Friday, June 11, 2010

McCain Urged to Establish Fund for Ponzi Victims Whose Money Ended Up Financing His Campaign

Sen. John McCain, R-Ariz., right, talks to supporters as he was joined by former Massachusetts Gov. Mitt Romney at a town hall meeting Friday, June 4, 2010, in Mesa, Ariz. McCain is facing a primary challenge from former Republican Rep. J.D. Hayworth in August.
(AP Photo/Ross D. Franklin)


Sen. John McCain should immediately establish a fund for the victims of his largest contributor, Scott Rothstein, who this week was sentenced to 50 years in prison for running an elaborate $1.2 billion Ponzi scheme.

The McCain-Rothstein Victim's Fund would reimburse people who were swindled out of their money. A total of $1.1 million of the stolen money ended up in McCain's campaign.

"While McCain claims he gave a $9,200 of the money to charities, he used the rest and he needs to give it back to the rightful owners," said Mark Sanders, spokesman for U.S. Senate Candidate J.D. Hayworth (R-AZ).

"McCain has a huge war chest and he needs to pull a million out and give it back to the people who lost it through the criminal activity of his friend Rothstein."

Attorneys handling the bankruptcy case of Rothstein's law firm have sent letters to politicians demanding they return the tainted donations. They are working on behalf of Rothstein's victims."

These contributions were specifically directed by Scott Rothstein and the funds used to pay the contributions were illegally obtained from (the firm)," the letter says in part.

Meanwhile, according to a senior employee within Rothstein's firm, McCain's campaign kept a separate tracking system just for Rothstein's contributions.

Cheryl Seinfeld, Rothstein's director of governmental relations testified during a deposition that the convicted felon was such a pivotal contributor to McCain that his campaign kept a separate contribution tracking system for Rothstein.

"He was the number one contributor to McCain Victory 2008 and the McCain-Palin 2008 committees and had his own tracking system for contributions," Sanders said.

"Seinfeld said she organized fundraisers for McCain and others and most were held at Rothstein' waterfront home in Fort Lauderdale. McCain had to know what his biggest contributor was doing and he should have asked where all that money was coming from.

"But now the Senator has the opportunity to do the right thing and establish the McCain-Rothstein Victim's Fund," Sanders said. "McCain or any public servant should not run his campaign with stolen money."

1 comment:

kkollwitz said...

I can't see McCain beating JD regardless.