In an email that was sent to the Alabama Republican Party steering committee, one of the committee’s members expressed concerns that the Party may have committed Social Security fraud.
The email, which was obtained by Yellowhammer News, was sent by Jeff Peacock, ALGOP Vice Chair for Congressional Districts 1 and 2.
In the email, Peacock says that a portion of a compensation package designed for ALGOP Chief of Staff Harold Sachs bore similarities to a package designed for a Washington County jailer which resulted in the county’s sheriff being indicted on fraud charges.
An unedited excerpt of the email reads as follows:
Compliance with Social Security/Tax Laws:
Given the recent indictment of the Washington County Sheriff on Social Security fraud charges (see article here: http://blog.al.com/live/2013/07/feds_indict_washington_county.html) and the similarities to the commuting mileage reimbursement scheme with Harold, I recommend we have a discussion about the party seeking outside legal counsel to provide advice on the legal exposure we face individually and as a group. We may face no risk, but at the very least, I think it would be wise to confirm this with an attorney well-versed in this area of the law. Furthermore, I believe Colin’s close involvement with this situation renders his advice biased and therefore unreliable.
Yellowhammer spoke with Harold Sachs this morning, who explained how the issue has progressed.
“When I first started at the Party, the steering committee started by just paying my mileage, no salary,” Sachs said. “Chairman Armistead wanted me to stay, and I needed an expense account that started below my social security, so they started paying me $600 a month plus my mileage. It is roughly 170 miles each way. That’s how it started out. Jeff [Peacock] and others didn’t like that and said it may be a violation. So in 2012, all mileage they paid me got put on a 1099 and I claimed it as taxable income. So I don’t know why there is such an issue now. I’m on salary. I stopped all my social security. My tax attorney and lawyer have no issues, our Party’s legal counsel has no issues, and our treasurer has no issues. I don’t see how the party has a problem.”
Alabama Republican Party Chairman Bill Armistead said the insinuation that there may have been wrongdoing by the Party is baseless.
“Jeff often comes out of left field to be disruptive,” Armistead said. “It’s part of his nature to be divisive.”
He declined to comment further on the issue.
Several other members of the Party’s steering committee were either not immediately available or declined to comment for this story.
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