office."
The United States has collected more than $508,928.00 from Pate by seizing his bank accounts and selling forfeited property he purchased with the stolen funds. The money collected from Pate will be returned to the organizations and committees who fell victim to the fraud scheme. If the groups are currently defunct, the money will be returned to the contributor.
If Pate is convicted, he faces up to 60 years behind bars, a $750,000 fine, and nine years of supervised release.