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Rep. Santos says 'I will not resign' after pleading not guilty to criminal charges - CNBC

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U.S. Representative George Santos (R-NY) speaks to the media as he leaves Central Islip Federal Courthouse in Central Islip, New York, May 10, 2023.
Shannon Stapleton | Reuters

Rep. George Santos, R-N.Y., said Wednesday he will not resign from office after pleading not guilty to an array of federal crimes including fraud, theft, money laundering and making false statements.

Santos struck a defiant tone as he spoke to a swarm of reporters after his brief arraignment in federal court in Long Island. He called the case a "witch hunt" as he vowed to "clear my name."

The scandal-plagued freshman congressman, who took office less than five months ago, confirmed he plans to run for reelection in 2024.

He reiterated, "I will not resign."

Santos, 34, is accused of spending campaign funds on luxury clothing and car payments, fraudulently receiving more than $24,000 in unemployment benefits, and reporting false income and asset data on House disclosure forms.

He was arraigned on Wednesday afternoon, hours after his arrest on a 13-count indictment. He was released on a $500,000 bond, a spokeswoman for the courthouse said.

"This indictment seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations," U.S. Attorney Breon Peace said in a press release.

"Taken together, the allegations in this indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself," Peace said.

Santos is scheduled to appear in court again on June 30 before U.S. District Judge Joanna Seybert.

The congressman appeared Wednesday afternoon in a packed courtroom for his brief arraignment before a federal magistrate judge.

His bond is secured by three sureties, whose identities are being kept private due to fears of potential retaliation, Santos' attorney told NBC News. Santos surrendered his passport and was ordered not to travel outside New York and Washington, D.C., without getting advance permission from the court and pretrial services.

A spokeswoman for Santos' office referred CNBC to the congressman's counsel, who did not respond to a request for comment.

The criminal charges follow a mountain of scandals that have weighed Santos down since before he was sworn into Congress in January. The freshman Republican weeks earlier announced his 2024 reelection campaign, rebuffing critics from both parties who had called for his resignation.

Santos faces a maximum penalty of 20 years in prison for the top charges against him, according to the Justice Department.

The indictment, filed in U.S. District Court for the Eastern District of New York, alleges Santos orchestrated a scheme to trick supporters of his congressional campaign to send money to a Florida-based company he managed. Thousands of those dollars were then spent on Santos' personal expenses, including "luxury designer clothing and credit card payments," prosecutors alleged.

Santos allegedly directed an unnamed person to falsely tell supporters the company was a nonprofit and that it would use the contributions for Santos' congressional bid. "In actuality," Santos "converted most of those funds to his own personal benefit," according to the indictment.

Santos is also charged with falsely claiming to be unemployed in order to receive government benefits during the coronavirus pandemic. At the time, Santos was the regional director of an investment firm and made approximately $120,000 a year, prosecutors said. He allegedly received about $24,744 in undeserved unemployment insurance benefits.

Coincidentally, the House could consider a bill this week targeting Covid-related unemployment fraud by providing incentives for states to investigate and recover overpayments of those benefits.

Santos is one of the bill's cosponsors.

The congressman is also accused of making false statements in House disclosure reports he was legally required to complete as a candidate for office. In forms he filled out for his 2020 campaign, Santos failed to report more than $25,000 in income from the investment firm where he worked, the indictment alleged.

In his 2022 campaign, Santos allegedly falsely reported earning $750,000 in salary and between $1 million and $5 million in dividends from his company, the Devolder Organization.

Santos has been under a cloud of scandal since a bombshell New York Times report in late 2022 drew questions about the then-congressman-elect's background and campaign finances. Santos admitted that he had lied about his education credentials and his work experience, though he denied committing any crimes.

In March, a House ethics panel appointed a subcommittee to investigate possible unlawful activity by Santos' congressional campaign, and to look into an allegation that he sexually harassed a prospective staffer. Santos has denied that allegation.

A growing number of Santos' fellow Republicans urged him to step down, even before the federal charges against him first came to light. House Speaker Kevin McCarthy, R-Calif., who leads a slim majority, has not joined those calls, though he said Tuesday that he would look at the charges against Santos. A spokesman for McCarthy did not respond to a request for comment.

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Rep. Santos says 'I will not resign' after pleading not guilty to criminal charges - CNBC
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