Jesse Jackson Jr. admits to violating campaign finance law, spending funds on things such as a $40,000 Rolex watch and personal travel expenses for a friend. His plea comes in response to a federal investigation which may have led to his resignation from his congressional seat in November 2012. Jackson wife, Sandi Jackson, could also potentially be charged in the case for receiving $5,000 a month as a ‘political consultant’. Depending on the decision of the federal judge, Jackson could be facing probation or possibly prison time.
Internal controls over financial reporting could have helped Mr. Jackson’s camp recognize these issues early (assuming they would not have been overlooked). Note our video from 3/21/2012 to Mitt Romney and Newt Gingrich touched on internal controls over campaign funds (http://youtu.be/lwwIgrK3nsg) and the common misconception by government officials that the rational of the Sarbanes-Oxley requirements does not apply to them. Sure, government officials help make the rules that internal controls are a requirement for public companies but they all seem to believe that these rules are not applicable at the campaign fund level. Perhaps it is time for a change?