Outgoing Rep. Madison Cawthorn (R-NC) has illegally spent campaign funds and now cannot afford to repay supporters, according to a report.
During the waning days of his reelection campaign, the beleaguered Cawthorn was apparently struggling with low cash on hands and, out of desperation, tapped into a precarious source of funding.
His campaign used donations marked for a general election race in a last-ditch attempt to help him prevail from his heated primary race, but now the bill has come due, and he has to pay the piper with little means of doing so, the Daily Beast reported.
KINZINGER SAYS HE ‘MADE THE DIFFERENCE’ IN CAWTHORN’S PRIMARY DEFEAT
“There was just no money,” a source told the outlet. “It was dollar-in, dollar-out. So if he loses, it’s a really bad thing, and the only way to cover it is getting money straight from the candidate or treasurer.”
Under federal law, candidates are permitted to raise money for primary and general election races simultaneously, but the funding must be used for the race for which it is designated — otherwise, it must be paid back. Now that Cawthorn has lost his primary, he is required by law to refund those donations, but his campaign has already depleted much of those funds, making it difficult for him to pay it all back.
Documents from early May indicate that he had roughly $137,000 on hand and owed $325,000 in debt at the time, per the outlet. Specifics on his current financial predicament are not clear.
A source argued that his primary campaign was rife with frivolous spending, such as nearly $3,000 in spending at Papa’s Beer and $21,000 for lodging accommodations in Florida, the outlet reported. His campaign also racked up excessive consulting fees — the main source of his funding woes, the source noted.
“Nobody ever did the math, which baffled me because the spending was so outrageous,” a source said.
By May 5, his campaign had 2% of the $3.7 million it amassed since January 2021, according to the outlet, and had tapped into general election funds months ago.
Cawthorn’s treasurer reportedly quit last Friday, and the congressman took his place. One idea that has been floated among his confidants is to establish a new campaign and forward the money, but Cawthorn is not eager to do that, according to the report.
The Washington Examiner reached out to a representative of Cawthorn for comment.
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Reports of Cawthorn’s campaign troubles are just the latest in a string of controversies surrounding the outgoing congressman. In April, a group issued a complaint that he had an inappropriate relationship with a staffer. He also faced scrutiny over whether he breached insider trading laws when he promoted an alleged cryptocurrency scheme and over whether he wrongly utilized taxpayer money at a luxury resort.
In April, the Transportation Security Administration reportedly confiscated a firearm from him — the second such reported instance since he was sworn into office. The following month, a nude video of the congressman surfaced, which he characterized as blackmail.
Cawthorn lost his primary bid for reelection to state Sen. Chuck Edwards in May. He was first elected to Congress in 2020 to represent North Carolina’s 11th Congressional District.
