An Office of Congressional Ethics report found “substantial evidence” Congressman Michael San Nicolas “formulated a scheme” to get a $10,000 donation for his congressional campaign in 2018. The report also reads our delegate to Congress “undertook efforts to conceal the contribution from the Federal Election Commission and the public.”

According to the report, if San Nicolas did in fact engage in a scheme to accept the donation and cover it up, he violated federal laws and FEC regulations in doing so.

Although the OCE in its report states it interviewed San Nicolas’ unidentified “Campaign Manager,” KUAM files show San Nicolas’ former campaign manager in 2018 was former staffer John Paul Manuel.

The OCE report details information taken from interviews with the “campaign manager” and a “campaign donor.” San Nicolas and the “District Director” refused to cooperate with the investigation.
The OCE report in summary finds Del. San Nicolas “orchestrated a scheme to accept an excessive cash contribution, and then made a deliberate attempt to conceal his misconduct and influence other witnesses to the fraud.”

The “campaign manager” said San Nicolas was having a hard time raising money after the 2018 Primary Election. A conversation occurred at the “Sidelines” bar, where San Nicolas, the campaign manager and the “campaign donor” met for drinks. The “donor” offered $10,000 to the congressman. According to the report, San Nicolas said, “Great, but you have to give it to me in cash.”
The “campaign manager” said the delegate asked for the donation in cash because “his intent was to wash it out in low dollar fundraisers.” The report reads “this was an attempt to circumvent reporting requirements and conceal the illegal contribution.” The individual limit for donations to a congressional campaign is $2,800.

The donation was picked up at the “campaign donor’s” house by the “campaign manager” on two separate occasions. The money was in sealed envelopes. The “campaign manager” also said San Nicolas counted the money both times and hid it in a “corner ceiling tile” in his legislative office he used as a “hiding place.”

The OCE matched the $10,000 donation timeline with San Nicolas’ FEC filings and found only a $250 donation reported. “This appears to leave $9,458 of small contributions unaccounted for,” according to the report.

The OCE interviewed a second witness who was “present and aware” of the contribution when it was discussed and delivered.

After the OCE review was initiated and more than a year after receiving the illegal donation, the OCE received information and documents showing that San Nicolas and his staff “were attempting to return the money while at the same time claiming that San Nicolas had never received the money.”

Investigative findings also show San Nicolas’ new campaign manager and District Director Jennifer Winn sent a September 2019 letter to the “campaign donor” claiming the campaign had only found out about the donation when the Guam Election Commission notified them about a complaint filed by the “campaign manager” about the illegal donation.

However, the OCE also received a copy of a January 2020 letter from the “campaign donor” saying he “was informed by the San Nicolas campaign that the contribution would be entirely lawful” but that the donor “now understands that may not be true.”

FEC records and KUAM files show San Nicolas’ campaign returned a $9,000 donation to local businessman Andy Park in February of 2020. San Nicolas’ campaign never disclosed the donation, according to a letter it received from the FEC. “It appears that this donation was not previously reported by your committee. Please amend the appropriate reports to disclose the original contribution or provide clarifying information," according to the report.

The report also examined 40 other disbursements made to San Nicolas by his campaign committee. These were described in his FEC filings as “loan repayments made to candidate.” The OCE found the campaign committee failed to “properly account for and report at least $14,840” in “loan repayments” made to San Nicolas. “Because the campaign committee could not produce an itemized account of expenditures underlying the $14,840 of disbursements, the OCE cannot conclusively determine whether all or some of this amount was converted to personal use," the report stated.

San Nicolas’ campaign told the OCE that the amount of money the delegate fronted for his campaign was more than what he was repaid, so the campaign didn’t have to keep a “dollar for dollar” account of payments made to the congressman. The OCE found this violated FEC regulations and House rules.

The OCE also looked into whether or not San Nicolas reported disbursements that were not for legitimate or verifiable campaign expenses and whether or not he used campaign funds for personal travel.

The report said given the campaign's “failure to itemize or provide receipts for the substantial disbursements to San Nicolas, and the nature of travel as part of a romantic affair," the OCE found that some of those diverted funds were likely converted to personal use.

The OCE is an independent non-partisan body charged with reviewing allegations of misconduct against members, staff and officers of the US House of Representatives. After review of allegations and/or complaints, the OCE may vote to forward their findings to the House Ethics Committee.

In this instance, the OCE voted 6-0 to forward its findings on the allegations made against San Nicolas. The House Ethics Committee has twice voted to extend the investigation into San Nicolas after it impaneled a subcommittee to further investigate.

The report, marked “confidential” was one of several leaked to island media.