Federal grand jury subpoenas state Democratic staffers, contractors
Federal law enforcement authorities have ordered state Democratic Party insiders to appear before a New Haven grand jury investigating possible violations of clean-government laws during Gov. Dannel P. Malloy’s 2014 re-election campaign, sources close to the investigation tell Hearst Connecticut Media.
The U.S. Department of Justice, sources said, has also subpoenaed state contractors who are prohibited from contributing to General Assembly and top-of-the-ticket races — including governor — but are allowed to give to the Connecticut Democratic Party’s federal account, which traditionally funds Congressional election campaigns.
A federal grand jury is looking at the entire fundraising operation of the Democratic State Central Committee, particularly the controversial transfer of more than $300,000 from its federal account to pay for two late-campaign mailers. The panel in U.S. District Court is also investigating the use of up to $1 million from the federal account to pay for staff salaries, sources say.
While the grand jury proceedings and FBI investigations are secret, there are a variety of potential subjects that could interest federal prosecutors, including possible conspiracies and false reporting to the Federal Elections Commission, sources say. In recent years, federal prosecutors have won guilty pleas for violations of federal campaign law in Connecticut, including so-called straw contributions, in which someone reimburses another for making campaign contributions.
Read more: http://www.thehour.com/local/article/Federal-grand-jury-subpoenas-state-Democratic-9070965.php