BLM-Backed Dem Indicted on Federal Wire Fraud Charges, Faces 20 Years in Prison

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OPINION: This article contains commentary which may reflect the author’s opinion

Democrats seem to have a problem when it comes to crime. Committing crimes that is. Perhaps that’s why they push for soft-on-crime district attorneys.

In March, an activist from BLM along with her husband were accused of collecting about $33,426 in unemployment benefits and spending an unspecified amount of money received from donations for their own benefit.

In April, Brian Benjamin, New York’s lieutenant governor at the time, surrendered himself to authorities in connection with a past campaign.

Benjamin was arrested after prosecutors in Manhattan and the FBI investigated whether he knowingly committed campaign finance fraud. Benjamin resigned from his post on April 12.

In June, former Illinois state representative Luis Arroyo was sentenced to 5 years in prison for bribery in connection with a bill to legalize sweepstakes machines he offered a member of the Illinois Senate monthly payments in exchange for his support.

In a wire fraud case, a former Democratic state senator and party chairman is accused of using campaign contributions for gambling expenses.

Karen Peterson, an ex-state senator who served the 5th Congressional District for over a decade, resigned her Senate seat in April. She cited mental health issues and “gambling addictions.”

Between 2012 and 2020, she was also the chair of the Louisiana Democratic Party.

Her campaign for Louisiana’s 2nd Congressional District was assisted by more than $100,000 in contributions from the Black Lives Matter PAC.

According to the U.S. Attorney for the Eastern District of Louisiana, Peterson had been defrauding campaign contributors for at least seven years.

“As a Louisiana State Senator, Peterson formed and maintained a campaign organization, the Karen Carter Peterson Campaign Fund (KCPCF), to solicit and raise campaign funds from individual and corporate donors,” U.S. Attorney Michael Simpson alleged in the court filing. “The campaign funds were solicited based upon the representations and premise that the funds would be used to facilitate Peterson’s reelection for the position of State Senator.”

Additionally, she allegedly siphoned contributions received by the Louisiana Democratic Party that were meant to support candidate campaigns.

Investigators accuse the Democrat of using illegally acquired funds for personal expenses unrelated to her campaign, among them gambling expenses. A U.S. attorney alleged she concealed that she had used previous donations for personal expenses when she asked donors for even more contributions, which makes the crime even more serious.

In addition to serving up to 20 years in prison, Peterson could be fined $250,000 and be supervised for three years after she’s released from prison. The case against Peterson will be re-heard in court on August 1.

According to a press release issued by the IRS:

According to court documents, Peterson served as a Louisiana state senator for the 5th District from about 2010 until about April 8, 2022, and as the chair of State Political Party A between about 2012 and 2020. As a Louisiana state senator, Peterson formed and maintained a campaign organization, the “Karen Carter Peterson Campaign Fund (“KCPCF”),” to solicit and raise campaign funds from individual and corporate donors.

The campaign funds were solicited based upon the representations and premise that the funds would be used to facilitate Peterson’s reelection for the position of state senator.

In furtherance of her scheme, Peterson diverted, and caused her friends and associates to divert, campaign funds from the KCPCF to Peterson’s personal use for the purpose of obtaining and using money and property from contributors to the KCPCF by means of materially false and fraudulent representations and promises for nearly 7 years.

She did so by writing checks drawn on the KCPCF account to her friends and associates and directing them to cash the checks and then to give most or all of the proceeds to her. Peterson used the funds to pay for personal expenses unrelated to her campaign or the holding of public office, including to pay gambling-related expenses, and, in the course of soliciting additional contributions, failed to disclose to potential contributors that Peterson had already used funds contributed to the KCPCF for her personal benefit.

Further, Peterson caused the public filing of false and misleading campaign finance reports that mischaracterized expenditures as being for legitimate purposes related to her campaign or the holding of public office, but were, in fact, unrelated to such purposes and, instead, were diverted to Peterson’s personal use.

A political analyst at Dillard University, Robert Collins, observed that this was an extraordinary downward spiral.

“It’s definitely a fall from a very high place, not only was she powerful herself, of course, she comes from a political family,” exclaimed Collins.

“So, I think most people would see that as worse than simply spending your own funds on a gambling addiction which is bad enough, so I think there’s an issue of trust there,” he explained.

Peterson posted a statement on Twitter:

“Today marks an important step in my life-long recovery as I continue to address my gambling addiction. I sincerely apologize for the impact from my compulsive behavior resulting from this addiction.”

“I have made full repayment of funds used as a result of my addiction and I will continue to make amends. Staying true to the steps of my ongoing recovery, I have been forthright, honest, and fully cooperative with the US Attorneys’ Office in their investigation.”

Source: The Republic Brief