Rep. Cawthorn could be fined $17,000 for late campaign filing; spent nearly all funds
Rep. Madison Cawthorn could face more than $17,000 in fines after filing his campaign finance report a month late, according to Federal Election Commission personnel and data provided by Cawthorn and on the FEC site.
Cawthorn's paperwork showed a campaign that through June 30 spent more than it brought in, despite a $207,858 donation from the personal funds of the 27-year-old first-term Henderson County congressman. Among places donors' money was used was $1,812 spent at a tobacco shop.
A total of $248,098 was refunded to contributors, likely because they gave money to be spent for the Nov. 8 general election for the 11th House District covering Western North Carolina. Cawthorn will not participate in that contest after being defeated in the May 17 Republican primary by state Sen. Chuck Edwards.
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The second quarter report was due July 15 to federal campaign finance regulators, but Cawthorn did not file until Aug. 14, according to his paperwork. That is unusual for most candidates, according to FEC spokesperson Christian Hilland.
"Major party candidates tend to have more money, and they're able to afford a compliance person or a law firm to handle their reports," Hilland said Aug. 15.
The FEC's online fine calculator showed Cawthorn could owe $17,141. Whether he is actually fined and by how much will depend on a vote by the FEC commissioners.
Spokespersons for Cawthorn did not respond to Aug. 15 messages seeking comment. Thomas Datwyler, who was listed as campaign treasurer, did not reply to a message sent to an email address linked to him.
The late filing was characteristic of Cawthorn, known for rule breaking, as when he brought guns through airport security checkpoints, said Western Carolina University political science professor Chris Cooper.
"(It) suggests once again that following norms and rules isn't his forte," Cooper said.
A FEC analyst will look at the report in part to determine whether Cawthorn paid back donations that were spent though they were earmarked for the general election, Hilland said.
By law, those funds must be paid back within 60 days. Failure to do so can result in a variety of actions, ranging from a warning letter to civil fines. If it is found there was knowing and willful intent to violate campaign finance law, that rises to the level of a crime and could be cause for Department of Justice action.
Cawthorn, whose one-term tenure has been marked by scandal, is facing a House ethics investigation over a relationship with a staffer and allegations he improperly promoted a cryptocurrency in which he had a financial interest. Some experts have said the more serious accusations —using non-public information for stock purchases and market manipulation by Cawthorn — may rise to the level of criminal activity.
Following the May 23 announcement of the probe by the House Ethics Committee, a spokesperson for Cawthorn said the congressman was "falsely accused by partisan adversaries for political gain."
The most recent campaign finance filing by Cawthorn included these fundraising and spending details for April 16 to June 30:
The campaign brought in $439,636 during that period.
Most of that was the $207,858 contribution from Cawthorn. A congressional financial disclosure form filed last week showed he has between $500,000 and $1 million in a money market account and between $150,000 and $350,000 in Ethereum and the “Let’s Go Brandon” digital currency, according to Washington-based Punchbowl News. A digital version of the form was not available Aug. 15.
The second largest receipt, $7,780 came from Knoxville, Tennessee, political research group Spry Strategies.
Disbursements included a $29,387 refund to the printing and shipping company Integram in Sterling, Virginia.
There was also $1,812 spent at Casablanca Tobacconist in Hendersonville. In a July 28 Instagram video in which Cawthorn criticized the Democrat-backed Inflation Reduction Act, he displayed an Andalusian Bull cigar. A box of five of the cigars, which Cawthorn called his favorite, sells for $149 for on cigarcountry.com.
Cooper, the WCU professor, said that would likely raise eyebrows of donors "who believed they were contributing to things that could win a campaign, not things that could provide a momentary respite from a stressful day."
The report follows past campaign finance activity in which Cawthorn brought in millions of dollars, raising money "alongside the best of them. But when it comes to spending, he has no equal," Cooper said.
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While Cawthorn's total receipts from Jan. 1, 2021, to June 30, 2022, were $4.1 million, his campaign exceeded that with $4.2 million in spending.
Cooper said the entire report — "from its late submission date ... to size and nature of expenditures, will reinforce the perception that Madison Cawthorn's behavior is irresponsible, even in a legislative body that isn't exactly known for exercising good judgement."
Joel Burgess has lived in WNC for more than 20 years, covering politics, government and other news. He's written award-winning stories on topics ranging from gerrymandering to police use of force. Got a tip? Contact Burgess at jburgess@citizentimes.com, 828-713-1095 or on Twitter @AVLreporter. Please help support this type of journalism with a subscription to the Citizen Times.
This article originally appeared on Asheville Citizen Times: Rep. Madison Cawthorn could be fined $17,000 for late campaign filing
