Rep. Duncan Hunter indicted on charges of misusing campaign funds

A federal grand jury on Tuesday indicted California GOP Rep. Duncan Hunter and his wife on charges of improperly using hundreds of thousands of campaign funds to pay for personal expenses, including family vacations and dental work.

Hunter is also accused of filing false campaign reports and wire fraud.

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The late-August indictment is a huge problem for California Republicans. Unless Hunter were to pass away in the next 10 days – Aug. 31 – there is no way to replace him on the ballot this November, according to the California Secretary of State’s office. There is also no write-in option under state law.

While the San Diego-based district is solidly Republican and Hunter was moving toward reelection despite his legal problems, Tuesday’s indictment may cost the GOP a badly needed House seat.

The grand jury indictment paints a picture of the Hunters as a couple with serious financial problems who began dipping into about $250,000 worth of campaign funds to pay their expenses. The Hunters allegedly overdrew their joint checking account more than 1,100 times during a seven-year period, leading to thousands in overdraft charges, according to the indictment. Their credit cards were also maxed out, leading to additional charges.

“By virtue of these delinquencies – as well as notifications of outstanding debts and overdue payments from their children’s school, their family dentist, and other creditors – the HUNTERS knew that many of their desired purchases could only be made by using Campaign funds,” the indictment alleges. “The goal of the conspiracy was for DUNCAN HUNTER and MARGARET HUNTER to enrich themselves, and others at their direction, by converting Campaign funds for their own personal benefit and enjoyment, and for the personal benefit of others with whom the HUNTERS had personal relationships.”

Hunter’s attorney, Gregory Vega, claims the prosecution of his client is politically motivated. Vega has sent letters to the Justice Department complaining that two of the federal prosecutors involved in the Hunter case attended a fundraiser for Hillary Clinton in Aug. 2015. Hunter was a vocal supporter of President Donald Trump’s campaign for the presidency.

Vega wanted the case handled by another federal prosecutor, or the criminal investigation brought to an end without an indictment. The DOJ declined those requests.

Vega also wrote to Rod Rosenstein, the deputy attorney general, on Aug. 6 complaining that the “overt political leanings of two individuals intimately involved in the investigation, combined with, among other things, the Southern District’s sudden, inexplicable rush to indict my client before the general election without affording him sufficient due process, create an actual and/or apparent conflict that cannot be ignored.”

According to a statement from the Justice Department, during the period from 2009 to 2016, the “Hunters illegally used campaign money to pay for personal expenses that they could not otherwise afford. The purchases included family vacations to Italy, Hawaii, Phoenix, Arizona, and Boise, Idaho; school tuition; dental work; theater tickets; and domestic and international travel for almost a dozen relatives.”

Prosecutors allege that the Hunters falsely mislabeled their personal expenses “campaign travel,” “dinner with volunteers/contributors,” “toy drives,” “teacher/parent and supporter events,” “gift cards” for charitable donations, and “gift basket items.

Hunter, 41, is a second-generation lawmaker; his father served in the House from 1980 to 2008. The younger Hunter is a former U.S. Marine and serves on the House Armed Services Committee.

Hunter’s indictment endangers a traditionally conservative southern California seat long held by Republicans, including Hunter’s father, Duncan Hunter, Sr., a legend in the San Diego area. Within minutes of the indictment, Cook Political Report announced that it would move Hunter’s seat from “solid” Republican to “likely” Republican, noting that the race suddenly became competitive.

Republicans in the San Diego area and in Washington decided months ago to stick with Hunter rather than force him to retire, taking his word that the matter would go away. It’s why Hunter soundly defeated several Republicans who challenged him for the seat earlier this year — one, a local GOP major who warned that Hunter’s indictment would leave Republicans without a candidate.

Now, the party’s decision is backfiring. Hunter’s name will continue to appear on the ballot this fall next to a progressive Democrat, Ammar-Campa Najjar, rather than another Republican.