Jeffrey Thompson. Photo from CSPAN.An associate of the former D.C. contractor Jeff Thompson pleaded guilty today to violating campaign finance laws in what federal prosecutors call a “straw donor” scheme. Lee C. Calhoun, an employee of the accounting firm formerly owned by Thompson, said in U.S. District Court that he used his name and those of his relatives to mask political donations allegedly made by his boss.
The scheme took place over a span of nine years, according to court documents released Thursday. The charge against Calhoun, filed last week by Ron Machen, the U.S. attorney for the District of Columbia, is part of a wider investigation into political corruption in local D.C. politics.
Although Thompson is not named explicitly in court documents—the statement of offense against Calhoun references “Executive A”—Calhoun is in a management position at Bazilio Cobb Associates, which was formerly called Thompson, Cobb, Bazilio & Associates before Thompson sold his 78 percent stake in it.
Court documents state that Calhoun wrote more than $150,000 in donations to federal and District candidates between 2002 and 2011 using his name and those of family members, with the knowledge that “Executive A” would reimburse him for the expenses. The Washington Post reports that District campaign finance reports show that Calhoun, 65, is one of several Thompson associates who wrote multiple campaign donations on the same day.
“For a decade, the firm and its CEO made illegal campaign contributions through straw donors to an array of federal and D.C. politicians,” Machen said in a news release following Calhouns plea. “The firm used a special accounting system to keep track of the thousands and thousands of dollars it was plowing into political campaigns.”
Thompson is also at the center of an federal investigation into a “shadow campaign” waged on behalf of Mayor Vince Gray’s 2010 campaign, in which $653,000 was spent but not reported. While Thompson is the subject of a grand jury investigation, he has not been charged with any crime.
As part of his plea, Calhoun, who lives in Silver Spring, agreed to cooperate with the investigation as it continues. He will appear in court next on Sept. 26.
