Steele's Legal Troubles

Is the RNC’s new chairman running into trouble already? Michael Steele's former campaign finance chairman, Alan B. Fabian, has accused Steele of paying his sister's defunct company for services never rendered during his 2006 senate campaign. Fabian, whose motives have been questioned, detailed the claim as part of a cooperation bid seeking leniency in an unrelated fraud case of his own. A memorandum obtained by The Washington Post reveals that Steele's campaign paid $37,000 to Steele's sister's company, Brown Sugar Unlimited, for "catering/web services" 11 months after the company had filed to be dissolved; the document also showed payments to a law firm for work that was never performed, as well as an unauthorized $500,000 bank transfer. The investigation is ongoing.