Campaign Treasurer Pleads Guilty to Manipulating Matching Funds Donations
Former primary candidate treasurer Erlene King pleaded guilty to manipulating New York City’s Campaign Finance Board matching donations policy.
Publicly Funded Campaign System
The New York City’s CFB managed the campaign finance system that was publicly funded, including the “matching funds program,” which allowed candidates to receive public funds depending on the amount of money they received in donations, according to the information document.
Jones was eligible to receive funding from the CFB’s matching funds program if his campaign raised a minimum dollar amount from New York City residents and collected $50,000 of total donations for his campaign, according to the information sheet. If the criteria were met, the Jones could receive up to $8 for each $1 collected, making them eligible to get at least $400,000.
Contributions from non-New Yorkers, business people, and people working with or on the campaign did not qualify for a CFB funds match, according to the information document. All donations were to be documented in electronic disclosure statements with the contributor’s name, address, occupation and the amount given. Donations could not be made under a false name or repaid by another entity.
King started working on Jones’ campaign on Oct. 22, 2020, and Jones filed a certification for the CFB matching funds program, according to the information document. Between October 2020 and April 2022, King and others obtained contributions under the names of people who did not contribute personally to the campaign.
Straw Donors
On May 11, 2021, King paid $1,110 via CashApp to someone who then used CashApp to send $540 to another person with instructions on how to pay into the campaign, according to the information documents.
King paid the same person another $1,110 via CashApp on May 14, 2021, $1,500 on June 23, 2021, and $1,000 on June 26, 2021, according to the information documents. On all occasions, the individual who received the funds, who did not live in Brooklyn, sent a portion of the money to someone else to contribute to the campaign.
King and her co-conspirators paid at least $25,000 into the campaign, submitting false contributor records for each donation, according to the information document. This was done to reach the $50,000 goal so the campaign could get the $400,000 match from the CFB matching funds programs.
A Similar Case
This story mirrors the case of a Bronx Board of Elections district leader, who took bribes to allow poll workers to be accepted into the position, as The Daily Muck covered. This also highlights more significant campaign issues, with bribery allegations surrounding New York City Mayor Eric Adams’ campaign.
King pleaded guilty to a single count of wire fraud, as stated in a letter to the U.S. Eastern District Court Judge Carol B. Amon. King faces up to 20 years in prison.
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