Carr’s challenge to Jones’ $10M campaign loan dismissed by ethics panel

Lt. Gov. Burt Jones’ $10 million loan to his gubernatorial campaign didn’t violate the law, the Georgia State Ethics Commission ruled on Thursday, effectively putting an end to a legal fight from rival Republican gubernatorial candidate Attorney General Chris Carr. Jones made the loan through a financial structure called a leadership committee, which was created […]

The Georgia State Ethics Commission ruled Thursday that a candidate's personal loan to a leadership committee, like the $10 million loan by Lt. Gov. Burt Jones, does not violate state campaign finance law. Ross Williams/Georgia Recorder

Lt. Gov. Burt Jones’ $10 million loan to his gubernatorial campaign didn’t violate the law, the Georgia State Ethics Commission ruled on Thursday, effectively putting an end to a legal fight from rival Republican gubernatorial candidate Attorney General Chris Carr.

Jones made the loan through a financial structure called a leadership committee, which was created by a 2021 state law. 

As lieutenant governor, Jones is one of a handful of legislative leaders who can form such a committee, which is allowed to collect unlimited contributions and raise cash during the annual legislative session, unlike the regulated limits of a standard campaign committee. Carr, as attorney general, does not have access to this powerful fundraising tool.

The commission’s position was that a personal loan from a candidate to a leadership committee is permitted because when the loan is repaid by the leadership committee, the candidate is simply receiving their own personal funds back, meaning no excessive or illegal contribution has occurred. The commission also stated that this analysis does not change if funds are loaned to the candidate committee during a primary election.

“The money in this scenario is, and always has been, the candidate’s personal funds, so there’s no liability for a candidate to loan the money,” said Steve Knittle, the commission’s deputy director and general counsel.

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Carr and Jones, along with Georgia Secretary of State Brad Raffensperger, are set to face off in the May primaries for the Republican nomination.

This advisory opinion follows an earlier, separate ruling in which the Ethics Commission declined to investigate a complaint filed by Carr’s team regarding the source of a $10 million loan Jones made to his campaign in 2022, according to a July report from the Associated Press.

Carr’s campaign had questioned how Jones, whose 2022 financial disclosure showed a net worth of $12.4 million but only $700,000 in cash and securities, could instantly produce $10 million in cash. The complaint suggested Jones may have falsely reported his finances or the source of the cash.

Carr also filed a complaint in federal court, but U.S. District Court Judge Victoria Marie Calvert dismissed the case in August due to lack of standing, according to a Capitol Beat report.

Julia Mazzone, a spokesperson for Carr’s campaign, said the advisory opinion “raises more questions than it answers.”

“It’s troubling that the commission shows no interest in understanding how Burt Jones went from claiming a net worth of $700,000 to loaning himself $10 million. As governor, Chris Carr will bring true reform to address public corruption,” Mazzone said in a statement.

The Jones’ campaign did not address the commission’s opinion, instead taking a jab at the Carr campaign with a previously given statement.

“If Chris is this bad at being a lawyer, why would anyone want to give him a promotion?” Kayla Lott, spokesperson for Jones’ campaign, said.