Ethics Panel Rebukes Rep. Rose for His Use of Campaign Funds

The House Ethics Committee on Wednesday sharply rebuked Rep. Charlie Rose (D-N.C.) after concluding that he improperly borrowed funds from his campaign and then failed to publicly report the transactions.

Finding “clear and convincing evidence” of House rules violations, the committee also said Rose wrongly pledged a certificate of deposit from his campaign as collateral on a personal loan, and failed to report liabilities to financial institutions on his financial reports.

The panel, formally the Committee on Standards of Official Conduct, told Rose in a letter that his behavior was “deserving of reproach.” But the committee concluded there should be no punishment by the full House because the eight-term lawmaker has tried to rectify his mistakes.

‘Funds Were Replaced’

“The committee recognizes and takes into consideration the fact that all funds borrowed were replaced in full without the insistence of this committee, and that this action was taken by you prior to this committee beginning a preliminary inquiry,” Rose was told.

Rose said he was “happy that the committee found that no further action was warranted, other than the letter to me.” He said the panel’s decision not to take tougher action demonstrated it considered his mistakes technical in nature.

A House rule restricts the use of campaign funds to bona fide campaign purposes. The committee called the requirement “crucial to maintaining public confidence in the fund-raising system governing House members.”

The panel said the personal benefit Rose received in each instance of borrowing, and the lower interest rate received from use of the certificate of deposit, “are the kinds of abuses” House rules were designed to prevent.

“For this reason, the committee instructs that you refrain from any future campaign borrowings and-or use of campaign assets as collateral,” the committee said.