Rep. George Santos, the disgraced New York Republican who fabricated most of his life story to get elected, was arrested Wednesday and charged with multiple offenses related to an alleged scheme to use political donations for designer clothing and personal debts.
The criminal charges sparked new calls for Mr. Santos to resign or get booted out of Congress.
A 13-count indictment in the U.S. District Court for the Eastern District of New York also alleges that Mr. Santos applied for COVID-19 unemployment relief despite making $120,000 per year at a Florida investment firm and misstated income amounts on House disclosure forms.
“The allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself,” U.S. Attorney Breon Peace said. “He used political contributions to line his pockets, unlawfully applied for unemployment benefits that should have gone to New Yorkers who had lost their jobs due to the pandemic, and lied to the House of Representatives.”
Mr. Santos was arrested early Wednesday. He pleaded not guilty before U.S. Magistrate Judge Arlene R. Lindsay at the federal courthouse in Central Islip, New York, and was released on a $500,000 bond, according to wire reports.
Mr. Santos, 34, ran unsuccessfully in 2020, but won his race in New York’s 3rd Congressional District in 2022 as part of the GOP takeover of the House.
The indictment alleges three schemes by Mr. Santos.
• Mr. Santos allegedly created a limited liability company, identified as Company #1, and enlisted a Queens-based political consultant to solicit donations for his election bid, including television ads last year. The indictment alleges he falsely told donors, including two that ponied up $25,000 each, the money would go directly to his campaign.
“Shortly after the funds were received into Company #1’s bank account, the money was transferred into Santos’s personal bank accounts — in one instance laundered through two of Santos’s personal accounts,” the Justice Department said. “Among other things, Santos allegedly used the funds to make personal purchases (including of designer clothing), to withdraw cash, to discharge personal debts, and to transfer money to his associates.”
• The indictment says Mr. Santos applied for COVID-19 unemployment funds in mid-2020 from the New York State Department of Labor and falsely claimed to have been unemployed since March 2020 despite holding a job.
“He falsely affirmed each week that he was eligible for unemployment benefits when he was not. As a result, Santos allegedly fraudulently received more than $24,000 in unemployment insurance benefits,” the Justice Department said.
The House is scheduled this week to consider a bill, the Protecting Taxpayers and Victims of Unemployment Fraud Act, that seeks to help taxpayers recoup some of the fraudulent COVID-19 payments. Mr. Santos is listed as a cosponsor of the bill.
• The indictment alleges Mr. Santos overstated income from one company in a 2020 disclosure during his unsuccessful congressional run and failed to disclose income from an investment firm.
His 2020 disclosure forms overstated his income and assets from the Devolder Organization LLC, a Florida-based entity of which Mr. Santos is the sole beneficial owner, according to the indictment.
“These assertions were false: Santos had not received from the Devolder Organization LLC the reported amounts of salary or dividends and did not maintain checking or savings accounts with deposits in the reported amounts,” the Justice Department said.
Mr. Santos faces seven counts of wire fraud, three counts of money laundering, one count of theft of public funds and two counts of making materially false statements to the House of Representatives.
The charges are a significant development in Mr. Santos’ checkered congressional tenure.
The life story he created began to unravel shortly after his election win. Numerous reports revealed that the congressman had lied about his education, work history and even his Jewish heritage. Fellow lawmakers openly scoffed at his resume padding and distortions, including a claim he was once a star volleyball player.
The scandal made him an object of fascination with late-night television and online commentators, who remarked on his sweater-and-sneakers fashion and tense exchange with Sen. Mitt Romney of Utah at the State of the Union Address.
Many lawmakers called on Mr. Santos to resign, but he rebuffed their calls and said he wanted to seek reelection next year.
Simmering calls for him to step down reached a boil after his arrest.
“He’s not capable of being an effective member of Congress,” Rep. Nick Langworthy, New York Republican, said. “I have long thought he should resign.”
Rep. Dan Goldman, New York Democrat, said Mr. Santos’ alleged crimes “got him here, and he, therefore, needs to be removed immediately from Congress.”
He said, if Mr. Santos does not resign on his own, House Speaker Kevin McCarthy should encourage him to step aside. If that does not work, Mr. Goldman said an expulsion motion should be brought to the floor.
Mr. Santos will have the presumption of innocence as his case heads to court, and he is hardly the first member of Congress to face serious charges.
Mr. McCarthy told CNN on Tuesday that his policy is that a member should resign if he or she is found to be guilty, citing the example of former Rep. Jeff Fortenberry, a Republican convicted of concealing information and making false statements to federal authorities.
Mr. Santos is part of a narrow Republican majority in the House.
Mr. Langworthy said he is confident that Republicans in Nassau County can put forward an effective alternative if Mr. Santos leaves Congress or is ousted.
“I think we can hold the seat,” Mr. Langworthy said.
The White House declined to weigh in on the case or what the House should do about the indicted congressman.
“It’s a case that we’re not going to speak to. The Justice Department is independent, and we respect that,” White House press secretary Karine Jean-Pierre said.
Expulsion is “something for the House conference to decide on,” she said. “How they want to show to the American people what they want their conference to look like, that’s up to them.”
• Tom Howell Jr. can be reached at thowell@washingtontimes.com.
• Kerry Picket can be reached at kpicket@washingtontimes.com.
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