Politics & Government

Two big name Kentucky Democrats just got indicted. Here’s what the feds say happened.

Former Kentucky Democratic Party Chairman Jerry Lundergan works the  crowd before his daughter, then-U.S. Senate candidate Alison Grimes, gave a campaign speech Thursday January 16, 2014 during a stop in Prestonsburg, Ky.
Former Kentucky Democratic Party Chairman Jerry Lundergan works the crowd before his daughter, then-U.S. Senate candidate Alison Grimes, gave a campaign speech Thursday January 16, 2014 during a stop in Prestonsburg, Ky.

On Friday, a grand jury indicted two of Kentucky’s Democratic fixtures — Jerry Lundergan, 71, and Dale Emmons, 66 — for allegedly violating federal campaign finance laws during the 2014 U.S. Senate campaign of Lundergan’s daughter, Secretary of State Alison Lundergan Grimes.

Here’s what allegedly happened, according to the indictment:

Lundergan was the owner and president of a company called S.R. Holding. It conducted business under a variety of names, including Lundergan Group, Signature Special Events, and Lundy’s Special Events.

Dale Emmons was a political consultant and corporate officer of Emmons & Company, Inc.

Lundergan and Emmons both actively participated in the 2014 U.S. Senate campaign of Grimes. At times, Lundergan gave directions to campaign employees, consultants and vendors. He also oversaw campaign fundraising activities and payments to consultants and vendors. Emmons provided political consulting services to Grimes and her campaign.

Several times over the course of the campaign, Lundergan and an unnamed vice president of the Lundergran Group would direct consultants and vendors to provide services to the campaign and bill S.R. Holding Co. for those services. Lundergan or his employee would then pay those bills using the company’s money without seeking reimbursement from the campaign.

Emmons provided consulting services to the campaign, but sought and received payment for that work from Lundergan and his company, not the campaign. Emmons also directed vendors to bill his consulting company for services provided to the campaign. His company paid those bills, then sought payments from Lundergan and S.R. Holding. Lundergan paid him using the company’s money.

Lundergan and Emmons concealed these payments, which constituted illegal corporate campaign contribtuions, from the campaign, the Federal Election Commission and the public. As a result, the campaign “unwittingly” made false reports to the FEC.

The alleged illegal payments totaled $194,270.39.

Related stories from Lexington Herald Leader

  Comments