Texas man indicted over allegations he created fraudulent campaign PACs

Texas man indicted over allegations he created fraudulent campaign PACs
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A Texas man has been indicted in federal court on counts including mail fraud, wire fraud and money laundering that stem from allegations that he raised hundreds of thousands of dollars for fraudulent political committees. 

Kyle Gerald Prall is accused of setting up political committees named "Feel Bern," "HC4President" and "Trump Victory" and soliciting donations he claimed would support the candidacies of Bernie SandersBernard (Bernie) SandersBernie Sanders to sign pledge affirming he will run as a Democrat Overnight Health Care — Presented by National Taxpayers Union — Drug pricing fight centers on insulin | Florida governor working with Trump to import cheaper drugs | Dems blast proposed ObamaCare changes Hillicon Valley: Microsoft reveals new Russian hack attempts | Google failed to disclose hidden microphone | Booker makes late HQ2 bid | Conservative group targets Ocasio-Cortez over Amazon MORE, Hillary ClintonHillary Diane Rodham ClintonFBI’s top lawyer believed Hillary Clinton should face charges, but was talked out of it Harris adds key Clinton aide, women of color to 2020 campaign: report Democrats more likely Trump's foil, than to foil Trump MORE and Donald TrumpDonald John TrumpJustice Department preparing for Mueller report as soon as next week: reports Smollett lawyers declare 'Empire' star innocent Pelosi asks members to support resolution against emergency declaration MORE.

Prall was indicted Tuesday by a federal grand jury in Austin. 

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Prall allegedly raised more than $300,000 in contributions to "Feel Bern," more than $165,000 in contributions to "Trump Victory" and more than $73,000 in contributions to "HC4President," according to the indictment. He spent little of that money for political purposes and pocketed much of it, according to the indictment. 

Prall claimed that the contributions would be used for purposes including paying for transportation to take voters to the polls, paying to train volunteers, paying to help voters obtain ID and making political contributions, according to the indictment.

“In reality Prall did not intend to, and did not, use the contributions for any of these purposes and instead transferred much of the money to himself through sham LLC accounts and used the other funds to generate additional contributions to his fraudulent political committee," the indictment reads.

The "Feel Bern" PAC came under scrutiny in 2016, when a review by The Hill found that the majority of the money spent by the PAC went to individuals linked to the group, marketing and advertising costs, audience targeting firms and transfers to limited liability companies (LLCs).