Santos Arrested, Charged and Released, Pleads Not Guilty

CENTRAL ISLIP, N.Y. (AP) — U.S. Rep. George Santos, the New York Republican infamous for fabricating his life story, has been indicted on charges that he duped donors, stole from his campaign and lied to Congress about being a millionaire, all while cheating to collect unemployment benefits he didn’t deserve, prosecutors said Wednesday.

The indictment was a reckoning for a web of fraud and deceit that prosecutors say overlapped with Santos’ fantastical public image as a wealthy businessman — a fictional biography that began to unravel after he won election last fall.

Santos, 34, was released on $500,000 bond following his arraignment, about five hours after turning himself in to authorities on Long Island. He could face up to 20 years in prison if convicted.

He pleaded not guilty to all charges.

Santos said little during his arraignment, which lasted about 15 minutes. His lawyer said he plans to continue his recently announced reelection campaign, defying calls to resign. He asked the judge for permission for Santos to travel freely, though he did surrender his passport.

Santos’ lawyer, Joseph Murray, said the congressman was in good spirits, telling reporters: “We finally get to address all of these allegations.”

Among the allegations, prosecutors say Santos induced supporters to donate to a company under the false pretense that the money would be used to support his campaign. Instead, they say, he used the money for personal expenses, including to buy designer clothes and to pay his credit cards and car payments.

Santos also is accused of lying about his finances on congressional disclosure forms and applying for and receiving unemployment benefits while he was employed as regional director of an investment firm that the government shut down in 2021 over allegations that it was a Ponzi scheme.

The indictment “seeks to hold Santos accountable for various alleged fraudulent schemes and brazen misrepresentations,” U.S. Attorney Breon Peace said. “Taken together, the allegations in the indictment charge Santos with relying on repeated dishonesty and deception to ascend to the halls of Congress and enrich himself.”

Reached by The Associated Press on Tuesday, Santos said he was unaware of the charges.

Santos has defied calls to resign — some from fellow Republicans — as details of his fictitous resume came to light, though he did decline his committee assignments. He has given no indication that he plans to step aside because of his indictment. In the past, members of Congress in both parties have remained in office while facing charges.

In regulatory filings, Santos claimed he loaned his campaign and related political action committees more than $750,000, but it was unclear how he would have come into that kind of wealth so quickly after years in which he struggled to pay his rent and faced multiple eviction proceedings.

In a financial disclosure form, Santos reported making $750,000 a year from a family company, the Devolder Organization, but the charges unsealed Wednesday allege that Santos never received that sum, nor the $1 million and $5 million in dividends he listed as coming from the firm.

Santos has described the Devolder Organization as a broker for sales of luxury items like yachts and aircraft. The business was incorporated in Florida shortly after Santos stopped working as a salesman for Harbor City Capital, the company accused by federal authorities of operating an illegal Ponzi scheme.

In November 2021, Santos formed Redstone Strategies, a Florida company that federal prosecutors say he used to dupe donors into financing his lifestyle. According to the indictment, Santos told an associate to solicit contributions to the company and gave the person contact information for potential donors.

Emails to prospective donors falsely claimed that the company was formed “exclusively” to aid Santos’ election bid and that there would be no limits on how much they could contribute, the indictment said. Santos falsely claimed that the money would be spent on advertisements and other campaign expenses, it said.

Last October, a month before his election, Santos transferred about $74,000 from company coffers to bank accounts he maintained, the indictment said. He also transferred money to some of his associates, it said.

Many of Santos’ fellow New York Republicans called on him to resign after his fabricated life story was revealed. Some renewed those calls after news of his indictment.

“Sooner or later, whether he chooses to or not, both the truth and justice will be delivered to him,” said U.S. Rep. Marc Molinaro, a Republican representing parts of upstate New York.

House Republican leaders were more circumspect, with Speaker Kevin McCarthy saying, “I think in America, you’re innocent till proven guilty,” and Majority Leader Steve Scalise saying, “In America there’s a presumption of innocence.”

Santos has faced criminal investigations before.

When he was 19, he was the subject of a criminal investigation in Brazil over allegations he used stolen checks to buy items at a clothing shop. Brazilian authorities said they have reopened the case.

In 2017, Santos was charged with theft in Pennsylvania after authorities said he used thousands of dollars in fraudulent checks to buy puppies from dog breeders. That case was dismissed after Santos claimed his checkbook had been stolen, and that someone else had taken the dogs.

Federal authorities have separately been looking into complaints about Santos’ work raising money for a group that purported to help neglected and abused pets. One New Jersey veteran accused Santos of failing to deliver $3,000 he had raised to help his pet dog get a needed surgery.