McCann, former state Senator and third-party gubernatorial candidate, indicted for fraud, money laundering campaign funds
(The Center Square) — Federal prosecutors have charged a former Republican state Senator, who also ran as a third-party candidate for governor in 2018, with money laundering, tax evasion and fraudulent use of campaign funds.
Sam McCann represented the 49th Senate district and then the 50th Senate district for the state of Illinois up until he ran for governor in 2018 under a political party he called the Conservative Party. U.S. Attorney John Milisher filed charges in federal court in Springfield on Wednesday.
Prosecutors allege McCann used campaign funds to buy personal vehicles, pay personal debts and make mortgage payments. They also allege McCann used campaign funds to pay himself, according to the indictment.
McCann, 51, didn’t immediately respond when asked for comment.
Prosecutors allege McCann had scheme to launder money through a recreational vehicle rental business in Ohio using vehicles purchased with campaign money.
“From approximately May 2018 to June 2018, McCann, while representing himself as the renter, William, rented both the travel trailer and motor home from Sam, the owner, through the RV rental business,” the announcement said. “McCann caused a total of approximately $62,666 in campaign funds be used to pay the rental cost of the vehicles.”
“The rental business retained approximately $9,838 for commission and paid McCann, as the owner, approximately $52,827 by direct deposit to McCann’s personal checking account,” prosecutors allege. “From May 2015 to August 2020, McCann allegedly used campaign funds to pay approximately $64,750 on two separate personal mortgage loans that were secured by his former residence in Carlinville and an adjoining property used as an office for his construction business.”
Prosecutors also allege that after his unsuccessful bid for governor, McCann illegally used tens of thousands of dollars in political money for personal use.
“In November 2018, after an unsuccessful campaign for Governor of Illinois, when he was no longer a candidate for office and did not financially support any other candidate, and continuing to June 2020, McCann allegedly caused the Conservative Party of Illinois to issue approximately $187,000 in payments to himself personally and an additional $52,282 in payments for payroll taxes,” prosecutors allege. “Using a payroll service, McCann was allegedly able to conceal himself as the payee for the expenditures from the campaign account.”
McCann will be arraigned via telephone conference on Feb. 16.
“For the period of the alleged fraud scheme, from May 2015 to June 2020, the estimated loss is more than $200,000,” prosecutors said. “If convicted, the statutory penalty for each count of wire fraud (seven counts) and one count of money laundering is up to 20 years in prison. For tax evasion, the statutory penalty is up to five years in prison.”
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