George Santos' campaign fund has $562 in cash, nearly $800,000 in debt, records show

ALBANY — Former Rep. George Santos’ congressional campaign has $562 in cash on hand, but also has $786,932 in debt, federal records show.

The debt includes $156,932 owed to Republican workers and campaign companies and $630,000 in loans he said he made to the campaign. In announcing a federal indictment in October against Santos, U.S. Attorney Breon Peace called the loans "nonexistent" and fabricated.

Santos, who represented parts of Nassau County and Queens for 11 months, pleaded guilty Aug. 19 in federal court to wire fraud and aggravated identity theft. He faces a minimum of 2 years in federal prison under the identity theft charge and as much as 20 years in prison for wire fraud. The court says he owes donors $373,749 in restitution.

Santos, 36, rode a red wave on Long Island in 2022 to win an open seat in the 3rd Congressional District. His descent began shortly thereafter when The New York Times reported that Santos fabricated parts of his biography and professional history. On Dec. 1, the House of Representatives expelled him after finding he used campaign funds to pay for personal expenses.

Three days after his expulsion, his campaign paid a $3,053 tab for a meal at the Capitol Hill Club, a private club for Republicans, according to the July 30 filing with the Federal Elections Commission.

This year, records examined by Newsday show his campaign paid Santos $85,000 to reimburse part of the loans the U.S. attorney called nonexistent, while most other creditors received no partial payments.

The FEC has no power to force Santos’ campaign to pay its debt. Federal election law allows for a campaign to sell its assets and mount a fundraising effort to pay debts, but records show no such efforts are underway.

A candidate may forgive loans made to his or her campaign, but that requires additional filings, according to FEC rules.

The Santos campaign representative who signed the FEC record was Jason D. Boles, of RTA Strategy of Alpharetta, Georgia. The national company has provided services to campaigns, including those associated with Make America Great Again candidates, according to FEC records. Santos hired Boles in May 2023 as his treasurer. Boles had once been the campaign treasurer for Rep. Marjorie Taylor Greene (R-Ga.).

A request for comment made to Boles wasn’t returned. Rick Thompson, founder and CEO of RTA, referred questions to Boles.

Among the creditors are Gabrielle Lipsky, of Dix Hills, who is owed $4,000 since the summer of 2023 for "campaign management," the records show. Lipsky didn’t respond to a request for comment.

Another one-time Santos top staffer, former chief of staff Charles Lovett, of Sheffield, Ohio, is owed $15,000, according to the FEC records. He didn’t respond to a request for comment.

The campaign also still owes $10,000 to what he once said was his favorite Italian restaurant, Il Bacco in Little Neck, Queens. Federal records said the bill is for "election night catering." No manager or owner from the restaurant was available to comment.

The Santos campaign also owes Kevin Smith, of Lindenhurst, $27,500 since the fall of 2023, FEC records show, for "field operations" and a "win bonus." Smith didn’t respond to a request for comment.

Santos’ campaign owes $22,313 to law firms in Washington, D.C., and in Texas since his first indictment on May 23, 2023, through June 30, FEC records show. There was no listing for campaign payments to his criminal defense attorney, Joe Murray.

Santos’ campaign also paid WINRED Technical Services of Virginia, a fundraiser for Republicans and conservatives, fees and charges totaling $12,136 since his indictment.

From Jan. 1, 2023, to June 30, 2024, the Santos campaign also refunded $29,400 in contributions.

FEC rules allow campaign funds to be spent on "any expense that results from campaign or officeholder activity."

However, the FEC also said it "decides on a case-by-case basis through the advisory opinion process whether legal expenses are considered ‘personal use’ and thus are expenses that a candidate may not pay for using campaign funds."

The FEC wouldn’t comment on Santos’ situation.

FEC rules state that certain expenses including meals are permitted "on a case-by-case basis" for spending "in connection with his or her campaign activities ... However, using campaign funds to pay for a candidate’s living expenses is prohibited."

Previous federal records showed Santos’ campaign spent much of its contributions on expensive restaurants and luxury hotels around the country, often to meet with prospective donors.

The FEC allows "winding-down costs" for six months after an officeholder leaves office. Winding-down costs include moving expenses, payments to staff, gifts, donations to charity, and donations to other political committees and "any other lawful purpose, unless such use is personal use ... using campaign funds for personal use is prohibited."

The debt, which isn’t uncommon for campaigns, provides a caution, said Blair Horner, executive director of the New York Public Interest Research Group.

"When it comes to making contributions to, or working for, a political campaign, people should always remember it’s caveat emptor," or let the buyer beware, Horner said.

By Michael Gormley

michael.gormley@newsday.com@GormleyAlbany

Michael Gormley has worked for Newsday since 2013, covering state government, politics and issues. He has covered Albany since 2001.