Rep. Enid Greene Waldholtz, R-Utah, says she is not a crook - at least not intentionally.
She says she "fully believed" that the $1.8 million she gave her campaign last year was honestly hers at the time, but she acknowledges she was likely deceived.Everyone except a candidate is limited to donating no more than $1,000 per general or primary election. But candidates may give as much as they like - as long as it is their own money and does not exceed half of the joint assets they hold with a spouse.
"My belief was based on misrepresentations made to me by Joe Waldholtz (her husband) regarding the family trust, the gift he gave me when we married and our supposed joint ownership of property in Pennsylvania," she said in a press release.
Although her statement provided few details, sources told the Deseret News that Joe Waldholtz supposedly gave Enid Greene $4.5 million when they were married - but that the money never really existed.
The congresswoman, before Joe Waldholtz disappeared for nearly a week, had shown the Deseret News a statement from a "TWC Ready Assets" account purporting to have about that much money in Enid's name only. But it lacked the name of the company, an account number, addresses, phone numbers and had other anomalies. Enid Waldholtz has never responded to questions about them.
Sources also said Joe Waldholtz obtained $4 million from Enid's father, Forrest Greene, by persuading him to either swap assets for or provide loans guaranteed by assets that Joe said were in the "Waldholtz Family Trust." Joe's father said no such trust exists, and the family is not anywhere near that wealthy.
Enid Waldholtz said her statement was prompted by press reports that money she gave to her campaign came from her father or from funds Joe may have embezzled from his grandmother. She said that is not yet known.
"We are continuing to investigate the sources of money that Joe may or may not have had. And until we finish that investigation, it is impossible to really determine the original source of the funds."
She added, "I do know that I fully believed the funds used in my campaign were based upon my personal resources in full compliance with federal election law."
But if all the money from the Greenes, Joe's grandmother and other sources went into one large family financial pot used by Joe, proving which $1.8 million of such co-mingled funds was used for the campaign would seem to be impossible.
Charles Roistacher, a lawyer for Enid Waldholtz, said in the press release, "The money (Forrest) Greene loaned to Joe and Enid was based upon fraudulent representations by Joe about his family's trust and other property and his inability to access it. He represented his need for the funds was based upon a variety of problems members of his family were having."
It is interesting that Roistacher calls that money "loans." Justice Department sources have said Wald-holtz and her attorneys told them the money came from a "swap" of cash for hard-to-liquidate assets such as land supposedly held by the family trust - and that provided cash that was used in the campaign.
Federal law prohibits personal loans to House candidates for campaign purposes of more than $1,000 per election (the same as the limit for donations). Banks may provide loans for larger amounts - as long as they are guaranteed by assets held only by the candidate.
When Waldholtzes' lawyers were asked by the Deseret News to clarify if the money the Greenes provided were loans or swaps for assets, a spokeswoman, LaDonna Lee, said they are still researching to determine exactly what they were.
Also, the Deseret News reported Thursday that campaign workers in 1994 warned Enid of dozens of probable federal election law violations they blamed on Joe, but said she ignored the warnings and the workers resigned in frustration.