Postmaster General Louis DeJoy facing federal campaign finance investigation over former business

U.S. Postmaster General Louis DeJoy testifies before a House Oversight and Reform Committee hearing on slowdowns at the Postal Service ahead of the November elections on Capitol Hill in Washington, August 24, 2020.

Tom Williams | Pool | Reuters

Postmaster General Louis DeJoy is facing a federal investigation over campaign contributions made by employees of his former business, a spokesman said Thursday.

"Mr. DeJoy has learned that the Department of Justice is investigating campaign contributions made by employees who worked for him when he was in the private sector," DeJoy spokesman Mark Corallo said in a statement. "He has always been scrupulous in his adherence to the campaign contribution laws and has never knowingly violated them."   

The Washington Post first reported on the investigation, which is being conducted by the FBI, a unit of the Department of Justice.

According to the newspaper, which cited multiple unnamed sources familiar with the matter, agents have in recent weeks been asking current and former employees about their political giving. One unnamed person told the Post that prosecutors hit DeJoy himself with a subpoena for information.

DeJoy has faced accusations that he pressured employees at his former business, New Breed Logistics, to donate to Republican candidates for office, a practice that could potentially violate campaign finance laws. The employees said that they were later compensated with lavish bonuses, the Post reported last September. 

DeJoy, who was appointed postmaster general in May 2020 by the Postal Service's board of governors, has repeatedly denied the allegations and has not been charged with any crime.

The FBI and the Justice Department did not immediately respond to requests for comment. The United States Postal Service declined to comment.

DeJoy intends to cooperate with the Justice Department to resolve its investigation, his spokesman said.

"Mr. DeJoy fully cooperated with and answered the questions posed by Congress regarding these matters," Corallo said. "The same is true of the Postal Service Inspector General's inquiry which after a thorough investigation gave Mr. DeJoy a clean bill of health on his disclosure and divestment issues."

DeJoy has previously said that employees did not tell him they felt pressured to make contributions. A spokesperson, Monty Hagler, said last September that the company had received legal guidance ensuring that the company stayed within the bounds of the law.

Subscribe to CNBC Pro for the TV livestream, deep insights and analysis  on how to invest during the next presidential term.

Read More