Allegations of Corruption Cloud D.C. Mayor Re-election

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“Today’s guilty plea pulls back the curtain on years of widespread corruption,” Machen said. “With Mr. Thompson’s cooperation, we have the opportunity to hold many wrongdoers accountable and to usher in a new era of honesty, integrity, and transparency in D.C. politics.”

Thompson’s expenditures on Gray’s campaign totaled $668,000, and they were never reported to the city’s campaign-finance office, prosecutors said. The money went toward consultants, supplies and a massive get-out-the-vote operation centered east of the Anacostia River, where Gray defeated then-Mayor Adrian Fenty by huge margins.

The most recent race Thompson sought to influence, the documents allege, was that of Vincent Orange, who ran for and won an at-large council seat in 2011, and is now one of the candidates competing with Gray for mayor. Orange has acknowledged handing over to federal investigators documents related to the 2011 campaign.

In 2006, Thompson ran a $278,000 shadow campaign mayoral candidate Linda Cropp, who ended up losing to Fenty, prosecutors alleged, although they said they had no evidence that Cropp knew about the shadow effort. She also received contributions from Thompson and his associates that were included on her financial statements.

Federal authorities searched Thompson’s home and offices two years ago. Since then, Machen has built a case against Thompson by targeting his associates, five of whom have pleaded guilty to felonies.

Two of Gray’s close friends who worked on his 2010 campaign were among those who pleaded guilty. Two others pleaded guilty to making straw contributions to political candidates on Thompson’s behalf, and another acknowledged using illicit funds to help Clinton’s presidential bid in Texas and other primary states.

Thompson allegedly created a vast network of donors, including employees, business associates, friends and relatives, many of whom made large donations to his chosen candidates on the same day, campaign finance records show. After the allegations surfaced, several candidates donated the amount they received from Thompson to charity.

Thompson, a Jamaican immigrant, founded an African-American-owned accounting firm that received millions of dollars in local and federal government contracts. He was also the sole owner of D.C. Chartered Health Plan, a managed-care provider for district residents that had the single largest contract in city government, worth more than $300 million annually. The managed-care firm went bankrupt amid the investigation, and Thompson left the accounting firm.

After Gray’s election, Thompson contacted him through an intermediary and asked the mayor to expedite a settlement that benefited the health care company, according to the documents. The D.C. Council ultimately approved the settlement by a thin margin, and administration officials strongly denied any wrongdoing related to the action.

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