Louis DeJoy May Have Violated Federal Campaign Finance Law
A federal investigation is underway involving U.S. Postmaster General Louis DeJoy. The U.S. Department of Justice wants to know about possible campaign finance violations he may have committed while operating a private business.
The allegations leveled against DeJoy refer to a time he ran his company, New Breed Logistics. The company basically operated warehouses and distribution centers to store and deliver goods. They also were to have ‘provided management of return of goods, and refurbished and repaired goods.’ His company was bought by XPO Logistics in 2014 for a cash deal of around $615 million dollars.
Louis DeJoy Responds To The Allegations
In a story published by The Washington Post, former employees of his company said they were pressured to contribute to Republican political candidates while working at New Breed Logistics. Then they were later paid back for the ‘contributions’ with payroll bonuses. It is what is known as straw donor scheme (A straw donor is a person who uses another person’s money to make a political contribution in their own name) and is illegal under 52 U.S.C. § 30122, which states:
No person shall make a contribution in the name of another person or knowingly permit his name to be used to effect such a contribution, and no person shall knowingly accept a contribution made by one person in the name of another person.Federal Election Campaign Act
This section was enacted as part of the Federal Election Campaign Act in 1971.
Although DeJoy has a history as a Republican megadonor he says he never violated the Federal Election Campaign Act. A representative of his, Mark Corallo made a statement to that effect:
Corallo said that DeJoy “has always been scrupulous in his adherence to the campaign contribution laws and has never knowingly violated them. Mr. DeJoy fully cooperated with and answered the questions posed by Congress regarding these matters. The same is true of the Postal Service Inspector General’s inquiry which after a thorough investigation gave Mr. DeJoy a clean bill of health on his disclosure and divestment issues. He expects nothing less in this latest matter and he intends to work with DOJ toward swiftly resolving it.”
Undoubtedly the Federal Investigation will continue despite DeJoys statement.
History At The United States Postal Service
Backed by then President Donald John Trump, Louis Dejoy was appointed by the Board of Governors of the United States Postal Service as Postmaster General in June 2020, and controversy followed. He instituted measures such as banning overtime, forbidding late or extra trips to deliver mail even if mail was left on the loading docks and removing and dismantling hundreds of high-speed mail sorting machines. He also ordered the removal of countless mail collection boxes from streets. He claimed these and other changes were needed because the postal system was “in a death spiral” and needed help restore it to financial stability. The changes caused significant delays of mail delivery, and did not go over well with many postal service employees.
Not long after the U.S. Postal Service was ordered by Federal District Judge Stanley Bastian to suspend and reverse changes. Postmaster General DeJoy said that the changes would be suspended, and in October, the USPS agreed to reverse all the changes. Meanwhile his leadership has been scrutinized by Democrats who have accused him of abusing his authority to benefit President Donald Trump’s political goals
Want to read more about the current USPS Postmaster General Louis DeJoy plans? Check out the link below. Needless to say, the “Delivering for America Plan” for the Postal Service has undergone some re-writes. You can read the Plan via the link below.
DELIVERING FOR AMERICA
“Our Vision and Ten-Year Plan to Achieve Financial Sustainability and Service Excellence”
Click on Image to view the whole thing.
Concerning Dejoys Ten-Year Plan, The Save the Post Office coalition, a group of labor and progressive organizations, said in a statement, “Asking Louis DeJoy to make a ten year plan for the post office is like asking the fox to build a better henhouse. After his record of destruction, incompetence and self-dealing over the last nine months, the only plans he’s qualified to make at this point are his own retirement plans.”
Louis DeJoy Fun Facts
- Fun Fact #1 – DeJoy is the first postmaster in two decades without prior experience in the United States Postal Service. President Biden and many Democrats want him out, but DeJoy can only be removed by the USPS Board of Governors.
- Fun Fact #2 – Campaign finance records shows that over a dozen management-level employees at New Breed would routinely donate to the same candidate on the same day, often writing checks for an identical amount of money.
- Fun Fact #3 – DeJoy’s appointment as Postmaster General was not only controversial because of his strong Republican connections, but also because of his financial position. While he divested shares in UPS and Amazon before taking on his role, he did not divest his $30–$75 million equity stake in XPO, a subcontractor for USPS. Under his tenure as Postmaster General, USPS has increased its business with XPO. Also when DeJoy sold his Amazon shares, he purchased stock options in the company that represents between 20% and 100% of his prior holdings. Not surprisingly, the USPS prioritizes Amazon package delivery.
- Fun Fact #4 – In September 2020, a court blocked the USPS from sending Colorado households a mailer with false and misleading information about vote-by-mail for Colorado. Secretaries of state had requested that DeJoy show them previews of the mailers that the USPS intended to send out, but DeJoy refused to do so.
- Fun Fact #5 – DeJoy received criticism for his decision on February 24, 2021 to award a $6.5 billion contract to modernize the USPS fleet exclusively to Oshkosh, formerly Oshkosh Truck, an American manufacturer that designs and builds specialty trucks. Oshkosh had previously admitted a lack of expertise in producing electric vehicles and would therefore be unable to make good on President Biden’s pledge to make the USPS 100% electric. In addition, Congressman Tim Ryan has referred to the SEC a $54 million purchase of Oshkosh stock made hours before the contract was announced. DeJoy and his wife currently have between $30-$70 million dollars invested in companies related to the USPS.
What This Means For Ecommerce Sellers
- DeJoy has made certain that Amazon gets priority on shipping – if you sell on other platforms then Amazon priority may mean your shipments take longer to arrive at your buyers.
- DeJoy has been accused of entering contracts that increase the bottom line of companies he benefits from financially. Does Louis DeJoy think of himself first and then USPS customers? You decide.
- As an ecommerce seller, Louis DeJoy does not seem to be the best man for the job.