Daily Beast: Cawthorn Campaign Illegally Spent Funds It Wasn’t Supposed to Touch

With two weeks to go until a primary election he was fated to lose, Rep. Madison Cawthorn (R-NC) was already underwater. His campaign held more than twice as much debt as it had cash on hand, the donor well was dry, and he and his staff were months into a madcap spending streak that one campaign source called “baffling.”

And now, after indeed losing that primary, there’s no money to pay the piper.

Specifically, there’s no money to repay the supporters who donated hundreds of thousands of dollars in advance to Cawthorn’s election efforts beyond the primary—to the general election he now won’t be competing in.

Cawthorn is required by law to refund those donations. Instead, according to a campaign source, the campaign already spent the money. …

Beth Rotman, director of ethics at watchdog Common Cause, told The Daily Beast there’s a third option.

“In practice, many people may start spending this money in the primary and pay it back; it’s a risk, but it may not be uncommon,” Rotman said, pointing out that the Cawthorn campaign can raise money to pay down its debts. “He needs to make this right by fundraising, and a lot of rules require that he do that staying within contribution limits.”