North Carolina Sen. Richard Burr’s political committees have paid nearly $200,000 over the last 16 years to his in-laws and a firm employing his son for office rent and administrative services.
The previously undisclosed arrangements appear to be legal, but they could provide campaign fodder for Burr’s Democratic challenger, Deborah Ross.
From 2011 through 2014, Burr’s campaign reported renting office space for $600 to $625 per month – for a total of $29,550 – from the Brand Intelligence Group, an internet marketing research startup. Burr’s son, Tyler, was listed as a vice president in corporate filings until last year.
Jesse Hunt, a spokesman for Burr’s campaign, said the payments were legal and were reported to the Federal Election Commission.
FEC rules give congressional candidates wide latitude over how they spend their campaign funds, permitting them to hire spouses or other relatives so long as bona fide services are provided at fair market rates. In the past, the commission has ruled that a candidate could even lease a portion of his residence to his campaign. It’s permissible as long as the candidate doesn’t convert campaign money to personal use by paying rates that exceed fair market value.
Burr had even greater legal leeway in the use of funds collected by his separate leadership political action committee, which similarly collects donations but not directly for his re-election. That committee paid his wife’s sister for administrative work and leased space from her husband.
Since 2000, the committee has paid $88,724, at the rate of $464.10 per month, to his sister-in-law, Mary Fauth. She has served as the treasurer of his leadership PAC, the Next Century Fund.
Over that same span, the Next Century Fund also has paid $400 monthly in rent and utilities, totaling $75,600, to Fauth’s husband, Gerald W. Fauth III, a lobbyist based in Alexandria, Virginia, across the Potomac River from the nation’s capital. Fauth’s firm, G.W. Fauth & Associates Inc., describes itself as “a transportation consulting firm specializing in economic, regulatory, public policy and legislative issues.”
Mary Fauth could not be reached for comment. Burr’s Senate office is prohibited from discussing matters related to his political action committees.
The FEC’s 2013 legislative recommendations to Congress noted that the Federal Election Campaign Act never forbade members of Congress from spending their leadership PAC money for personal benefit.
The commission recommended that Congress amend the law to prohibit all independent PACs from using donated money for expenses that would exist regardless of the committee’s activities. Congress has taken no action on the recommendation.
Greg Gordon: 202-383-6152, @greggordon2
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