Dem Oversight Chair Announces Investigation Into DeJoy’s Alleged Straw Donor Scheme

House Oversight Committee Chair Carolyn Maloney (D-NY) speaks during a committee hearing on D.C. statehood on February 11, 2020. (Photo by Caroline Brehman/CQ-Roll Call, Inc via Getty Images)
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September 8, 2020 7:41 a.m.

House Oversight Chair Carolyn Maloney (D-NY) stated late Monday night that her committee is launching an investigation into Postmaster General Louis DeJoy’s alleged straw donor scheme.

Maloney said in a forwarded statement to TPM that her committee will probe allegations that during his tenure as New Breed Logistics’s CEO in North Carolina, DeJoy illegally pushed his then-employees to donate to GOP candidates at his fundraisers, then would later reimburse their donations in the form of bonuses. Former New Breed Logistics employees told the Post and the New York Times about the alleged scheme over the weekend.

“If these allegations are true, Mr. DeJoy could face criminal exposure—not only for his actions in North Carolina, but also for lying to our Committee under oath,” Maloney said in the statement.

“We will be investigating this issue, but I believe the Board of Governors must take emergency action to immediately suspend Mr. DeJoy, who they never should have selected in the first place,” she continued.

Maloney first informed the Post about the investigation late Monday night.

The chair’s comment about DeJoy potentially lying under oath refers to the postmaster general’s testimony last month in which he denied rewarding employees for donating to President Donald Trump’s campaign.

“That’s an outrageous claim, sir, and I resent it,” DeJoy told Rep. Jim Cooper (D-TN), who had pressed him on the issue. “The answer is no. … I’m fully aware of legal campaign contributions, and I resent the assertion, sir.”

“What are you accusing me of?” the postmaster general added.

The Post and New York Times reported that the alleged scheme stretched to 2014 before DeJoy retired in 2016 and before Trump launched his first presidential campaign.

For his part, Trump has signaled support for a potential investigation into DeJoy regarding the scandal but still vouched for the postmaster general, whom Trump praised as a “very respected man.”

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