Probe Uncovers More Reid 'Slush Fund' Payments to
Granddaughter
Thursday, 27 Mar 2014 12:09 PM
By Drew MacKenzie
Senate Majority Leader Harry Reid
is at the center of a growing political controversy after it was revealed
Thursday that more payments from his campaign funds had been made to his
granddaughter than previously reported.
The Nevada Democrat promised
earlier this week to reimburse $16,787 his campaign gave to Ryan Elisabeth Reid
in 2013 for what was described as payments for “holiday gifts.” Those payments
were reportedly made to purchase items from Ryan Elisabeth Reid, who has her
own line of jewelry. Reid defended the payments, saying they complied with
Federal Election Commission standards that allow the purchase of goods from
relatives if those goods are sold at fair market value.
Jahan Wilcox, a Republican
National Committee spokesman, decried Harry Reid's use of campaign monies as a
"personal slush fund."
Things got worse for Reid when the
Las Vegas Review-Journal reported Thursday that federal disclosures show the
campaign paid another $14,481 to Reid's granddaughter in 2012, bringing to
$31,268 the total paid to Ryan Elisabeth
in 2012 and 2013 to purchase gifts for Reid's support staff.
Reid told the newspaper that
23-year-old Ryan has been the target of "harassing" phone calls and
“negative unwanted attention on the Internet.”
In a statement, Reid said,
"This has gone too far and it needs to stop now. I deeply regret any role
I had in creating this situation but now, as a grandparent, I say enough is
enough.
"Landra [Reid’s wife] and I
are extremely proud of our granddaughter, we love her very much and we regret
any unwanted attention that these stories have brought to her."
The scandal came to light earlier
this week after Las Vegas
journalist Jon Ralston investigated campaign payments made to a "Ryan
Elisabeth."
The Federal Election Commission
asked Reid’s campaign, Friends for Harry Reid, to provide more information
about the gift money, and was informed about that the payments were, in fact,
made to Reid’s granddaughter.
Ryan, the daughter of former Clark
County Commissioner Rory Reid, designs jewelry and a gift line and is also the
creative director of a New York
theater company. Ryan Elisabeth is the name of her jewelry company, and the
“holiday gifts” were trinkets — coasters, picture frames, jewelry — for Reid’s
staff.
Reid maintained that the gifts
were in full compliance with FEC regulation, but he vowed on Wednesday to pay
back his campaign for the full amount.
Before the additional payments
were revealed, Reid said, "I thought it would be nice to give supporters
and staff thank-you gifts that had a personal connection."
But the Review-Journal said that
"the potential appearance" Reid was using funds from political donors
to enrich a family member prompted his decision to reimburse the campaign.
Republicans have slammed Reid for
what they called improper spending by turning donor contributions into a slush
fund.
"It's pretty brazen for Sen.
Harry Reid to funnel…campaign funds to his granddaughter for 'holiday
gifts,'" Wilcox said. "One of these days Reid will learn that
Nevadans don’t appreciate him using campaign money as his personal slush
fund."
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