The city of Houston allows candidates to loan money to their campaigns, but they are limited on how much can be repaid. Texas has no limitations on loans, and neither does Harris County. Maybe they should.
The
campaign finance reports of Harris County District Clerk Chris Daniel has to be one of the strangest I have ever seen, and I have seen a lot. Unlike Harris County Commissioner Gerry Eversole who used his
donations for personal items like antique western chaps, and pistols, Daniel loaned himself hundreds of thousands of dollars in order to repay himself hundreds of thousands of dollars.
It's almost as if he was attempting, awkwardly, to hide money from the IRS, or launder donations, which doesn't make sense, or cents. Or maybe it is just a simple case of complicated stupidity.
Summary:
- Daniel raised only $9,200 in cash throughout the campaign
- He loaned a total of $199,100 to his campaign including a $82,500 loan to "Friends of Chris Daniel PAC" which then donated the $82,500 to his campaign
- Friends of Chris Daniel had only 1 donor - Chris Daniel
- His campaign repaid $121,600 to Chris Daniel, $5000 over what he had loaned the campaign.
- He paid over $12,000 for legal bills (for what?)
Strange Donations and loans:
It was
noted prior to the election that Daniel had started his campaign with a $29,100 loan to himself then repaid the loan after receiving $29,100 from his mother and sister ($20,000 and $9,100.)
In December - December 31 to be exact (months after the election) - Daniel loaned Friends of Chris Daniel (FOCD) $82,500 which then, on the same day, donated $82,500 to the Chris Daniel campaign. Daniel later used this donation (his money) to repay himself for all the loans he had previously made to his campaign. The $82,500 loan to FOCD is still outstanding and his campaign account has a $0 cash on hand balance.
Friends of Chris Daniel PAC
FOCD received one loan from Chris Daniel for $82,500 on 12/31/2010. They also received one donation for $1150.34 from Chris Daniel. FCOD donated this loan to the Chris Daniel campaign.
Money shuffle and account padding:
None of this makes any cents. Under the strict ethics rules (sic) of Harris County, candidates can lend an unlimited amount of money to their campaigns. Chris did just that, but it is strange that he would use another PAC to funnel a loan right back into his own campaign account just to pay his other loans off. It is confusing and just plain strange.
Besides trying to hide money, maybe he was padding his account by making it look like he was raising a lot of money and spending a lot also. Here is a summary of his activities by report. Maybe someone can make some cents out of this. (Please hurry, I am reusing the sense/cents gimmick way to much.)
Report 01-15-2010
- Loaned himself $14,100
- Received $1050 in donations
- Spent $6890.04
Report 02-1-2010
- Loaned himself $15,000 (total in unpaid loans: $29,100)
- Received $5000 in in-kind donations
- Spent $4237.59
Report 01-11-2010 (strange one)
- Loaned himself $20,000 (total in unpaid loans $20,000)
- Received $30,300 in donations including $29,100 from his mom ($20,000) and his sister ($9100) ($29,100 total)
- Repaid his $29,100 loan to himself
- Spent $45,989.88 (including the $29,100 for his loan)
Report 10-4-2010
- Loaned himself $5000 (total in unpaid loans $25,000)
- Received 4802.33 in donations
- Spent $13,419.45
Report 10-25-2010
- Total of $30,000 in loans. ($5000 added to the total, but no loan was listed)
- Received $2150 in donations
- Spent $4265.31
Report 1-18-2010 (Period covering 10-24-2010 – 12-31-2010
- Loaned himself $62,500 12/1/2010 (after the election) (Total in unpaid loans $92,500)
- Repaid his $62,500 loan to himself (12/31/2010) (Total in unpaid loans $30,000)
- Repaid his loan balance of $30,000 to himself (Total in unpaid Loans $0)
- Received $87,275 including a $82,500 donation from Friends of Chris Daniel on 12/31/2010
- Paid over $12,899.14 for legal bills
- Donated 1150.34 to FOCD
- Spent $145,318.87 (includes the $92,500 in loans)
Friends of Chris Daniel PAC
- Received one loan from Chris Daniel for $82,500 on 12/31/2010
- Received one donation for $1150.34
- Donated the $82,5000 from Chris Daniel to the Chris Daniel campaign on 12/31/2010