The 2024 election has concluded, prompting political parties to shift their focus toward future elections and initiate fundraising efforts. It is important to examine the implications of such fundraising, especially when the left seeks to accumulate substantial amounts. In the summer of 2022, a significant incident that went unnoticed at the time involved a prominent Democratic figure in New Orleans who was found guilty of defrauding donors on a large scale.
The Internal Revenue Service (IRS) issued a press release detailing this case, which involved a former state senator and the then-chair of the Louisiana Democratic Party, referred to in the release as “Political Party A.” This individual orchestrated a nearly decade-long scheme that defrauded donors of considerable campaign contributions.
The press release began with the announcement from the United States Attorney’s Office, stating, “Former Louisiana State Senator and Chair of State Political Party A, Karen Carter Peterson, from New Orleans, Louisiana, pleaded guilty today before United States District Judge Sarah S. Vance to a one-count bill of information charging her with wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2.”
Furthermore, the release elaborated, “Court documents reveal that Peterson served as a Louisiana State Senator for the 5th District from approximately 2010 until April 8, 2022, and held the position of Chair of State Political Party A from around 2012 to 2020. During her tenure as a Louisiana State Senator, Peterson established and managed a campaign organization known as the ‘Karen Carter Peterson Campaign Fund (KCPCF)’ to solicit and raise campaign funds from both individual and corporate donors.”
However, she was already misappropriating the solicited campaign funds for her personal use.
The campaign funds were requested based on the assertion that they would be utilized to support Peterson’s reelection bid for the State Senate. During the fundraising process, Peterson did not inform potential donors that she had previously misappropriated earlier contributions for her own personal gain.
The IRS described the prolonged nature of the scheme, stating: “To further her fraudulent activities, Peterson misappropriated campaign funds from the KCPCF, enlisting the help of friends and associates to divert these funds for her personal use. This deception involved obtaining money and property from KCPCF contributors through materially false and fraudulent claims for nearly seven years.”
Elaborating on how the Democratic official misused the donated funds, the IRS reported, “She accomplished this by issuing checks from the KCPCF account to her friends and associates, instructing them to cash these checks at banks in the New Orleans, Louisiana area and then hand over the proceeds to her. Occasionally, she permitted those cashing the checks to retain a small portion of the funds. Peterson utilized the money for personal expenses unrelated to her campaign or public office, including gambling-related costs.”
Furthermore, the IRS highlighted the extent of the theft over the seven-year fraudulent campaign, stating, “Additionally, Peterson caused the submission of false and misleading campaign finance reports that misrepresented expenditures as legitimate campaign-related expenses when, in reality, they were unrelated and diverted for her personal use. In total, from approximately November 25, 2013, to March 5, 2020, Peterson fraudulently executed this scheme to misappropriate around $94,250 contributed to her campaign.”
Moreover, the situation extends beyond that. Peterson also misappropriated funds from the state Democratic Party. In her capacity as Chair of State Political Party A, she was responsible for overseeing strategic decision-making, operations, outreach, and the overall direction of Party A, as well as managing its permanent staff, including those with signatory authority over the financial accounts of State Political Party A. Peterson took advantage of her position to select companies operated by her associates, ostensibly to provide campaign-related services to State Political Party A, and to dictate the payments that Party A would make to these companies. She misled State Political Party A by claiming that these payments were for campaign purposes. In truth, the companies either rendered no services or provided only minimal assistance to State Political Party A. Subsequently, Peterson intentionally and unlawfully instructed the companies to return a portion of the funds they received from State Political Party A to her, either through checks issued from the companies’ accounts or in cash. From approximately October 7, 2019, to April 4, 2020, Peterson unlawfully obtained around $53,106.93 from State Political Party A through this fraudulent scheme.
In response to the case, the United States Attorney’s Office remarked, “Public trust is vital for a healthy and effective government, making it crucial that any violations of this trust are thoroughly investigated and prosecuted. Our office remains committed to ensuring that we identify and hold accountable anyone involved in public corruption.”
The office stated, “Individuals running for public office must adhere to the highest standards of ethical behavior, particularly when soliciting public funds for their campaigns. The guilty plea issued today serves as a strong warning to elected officials, including former Louisiana State Senator Karen Carter Peterson, that those who misappropriate campaign funds and embezzle money from a political party for personal benefit will face consequences,” remarked Douglas A. Williams, Jr., Special Agent in Charge of the FBI New Orleans. “We express our gratitude to our collaborators at the United States Attorney’s Office for the Eastern District of Louisiana, the Internal Revenue Service – Criminal Investigation, and the Metropolitan Crime Commission for their invaluable support in assisting the FBI in combating public corruption in Louisiana.” In 2023, Carter was sentenced to 23 months in prison for her prolonged fraudulent activities. You can view one of her campaign advertisements here:
