FORMER CAMPAIGN AIDE FOR SENATOR DOLE PLEADS GUILTY TO MAIL FRAUD FOR EMBEZZLEMENT FROM SENATOR’S CAMPAIGN

WASHINGTON, D.C. - Assistant Attorney General Christopher A. Wray of the Criminal Division announced today that Earl Allen Haywood, former Assistant Treasurer for campaign committees associated with North Carolina Senator Elizabeth Dole’s 2002 senatorial campaign, pleaded guilty to mail fraud charges stemming from his embezzlement of funds from Dole’s campaign.

Haywood, 40, of Washington, D.C., pleaded guilty this morning to mail fraud, a felony violation of 18 U.S.C. § 1341. The plea occurred before the Honorable Paul L. Friedman of the United States District Court for the District of Columbia.

In his plea today, Haywood admitted to stealing approximately $174,725.00 from the Dole campaign through several schemes. From early 2002 through mid-2003, Haywood served as an Assistant Treasurer for The Dole North Carolina Victory Committee, Inc. (“the Dole Victory Committee”), a campaign committee that raised money for both the Elizabeth Dole for U.S. Senate Committee, Inc., and the North Carolina Republican Party. During the same time period, he also served as the Assistant Treasurer for North Carolina’s Salute to George W. Bush Committee, Inc. (“the Salute Committee”), which raised money for three entities: Elizabeth Dole for U.S. Senate Committee, Inc., the North Carolina Republican Party, and Robin Hayes for Congress.

In his capacity as Assistant Treasurer for these committees, Haywood was responsible for, among other things, collecting and recording political contributions to the committees, depositing the funds in the appropriate bank accounts, accounting for funds received by the committees, tracking all disbursements from the committees, and reporting this information to the Federal Election Commission in accordance with its rules and regulations.

Haywood admitted that while serving as Assistant Treasurer, he stole approximately $155,750.00 from the Dole Victory Committee account, and $18,975.00 from the Salute Committee account. He accomplished this theft by writing checks from the campaign committee accounts and naming himself as the payee. These payments were not authorized by members of the campaign or committee. Haywood did not report these payments to the FEC on the pertinent forms that he prepared. Rather, he deposited these checks into his own personal account and used the funds for his personal benefit. Among other means, Haywood attempted to conceal this fraud by labeling many of the checks in the check registry as having been used for “postage” for official committee business.

As part of his plea agreement, Haywood has agreed to make an initial restitution payment of $50,000.00 to the committees and repay the remaining $124,725.00 on a schedule set by the court at the time of his sentencing. The maximum penalty for mail fraud is 20 years imprisonment and a fine of $250,000. The defendant’s sentencing is set for May 26, 2004 at 9 a.m.

The case is being prosecuted by trial attorney Joshua G. Berman of the Public Integrity Section of the Criminal Division, headed by Section Chief Noel Hillman, and investigated by the Federal Bureau of Investigation, North Carolina Division.

###

04-168