Stone relied on a story from Morris News Service that reported on questions about the source of more than $700,000 in loans Yu has made to his campaign. The questions arose because his personal financial disclosure did not include that much income, cash or liquid assets.
“If Mr. Yu can provide a satisfactory explanation of where these funds originated, we will withdraw the complaint,” said Megan Seda, Stone’s campaign manager.
Yu’s campaign spokesman, Brandon Phillips, said any political newcomer can struggle with complex federal paperwork.
“Any errors the campaign committed in filing reports early on in the campaign were self-reported and corrected with the FEC,” Phillips said. “However, it doesn’t help when a novice candidate is not being served well by consultants trying to make a quick buck as opposed to making sure all the nuances of federal campaign-finance law are followed.”
One of Yu’s original consultants and his campaign administrator are heading to jail for lying to police in relation to a separate campaign in Cherokee County.
“Those people are no longer with the campaign,” Phillips said. “Any forms currently with the FEC are accurate and comply with the law.”
Stone asks the commission to act urgently out of concern that Yu might use illegal funds to bankroll a last-minute ad blitz. “The magnitude of these violations are such that could alter the results of the May 20 Republican primary elections if allowed to stand,” Stone wrote.
Stone also pointed to reports about a donation by a corporation owned by Yu’s campaign chairman, Wayne Brown of Augusta. Federal candidates cannot accept corporate donations, and the campaign took months to issue a refund.