George's Bottom Line
Reporting and analysis from ABC News Chief Washington Correspondent and "This Week" Host George Stephanopoulos

George Stephanopoulos reports on events in politics, Congress and the White House for ABCNews, on the air and online. He interviews top newsmakers, discusses the events of the week and looks to the week ahead each Sunday on 'This Week.'

November 2009
Sun Mon Tue Wed Thu Fri Sat
1 2 3 4 5 6 7
8 9 10 11 12 13 14
15 16 17 18 19 20 21
22 23 24 25 26 27 28
29 30

« Previous | Main | Next »

Michael Steele: Money for Sister a 'Legitimate Transaction'

February 08, 2009 10:02 AM

During our exclusive "This Week" interview with Michael Steele, the newly elected Republican National Committee chairman, Steele lashed out at yesterday's Washington Post article.

The Post reported Steele's 2006 Senate campaign finance chairman has told federal prosecutors that Steele arranged for his 2006 Senate campaign to pay a defunct company run by his sister for services that were never rendered.

"It's not true," Steele told me on "This Week" Sunday.

"Those allegations were leveled by a convicted felon who was trying to get a reduced sentence on his conviction," Steele said. "The reality of it is that the US attorney, as well as the judge, looked at what he presented and it did not apply. He said there was no credibility to it."

Steele said, "the Washington Post ought to be ashamed of itself for getting out in front of something without all of the facts."

Steele said he gave the Washington Post documentation showing the receipts that were used and applied  toward the $37,000 reimbursement.

"It was a legitimate reimbursement of expenses," Steele said. "If my sister had not been reimbursed, I and she would have been in violation of McCain-Feingold finance law."

I asked Steele about records showing that the payment was made in December of 2007 and Steele's sister's company had been dissolved 11 months before that.

"That I don't know about," Steele said. "What I do know about is the fact as she understood it, the company was still in existence. Her lawyers were telling her they were in the process of dissolving the company. So at the time when the checks were written back to her to reimburse her, she just said, 'go ahead and write the checks to the company,' because the company had, you know, done the services that had been provided. But again, even in that instance, you can still, there are many companies that dissolve and still receive payments for services that are rendered. So that aspect for me is clarifying, again, cleared up with the lawyers, and was a legitimate transaction."

Steele said all the other allegations about financial transfers in the article were false.

"The thing about this George that is so frustrating to me, is that the Washington Post elevated this guy. And gave him credibility when no one else would. That's disturbing. The fact is we supplied all these documents on record with the state board of elections, with the FEC, and I think if there were any funny business there in two and a half years, 'cause they audit, and Lord knows I have enough Democrats pouring through my records to, in the last few years, they would have caught that."

Steele said that federal agents have contacted her sister in the last few days, "for the purposes of closing out, closing out  this matter," he said.

"I have not been contacted by the FBI at all. And what we said to the Washington Post is 'will you just wait? You're getting ahead of yourselves here. You're trying to make a story out of something that isn't a story. We'll provide you with the information.'"

Steele said his team faxed the Washington Post the receipts and other documentation and will take the information to the Federal Bureau of Investigations.

"We're being very proactive about this," he said, "because I'm sick and tired of this gotcha business that the Washington Post and others in the media tend to engage in. We're getting out in front, we're pulling all the data together. We're going to take it to the FBI. I'm not going to wait for them to come to me. I'm going to take it to them and give them everything they think they need. And if that's not enough we'll give them more because I want to clear up my good name. This is not the way I intend to run the RNC with this over my head." 

--George Stephanopoulos

February 8, 2009 in This Week with George Stephanopoulos | Permalink | Share | User Comments (233)

User Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

Great.........ANOTHER CROOK !!

Posted by: Twins | Feb 8, 2009 10:16:07 AM

george, you would NEVER hammer a dem like that....don't start losing your viewers by being too far left like the post!!!!!!!! Steele is respectable, treat him that way!!!!

Posted by: kvr | Feb 8, 2009 10:27:30 AM

George, obviously Mr. Will and Mr. Gingrich are independently wealthy, so I can understand how tax cut policy will mean a great deal of money to them. Will you ask them to explain how someone who makes 45,000 a year and would receive maybe 700.00 a year in tax relief will benefit from this. Especially since this won't even amount to a monthly rent payment,much less a house payment. I know a lot of folks who are on this income range and are true blue republicans to the core and actually believe this rhetoric. When I probose this scenario to them, they usally either don't respond or they look at me like I am from Mars. Maybe if maybe if Mr.'s Will and Gingrich would explain it to me, I will be able to see where I have so completely missed the boat.

Thanks,
Dennis

Posted by: Dennis Didio | Feb 8, 2009 10:32:28 AM

Steele said construction jobs were endpoints. So were many business jobs endpoints. The "smart" ones took the money and ran and left the businesses and the people in the dust. What we need are honest people who think of others. I would rather have a hard- working honest person than a "what can I get out of this since I'm so smart."

Posted by: DOROTHY JOHNS | Feb 8, 2009 10:35:56 AM

Steele knows very little about running a small business. The creation of Government business will fortify small businesses, simply because the people will have the money to spend. It will revive the economy and the circulation of money. It has been done before, and it is being done now in Germany. The whole world cannot be wrong. And by the way, when he refers to "this guy" whom is he talking about? The Republicans have shown their true self throughout this process, and it is ugly. They don't even seem American.

Posted by: B.T.A | Feb 8, 2009 10:37:39 AM

Michael Steele AND the republicans are PINN HEADS expounding the same old ideas that got the country into this mess. Pele grants are a needed STIMULOUS that keeps our institutions of higher learning from going away and allow young people to better themselves!
But as we saw all through the last administrations time of terror, the "so called" conservatives want to dumb down the population and end educated thought and enlightened leadership. The reasons for this are clear, by keeping education in the hands of a few who wield power the public is easier to scare and control. We've seen it time and time again in human history, and the Republican leaders(?) want to take us down that road again! Nome Chomsky said it"The end of democracy will come draped the flag and carrying a bible"

Posted by: Holly Ridge Harry | Feb 8, 2009 10:39:03 AM

But he sounds so nice.

Posted by: Eddie D | Feb 8, 2009 10:54:30 AM

this guy steele is a joke. i don't want to sound racist cause i'm not, however he's riding on obama's wave. good god, the republicans are really clutching at straws to make a comeback.....hey repub's it's not working......

Posted by: Raina | Feb 8, 2009 10:55:54 AM

If the media keeps coming up with slanderous accusations with nothing to really back up the stories ...maybe we need to start going after their pocketbooks spreading misinformation and slander.

Posted by: P. S.E. | Feb 8, 2009 10:56:27 AM

LMAO the idiots at ABC including The George " I have a confict of interest" Steppypuppylous, are trying to lay something on someone other than the corrupt, criminal democrats..Nice try georgie.. just stick with being a DUH-Bama talking head

Posted by: DOH-bama Cabinet of Corruption | Feb 8, 2009 11:01:35 AM

Did Mr. Steele say that Bush inherited a recession and turned it around? Run that beautiful bean footage again! ?This Needle-nose crook is on the pipe!

Posted by: pam | Feb 8, 2009 11:04:41 AM

Another Republican crook. Mr. Steele, as his predecessors, had nothing to offer when Bush was president. Now all of suden the Republican Congress has something to say when the Democrats finally come up with a stimules plan. Bush and his regime, allowed these banks, auto companies, etc. to run out of control and the country is paying for it now. Pres. Obama inherited a mess that Rove, and all the other crooks left behind and now they are quick to criticize. The Republicans still have no plan.

The Republicans are sore losers. This is not a Republican or a Democrat problem--this is a country disaster.

Posted by: Diann Thomas Beasley | Feb 8, 2009 11:05:07 AM

Biden gave campaign money to everyone in his family, but that's ok, everyone expects democrats to be crooked and never called on it. Certainly not called on it by clinton's little butt buddies. Your stories are always so one sided that they can't even be called news.

Posted by: Melissa | Feb 8, 2009 11:08:22 AM

Steele is right on target. I can't believe George can't tell the difference between creating work and creating jobs. The difference is like getting a job cutting a lawn, vs. getting employment with a landscape company, or starting a landscape company. Either George is not very bright, or he is showing his true liberal colors by disagreeing with Steele. The current stimulus package only provides jobs, more like projects, not long term employment. The difference is huge.

Posted by: Joe | Feb 8, 2009 11:11:35 AM

Steele is just another politician that doesn't get it. I listened to all the Republican criticism of Obama, which started immediately. They didn't even give him a chance. At first, it all sounded like sour grapes to me. However, now that I've heard more, I think it's more than that. I learned a long time ago that when people tell you something over and over again, they are lying and hoping that you will buy whatever they are selling if they repeat it often enough. I've heard so many Republicans SAY they want Obama to be successful while they are at the same time telling everyone that Obama has it all wrong that I NOT convinced. They ARE LYING. They don't want him to be successful. They don't want bipartisanship. And, yes, that means they don't care what lack of success means to the country. All Republicans care about is getting power back. They are a bunch of greedy PINHEADS and CROOKS, as others have commented here. And, they are DANGEROUS pinheads. They had eight years to show the country what they could do - to make the country prosperous, to leave it in better shape than they found it, and we all know what shape the country is in right now. Deregulation was their mantra. It made a lot of them richer and more of us poorer. The sooner we stop listening to them, the better off we'll be. Write to your Congressmen and tell him or her to listen to Obama because we definitely don't need more Republican policies.

Posted by: Vicki | Feb 8, 2009 11:12:32 AM

Mr. Steele is another Republican boob! For some reason these Republicans have a short term memory. It is because of his Party being in power for 8 yrs. is the reason we are in this mess. Once again, we men that want the American People to believe that they do no wrong, can solve all the ills of the world and everyone should shut up and do as they say.
Did we do that already?
If the Republicans want to engage in this process, then do so; stop always trying to find fault. If we wanted drama we'd watch American Idol!!

Posted by: Mark Sanchez | Feb 8, 2009 11:26:59 AM

He is such an idiot, can't he understand the republicans are using him to try to garner minority support. If John Mccain had won the election he would not be the president of the RNC.

Posted by: Asankey | Feb 8, 2009 11:28:43 AM

Let me correct Michael Steele's spin for him:

"Those allegations were leveled by MY FORMER CAMPAIGN CHAIRMAN, a convicted felon who was trying to get a reduced sentence on his conviction. . . The thing about this George that is so frustrating to me, is that the Washington Post elevated MY FORMER CAMPAIGN CHAIRMAN. And gave him credibility when no one else would. EXCEPT ME, THAT IS.

That's disturbing."

Yes, Mr. Steele. It is.

Posted by: Mark Kraft | Feb 8, 2009 11:28:57 AM

Let me correct Michael Steele's spin for him:

"Those allegations were leveled by MY FORMER CAMPAIGN CHAIRMAN, a convicted felon who was trying to get a reduced sentence on his conviction. . . The thing about this George that is so frustrating to me, is that the Washington Post elevated MY FORMER CAMPAIGN CHAIRMAN. And gave him credibility when no one else would. EXCEPT ME, THAT IS.

That's disturbing."

Yes, Mr. Steele. It is.

Posted by: Mark Kraft | Feb 8, 2009 11:31:51 AM

I couldn't stand it. I had to turn off George's interview with Mr. Steele this morning. He claims that the Republicans can't be held responsible for the current econonic mess because it is only 18 months old. Give me a break. It took us 8 years to get to this point. And who had total control? W and his cronies. I'm sure W is laughing right now. Like everything else in his life, he's made a mess for others to clean up. Except this time, the mess is affecting all of us and his Daddy's friends can't fix it for him. The Republical governors had it right; the Republican house and senate member still don't get it. I've already written to Susan Collins and thanked her for showing true leadershp at a time when we need it. I'd suggest others do the same. The rest of the Republicans need to follow her lead. Obama needs all the support we can give him, regardless of our party affiliation. There is too much at stake. And contrary to what Rush Limbaugh says, Obama needs to succeed for everyone's sake. Steele and the rest of the Republican leadership have already made themselves irrelevant. If they don't watch it, they will truly become a party in exile.

Posted by: janet moore | Feb 8, 2009 11:32:14 AM

First of all how could you let the statement Bush inherited a recession go unchalleneged during your interview with Michael Steele? I almost went through the TV set on that one George.

Second Republicans don't get it! Steele complained the plan would create work, not long term jobs, I'll give hime that. But what the stimulus package will do is put money into the pockets of consumers so they can walk back into businesses to BUY their products, and that is the engine that fuels our economy. People buying products!
Tax cuts only do so much, sure they help to build wealth, but this trickle down theory has all but eliminated the middle class. A certain group have enjoyed Republican wealth building, and they have taken the money and run leaving the rest of us to deal with the ruins of this economy and Steel is STILL singing the same blasted song, it is infuriating!

Posted by: Sue | Feb 8, 2009 11:32:35 AM

Once again ABC and G.S. being impartial. He slobbers all over that Summers- who has no credabilty whats so ever and goes on the personal attached agaist Steele. Would G.S. ever interview a Dec, especially a black Dem, like that?

I was clicking through the channels when I saw these two very different interviews. Just reminds me why I will never watch ABC or ABC News. G.S. must go or at least bring on a Rep to co-host to balance out G.S.- he is so unprofessional!

Posted by: tim | Feb 8, 2009 11:32:39 AM

Michael Steele is a CLOWN!! His statements represent the classical Republican idealism that they know all and that everything they (The Bush administration) did in governing this country was right. How can this guy just change the definition of what a job is?? Also, where were the know-it-all GOP when we got into this financial crisis?!? Oh yeah, that's right, they were majority party in charge the whole time!! Sure enough some of Clinton's and HW's policies added to it, however the known future impact was completely ignored on the GOP'S watch! No regulation or accountability clean accross the financial sector!!

We obviously need a clean sweep of these old fogeys in Congress who have no clue that their views and "good ideals" (because their good ideas are only "ideal" for themselves!) don't coincide or mesh with today's economy and technological advances!!

Posted by: RandoGallz | Feb 8, 2009 11:36:03 AM

SOUNDS, LOOKS, FEELS LIKE BAIT AND SWITCH TO ME. SAME OLD SAME OLD.

Posted by: CHEMBROVICH | Feb 8, 2009 11:36:04 AM

A crook is a crook and you can smell them a mile away. This guy is known for sweet talking people and it ain't working Mr. Steele. You are corrupt. How is it a doctor has anything to do with catering and web development? How is it a company that does not exist gets paid $37K. Oh...yes, the company is dissolved but the bank account is not so stick it in the so called bank account and wire the money to a Personal account. A company dissolved does not mean a bank account dissolved. I smell foul all over this. Washington Post, thank you for bringing in light this story.

Posted by: Dan | Feb 8, 2009 11:44:20 AM

Post a comment