GOP Sen. Ted Cruz was fined $35,000 by the Federal Exchange Commission (FEC) for failing to accurately disclose loans to his 2012 Senate bid from Citibank and Goldman Sachs.
The fine stems from a complaint filed by the Campaign Legal Center (CLC) in 2016 over loans totaling $1,064,000.
The FEC determined that the Texas senator’s reporting violated a campaign finance statute.
“Candidates should take seriously their legal requirement to disclose where their campaign money comes from. Today’s announcement is an acknowledgment that Cruz’s campaign deprived voters of that critical information,” the CLC said in a statement.
“In the homestretch of a high-profile election, voters were misled about Cruz’s personal and campaign finances. This is particularly harmful given that financial issues were at issue in the campaign and could have factored into voters’ decision-making at the ballot box.”
According to an FEC audit, of the $1.43 million that were found to have come into the campaign from Cruz’s personal funds, $800,000 came from three loans from a Goldman Sachs brokerage account Cruz and his wife jointly held.
The FEC said in a letter to the CLC that it had accepted a conciliatory agreement from Cruz’s campaign.
“As has repeatedly been reported, the loans were public at the time and fully disclosed on Senate ethics disclosures, but they weren’t reported correctly on the FEC forms. This agreed settlement resolves that filing mistake once and for all,” the Cruz campaign said in a statement.
The Hill notes:
The FEC in 2017 rebuked Cruz for misreporting in a rare unanimous vote.
Federal election law allows candidates to take out loans from commercial banks as long as they properly the funding sources, the interest rates paid and the loans’ terms. Candidates can also lend unlimited amounts of their own funds to their campaigns.