George Santos pleads not guilty to federal charges

By Adrienne Vogt, Mike Hayes, Tori B. Powell and Maureen Chowdhury, CNN

Updated 7:29 p.m. ET, May 10, 2023
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10:46 a.m. ET, May 10, 2023

Prosecutors allege Santos used campaign funds for personal expenses, such as designer clothes

From CNN's Fredreka Schouten

Rep. George Santos is followed by reporters as he walks through the Capitol in Washington, DC, on April 26.
Rep. George Santos is followed by reporters as he walks through the Capitol in Washington, DC, on April 26. (Tasos Katopodis/Getty Images)

The indictment accuses Santos of undertaking a “fraudulent political contribution solicitation scheme,” alleging that he set up a company and got supporters to contribute funds to it under the false pretense that the money would benefit his political campaign.

Prosecutors claim that thousands of dollars instead went his Santos’ personal expenses, including luxury designer clothing and credit card payments. 

The indictment puts Santos at the center of a scheme to dupe supporters into thinking their money would help his candidacy when the funds were not used for that purpose and actually were routed to a company he controlled.

Prosecutors allege the Republican directed another person – described only as "Person #1" in the indictment – to falsely tell prospective political contributors that their money would flow to a political nonprofit that could accept unlimited funds and would undertake television ads and other efforts to get him elected. Two unnamed contributors gave $25,000 each, according to the complaint.

But the money didn’t support his candidacy, prosecutors say. Instead, according to the indictment, Santos “converted most of the money to his personal benefit.”

Specifically, funds from the two contributors were spent by Santos on cash withdrawals, designer clothes, credit card payments, a car payment, paying off personal bills and at least one bank transfer to Santos’ “personal associates,” according to the complaint.  

Prosecutors, however, did not charge Santos with violating federal campaign finance laws as part of the alleged scheme, but allege he committed wire fraud in lying to contributors about how the money would be spent.

10:44 a.m. ET, May 10, 2023

Group of Santos constituents call on McCarthy to remove New York Republican

From CNN's Eva McKend

A group of Rep. George Santos’ constituents, who have been advocating for months for Santos to be removed from Congress, are reacting to the unsealed federal indictment by putting pressure on House Speaker Kevin McCarthy.

“It’s beyond time for Speaker Kevin McCarthy to withdraw his support for Santos and show him the door,” reads a statement from the Concerned Citizens of NY-03.

"It’s a disgrace that McCarthy has continued to sully the U.S. House of Representatives by allowing Santos to walk those sacred halls - for more than four months now! And all that time, the residents of NY’s Third Congressional District have been without meaningful representation," the group said.

What McCarthy has said: The House speaker, when asked whether he would continue to stand by Santos, told CNN Tuesday his policy is that a member of Congress should resign after being found guilty of charges and referenced former GOP Rep. Jeff Fortenberry, whoresigned after being convicted of concealing information and making false statements to federal authorities in connection with a probe into illegal campaign contributions.

“Just like we had before with Jeff Fortenberry, he had the same ability, I removed him from committees, but he was found guilty and then I told him he needed to resign. That is my policies and principles on this,” McCarthy said

From a legal standpoint, the charges do not affect Santos’ status as a member of Congress. Nothing in the Constitution’s requirements for congressional office bars individuals under criminal indictment or conviction from serving, except for the 14th Amendment prohibitions for certain treasonous conduct committed after a member has taken the oath of office.

Under the formal rules for the US House of Representatives, according to a Congressional Research Service report, “an indicted Member may continue to participate in congressional proceedings and considerations.”

However, if a member is convicted of a crime that could result in a punishment of two or more years in prison, they are instructed under House rules not to participate in votes on the floor or in committee votes.

10:18 a.m. ET, May 10, 2023

Santos made false statements on multiple financial disclosures to the US House, indictment alleges

From CNN's Hannah Rabinowitz and Devan Cole

Rep. George Santos walks to a closed-door GOP caucus meeting at the Capitol on January 10.
Rep. George Santos walks to a closed-door GOP caucus meeting at the Capitol on January 10. (Drew Angerer/Getty Images)

Rep. George Santos made false statements on multiple financial disclosure reports to the House of Representatives, according to an indictment.

Congressional candidates are required to file sworn financial disclosers before an election that give a full accounting of that candidate’s finances, such as their assets and income. 

As part of his first congressional race in 2020, Santos filed two disclosures with the House that contained false statements, according to the indictment. Santos claimed in the reports that he had earned $55,000 in salary, commission and bonuses from a company, identified in the indictment only as “Company #2.”

Santos also reported in the 2020 disclosure that the only compensation he received exceeding $5,000 from a single source was an “unspecified commission bonus from Company #2.”

Prosecutors say, however, that Santos only received $27,555 from Company #2. Santos also allegedly failed to disclose altogether a salary he earned from an unidentified investment firm. 

The behavior continued when Santos filed his 2022 disclosure in the election, which he went on to win, according to the indictment.

Santos wrote on the form that in 2021 and 2022, his “earned income consisted of $750,000 in salary from the Devolder Organization LLC,” his “unearned income included dividends from the Devolder Organization LLC valued at between $1,000,001 and $5,000,000” and that “he had no compensation exceeding $5,000 from a single source in which he had an ownership interest.”

The then-candidate also claimed on the 2022 form that he “owned a checking account with deposits totaling between $100,001 and $250,000” and “a savings account with deposits totaling between $1,000,001 and $5,000,000,” prosecutors said.

“Contrary to these statements, in truth and in fact, as Santos then and there well knew and believed, he had not received from the Devolder Organization LLC the reported amounts of salary or dividends; he did not maintain checking or savings accounts with deposits in the reported amounts; and he received approximately $28,107 in income from (an investment firm Santos worked at) and approximately $20,304 in unemployment insurance benefits from (New York) during the same reporting period, all of which he failed to report as required,” according to the indictment.
10:00 a.m. ET, May 10, 2023

Santos fraudulently applied for Covid-related unemployment benefits, the indictment alleges 

From CNN's Tierney Sneed 

Rep. George Santos sits in the House Chamber of the Capitol on January 3.
Rep. George Santos sits in the House Chamber of the Capitol on January 3. (Chip Somodevilla/Getty Images)

New York Rep. George Santos is accused of fraudulently applying for unemployment benefits, with the indictment alleging he falsely claimed to be unemployed in an application for a pandemic-related unemployment insurance program.

Though he claimed in the application he had been unemployed since March 2020, according to prosecutors, he was employed at an investment firm and, as part of a $120,000 annual salary, he was allegedly receiving regular deposits – with the exception of one period in July and August 2020.  

He was employed at the firm between February 2020 and mid-April 2021, the indictment alleges. But, because of the repeated false assertions he is alleged to have made to the unemployment program, Santos also received $24,744 in benefits, according to prosecutors.

10:05 a.m. ET, May 10, 2023

CNN legal analyst explains charges in Santos indictment

CNN senior legal analyst Elie Honig, former assistant US attorney for the Southern District of New York, went through the charges in the 13-count indictment against New York GOP Rep. George Santos.

"Part one of this indictment, essentially counts 1 through 5, relates to defrauding donors, saying 'donate to me and [I will] use the money for my campaign,' instead he pocketed it," Honig said.

"Then we get into, separately, unemployment fraud. This is the charge of defrauding public money — that money belongs to the government — and the allegation here is that before he ran for office in 2020 and 2021, George Santos applied for unemployment benefits, certified he was not working but he was trying to find a job, as anyone would when they apply for unemployment, but in fact — according to this indictment — he was working and he was making a salary. So in that sense, it is a very run-of-the-mill unemployment fraud case, which gets prosecuted all the time," Honig explained.

Honig said the indictment brings up something that will likely play out during the course of the case: "Can prosecutors use his campaign lies about his background at a trial? That actually could go either way."

During his brief time in office, Santos has been accused of breaking campaign finance laws, violating federal conflict of interest laws, stealing cash meant for an Iraq War veteran’s dying dog, masterminding a credit card fraud scheme and lying about where he went to school and worked.

CNN’s KFile has also uncovered falsehoods from Santos, including claims he was forced to leave a New York City private school when his family’s real estate assets took a downturn and stating he represented Goldman Sachs at a top financial conference where he berated the company for investing in renewables. CNN also reviewed instances of Santos providing additional false history of his family’s background.

Santos has admitted to making some misleading claims about his education and financial status, but continues to deny the more serious allegations.

Speaking about the charge of making false statements to the US House of Representatives, Honig said, "If you are a candidate, if you are elected, you have to make certain official disclosures to the House, including information about your income and what the sources were, and this indictment charges that he lied in those disclosures."

"He said he made way less money than he actually made in some instances, and in other instances, he claimed that he made money from one source when they're saying he did not make that money from that source," Honig continued.

9:33 a.m. ET, May 10, 2023

Read the indictment against Santos here

The Justice Department unsealed federal charges Wednesday morning against New York Rep. George Santos.

Read the indictment below.

9:54 a.m. ET, May 10, 2023

Santos is in federal custody

From CNN's Elizabeth Hartfield and Mark Morales

Rep. George Santos talks to the media in New York on April 4.
Rep. George Santos talks to the media in New York on April 4. (Shannon Stapleton/Reuters)

Rep. George Santos is now in federal custody, according to a spokesperson for the Eastern District of New York. 

Santos was taken into custody in Melville, Long Island, where the FBI is housed, a law enforcement source tells CNN. From there, he was taken to the courthouse in Central Islip.

CNN was first to report on Tuesday that federal prosecutors filed criminal charges against the New York lawmaker. He is expected to appear in court as soon as this afternoon. 

Watch here:

9:23 a.m. ET, May 10, 2023

Santos faces 13 counts, including wire fraud, money laundering and theft of public funds

From CNN's Hannah Rabinowitz

Rep. George Santos has been charged on a 13-count indictment, according to court documents unsealed Wednesday.

The charges include seven counts of wire fraud, three counts of money laundering, one count of theft of public funds, and two counts of making materially false statements to the House of Representatives.

9:18 a.m. ET, May 10, 2023

Justice Department unseals charges against Santos

From CNN's Hannah Rabinowitz

The Justice Department unsealed federal charges Wednesday morning against New York Rep. George Santos.