HOUSTON, TX — A staffer to former Congressman Steve Stockman (R-TX) pleaded guilty in federal court to his role in an extensive fraud and money laundering scheme. The criminal effort resulted in the theft of hundreds of thousands of dollars from charitable foundations and executives. He then used the money to pay personal expenses and fund Stockman’s political campaign.
Jason T. Posey, 46, pleaded guilty to one count of mail fraud, one count of wire fraud, and one count of money laundering while appearing before Southern District of Texas District Court Judge Lee H. Rosenthal, according to information obtained from the U.S. Attorney’s Office by Breitbart Texas. He will be sentenced in March 2018.
While serving as director of special projects and as treasurer of Stockman’s campaign, Posey admitted that he and another staffer, Thomas Dodd, 38, illegally funneled $15,000 of charitable proceeds into Stockman’s campaign bank account. They then filed Federal Election Commission reports that falsely stated the money came from their parents and from the staffers themselves. Posey stated Stockman directed Posey to send a letter to a donor to a charitable foundation and falsely claim that the donor’s $350,000 donation went to the charitable foundation. The funds were actually used for other purposes, including funding Stockman’s political campaign.
Posey further claimed that he and Stockman raised another $450,571.65 to support Stockman’s primary challenge to incumbent Senator John Cornyn in 2014, court records state. He said they falsely represented to the donor that the funds would be used in support of a legitimate expenditure by an advocacy group that he created. Instead, Posey said the funds went, at Stockman’s direction, to pay for the production and mailing of hundreds of thousands of copies of Stockman campaign literature. He admitted falsifying the FEC reports to conceal the scheme.
Court records obtained by Breitbart Texas from Harris County District Clerk Chris Daniel’s office reveal that Posey served one year on probation following a plea agreement on a charge of evading arrest in a motor vehicle. He received deferred adjudication in the 1996 misdemeanor case.
The FBI arrested Stockman, a former two-term congressman, and delivered him to a federal courthouse in handcuffs in March, Breitbart News reported. Authorities stated that Stockman obtained a $350,000 donation from an unnamed businessman and told him the money would be used for a Las Vegas-based charity, Life Without Limits. Instead, prosecutors stated that the money was used to pay for his personal expenses and make contributions to his political campaign account.
Just after Stockman’s arrest, Mr. Dodd pleaded guilty to conspiracy to commit mail and wire fraud and money laundering for his role in the scheme. on January 29, 2018.
Stockman’s trial is scheduled to begin on January 29, 2018.