LANSING —The Michigan Republican Party owes at least $700,000 to a bank and other creditors, according to a state campaign finance report filed Tuesday.
It was not clear whether that reported debt is in addition to more than $184,000 in debts reported in a federal campaign filing submitted Saturday.
But according to Jim Copas, the party’s executive director, the party has “no debt,” despite what the two reports say. Copas said Tuesday that whether the party actually owes close to $500,000 to Comerica bank, or whether the debt is owed by individuals formerly connected to the party, as he believes, is at issue in a lawsuit that is now before a judge in Ingham County Circuit Court.
The once-mighty party’s sorry finances are a major reason behind a push to remove Kristina Karamo, who was elected state party chair at a Feb. 18, 2023 convention.
But according to the new state report, bank loans and other debts totaling $2.6 million were all incurred in 2021 and 2022, before Karamo took office. One section of the report describes the entire $2.6 million as still owed by the state party. But another section of the report describes a $1.9 million loan repayment to Comerica on Feb. 17, 2023. If that amount is subtracted from the $2.6 million, it would result in an outstanding debt in the party’s state account of about $700,000.
As previously reported by the Free Press, the state report describes the party drawing down money from a federal account in order to make the large loan payment early last year.
Most of the $700,000 in outstanding reported debt is owed to Comerica, but about $230,000 is owed to a Washington, D.C. law firm, Holtzman Vogel, and about $2,300 to a Grand Rapids law firm, Smith Haughey Rice & Roegge, according to the report.
Jennifer Standerfer, the state party treasurer, said Tuesday she has no knowledge of the reported debt to Holtzman Vogel, which the report says was incurred in 2022, before Karamo took office. She said it apparently showed up on the report filed Tuesday with the state because it is saved in the party’s campaign finance reporting software, but she believes the reported debt is no longer owed. Standerfer said she also agrees with Copas that the Comerica debt is not owed by the party, but she included it in the state report while the issue is litigated.
According to the report, loans to the party from Comerica included: $125,000 on Nov. 18, 2021 and the following loans in 2022: $50,000 on Jan. 7 and again on Jan. 21; $100,000 on Feb. 4; $150,000 on Feb. 18; $50,000 on March 30; $300,000 on May 10; $70,000 on May 12; $90,000 on June 13; $110,000 on June 22; $100,000 on Sept. 7; $200,000 on Oct. 13; $500,000 on Oct. 14; $300,000 on Oct. 25; and $100,000 on Dec. 8. The report also identifies one 2023 loan from Comerica of $75,000 on Jan. 31.
On Nov. 22, 2023, Comerica served the Michigan Republican Party with a notice of loan default, seeking a principal amount of $509,000 and a little over $9,000 in accrued interest, according to documents filed in the Kent County lawsuit.
Copas said the federal and state reports were filed late because the party was locked out of its reporting software, due to a hacking incident. Both reports were due Jan. 1.
Dissident party activists voted Jan. 6 to remove Karamo and voted Jan. 20 to replace her with former GOP congressman and ambassador Pete Hoekstra. In between, supporters of Karamo voted Jan. 13 to endorse her leadership and declared the Jan. 6 meeting invalid. Both Hoekstra and Karamo now claim to be the rightful party chair. Former President Donald Trump has thrown his support to Hoekstra.
Though the leadership dispute is before a judge in Kent County, a committee of the Republican National Committee is also expected to adjudicate the contested leadership.
The party is using a hybrid method to make its choice for presidential nominee, combining the Feb. 27 primary election and a March 2 caucus/convention in Detroit.
Contact Paul Egan: 517-372-8660 or [email protected]. Follow him on X, @paulegan4.