GOP says audit shows 'wasteful' spending of party money by Crist

TAMPA The Republican Party of Florida says an audit of its finances shows former Chairman Jim Greer and Gov. Charlie Crist were guilty of "lavish and wasteful personal" spending of party money in 2007-2009, but clears top GOP figures including Marco Rubio, Crist's U.S. Senate race opponent.

The party released the 47-page audit report today, after criticism for its decision a week ago to keep it secret.

The report identifies what it says is $381,786.12 in expenses not related to legitimate party business - much of it paid to two companies linked to Greer, and some from credit cards the party issued to staff members and top officials.

A written statement from party Chairman John Thrasher said the audit proves "the despicable exploitation and gross financial mismanagement of donor funds ... during the leadership of Charlie Crist and at the direction of his hand-picked chairman Jim Greer."

Thrasher said the audit shows Greer and Crist spent party money on family vacations and events, citing about $40,000 worth of expenses.

But Crist denied he ever spent party money for personal uses, and the audit doesn't appear to link Crist to any illegal activity.

"The campaign, or the governor and the first lady themselves, paid for their own travel" in the instances cited by Thrasher, said Crist campaign spokesman Danny Kanner. "This is so obviously a political smear it's ridiculous."

Crist never had a party credit card, but the audit alleges that others who did spent money that benefitted him.

Crist backers said the party limited the audit's scope and selectively interpreted the results to bash Crist, and to exonerate Rubio and others who had the party credit cards that were at the heart of the party's financial scandal.

The audit covers only the period when Greer was party chairman, 2007-09. Greer was chosen for the post by Crist.

State Sen. Mike Fasano, R-New Port Richey, a backer of Crist in the Senate race, said it has been routine since well before Greer's tenure as party chairman for party officials and legislators to have their families accompany them on lavish fundraising trips, at party expense.

"Sadly, there has been an era of entitlement" that included Rubio's tenure as House speaker and speaker designate prior to 2007, in which Rubio and other prominent Republicans "felt they were entitled to spend like drunken sailors from the party's money," Fasano said.

Fasano included Greer in that accusation - "What he did was atrocious."

But, he said, "This is absolute hypocrisy, for the party to suggest that it only happened with one or two people." He called for the party to release records of Rubio's credit card use before the period covered by the audit.

The audit also includes a hint of a previously unrevealed federal investigation into Republican Party of Florida finances, saying one witness had provided documents to the FBI.

The audit was performed by Atlanta-based Alston & Bird, a firm experienced in checking financial records for mismanagement or abuse.

The report says the audit was limited to 2007-09 at the party's request.

"Under the chairmanship of Jim Greer was when the stories of profligate spending were around," said party spokesman Dan Conston. "There was no reason to think there was severe financial mismanagement prior to that."

The party issued credit cards to about 30 individuals, but the audit covered records only of those who charged $50,000 or more, which covered 96.5 percent of all credit card expenses, the firm said.

It concluded that "certain individuals took advantage of and, at times, abused susceptible internal controls" to spend party money improperly.

The audit report notes that Rubio; state Rep. Dean Cannon of Winter Park; and state Sen. Jeff Atwater of North Palm Beach - the incoming Senate president -- all paid for some personal expenses with party-issued credit cards.

Atwater, now running for chief financial officer, reimbursed the party about $3,200, and Cannon, set to become the next House speaker, reimbursed the party $465.

But it said Cannon's other charges were legitimate, and it didn't investigate Atwater's because his bills during the period totaled less than $50,000.

Rubio has acknowledged using his credit card for about $16,000 on personal expenses, but says he paid the credit card bills directly for most of it. He has reimbursed the party $2,417 for personal expenses he inadvertently charged to the party, the audit said.

The $381,786 the audit says the party spent on non-legitimate party business included almost $275,000 paid to two companies linked to Greer:

•Victory Strategies, a fundraising and consulting company set up by Greer and former party executive director Delmar Johnson.

•Baer Air, a chartered airplane company from which the party rented a plane owned by Greer.

Victory Strategies, owned 60 percent by Greer and 40 percent by Johnson, received a 10 percent commission on large donations to the party, plus additional consulting fees.

The audit said Greer explained the Victory Strategies contract as an attempt to save money -- the party's previous fundraiser charged $30,000 per month. But it said Alston & Bird couldn't obtain documentation on what the party received for some of the fees to the company.

The report also says Greer bought a twin-engine Piper Navajo in 2007, leased it to Baer Air, and then directed the party to rent it for charter flights.

It says the party got a discount rental rate, but that Greer used the party's payments to pay off his costs for doing extensive maintenance work on the plane.

The report says Baer Air told the auditors it had provided records on the matter to the FBI.

The report also cites nearly $20,000 in inappropriate spending by former state Rep. Ray Sansom. Much of it came from when Sansom and his family accompanied Crist on a 2008 trade mission to London, but charges for computer equipment, magazine subscriptions and flowers to adorn lawmakers' desks also were included.

The charges labeled inappropriate include London sightseeing tours for Sansom's family, an aide and the aide's mother, but not the travel costs for Sansom and his family -- the audit said the trip "appears to have been related to [party] business."

Sansom, who was chosen House budget chief by Rubio and was set to become speaker after him, has been indicted on fraud charges in connection with an alleged scheme to use state money to benefit a political contributor.

In a news release, Thrasher cited five instances in which he contended Greer or Crist used party money for personal purposes: a Disney World vacation with their families, $13,435; trips to fashionable Fisher Island near Miami Beach, one of which included Crist, $10,992; a trip by Greer and Johnson to a Senate campaign fundraiser in Las Vegas, $7,059; a trip to New York by either Greer's wife or Crist's accompanying them to a Senate fundraiser, $1,589; and expenses for Greer's son's baptism, $5,616.

Crist denied any wrongdoing.

"I went to Disney World with my wife and our two stepdaughters, and we paid for it ourselves," he told the Associated Press. "What else can I tell you?"

Thrasher has threatened legal action to recoup money spent illegally under Greer's reign at the party, but said the party won't decide on that until December, after the Nov. 2 election.

Crist left the party in April to run as a no-party candidate. Greer faces felony theft charges in connection with his tenure as party chairman.