Exclusive: Trump using campaign, RNC funds to pay legal bills from Russia probe - sources

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Exclusive: Trump using campaign, RNC funds to pay legal bills from Russia probe - sources

By Karen Freifeld and Ginger Gibson

 

U.S. President Donald Trump at a luncheon hosted by the Secretary General of the United Nations in New York, U.S., September 19, 2017. REUTERS/Kevin Lamarque

 

NEW YORK (Reuters) - U.S. President Donald Trump is using money donated to his reelection campaign and the Republican National Committee to pay for his lawyers in the probe of alleged Russian interference in the U.S. election, according to two people familiar with the matter.

 

The U.S. Federal Election Commission allows the use of private campaign funds to pay legal bills arising from being a candidate or elected official.

 

While previous presidential campaigns have used these funds to pay for routine legal matters such as ballot access disputes and compliance requirements, Trump would be the first U.S. president in the modern campaign finance era to use such funds to cover the costs of responding to a criminal probe, said election law experts.

 

One person familiar with the matter said the first payments, the amount of which Reuters could not determine, has already been made and would be disclosed in public filings. The person did not explain how the costs would be allocated between the campaign and the RNC.

 

The Republican National Committee is expected to make its August spending public on Wednesday, and the Trump campaign is due for another disclosure on Oct. 15.

 

John Dowd, Trump’s lead lawyer, declined to say how the president's legal bills were being paid, adding: "That's none of your business."

 

A spokesperson for the RNC declined to comment, but said the committee has already paid unspecified, non-Russia related litigation expenses for the campaign. The RNC has an existing legal defence fund which has been used mainly for Election Day recounts and other routine legal matters for candidates, the spokesperson said.

 

Special counsel Robert Mueller is looking at possible collusion between the Trump campaign and Russia in last year's election, and whether Trump may have obstructed justice by firing FBI Director James Comey, among other actions.

 

Moscow has denied meddling in the U.S. election, and Trump denies any collusion or obstruction.

 

Reuters could not determine how large a legal bill Trump has incurred to date from his lawyers on the Mueller probe. Trump hired his longtime New York lawyer Marc Kasowitz to head his defence team in May, but Kasowitz stepped down in July, with Dowd taking over the lead role, according to a people familiar.

 

Trump is also being represented by constitutional lawyer Jay Sekulow. Special White House counsel Ty Cobb, who is a salaried staff member, is also working on the matter.

 

The Trump campaign has paid law firm Jones Day almost $4 million, according to campaign filings, mostly for routine campaign legal expenses like ballot access disputes, vendor contracts, human resources and compliance with state and federal laws. It has also responded to Russia-related inquiries on behalf of the campaign by, for example, providing documents to Congress.

 

FOLLOWING OBAMA'S LEAD

 

The reason Trump is able to tap into his campaign funds for legal expenses is because for the past decade, presidential candidates have abandoned public financing for their campaigns. Instead, they have built networks that collect millions of dollars from private donors, a move that comes with less restrictions on how the money is spent.

 

Barack Obama in 2008 was the first to eschew public financing for his campaign, and all the major-party candidates followed suit in 2012 and 2016, campaign filings show.

 

Trump also filed for reelection the day he took office in January, two years earlier than any previous president, ensuring a fund of millions in campaign cash would remain at his disposal.

 

According to its most recent filing to the Federal Election Commission, Donald J. Trump for President Inc had almost $12 million on hand by the end of June, an increase of over $4 million since January.

 

Adav Noti, a senior director at the Campaign Legal Center, a watchdog group that describes itself as nonpartisan, said public campaign funds - as opposed to the private funds Trump has raised - cannot generally be used for expenses arising from criminal investigations, or for any expenses that arise after the campaign is over.

 

President Bill Clinton, who ran two publicly funded campaigns, had supporters start legal defence funds and used his own insurance to help pay legal bills during the Whitewater investigation. He still wound up with millions of dollars in personal debt which he paid off through speaking fees he earned once he left office.

 

Hillary Clinton, who ran a privately funded campaign, paid millions to campaign lawyers at Perkins Coie to handle routine legal matters, according to campaign filings. Her campaign made no payments to the Washington law firm Williams & Connolly, which represented her in the probes of her use of a private email server when she was U.S. Secretary of State.

 

Her lawyer, David Kendall of Williams & Connolly, declined to comment on how he was paid.

 

Campaigns also have discretion to pay legal fees for others besides the president.

 

According to a July filing, the Trump campaign paid $50,000 to the law firm of Alan Futerfas, who is representing Donald Trump Jr. Futerfas did not respond for requests for comment.

 

A number of other current and former Trump staffers have also recently hired lawyers.

 

(Reporting By Karen Freifeld in New York and Ginger Gibson in Washington; Additional reporting by Grant Smith in Washington; Editing by Anthony Lin and Edward Tobin)

 

-- © Copyright Reuters 2017-09-20

[Samui Bodoh]

Why would anyone be surprised?

 

He already used other people's money for "his" charitable contributions (when he actually made them). Why wouldn't he use other people's money for his legal defense?

 

I have said it before and (unfortunately) need to say it again;

 

Donald Trump is an ever-expanding cloud of toxic waste that defiles everything it touches.

 

God help us all

 

[SABloke]

Love him or hate him, according to the article he's doing nothing wrong, so much ado about nothing. 

[habanero]

Not your money or the taxpayers money, so why do you care?

[craigt3365]

52 minutes ago, SABloke said:

Love him or hate him, according to the article he's doing nothing wrong, so much ado about nothing. 

But he campaigned on draining the swamp.  He's filled it up and getting rich off it.  He's got the money.  Man up.  Pay for it.

[craigt3365]

48 minutes ago, habanero said:

Not your money or the taxpayers money, so why do you care?

they are "non-profit" and tax exempt.  So yes, it does have an impact on taxpayers.  Especially when money is used for purposes like this. 

[habanero]

11 minutes ago, craigt3365 said:

they are "non-profit" and tax exempt.  So yes, it does have an impact on taxpayers.  Especially when money is used for purposes like this. 

The money was by donations. So, it has nothing to do with the taxpayers. Even if you elected to give $1.00 when you filed your taxes, it is not taxpayer money. It is donation ONLY.  If they went by your reasoning then all donations given to the hurricane victims would be on the taxpayers back, which it isn't .

 Apparently you have a problem with the American Red Cross. They are non profit and tax exempt......As are churches................

 

Edited September 20, 2017 by habanero

[craigt3365]

8 minutes ago, habanero said:

The money was by donations. So, it has nothing to do with the taxpayers. Even if you elected to give $1.00 when you filed your taxes, it is not taxpayer money. It is donation ONLY.  If they went by your reasoning then all donations given to the hurricane victims would be on the taxpayers back, which it isn't .

 Apparently you have a problem with the American Red Cross. They are non profit and tax exempt......As are churches................

 

Tax free donations.  Which means as a taxpayer, I'm helping to fund that organization.  And we all know how many loopholes there are for donating to non profit organizations.  It's crazy.

 

Yes, I'm against donating to churches and the American Red Cross.  Remember the scandal when it was revealed how much the director was making?  Some 25% of their donations go to fund raising and overhead.  They are very opaque when it comes to reporting their financial details.

 

http://www.npr.org/2016/06/16/482020436/senators-report-finds-fundamental-concerns-about-red-cross-finances

 

I've got a friend working for a church now.  He says give him a small amount of money and he'll work up a very big deduction for my taxes.  I'll pass....

[ilostmypassword]

1 hour ago, craigt3365 said:

Tax free donations.  Which means as a taxpayer, I'm helping to fund that organization.  And we all know how many loopholes there are for donating to non profit organizations.  It's crazy.

 

Yes, I'm against donating to churches and the American Red Cross.  Remember the scandal when it was revealed how much the director was making?  Some 25% of their donations go to fund raising and overhead.  They are very opaque when it comes to reporting their financial details.

 

http://www.npr.org/2016/06/16/482020436/senators-report-finds-fundamental-concerns-about-red-cross-finances

 

I've got a friend working for a church now.  He says give him a small amount of money and he'll work up a very big deduction for my taxes.  I'll pass....

Political donations do not qualify as charitable deductions. And political campaigns themselves are also subject to taxation.

[Katipo]

2 hours ago, SABloke said:

Love him or hate him, according to the article he's doing nothing wrong, so much ado about nothing. 

Not doing anything 'legally' wrong..... morally however, well that's another story.

 

And if he is found guilty of the charges, all hell will break loose. 'Murica.

[craigt3365]

17 minutes ago, ilostmypassword said:

Political donations do not qualify as charitable deductions. And political campaigns themselves are also subject to taxation.

I can donate on my 1040 to a political party tax free.  Edit: to the campaign fund.

 

Edited September 20, 2017 by craigt3365

[ilostmypassword]

Just now, craigt3365 said:

I can donate on my 1040 to a political party tax free.

You must have a very special 1040. Or maybe you should tell turbo tax or the IRS that they've got it wrong.

 

In addition to showing your support by voting in the 2016 election, you may have also chosen to make a financial contribution to your candidate of choice during their campaign. Though giving money to your candidate of choice is a great way to get involved in civic discourse, political donations are not tax deductible. According to the IRS:

You can’t deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. 

https://blog.turbotax.intuit.com/tax-deductions-and-credits-2/are-your-political-campaign-contributions-tax-deductible-11380/

No Debate: You Can't Deduct Political Contributions!

https://www.forbes.com/sites/robertwood/2012/10/03/no-debate-you-cant-deduct-political-contributions/#764e1d276ce8

[craigt3365]

5 minutes ago, ilostmypassword said:

You must have a very special 1040. Or maybe you should tell turbo tax or the IRS that they've got it wrong.

 

In addition to showing your support by voting in the 2016 election, you may have also chosen to make a financial contribution to your candidate of choice during their campaign. Though giving money to your candidate of choice is a great way to get involved in civic discourse, political donations are not tax deductible. According to the IRS:

You can’t deduct contributions made to a political candidate, a campaign committee, or a newsletter fund. 

https://blog.turbotax.intuit.com/tax-deductions-and-credits-2/are-your-political-campaign-contributions-tax-deductible-11380/

No Debate: You Can't Deduct Political Contributions!

https://www.forbes.com/sites/robertwood/2012/10/03/no-debate-you-cant-deduct-political-contributions/#764e1d276ce8

I guess unless you live in these 4 states. LOL

 

http://time.com/money/4255774/tax-credits-campaign-contributions/

 

And of course there's this loop hole.  As there always are.

https://www.thebalance.com/can-i-deduct-political-and-lobbying-expenses-398959

 

Quote

 

One Small Loophole

You might be able to take advantage of this small loophole in the "no deductions for political stuff" decree. Your business may be able to deduct up to $2,000 per year in expenses to influence local legislation (state, county, or city).

 

 

[ilostmypassword]

7 minutes ago, craigt3365 said:

I guess unless you live in these 4 states. LOL

 

http://time.com/money/4255774/tax-credits-campaign-contributions/

 

And of course there's this loop hole.  As there always are.

https://www.thebalance.com/can-i-deduct-political-and-lobbying-expenses-398959

 

 

And what exactly do state tax deductions have to do with the 1040 report as you claimed?

 

And as for you other link it rules out virtually all tax deductions for political contributions except possibly this one and even that is iffy according to this website:

One Small Loophole

You might be able to take advantage of this small loophole in the "no deductions for political stuff" decree. Your business may be able to deduct up to $2,000 per year in expenses to influence local legislation (state, county, or city). But this doesn't include deductions for hiring a lobbyist to do the influencing. 

http://time.com/money/4255774/tax-credits-campaign-contributions/

 

You're really reaching. Ludicrous.

And let's not forgot your original claim that the contributions to Trumps private campaign fund were tax deductible. That's clearly false.

Edited September 20, 2017 by ilostmypassword

[zaphod reborn]

It seems that Mueller's investigation is more focused on money laundering (upcoming Manafort indictment), so why are thay giving Trump a pass on using campaign funds for his legal defense?

[selftaopath]

1 hour ago, zaphod reborn said:

It seems that Mueller's investigation is more focused on money laundering (upcoming Manafort indictment), so why are thay giving Trump a pass on using campaign funds for his legal defense?

On MSNBC Rachel Maddow show this am they said while it's not illegal it's immoral, and no other POTUS has behaved like this one i.e. behaving legal but immoral. He is a despicable human being. I hope he is gone gone gone soon. 

[dunroaming]

6 hours ago, Katipo said:

Not doing anything 'legally' wrong..... morally however, well that's another story.

 

And if he is found guilty of the charges, all hell will break loose. 'Murica.

Quite right.  It is not a matter of legality as much as the morality question.  Then again with Trump nobody expects him to do anything moral at all.  Better to replace the word morality with moronity.

 

[Si Thea01]

12 hours ago, SABloke said:

Love him or hate him, according to the article he's doing nothing wrong, so much ado about nothing. 

Give them a break, you know they have to find something else to whine about given everything else has fallen over.  And you know you must believe what is alleged as it has come from, gee, more unidentified sources.      

[dunroaming]

28 minutes ago, Si Thea01 said:

Give them a break, you know they have to find something else to whine about given everything else has fallen over.  And you know you must believe what is alleged as it has come from, gee, more unidentified sources.      

Check all the news and media sources, it's all over them.

[ilostmypassword]

Remember when Trump claimed he was going to finance his campaign by himself so he wouldn't be obliged to special interests?

Edited September 20, 2017 by ilostmypassword

[Si Thea01]

7 hours ago, dunroaming said:

Check all the news and media sources, it's all over them.

So does not make it true. Remember the old saying of believe nothing of what you hear and only half of what you see. 

[Credo]

37 minutes ago, Si Thea01 said:

So does not make it true. Remember the old saying of believe nothing of what you hear and only half of what you see. 

Well, we know for sure that Denial isn't just a river in Egypt.   

[selftaopath]

7 hours ago, ilostmypassword said:

Remember when Trump claimed he was going to finance his campaign by himself so he wouldn't be obliged to special interests?

Yea and only when 45's lips are moving is he lying.

[Si Thea01]

4 hours ago, Credo said:

Well, we know for sure that Denial isn't just a river in Egypt.   

And you're sure of this?