From The Washington Post -- June 2, 2010:
Ex-Florida GOP Chairman Jim Greer Indicted on Six Felony Counts
By Matt DeLong
Jim Greer, former head of the Florida Republican Party, was arrested Wednesday morning at his home near Orlando, law enforcement officials said. The Orlando Sun-Sentinel reports that at a press conference Wednesday, statewide prosecutor William Shepherd said that "a statewide grand jury indicted Greer on six felony charges: organized scheme to defraud, money laundering, and four counts of grand theft."
Shepherd said Greer developed a scheme to take money from the Republican Party. He used the money for his personal expenses.
The Associated Press has more details:
Greer funneled party money to a company called Victory Strategies that he controlled and concealed his relationship with, investigators said. On Greer's orders, the Republican Party of Florida paid Victory Strategies for campaign work, much of which was never performed. That was in addition to a 10 percent cut of major donations to the party that Greer took along with his top assistant, Delmar Johnson, Shepherd said.
Greer got about $125,000 of the almost $200,000 that the party paid Victory Strategies, the statewide prosecutor said.
Victory Strategies also received money from a fund Greer had set up for his re-election campaign as party chairman, he added.
The St. Petersburg Times has the affidavit.
In April, Greer was named as the subject of a criminal probe concerning "a secret contract that funneled party money to a consulting company he owned," the Miami Herald reported. Greer, a close ally of Gov. Charlie Crist, stepped down from his post in January under pressure from party activists and major donors outraged by lavish spending. Crist said Wednesday that the arrest was "disappointing " but he does not "feel complicit."
When asked earlier this year about his support for Greer, Crist responded,"I didn't have a crystal ball. Neither did you."
More on Greer's financial scandal from the AP:
The Florida Department of Law Enforcement has been investigating Greer since an audit found he awarded himself and his executive director a fundraising contract that paid them about $200,000.
Greer owned 60 percent of a corporation set up to raise money for the party and former party executive director Delmar Johnson owned the other 40 percent. That corporation got a 10 percent commission on money it brought in, the audit found.
Current party Chairman John Thrasher previously said he was told March 15 that the party may have been the victim of illegal activity after the audit discovered Greer and Johnson's role in the corporation. Thrasher reported the findings to the attorney general's office, which referred the case to state officials.