Major Graham Donor Indicted For Illegal Contributions, Defrauding Govt. Of At Least $3.6M

[mod mom]

Ryan J. Reilly | September 20, 2011, 1:35PM

A major campaign contributor to Sen. Lindsay Graham (R-SC) allegedly defrauded the federal government out of at least $3.6 million that was supposed to be used to research vaccines to combat deadly diseases.

Jian-Yun "John" Dong, the president of the South Carolina-based biotechnology firm GenPhar, and his estranged wife are accused of making at least $31,000 in illegal campaign contributions to Graham and his political action committee. GenPhar was Graham's sixth largest contributor between 2005 and 2010, with $46,269 in donations coming from GenPhar employees.

The indictments came down in April, but federal authorities didn't unseal the charges until Monday. Federal prosecutors allege Dong took $30,000 from a German national and funneled that money to support Graham's reelection. Graham's treasurer said that they were cooperating with federal authorities.

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Most of the money Dong is accused of taking apparently came from a $4.2 million grant GenPhar received in 2005. The Post and Courier reports:

The indictment alleges that Dong and an unnamed co-defendant falsified grant applications, progress reports, time sheets and other documents sent to federal agencies. They then used federal money for construction costs, lobbying fees, and travel and personal expenses not allowed under the grant program, the indictment states.
Dong reportedly created another company, Vaxima Inc., to help him divert federal cash for his own use, authorities said.

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http://tpmmuckraker.talkingpointsmemo.com/2011/09/major_graham_donor_indicted_for_illegal_contributions_defrauding_feds_of_at_least_36m.php?ref=fpb

Business as usual for the GOP