John Edwards

FEC says Edwards should repay $2M in federal money

Election commission orders disgraced Democratic politician to reimburse government for ill-gotten campaign funds

FILE - In this March 22, 2007, file photo Democratic presidential hopeful John Edwards listens to his wife Elizabeth, not shown, talk to media about her recurrence of cancer during a news conference in Chapel Hill, N.C. The legal case against two-time presidential candidate focuses on where to draw the line between the public and private in a politician's life. The central dispute over Edwards' indictment on felony charges is whether money, spent by two supporters to keep his mistress in hiding, were campaign contributions or private gifts from friends. (AP Photo/Gerry Broome, File)(Credit: AP)

The Federal Election Commission said Thursday that former North Carolina Sen. John Edwards’ 2008 presidential campaign should repay the U.S. Treasury more than $2 million.

The commission voted 6-0 to order the repayment after conducting an audit of the campaign.

A telephone call by AP to Edwards’ attorneys seeking comment was not immediately returned. Edwards’ attorneys have said the Democrat’s campaign doesn’t owe anything.

Federal auditors said the campaign understated its cash on hand and overstated its expenses, including money spent to wind down the campaign. Auditors also found that the campaign failed to itemize more than $4 million in loan repayments.

Such audits are required by law for federal campaigns that accept public financing, several of the commissioners noted.

“It is not at all unusual for a campaign to have a discrepancy,” said Ellen Weintraub, a commissioner. “It’s just a math problem and that’s how the math worked out.”

Federal auditors said about $2 million of the amount to be repayed was due to federal matching funds the Edwards campaign received but did not deserve. Auditors said the repayment also should include $141,808 in uncashed checks the campaign issued to donors that were never cashed, according to the audit.

The campaign got nearly $13 million in matching funds after it was approved by the Federal Election Commission in December 2007. Edwards dropped out of the race Jan. 30, 2008.

The Federal Election Commission’s ruling is the latest problem for Edwards, who was indicted last month on federal charges that he accepted illegal campaign contributions to hide an affair during his unsuccessful 2008 White House bid. Edwards, who was the 2004 vice presidential nominee, has pleaded not guilty to six felony charges that include allegations he filed false campaign reports to cover up the payments.

The Edwards campaign has continued to spend down its cash. It had about $2.6 million in cash on hand on June 30 after spending $183,000 during the previous three months.

John Edwards asks judge for delay in sex tape case

Rielle Hunter claims a former Edwards aide took sensitive materials from her; hearing is scheduled for Thursday

FILE - In this March 22, 2007, file photo Democratic presidential hopeful John Edwards listens to his wife Elizabeth, not shown, talk to media about her recurrence of cancer during a news conference in Chapel Hill, N.C. The legal case against two-time presidential candidate focuses on where to draw the line between the public and private in a politician's life. The central dispute over Edwards' indictment on felony charges is whether money, spent by two supporters to keep his mistress in hiding, were campaign contributions or private gifts from friends. (AP Photo/Gerry Broome, File)(Credit: AP)

A judge in North Carolina will hear arguments over whether former presidential candidate John Edwards should have to testify this month in a case involving a purported sex tape.

The hearing is scheduled to take place Thursday in Raleigh.

Edwards filed a motion last week asking that his scheduled June 20 deposition be postponed. He’s being called to testify in a lawsuit filed by his former mistress, Rielle Hunter. Hunter claims a former Edwards campaign aide took sensitive materials from her, including a reputed sex tape showing Edwards. She wants the items returned.

The former senator says his deposition should wait until the resolution of federal criminal charges against him. Earlier this month, Edwards was indicted on charges of violating campaign finance laws. He’s pleaded not guilty.

John Edwards’ creepy mug shot

The disgraced senator flashes an unnerving grin -- just like Tom DeLay

Edwards sports a cold, dead smile in his mugshot

If the pictures of Anthony Weiner and (allegedly) a sunbathing Newt Gingrich weren’t too much for you, here’s another unsettling image: CNN’s Ed Hornick has posted John Edwards’ mug shot. Edwards, who faces felony charges for allegedly using over $1 million of campaign cash to hide his extramarital affair and child, went for the unnerving smile with accompanying cold, dead eyes for his photo:

The image is reminiscent of Tom DeLay from the Republican former House majority leader’s mug shot. (DeLay was ultimately convicted on conspiracy and money-laundering charges.)

We wonder whether the smiles here are meant to convey confidence or an image of innocence. If so, neither man succeeded.

Natasha Lennard covers the Occupy movement for Salon. A British-born, Brooklyn-based journalist, she has been covering Occupy Wall Street since before the first sleeping bag was unrolled in Zuccotti Park. One of the first journalists arrested at an Occupy action, she has managed to enrage Andrew Breitbart, Rush Limbaugh and Glenn Beck. You can follow her on Twitter (@natashalennard), and email her any Occupy updates/videos/ideas to natasha.lennard@gmail.com

How John Edwards nearly ruined everything

There were actually two moments when the 2008 Democratic nomination seemed within reach for him

Democratic presidential hopefuls Sen. Hillary Rodham Clinton, D-N.Y., Sen. Barack Obama, D-Ill., and former Sen. John Edwards, D-N.C., listen to a question during a Democratic presidential debate in Myrtle Beach, S.C., Monday, Jan. 21, 2008. (AP Photo/Mary Ann Chastain)(Credit: Mary Ann Chastain)

History will record that John Edwards — who was finally indicted Friday after a protracted investigation into his use of campaign money to hide a mistress — didn’t win a single state in his 2008 presidential campaign and earned just 26 pledged delegates before dropping out of the Democratic race after finishing third in the South Carolina primary. But things could have easily gone far, far better for him — and far, far worse for his party.

It’s easy to forget now, but in the early stages of the ’08 race, things were setting up remarkably well for Edwards. After making a favorable impression in the 2004 primaries and performing adequately (if not quite as well as many had expected) as John Kerry’s running mate that fall, Edwards sought to reinvent himself as a truth-telling populist, angling to inherit the army that Howard Dean had briefly assembled in the ’04 race. He began by apologizing for his own vote as a senator in 2002 for the Iraq invasion and took to railing against Democratic leaders in Washington for their supposed spinelessness in standing up to George W. Bush and congressional Republicans. It helped that he was now a former senator, free to travel the country spouting absolutist rhetoric in casual clothing.

There was a very specific purpose to this. Hillary Clinton would be the overwhelming front-runner for the 2008 nomination, everyone knew, the favorite of many of the big donors and pragmatic establishment types that Edwards had cultivated in ’04. The only room would be to Hillary’s left, where grass-roots Democratic voters and activists remained infuriated by the role their party’s national leaders had played in authorizing the war. This was the turf Edwards would seek out.

And for a while, it worked. Through 2005 and the first half of 2006, Edwards’ support in national Democratic polls slowly ticked up, until he was running second to Hillary among likely ’08 candidates. Meanwhile, Kerry, who very much wanted to run again, also tried reinventing himself as more blunt, unrestrained ideologue, but to little effect; his support steadily dropped into the single digits. And Dean took on the chairmanship of the Democratic National Committee, effectively removing himself from the ’08 mix. The chief threat to Edwards’ strategy, it seemed, was Al Gore, whose grass-roots popularity was soaring with the acclaimed release of “An Inconvenient Truth.” But Gore was an unlikely and reluctant prospect. As the summer of 2006 wore on, a very real path to victory emerged for Edwards: Defeat Clinton in Iowa’s activist-dominated caucuses, survive New Hampshire, then win again in Nevada with union support, and finish Clinton off in South Carolina, Edwards’ native state.

Who knows what would have happened if at this same moment Barack Obama, then less than two years removed from the Illinois state Legislature, hadn’t set out to help a few of his party’s candidates in the ’06 midterms and been overwhelmed by the size of the crowds that greeted him? During his first year in the Senate, Obama hadn’t seriously considered a presidential run; in fact, he’d ruled it out over and over. And the press and political observers had no reason to doubt him: He hadn’t done anything yet, barely had any experience on the national stage, and was famous only because of one speech. Obviously, he would wait until 2016 or some future date to run for president.

By December, it was clear Obama was running, and that was basically it for Edwards, whose dreams of cornering the grass-roots, anti-Hillary market were ruined. Now it was a Hillary-Obama race, with Edwards relegated to a supporting role. But he still had enough support to press on, even after the March 2007 news that his wife’s cancer had returned and was now terminal. He’d need one of the front-runners to stumble — and he finally saw his chance in the first week of January 2008.

Just weeks earlier, the first report of Edwards’ affair with Rielle Hunter (and the child they had conceived) had emerged, but in the National Enquirer only; no mainstream outlet would touch them. Even if Edwards’ story seemed a little fishy, everyone gave him the benefit of the doubt over a trashy tabloid, and the campaign proceeded as if nothing had happened. Thus, when the Iowa caucuses were held on Jan. 3, Edwards was able to finish a surprising second — eight points behind Obama but slightly ahead of Clinton. Suddenly, Hillary the Inevitable was on the ropes. Her poll numbers nationally and in New Hampshire, which would vote five days later, crashed overnight, while Obama’s surged. Edwards saw his opening: If Hillary suffered a bad loss in New Hampshire, she might be forced out (or at least marginalized). Then it would be an Obama-Edwards race, and the battleground would shift to the South. He could win a one-on-one race with Obama there, or so he and his team figured.

For the five days between Iowa and New Hampshire, Edwards did everything he could to bury Clinton, attacking her as a protector of the status quo, without laying a glove on Obama. It seemed to be working. Hillary’s numbers kept falling. There was talk that Edwards, whose message and personality had never been a good fit for the Granite State, might edge her out for second place. Then came the debate, the Saturday night before the primary. To any fair-minded viewer, it looked like exactly what it was: Edwards and Obama — the two men in the race — ganging up on Hillary. The reviews were harsh. It was just too much. No one can be sure exactly why Hillary was able to reverse her polling slide and prevail in New Hampshire three days later, but it’s hardly unreasonable to suggest that voters — particularly female voters — felt she was being treated too harshly by her opponents and the media and rallied around her, not wanting to see her campaign end so soon.

Whatever the explanation, Clinton’s surprise triumph slammed the door on Edwards’ nomination chances. It was still a Hillary-Obama race and Edwards was still an afterthought. By the end of the month, he was out of the race, and Democrats were safe. Obama went on to win the nomination and the presidency, but there’s little doubt that Hillary would have been just as successful against John McCain. 

But Edwards, as we all found out a few months later, would have been a complete and total disaster. And things didn’t have to work out quite so neatly for Democrats. If Obama, truly a once-in-a-generation political phenomenon, hadn’t emerged, Edwards probably would have gotten his one-on-one race with Hillary — a race he could have won. And if Hillary hadn’t engineered that miraculous New Hampshire victory — a result that still baffles political observers — he still might have found a way to win the nomination. For Democrats, he could easily have ruined everything.

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Steve Kornacki

Steve Kornacki writes about politics for Salon. Reach him by email at SKornacki@salon.com and follow him on Twitter @SteveKornacki

Edwards indictment: New details of the coverup

The former Democratic star allegedly took $900,000 in illegal donations to pay for his mistress' living expenses

Rielle Hunter and John Edwards

John Edwards was indicted today, charged with violating campaign finance law and making false statements in connection with the cover-up of his affair with videographer Rielle Hunter.

The basic allegations are well known: that Edwards accepted hundreds of thousands of dollars in illegal campaign contributions in order to pay for living expenses and medical bills for Hunter, Hunter and Edwards’ child, and Edwards aide Andrew Young, who had falsely claimed paternity of the child and was on the run from the media. The money — amounting to $900,000 — allegedly came from the wealthy heiress Bunny Mellon, along with Edwards fundraiser Fred Baron.

But the indictment is the first time we’ve seen a coherent narrative from the government in the case, and it includes some fascinating details. It alleges, for example, that Mellon wrote a series of checks for as much as $200,000 to be funneled to pay Hunter’s expenses. But in the memo section of the checks Mellon wrote “chairs” or “antique Charleston table” or “book case.”

The indictment also alleges that Baron paid for luxury accommodations for Hunter and Young, including a $25,283 bill for the Four Seasons Hotel in Santa Barbara, Calif., in January 2008. Baron also allegedly gave Young an envelope with $10,000 cash and a note reading, “Old Chinese saying: use cash, not credit cards!”

Here are statements (.pdf) from Edwards’ legal team rejecting the charges.

And here’s the indictment:

Edwards Indictment

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Justin Elliott

Justin Elliott is a reporter for ProPublica. You can follow him on Twitter @ElliottJustin

John Edwards charged in felony indictment

Case contains counts of conspiracy, false statements and illegal campaign contributions

FILE - In this Dec. 11, 2010 file photo, former Democratic presidential candidate John Edwards is seen in Raleigh, N.C. Edwards and federal prosecutors are arguing over whether the money used to cover up his extramarital affair was a campaign contribution or just a gift from his old friends. An indictment of the 2004 Democratic vice presidential nominee appears imminent, but people on both sides still hold out hope for a last-minute deal for a guilty plea to a negotiated charge. (AP Photo/Gerry Broome, File)(Credit: AP)

A federal grand jury has indicted two-time presidential candidate John Edwards over massive sums of money spent to keep his mistress in hiding during the peak of his 2008 campaign for the White House.

The case of USA v. Johnny Reid Edwards contains six counts, including conspiracy, four counts of illegal campaign contributions and one count of false statements. The indictment was returned in the Middle District of North Carolina Friday.

An Edwards spokeswoman said she wasn’t aware of the filing and declined immediate comment.

The indictment is the culmination of a federal investigation that lasted more than two years and scoured through virtually every corner of Edwards’ political career.

THIS IS A BREAKING NEWS UPDATE. Check back soon for further information. AP’s earlier story is below.

Criminal charges were likely to be filed Friday against John Edwards, the culmination of a two-year federal investigation into money used to cover up an extramarital affair during the 2008 presidential election.

Edwards’ attorney Greg Craig was traveling to meet with prosecutors in North Carolina, an indication that the former presidential candidate will likely be charged, either in a grand jury indictment or in a negotiated charge to which he would plead guilty.

A person with knowledge of the investigation said Craig, a Washington lawyer who was President Barack Obama’s first White House counsel, planned to be in his client’s home state Friday, where prosecutors were prepared to file charges. The source insisted on anonymity in order to discuss the private negotiations.

Prosecutors have told Edwards they will charge him Friday but plea negotiations continue, so a grand jury indictment or deal on a negotiated charge are both still possible, the person said.

The federal prosecutor for North Carolina’s Eastern District, U.S. Attorney George Holding, arrived at the federal courthouse in Raleigh shortly before 9 a.m. He declined comment.

Federal officials have approved criminal charges, deciding that the hundreds of thousands of dollars two Edwards donors gave to help keep his mistress in hiding were contributions that should have been reported publicly by his campaign fund because they aided his bid for the Democratic White House nomination. Edwards’ lawyers have argued that the funds were gifts from friends intended to keep the affair a secret from his wife, Elizabeth, who died of cancer in December.

A plea to a felony charge involving campaign finances could strip Edwards of his law license and end any hope he could work as an attorney for the poor. And a trial would mean more sordid stories about his campaign affair and the child he fathered during it, further battering his reputation.

Even if he were to win the case, it appears the 2004 Democratic vice presidential nominee would do so by making a humiliating argument: that money used to keep his mistress and out-of-wedlock child in hiding was intended to shield the affair from his cancer-stricken wife — not to aid his candidacy, which is what prosecutors believe.

“Trial or not, John Edwards is the Charlie Sheen of American politics — great hair and no chance for rehabilitation,” Democratic consultant Jack Quinn said.

Political sex scandals can either be just a career glitch (think Newt Gingrich, who recently announced a run for the presidency) or a career-ender (think Mark Foley, who recently declined a run for mayor of West Palm Beach, Florida). Many Democrats believe Edwards falls into the latter category, as someone who faces little chance of revitalizing his image even if he emerges victorious from his legal case.

Edwards’ attorneys have denounced the investigation as a waste of resources and contend he did not violate the law.

Edwards has said he hopes that once this case is behind him he can revive his legal career, specializing in helping the victims of poverty he championed on the campaign trail. However, a lawyer in North Carolina who pleads guilty or no contest to a criminal offense faces disciplinary action by the State Bar, ranging from a mild rebuke to a loss of license to practice.

The case against Edwards focused on the private money used to keep Edwards’ mistress in hiding. Andrew Young, a former aide to Edwards, initially claimed paternity of mistress Rielle Hunter’s child and traveled around the country keeping her in seclusion. Young has said he received hundreds of thousands of dollars of support from two wealthy Edwards donors.

Another dent in an Edwards’ revival is moving ahead in civil court, where Young and Hunter are battling over a purported sex tape involving the former candidate. Edwards has been deposed as part of that lawsuit.

——

Pickler reported from Washington.

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