OH-01: Democrat Kate Schroder is running a TV commercial about the truly strange scandal that engulfed Republican Rep. Steve Chabot’s campaign last year. The narrator accuses the incumbent of lying about Schroder to draw attention away from his own problems, declaring, “Chabot is facing a grand jury investigation for $123,000 in missing campaign money.”
The ad continues, “After getting caught, Chabot blamed others. And his campaign manager went missing.” The narrator concludes, “We may never learn the truth about Shady Chabot’s missing money, but we do know that 24 years is enough. (Chabot was elected to represent the Cincinnati area in Congress in 1994, lost a previous version of this seat in 2008, and won it back two years later.)
As we’ve written before, Chabot's campaign was thrown into turmoil last summer when the FEC sent a letter asking why the congressman's first-quarter fundraising report was belatedly amended to show $124,000 in receipts that hadn't previously been accounted for. From there, a bizarre series of events unfolded.
First, Chabot's longtime consultant, Jamie Schwartz, allegedly disappeared after he shuttered his firm, called the Fountain Square Group. Then Schwartz's father, Jim Schwartz, told reporters that despite appearing as Chabot's treasurer on his FEC filings for many years, he had in fact never served in that capacity. Chabot's team was certainly bewildered, because it issued a statement saying, "As far as the campaign was aware, James Schwartz, Sr. has been the treasurer since 2011." Evidently there's a whole lot the campaign wasn't aware of.
The elder Schwartz also claimed of his son, "I couldn't tell you where he's at" because "he's doing a lot of running around right now." Well, apparently, he'd run right into the arms of the feds. In December, local news station Fox19 reported that Jamie Schwartz had turned himself in to the U.S. Attorney's office, which, Fox19 said, has been investigating the matter "for a while."
Adding to the weirdness, it turned out that Chabot had paid Schwartz's now-defunct consultancy $57,000 in July and August of 2019 for "unknown" purposes. Yes, that's literally the word Chabot's third-quarter FEC report used to describe payments to the Fountain Square Group no fewer than five times. (Remember how we were saying the campaign seems to miss quite a bit?)
We still don't know what those payments were for, or what the deal was with the original $124,000 in mystery money that triggered this whole saga. Chabot himself has refused to offer any details, insisting only that he's been the victim of an unspecified "financial crime."
There haven't been any public developments since December, though. The Cincinnati Inquirer’s Jason Williams contacted Schwartz's attorney last week to ask if Schwartz had been informed of any updates, and the reporter was only told, “No, not yet.” Unless something big changes in the next few months, though, expect Democrats to keep pounding Chabot over this story.
