FBI Investigates DeJoy Over Alleged Straw Donor Campaign Finance Scheme

The FBI launched an investigation into Postmaster General Louis DeJoy over allegations that he orchestrated an illegal straw donor campaign finance scheme at his former company, New Breed Logistics. Former employees told the Washington Post that DeJoy pressured them to make political donations to Republican candidates and campaigns, which he would then reimburse through inflated bonuses. Such arrangements violate federal and state campaign finance laws designed to prevent wealthy donors from circumventing contribution limits by funneling money through intermediaries.

Straw Donor Scheme Allegations

Former New Breed Logistics employees reported that DeJoy urged them to attend political fundraisers and contribute to Republican campaigns, with the understanding that the company would reimburse their donations through bonuses. Campaign finance records analysis revealed that 124 employees of DeJoy’s company donated over $1 million to Republican candidates between 2000 and 2014, an unusually high participation rate that suggested systematic coordination. The alleged scheme allowed DeJoy to effectively multiply his political influence beyond legal contribution limits while using other people’s names to disguise the source of the money.

FBI Investigation and Subpoenas

FBI agents investigating campaign contributions potentially made by people employed by DeJoy issued a subpoena to the postmaster general as part of their inquiry. The investigation examined whether DeJoy violated federal campaign finance laws that prohibit reimbursing employees for political contributions, which is considered a felony. Agents were reportedly looking into contributions made to both federal and state campaigns, including donations to the Trump campaign and Republican National Committee during the 2016 and 2020 election cycles.

Congressional Investigations and Perjury Concerns

The FBI investigation took on added significance because DeJoy had denied the allegations under oath during his August 24, 2020 testimony before the House Oversight Committee. When Representative Debbie Wasserman Schultz asked if he had reimbursed executives for contributing to Trump’s campaign, DeJoy responded: “That’s an outrageous claim, sir, and I resent it. The answer is no.” House Oversight Chair Carolyn Maloney stated: “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.” Representative John Sarbanes noted that if DeJoy participated in the straw donor scheme, he may have committed perjury in addition to campaign finance violations.

Significance

The FBI investigation into DeJoy’s campaign finance activities exposed the corrupt foundations of his appointment as Postmaster General. DeJoy’s position atop USPS—secured through connections built via allegedly illegal campaign contributions—enabled him to sabotage mail service during the 2020 election. The straw donor allegations revealed a pattern: DeJoy circumvented campaign finance laws to gain political influence, which led to his appointment to a supposedly independent agency, which he then weaponized for partisan election interference. The investigation demonstrated that even systematic election sabotage by a Trump appointee might face no consequences, as DeJoy remained in his position despite FBI scrutiny, congressional investigations, and potential perjury. The case exemplified how corruption enables further corruption: illegal campaign finance schemes buy political appointments, which enable abuse of government power, which faces no accountability when the entire system is captured. As of the investigation’s announcement, DeJoy continued serving as Postmaster General, protected by a bipartisan board and the investigative process’s slow pace.