The Federal Elections Commission (FEC) found that Sen. Ted Cruz concealed more than $1 million in bank loans from the American public during his 2012 campaign for Senate. The Commission agreed in a unanimous decision that the senator broke the U.S. election law and he might face a penalty.
Citigroup, Goldman Sachs Silently Lent Cruz Money
The agency found that Cruz borrowed $1.1 million from Citigroup and Goldman Sachs, and used the money to finance his campaign. However, he failed to disclose the loans and claimed the money as his own.
Under the federal law, candidates are allowed to pour personal cash in their campaigns, but they can also get unlimited loans on the condition of disclosing them. During the primary election, the Texas senator bragged that he would risk running out of personal resources for the sake of the campaign. However, FEC auditors found that the value of the assets the Republican had sold exceeded the amount of cash poured into his campaign.
Cruz personal contribution was $300,000, but the rest of $1 million came from banks. So, he should have informed voters on the concealed bank loans.
Cruz Infringed Election Laws
Cruz’s lawyer dismissed the fact that his client violated the federal election law as an “inadvertent” incident that can happen during an election. Of course, Republicans had not been as understanding when it came to Hillary Clinton’s mishandling of her work emails.
Nevertheless, it is not the first time Cruz shows contempt to legislation that seems inconvenient. Shortly after assuming office, he shut down the government in a bid to force the White House defund Obamacare.
The FEC will come up with a final decision in 30 days, when the commission will also decide whether a penalty for the Texas Senator is appropriate.
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