House Democrats to investigate accusations DeJoy reimbursed former employees for GOP contributions

House Democrats have launched a probe into allegations Postmaster General Louis DeJoy pressured employees of his former company to make campaign contributions he later reimbursed.



Carolyn Maloney looking at a screen: House Democrats to investigate accusations DeJoy reimbursed former employees for GOP contributions


© Roll Call/Pool
House Democrats to investigate accusations DeJoy reimbursed former employees for GOP contributions

Oversight Committee Chair Carolyn Maloney (D-N.Y.) said in a statement the panel will investigate whether DeJoy lied under oath. She also called on the U.S. Postal Service’s Board of Governors to suspend DeJoy, saying “they never should have hired [him] in the first place.”

The Washington Post reported Sunday that as CEO of North Carolina-based New Breed Logistics, DeJoy and aides pressured employees to contribute to GOP candidates and compensated them in the form of bonuses. Such an arrangement would be illegal under federal and state law, it added, noting that the federal law has a five-year statute of limitations but there is no statute of limitations at the state level.

If the allegations are true, Maloney said, DeJoy would face “criminal exposure,” both for the payments and “for lying to our committee.”

DeJoy denied reimbursing employees for contributions to Trump’s campaign in testimony before the committee last month.

Senate Minority Leader Chuck Schumer (D-N.Y.) has also called for an investigation by the North Carolina attorney general.

“These are very serious allegations that must be investigated immediately, independent of Donald Trump’s Justice Department,” Schumer said in a statement on Sunday.

The Post, which first reported the House Oversight investigation, analyzed federal and state campaign finance records and found 124 employees donated over $1 million to GOP candidates between 2000 and 2014.

“Mr. DeJoy was never notified by the New Breed employees referenced by the Washington Post of any pressure they might have felt to make a political contribution, and he regrets if any employee felt uncomfortable for any reason,” Monty Hagler, a spokesman for DeJoy, told the newspaper .

President Trump said on Monday that he was not familiar with the allegations against DeJoy but said he should lose his job “if something can be proven that he did something wrong.”

–This report was updated at 8:58 a.m.

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House Democrats to investigate Postmaster General Louis DeJoy after former employees alleged he urged them to make campaign donations to GOP candidates



a man wearing a suit and tie: Tom Williams/CQ-Roll Call, Inc via Getty Images/Pool


© Tom Williams/CQ-Roll Call, Inc via Getty Images/Pool
Tom Williams/CQ-Roll Call, Inc via Getty Images/Pool

  • The House Committee on Oversight and Reform is opening an investigation into US Postal Service Postmaster General Louis DeJoy, according to a Monday night Washington Post report.
  • The chairwoman also called for the Board of Governors to suspend him, The Post reported. Maloney’s office could not immediately be reached for comment, nor could the US Postal Service.
  • The news follows a previous report from The Post, in which former employees alleged that DeJoy urged them to make political contributions to GOP candidates while chief executive of New Breed Logistics.
  • When asked at a press conference on Monday afternoon whether DeJoy should be investigated for potential campaign finance violations, President Donald Trump said: “Sure, sure, let the investigations go.”
  • Trump also said he didn’t know much about the allegations and called DeJoy “a very respected man.”
  • Visit Business Insider’s homepage for more stories.

The House Committee on Oversight and Reform is opening an investigation into US Postal Service Postmaster General Louis DeJoy, according to a Monday night Washington Post report.

Rep. Carolyn Maloney, of New York, chairwoman of the House Committee on Oversight and Reform, told The Post the committee would look into whether he lied under oath when he previously testified before the committee.

The chairwoman also called for the Board of Governors to suspend him, The Post reported. Maloney’s office could not immediately be reached for comment, nor could the USPS.

The news follows a previous report from The Post, in which former employees alleged that DeJoy urged them to make political contributions to Republican candidates while he was chief executive of New Breed Logistics, based in North Carolina. The former employees claimed they were then given heftier bonuses to offset the cost of the contribution.

“Louis was a national fundraiser for the Republican Party,” a former human resources director David Young told The Post. “He asked employees for money. We gave him the money, and then he reciprocated by giving us big bonuses.”

Such an act — reimbursing an employee for a campaign donation — would be a violation of both federal and North Carolina laws.

In a previous statement to Business Insider, Monty Hagler, a spokesman for DeJoy, said that DeJoy “was never notified by the New Breed employees referenced by the Washington Post of any pressure they might have felt to make a political contribution, and he regrets if any employee felt uncomfortable for any reason.” 

He added that DeJoy “sought and received legal advice from the former General Counsel of the Federal Election Commission on election laws, including the law of political contributions, to ensure that he, New Breed Logistics, and any person affiliated with New Breed fully complied with any and all laws.”

In a statement to The Post, Hagler said that DeJoy “believes that he has always followed campaign fundraising laws and regulations.”

DeJoy, a GOP fundraiser who has donated around $1.6 million since Trump became president,

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House Oversight Committee will investigate Louis DeJoy following claims he pressured employees to make campaign donations

Maloney also urged the Board of Governors of the U.S. Postal Service to immediately suspend DeJoy, who, she said, “they never should have hired in the first place.”

A spokesman for the Postal Service did not immediately respond to a request for comment.

Maloney’s announcement came a day after The Washington Post reported allegations that DeJoy and his aides urged employees at his former North Carolina-based logistics company to write checks and attend fundraisers on behalf of Republican candidates.

DeJoy then defrayed the cost of those political contributions by boosting employee bonuses, two employees told The Post.

Although it can be permissible to encourage employees to make donations, reimbursing them for those contributions is a violation of North Carolina and federal election laws.

Such federal violations carry a five-year statute of limitations. There is no statute of limitations in North Carolina for felonies, including campaign finance violations.

Maloney said DeJoy faces “criminal exposure” not only if the allegations are true, “but also for lying to our committee under oath.”

Maloney was referring to DeJoy’s testimony to the House Oversight panel last month, when he forcefully denied that he had repaid executives for contributions they had made to President Trump’s campaign.

The former employees who spoke to The Post all described donations they gave between 2003 and 2014, before Trump’s first White House run. By 2016, DeJoy had sold the company and retired.

The Post’s findings prompted calls for an independent investigation from Democrats, including the Democratic Attorneys General Association and Rep. Adam B. Schiff (D-Calif.). Senate Minority Leader Charles E. Schumer (D-N.Y.) urged the North Carolina attorney general to launch a criminal investigation.

“These are very serious allegations that must be investigated immediately, independent of Donald Trump’s Justice Department” Schumer said in a statement Sunday.

The accounts of DeJoy’s former employees come amid what has been a rocky tenure so far for him at the helm of the U.S. Postal Service. After his appointment in May, he swiftly instituted changes he said were aimed at cutting costs, leading to a reduction of overtime and limits on mail trips that postal carriers said created backlogs across the country.

Democrats have accused DeJoy, who has personally given more than $1.1 million to Trump Victory, the joint fundraising vehicle of the president’s reelection campaign and the Republican Party, of seeking to hobble the Postal Service because of the president’s antipathy to voting by mail. As states have expanded access to mail voting because of the coronavirus pandemic, Trump has repeatedly attacked the practice and claimed without evidence that it will lead to rampant fraud.

The Postal Service chief emphasized to House lawmakers last month that the agency will prioritize election mail. Responding to questions about his fundraising, DeJoy scoffed. “Yes, I am a Republican … I give a lot of money to Republicans.” But he pushed back fiercely on accusations that he was seeking to undermine the November vote. “I am not engaged in sabotaging the election,” DeJoy said. “We will do everything

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