John Edwards Indicted for Use of Campaign Funds in Alleged Affair Cover Up
- Posted on June 3, 2011 at 10:08am by
Billy Hallowell
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ALEIGH, N.C. (The Blaze/AP) — A federal grand jury charged two-time Democratic presidential candidate John Edwards on Friday with soliciting and covering up the secret spending of more than $925,000 to hide his mistress and their baby during the peak of his 2008 campaign for the White House.
The grand jury’s indictment in the case of USA v. Johnny Reid Edwards contained six felony counts, including conspiracy, four counts of receiving illegal campaign contributions and one count of false statements for keeping the spending off his public campaign finance reports.
The indictment said the payments were a scheme to protect Edwards’ White House ambitions. “A centerpiece of Edwards’ candidacy was his public image as a devoted family man,” the indictment said.
“Edwards knew that public revelation of the affair and the pregnancy would destroy his candidacy,” the indictment added.
The indictment and an arrest warrant were filed in Greensboro, N.C., which is in the district where his campaign was headquartered. Edwards, 57, was scheduled to make an initial appearance Friday afternoon before U.S. Magistrate Judge Patrick Auld in Winston-Salem, N.C.
Edwards attorney Gregory Craig issued a brief statement in advance of the hearing. “John Edwards will tell the court he is innocent of all charges, and will plead not guilty. He did not break the law and will mount a vigorous defense,” Craig said.
Negotiations between Edwards’ attorneys and federal prosecutors to settle on a charge to which Edwards was willing to plead guilty continued through Thursday, but proved fruitless, according to people with knowledge of the negotiations. Prosecutors had insisted on a plea to a felony, which would endanger his ability to keep his license to practice law.
If convicted, Edwards faces a maximum penalty of five years in prison and a $250,000 fine on each of the six counts. First time white collar offenders usually don’t receive prison terms in federal court, but the Justice Department typically presses for at least a short prison sentence for public officials. While Edwards was a private citizen as a candidate, he was receiving taxpayer money for his presidential campaign.
Edwards’ attorneys issued statements from campaign finance experts who argued the payments were not campaign contributions. One, former Federal Elections Commission Chairman Scott Thomas, said if the FEC had investigated it would have found the payments did not violate the law, even as a civil matter.
“A criminal prosecution of a candidate on these facts would be outside anything I would expect after decades of experience with the campaign finance laws,” Thomas said.
In recent days, his legal team also argued that the secret spending was designed to hide the affair from his wife, Elizabeth, who died of cancer in December.
Prosecutors said the spending was illegal because Edwards should have reported it on public campaign finance filings and because it exceed the $2,300 limit per person for campaign contributions.
The indictment was the culmination of a federal investigation begun by the FBI more than two years ago. The probe scoured virtually every corner of Edwards’ political career. That included his political action committees, a nonprofit and a so-called 527 independent political group. It even examined whether he did anything improper during his time in the U.S. Senate, which ended seven years ago.
But the centerpiece of the investigation has long been the hundreds of thousands of dollars privately provided by two wealthy Edwards supporters – his former campaign finance chairman Fred Baron and Rachel “Bunny” Mellon, the 100-year-old widow of banking heir Paul Mellon. That money eventually went to keep mistress Rielle Hunter and her out-of-wedlock baby in hiding in 2007 and 2008, during the apex of the Democratic nomination campaign.
The indictment cited $725,000 in payments made by Mellon and another $200,000 made by Baron. It said the money was used to pay for Hunter’s living and medical expenses and for chartered airfare, luxury hotels and nearly $60,000 in rent for a house in Santa Barbara, Calif., to keep her hidden from the public. Other than Edwards, no one was named in the indictment but the indictment’s descriptions of others make clear who they are.
Mellon sent her money through her decorator. The indictment said she listed items of furniture in the memo lines of checks – written in amounts of $10,000-$200,000 for “chairs,“ ”antique Charleston table,“ and ”book case” – to hide the true purpose. It said Baron gave an envelope with about $1,000 cash and a note that said, “Old Chinese saying: use cash, not credit cards!”
The conspiracy count accused Edwards of lying when he admitted to the affair during an interview on ABC but denied knowing about any payments. “I’ve never asked anybody to pay a dime of money, never been told that any money has been paid,” he said.
The indictment referred to Edwards’ discussions with a former employee in summer 2009 in which they prepared a statement to the media in which he would admit he was the father of Frances Quinn Hunter. A person familiar with the investigation has identified the former employee as speechwriter Wendy Button. The indictment said Edwards told her that he was aware Baron provided money to hide Hunter from the media.
“Edwards further told the employee that this was a huge issue and that for `legal and practical reasons’ it should not be mentioned in the statement they were preparing,” the indictment said. The statement Edwards eventually issued seven months later claiming paternity did not mention the money spent on Hunter.
Former campaign staffer Andrew Young, who initially claimed paternity of Hunter’s child, also has said Edwards was aware of the private financial support that helped keep the mistress satisfied and secluded.
The indictment said Edwards and Young began discussing who could provide money to support Hunter in May 2007, around the time she told the candidate she was pregnant. It says Young read Edwards a note he got from Mellon saying she was “furious” over media criticism of the candidate’s $400 haircuts.
“From now on, all haircuts, etc., that are necessary and important for his campaign – please send the bills to me,” the indictment quoted Mellon as writing. “It is a way to help our friend without government restrictions.” The indictment said Edwards and Young then solicited money from Mellon.
The case opens a new front in how the federal government oversees the flow of money around political campaigns. An attorney for Edwards said last week that the government’s case was “novel and untested” and argued that the government’s theory was wrong on both the facts and the law.
With one of Edwards’ former campaign rivals now sitting in the White House, the case includes a measure of political intrigue. Craig, who was previously White House counsel for President Barack Obama, emerged as a leading figure on Edwards‘ legal team just as Obama’s Justice Department was reviewing the case that prosecutors in North Carolina had prepared.
Meanwhile, with the backing of North Carolina’s two senators, Republican-appointed U.S. attorney George Holding stayed on the job in the Obama administration to finish the Edwards probe.
“Democracy demands that our election system be protected, and without vigorously enforced campaign finance laws, the people of this country lose their voice,” said Holding. “The U.S. attorney’s office and the Department of Justice are committed to the prosecution of individuals who abuse the very system of which they seek to become a part.”
Edwards and Hunter began their relationship in 2006, just as the 2004 Democratic vice presidential nominee was plotting a second run for the White House. She was hired to shoot behind-the-scenes video footage of the prospective candidate. Edwards‘ political action committee and a nonprofit affiliated with him each paid Hunter’s video-production firm about $100,000 for the work.
Edwards initially denied having an affair with Hunter but eventually admitted to it in the summer of 2008. He then denied being the father of her child before finally confessing last year. His wife, Elizabeth, died of cancer in December.
Young has said that Edwards agreed in 2007 to solicit money directly from Mellon. And the long-time Edwards aide, now estranged from his former boss, has said he received hundreds of thousands of dollars in checks from Mellon sent through her decorator – some hidden in boxes of chocolate.
Assistant Attorney General Lanny Breuer, head of the Justice Department’s criminal division, said, “As this indictment shows, we will not permit candidates for high office to abuse their special ability to access the coffers of their political supporters to circumvent our election laws.”
Baron’s support was even more direct. The wealthy trial lawyer said in 2008 that he helped Young and Hunter move across the country to protect them from media scrutiny. Baron, who died a few months later, said Edwards wasn’t aware of the aid, but Young has said that Edwards did know.
Young, Hunter and Baron’s wife were among many Edwards aides and supporters who were called to testify before a federal grand jury or have been interviewed by investigators.
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Comments (116)
harumph
Posted on June 3, 2011 at 11:00amScapegoat and distraction. His own party threw him under the bus when he got caught to divert attention from another who was deep into the solicitation and acceptance of illegal campaign contributions. [coughbarrycough] [coughbarrycough].
Report Post »TAXEVERYONE
Posted on May 7, 2012 at 1:42pmEdwards was also having an affair with Mellon, the 101 year old hieress ???
Report Post »Peter Quincy Taggert
Posted on June 3, 2011 at 10:59amThe conclusion I draw from this is that primping, preening, narcissistic medical malpractice trial lawyers that channel dead babies in courtroom cases aren’t good choices to run for President.
Report Post »The Gooch
Posted on June 3, 2011 at 11:08amAmen, brother. Lawyers… just can‘t get enough of ’em, can we? Brilliant to make this slime the ruling class.
Report Post »catndahat
Posted on June 3, 2011 at 10:54amThere needs to be a special prison just for liberal politicians. The only tv avail would be FOX News, only Judeo-Christian based books and media as well as The Constitution, Federalist Papers, and all conservative authors.
Lots of phys-ed, boot camp style, required to write an essay about the founding fathers every month.
I’m sure this list could be expanded…
Report Post »Warphead
Posted on June 3, 2011 at 11:03amPersonally, I would prefer they never make it to prison. They have cost the tax payers enough all ready.
Report Post »Amy
Posted on June 3, 2011 at 10:49amWho are the folks that thought this guy might make a great president?
Report Post »Warphead
Posted on June 3, 2011 at 11:01amThey are all around you. They voted for Obama as well. Make note of who they are fore they are not your neighbors but rather your enemies. Real change is coming and when it does these will be the same people who will try to steal your food, house, property and life.
Report Post »cbazan3
Posted on June 3, 2011 at 10:46amA d-bag gets indicted? Must be the first one in 50 years!
Report Post »pecosval
Posted on June 3, 2011 at 10:46amstick a fork in him—–he is DONE
Report Post »Warphead
Posted on June 3, 2011 at 10:45amThat smiling face. Just makes me want to stretch a condom over it. For everyone’s protection you know.
Report Post »barbiegirl ny
Posted on June 3, 2011 at 10:45amI hope that piece of behind was worth it, john.
Report Post »mcFirst
Posted on June 3, 2011 at 10:44amThis guy was pawned off on us as a serious candidate. Thanks Democratic leadership great job you freaks.
Report Post »thinkhard64
Posted on June 3, 2011 at 10:43amYahoo maybe tax dollars will be spent on something worth while like locking him up!!
Report Post »Warphead
Posted on June 3, 2011 at 10:42amI still see those bumber stickers for Edwards. I shake my head in true wonder as to how anyone would be so intellectually stunted as to think John Edwards is anything other than a bottom feeding douche bag. I’m sure they pushed the button for Obama, thinking he’s my guy for the White House. What a bunch of fools. Edwards, Clinton, Boxer, Reid, Obama, etc, etc, etc are not the real enemies of our country. It is the morons who put them in power, they are the true enemies of our freedom. Do not forget that and remember who they are.
Report Post »Evon22
Posted on June 3, 2011 at 10:38amThis chicken $#!T lied to everyone who would listen! He has the moral character of the devil and could have been a president of this United States. These are the people that the democorrupt party bring to the table and try to defend against any and all comers. Oh my G@D, I will never again vote for any democorrupt because each and everyone of them is the worst kind of liar. A BLACKHEARTED LIAR!!!!!!!!!!!!!!!!
Report Post »Bigliardi
Posted on June 3, 2011 at 12:50pmAnd had he become president and this stuff had surfaced, the liberals would have circled the wagons and defended him with all their might, just as they did with lying Bill…..
Report Post »searcher
Posted on June 3, 2011 at 10:26amlooks like Johnny‘s ’infidelity‘ merit badge with ’off-spring clusters’ might be revoked.
Report Post »DRB
Posted on June 3, 2011 at 10:25amHow’s those Family Values working out for ya?
Report Post »powhatan
Posted on June 3, 2011 at 10:24amwhat about Clinton…I am sure he did this also…..
Report Post »T-2
Posted on June 3, 2011 at 10:21amit’s sad that the tabloids are more credible than the main stream. makes me wonder if Elvis is still alive
Report Post »heavyduty
Posted on June 3, 2011 at 10:20amI would like to ask Mr. Edwards if that 2 minutes of pleasure is worth all the pain.
Report Post »AIDANMAN
Posted on June 3, 2011 at 10:20ammaybe he can channel a better lawyer than himself
Report Post »PatrioticAmericanDad
Posted on June 3, 2011 at 10:20amI wonder if he knows a good lawyer? He owes a debt that only God can collect. Good luck John, you are going to need it!
Report Post »walker1812
Posted on June 3, 2011 at 10:20amEdwards is just another Weiner!
Report Post »fastfwd
Posted on June 3, 2011 at 10:19amAnd the Media that helped cover it up should be charged with crimes also ! “ Nothing to see here folks move along ” !
Report Post »Redrivermma
Posted on June 3, 2011 at 10:16amShould be one of a long list of indictments.
Report Post »showmerancher
Posted on June 3, 2011 at 10:16amHe’s a Washington politician; he’s corrupt… so what’s the news in this????
Report Post »heavyduty
Posted on June 3, 2011 at 10:19amJust like Weiner, he got played. Like one guy told me the other day. To be such a smart man, he sure done a stupid thing.
Report Post »Vickie Dhaene
Posted on June 3, 2011 at 10:14amI am glad to see this. We need to keep pushing back against these “Lying and Crooked Politicians” one at a time. Keep it up America!!
Report Post »RepubliCorp
Posted on June 4, 2011 at 11:27pm“Lying and Crooked Politicians” Demorat or Repubic…. We dont need people like this
Report Post »Mil-Dot
Posted on June 5, 2011 at 12:23amHe will walk like a dog. Only repub politicians go to jail for wrong doing. Never the Dems.
Report Post »TRONINTHEMORNING
Posted on June 3, 2011 at 10:12amAhhh, must be rough to be that guy. Have fun, Mr. Edwards.
Report Post »biohazard23
Posted on June 3, 2011 at 10:16amCouldn’t happen to a better guy. What a bottom feeder.
Report Post »Snowleopard {gallery of cat folks}
Posted on June 3, 2011 at 10:31amLifesucking Leeches of Lawerville and Political Pollywogs Puggists all are bottomfeeders.
Report Post »ozchambers
Posted on June 3, 2011 at 10:48amCome on…..look at the picture of that guy. How can you not trust someone like that?
Report Post »drattastic
Posted on June 3, 2011 at 10:51amCarma is finally catching up with this tool.
Report Post »HillBillySam1
Posted on June 3, 2011 at 10:53amJust another classic example of being “screwed-over by a lousy lawyer”…..oh, wait…..he IS one……never mind then……
Report Post »D0ntTread0nMe
Posted on June 3, 2011 at 10:58amOh good looks like they finally indicted the ham sandwich they are always talking about.
Report Post »http://www.mythoughtsfromthemiddle.blogspot.com
joe conservative
Posted on June 3, 2011 at 11:20amHe’ll end up walking away from this with little to no punishment. As for politics, this should make him a hero with the left. http://www.youtube.com/watch?v=lUA3iQjLH4g No wonder our society is in such decline.
Report Post »Anonymous T. Irrelevant
Posted on June 3, 2011 at 11:30amJust watch. He will plea bargain to have his law license stripped, then become a commentator on one of the MSM news shows. These guys never go to jail. They will always be able to squirm and wiggle their way out of everything.
Report Post »Drum Man
Posted on June 3, 2011 at 11:33amOh…. poor, poor John. I feel so sorry…. oh wait. Nope. Nothing but contempt for you. And to think you wanted to lead us. When you were being led by little John and the Twins.
Report Post »grandmaof5
Posted on June 3, 2011 at 11:52amI have heard surprise that the Justice Dept would indict John Edwards – he is white so, according to Eric Holder, that would be enough reason. But that aside, Elizabeth is getting the last laugh!
Report Post »CatB
Posted on June 3, 2011 at 11:57amJust think how close this guy got to the White House .. because the MSM refused to investigate him …look who we did get in the White House because the MSM STILL refuse to investigate Obama.
As for Edwards ..this is a “classic” ENJOY!
http://www.youtube.com/watch?v=7kCAFkfFLQQ
TEA!
Another story broken by the National Enquirer and NOT THE MSM!
Report Post »GETLIFE
Posted on June 3, 2011 at 12:36pmLet’s see, we have
John Edwards, the original Ken doll,
Report Post »Fareed, the Mid-East Expert Robotic Ken doll,
and Van Jones, the Black Communist Ken Doll, available in a multi-accent model: Shouting Black Brother, Whispering Minister, and Jones the Presidential Advisor.
grandmaof5
Posted on June 3, 2011 at 1:23pmWhatever my first sentence was supposed to be, apparently I lost it in mid-thought.
Report Post »Therightsofbilly
Posted on June 3, 2011 at 1:55pmIt seems that John Kerry is not a very good judge of character.
Thank you GWB for keeping that pair where they belong. On the outside looking in.
But maybe Edwards will soon be on the inside looking out?
Report Post »grandma7
Posted on June 3, 2011 at 3:13pm=o}
Report Post »Therightsofbilly
Posted on June 3, 2011 at 3:30pmA Golden Oldie
http://www.youtube.com/watch?v=7kCAFkfFLQQ
Report Post »avenger
Posted on June 3, 2011 at 7:03pmtypical lib piece of shet…
Report Post »one yrs. food ration like Glenn says..
Posted on June 4, 2011 at 6:42amSheesh ,if they only go after obama like they go after edwards the U,S would be a different country right now…
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