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) SandersThe biggest challenge from the Mueller Report depends on the vigilance of everyone GOP Senate campaign arm hits battleground-state Dems over 'Medicare for All,' Green New Deal Warren unveils plan to cancel student loan debt, create universal free college MORE, Hillary ClintonHillary Diane Rodham ClintonIt is wrong to say 'no collusion' 10 factors making Russia election interference the most enduring scandal of the Obama era And the winner of the Robert Mueller Sweepstakes is — Vladimir Putin MORE and Donald TrumpDonald John TrumpTrump calls Sri Lankan prime minister following church bombings Ex-Trump lawyer: Mueller knew Trump had to call investigation a 'witch hunt' for 'political reasons' The biggest challenge from the Mueller Report depends on the vigilance of everyone 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).