The 2024 election has concluded, prompting political parties to shift their focus toward future elections and associated fundraising efforts. It is important to examine the implications of such fundraising, especially when significant amounts are being sought by the left. In a notable incident from the summer of 2022, which went unnoticed at the time, a prominent Democratic figure in New Orleans was found guilty of defrauding donors on a large scale.

The Internal Revenue Service (IRS) issued a press release detailing the case, which involved a former state senator and the then-chair of the Louisiana Democratic Party, referred to as “Political Party A.” This individual orchestrated a substantial fraud scheme that misappropriated campaign contributions over nearly a decade. The press release stated, “The United States Attorney’s Office announced that former Louisiana State Senator and Chair of State Political Party A, Karen Carter Peterson, from New Orleans, Louisiana, pleaded guilty today before United States District Judge Sarah S. Vance to a one-count bill of information charging her with wire fraud, in violation of Title 18, United States Code, Sections 1343 and 2.”

Furthermore, the release elaborated, “Court documents reveal that Peterson served as a Louisiana State Senator for the 5th District from approximately 2010 until April 8, 2022, and held the position of Chair of State Political Party A from around 2012 to 2020. During her tenure as a Louisiana State Senator, Peterson established and managed a campaign organization known as the ‘Karen Carter Peterson Campaign Fund (KCPCF)’ to solicit and gather campaign funds from both individual and corporate donors.”

However, she misappropriated the solicited campaign funds for her personal use: “The campaign funds were solicited under the pretense that they would be utilized to support Peterson’s reelection for the State Senator position. In the process of soliciting donations, Peterson neglected to inform potential contributors that she…”The IRS detailed the prolonged nature of the fraudulent scheme, stating, “To further her scheme, Peterson misappropriated campaign funds from the KCPCF for her personal benefit, enlisting the help of friends and associates to do so. This deception involved obtaining and utilizing money and property from KCPCF contributors through materially false and fraudulent representations and promises over a span of nearly seven years.”

Elaborating on the methods employed by the Democratic official to misappropriate the donated funds, the IRS explained, “She wrote checks from the KCPCF account to her friends and associates, instructing them to cash these checks at financial institutions in the New Orleans, Louisiana area and subsequently hand over the proceeds to Peterson. Occasionally, she permitted those cashing the checks to retain a small portion of the funds. Peterson utilized the misappropriated money to cover personal expenses unrelated to her campaign or public office, including gambling-related costs.” Furthermore, the IRS highlighted the extent of the theft over the seven-year fraudulent operation, stating, “Additionally, Peterson caused the submission of false and misleading campaign finance reports that misrepresented expenditures as legitimate campaign-related expenses, when in reality, they were unrelated and diverted for her personal use. In total, from approximately November 25, 2013, to March 5, 2020, Peterson fraudulently executed this scheme to misappropriate around $94,250 contributed to her campaign.”However, this is not the entirety of the situation. Peterson also misappropriated funds from the state Democratic Party. In her capacity as Chair of State Political Party A, she was responsible for overseeing strategic decision-making, operations, outreach, and the overall direction of the party. She managed its permanent staff, including those with signatory authority over the financial accounts of State Political Party A. Peterson took advantage of her position to select companies operated by her associates, ostensibly to provide campaign-related services to State Political Party A, and to dictate the payments that Party A would make to these companies. She misled State Political Party A by claiming that these payments were for campaign purposes. In truth, the companies either rendered no services or provided only minimal assistance to State Political Party A. Subsequently, Peterson intentionally and unlawfully instructed the companies to return a portion of the funds they received from State Political Party A to her, either through checks issued from the companies’ accounts or in cash. From approximately October 7, 2019, to April 4, 2020, Peterson unlawfully obtained around $53,106.93 from State Political Party A through this fraudulent scheme.

In response to the case, the United States Attorney’s Office remarked, “Public trust is vital for a healthy and effective government, and it is crucial that any violations of this trust are thoroughly investigated and prosecuted. Our office remains committed to identifying and prosecuting individuals involved in public corruption.”

The office further stated, “Candidates for public office must adhere to the highest standards of conduct, particularly when soliciting funds from the public for their campaigns. Today’s guilty plea serves as a strong warning to elected officials, such as former Louisiana State Senator Karen Carter Peterson, that those who misuse campaign contributions and embezzle funds from a political party for personal benefit will face accountability,” stated the FBI New Orleans.In 2023, Carter received a sentence of 23 months in prison due to her involvement in years of fraudulent activities