Former U.S. Rep. Steven Palazzo will pay $30,000 to settle with the Federal Election Commission, which found he used campaign money for personal expenses.
Palazzo, a certified public accountant and former state legislator who lost his congressional reelection bid in 2023 to now U.S. Rep. Mike Ezell, faced ethics and campaign finance scrutiny for several years while in office.
The FEC found he paid $3,000 a month from his campaign to a company he owned for rent of a river house in D’Iberville he alleged was a campaign office despite “almost no campaign activity” being done there, a report said. In his settlement with the FEC, he agreed to pay a civil penalty of $13,500 and cover outstanding campaign debt of $16,500. The FEC noted Palazzo had already reimbursed his campaign $23,000 for personal use of a vehicle the campaign leased.
The FEC investigated Palazzo after Republican primary opponent Carl Boyanton filed a complaint.
Palazzo, who held the District 4 Mississippi U.S. House Seat from 2011 to 2023, also faced probes by the Office of Congressional Ethics and the House Ethics Committee. The OCE, in a 2021 report, claimed that Palazzo misspent campaign and congressional funds and said it found evidence he used his office to help his brother and used staff for personal errands and services. After its investigation, the OCE handed the matter off to the House Ethics Committee.
But the House Ethics Committee, after a year-and-a-half long probe, did not take any action on the issue and let the matter drop when a new Congress took office.
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The allegations in the OCE report included that Palazzo used campaign funds to pay himself and his erstwhile wife nearly $200,000 through companies they own, including thousands to cover the mortgage, maintenance and upgrades to a riverfront home Palazzo owned and wanted to sell. But Palazzo said that the payments were legally made for the campaign’s rent of the home for a campaign office.
A Mississippi Today investigation in 2020 also questioned thousands of dollars in Palazzo campaign spending on swanky restaurants, sporting events, resort hotels, golfing and gifts. Federal law and House rules prohibit using campaign money for personal expenses. The Palazzo campaign at the time said it had found a few mistaken, non-permissible purchases and the Palazzo had repaid the campaign.
READ MORE: Ethics complaints against Rep. Steven Palazzo likely to ‘evaporate’ in Congress
The OCE report also claimed Palazzo had used congressional staffers for personal errands and campaign work. It said former staffers it interviewed said Palazzo’s office failed to separate official work from campaign and personal activities, including shopping for his kids. In 2011, during his first term in office, Palazzo had also faced allegations that he and his wife used congressional staffers for babysitting, chauffeuring kids around and moving.
Palazzo on Tuesday did not immediately respond to a request for comments but said a statement was forthcoming.
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