U.S. congressman George Santos pleads not guilty to wire fraud, money laundering charges

U.S. Rep. George Santos, the New York Republican infamous for fabricating his life story, pleaded not guilty Wednesday to charges he duped donors, stole from his campaign and lied to Congress about being a millionaire, all while cheating to collect unemployment benefits he didn't deserve.

Afterward, he said he wouldn't drop his re-election bid and defied calls to resign.

Santos's 13-count federal indictment was a reckoning for a web of fraud and deceit that prosecutors say overlapped with his fantastical public image as a wealthy businessman a fictional biography that began to unravel after he won election last fall.

Santos, 34, was expected to be released on $500,000 US bond following his arraignment, about five hours after turning himself in to authorities on Long Island to face charges of wire fraud, money laundering, theft of public funds and making false statements to Congress. He could face up to 20 years in prison if convicted.

In a chaotic mediaappearance outside a courthouse in Long Island, N.Y., Santos said he looks forward to presenting his defence in response to a "witch hunt." He also said he plans to run for Congress again.

"I will prove myself innocent and then we'll move from there, and the election is a very far time away from now," he said with a dismissive wave of his hand.

"The way I look at it, I'll be a chairman of a committee in a couple of years if you just look at the standards of Congress."

WATCH | Santos faces 13 federal criminal charges:

Congressman George Santos indicted for fraud, money laundering and theft

1 year ago

Duration 1:59

U.S. Congressman George Santos who was elected to Congress in 2022 and gained infamy for fabricating his life story appeared in a New York court Wednesday to face an array of federal charges, including fraud, theft and money laundering.

Santos's lawyer, Joseph Murray, was more circumspect, saying: "Any time the federal government comes after you it's a serious case. We have to take this serious."

Santos said he planned to return to Washington, where the indictment is amplifying doubts about the freshman's ability to serve. House Republican leaders are taking a wait-and-see approach, saying Santos is innocent until proven guilty. Others are reiterating previous calls for Santos to step aside.

"I think we're seeing that the wheels of justice grind slow, but they grind fine," said Sen. Mitt Romney, a Utah Republican who confronted Santos on the House floor at President Joe Biden's State of the Union address in February.

Asked about Santos on Wednesday, Biden said, "I'm not commenting," noting that anything he said would be construed by some as interfering in the investigation. Asked if Congress should expel Santos, Biden said, "That's for Congress to decide."

Among the allegations, prosecutors say Santos induced supporters to donate to a company under the false pretence that the money would be used to support his campaign. Instead, they say, he used the money for personal expenses, including designer clothes and his credit card and car payments.

Santos also is accused of lying about his finances on congressional disclosure forms and applying for and receiving unemployment benefits while he was employed as regional director of an investment firm that the government shut down in 2021 over allegations that it was a Ponzi scheme.

The indictment "seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations," U.S. Attorney Breon Peace said. "Taken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself."

Campaign built on falsehoods

Santos said little during his arraignment, which lasted about 15 minutes. His lawyer said he plans to continue his recently announced re-election campaign, defying calls to resign. He asked the judge for permission for Santos to travel freely, though he did surrender his passport.

Santos didn't directly address the specifics of the charges to reporters, but when asked why he received unemployment benefits while employed, Santos cited a job change and confusion during the COVID-19 pandemic.

Santos, 34, was elected to Congress last fall after a campaign built partly on falsehoods. He told people he was a wealthy Wall Street dealmaker with a substantial real estate portfolio who had been a star volleyball player in college, among other things.

In reality, Santos didn't work at the big financial firms he claimed had employed him, didn't go to college and struggled financially before his run for public office. He claimed he fuelled his run largely with self-made richesearned from brokering deals on expensive toys for wealthy clients.

The indictment alleges those boasts were also exaggerated.

In regulatory filings, Santos claimed he loaned his campaign and related political action committees more than $750,000 US, but it was unclear how he would have come into that kind of wealth so quickly after years in which he struggled to pay his rent and faced multiple eviction proceedings.

In a financial disclosure form, Santos reported making $750,000 a year from a family company, the Devolder Organization, but the charges unsealed Wednesday allege that Santos never received that sum, nor the $1 million and $5 million in dividends he listed as coming from the firm.

Santos has described the Devolder Organization as a broker for sales of luxury items like yachts and aircraft. The business was incorporated in Florida shortly after Santos stopped working as a salesman for Harbor City Capital, the company accused by federal authorities of operating an illegal Ponzi scheme.

In November 2021, Santos formed Redstone Strategies, a Florida company that federal prosecutors say he used to dupe donors into financing his lifestyle. According to the indictment, Santos told an associate to solicit contributions to the company and gave the person contact information for potential donors.

Emails to prospective donors falsely claimed that the company was formed "exclusively" to aid Santos' election bid and that there would be no limits on how much they could contribute, the indictment said. Santos falsely claimed that the money would be spent on television ads and other campaign expenses, it said.

Last October, a month before his election, Santos transferred about $74,000 from company coffers to bank accounts he maintained, the indictment said. He also transferred money to some of his associates, it said.

Many of Santos' fellow New York Republicans called on him to resign after his fabricated life story was revealed. Some renewed those calls after news of his indictment.

"Sooner or later, whether he chooses to or not, both the truth and justice will be delivered to him," said U.S. Rep. Marc Molinaro, a Republican representing parts of upstate New York.