Senate candidate Wil Cardon tells voters he runs his businesses without any debt. However, that claim is being challenged and an FEC complaint has been filed against the Cardon campaign.
Cardon’s businesses took out a $2.5 million loan from Comerica bank in August 2011. Cardon’s challenger, Congressman Jeff Flake argues that a $2.5 million loan using houses owned by corporate entities that Cardon manages is the same as those corporate entities going into debt.
The $2.5 million loan prompted an FEC complaint filed against the Cardon campaign since corporate entities cannot loan money to political campaigns.
Flake’s campaign says that taking out the loan plainly contradicts Cardon’s repeated “no debt” claim. The Cardon campaign adamantly denied the loan to the Arizona Daily Star. Katie Martin, Cardon’s spokeswoman, sent an email to the Star saying that Cardon’s campaign has acted in full compliance with the law. “Wil Cardon has never taken out a line of credit for $2.5 million dollars to fund his campaign.”
Cardon’s campaign finance reports show personal loans now totaling $4.2 million.
Cardon would face legal difficulties if he borrowed money using his home as security for his campaign. The Flake campaign says that Cardon does not own his home; three Cardon family corporations own it. Corporate money cannot be used to fund a political campaign.
Andrew Wilder, Communications Director for the Flake campaign. “You cannot simultaneously claim that your businesses are not in debt and that you have not taken out loans for your campaign. Public records clearly suggest otherwise.”