Prior to the GOP primary for Texas’ open U.S. Senate seat in May 2012, then-candidate Ted Cruz donated $960,000 to his campaign in money marked as “personal funds”. He later added $240,000 more, “which is all we [he and wife] had saved,” Cruz recalled in 2013 after his election to the ‘world’s greatest deliberative body’.
Cruz, the former Solicitor General of Texas, claimed the $1.2 million in self-financing came from liquidizing he and his wife’s assets, a story he still abides by today.
However, once elected, Mr. Cruz filed financial disclosure forms with the Senate which shows that the personal money he used to finance his campaign in 2012 actually came from a pair of loans the couple secured from Goldman Sachs and Citibank, both falling within the range of $250,000-$500,000.
Notably, Mr. Cruz’s wife Heidi is an employee of Goldman Sachs’, a multinational investment bank headquartered in Manhattan.
As it turns out, neither loan was reported to the Federal Election Commission (FEC) by Cruz’s Senate campaign committee, as required by law.
According to Cruz’s presidential campaign spokeswoman Catherine Frazier, the Senate campaign failure to report the loans was “inadvertent.”
The revelation of this disclosure oversight is problematic for Sen. Cruz’s presidential aspirations, as his anti-establishment reputation is now at stake. When Cruz ran for the Senate in 2012, he campaigned as a Tea Party ‘outsider’ who opposed the government bail-outs of America’s largest banking institutions after the financial crisis in 2008.
To this day, Sen. Cruz complains about the disproportionate influence of special-interests in Washington – especially those which come from Wall Street.
After The New York Times story was published Wednesday, Cruz denied allegations that he broke the law or was even dishonest about the source(s) of a large portion of the money that helped elect him to the Senate in the first place.
“These loans have been disclosed over and over again”, told Cruz reporters. “If it was the case that they were not filed exactly as the FEC requires then we’ll amend the filings . . . and that’s the end of that.”
Cruz obviously wants this story to be over, but it is not. According to the law administered by FEC, congressional candidates are required to disclose the source of personal loans “obtained for use in connection with his or her campaign . . . by (their) committee.”
Not only that, but former FEC attorney Kenneth Gross told The New York Times that a candidate must also disclose “the terms of the loan and you even have to provide a copy of the loan document to the Federal Election Commission.”
Mr. Cruz isn’t out of the woods yet, and he may have some more answering to do at Thursday night’s debate in South Carolina.
[New York Times] [CNN]