End Citizens United PAC formally submitted a complaint on Oct. 26 to the Iowa Ethics and Campaign Disclosure Board, requesting immediate investigation into Iowa state Rep. Derek Wulf and his running mate Zach Lahn’s gubernatorial campaign.
The complaint asks the board to investigate Wulf and the campaign for allegedly accepting a prohibited loan from a lobbyist under Iowa Code 68B.24 and failing to disclose a campaign contribution under Iowa Code 68A.102 and 68A.402A. The complaint also accuses the Lahn campaign of accepting a prohibited gift from a restricted donor under Iowa Code 68B.22.
Wulf’s financial issues
Wulf, a state representative from Hudson and chairman of the Iowa House Agricultural Committee, became a candidate for statewide office when Lahn named him as his running mate on June 12. At that time, Wulf and his farm business Shallow Creek Land & Livestock, faced financial strain, including a series of court judgements that saw him owing roughly $182,000 to Four County Pig Placement and $149,000 to Heartland Co-Op, plus a $139,000 debt owed to New Century FS, and a $3.1 million foreclosure action by WCF Financial Bank.
Two weeks after Wulf joined the ticket, an attorney incorporated University Relocation LLC in Illinois on behalf of an unidentified Iowa-based private family. On July 2, the newly formed entity and Wulf executed a promissory note for a one-year, $540,000 loan to Wulf, which he used to quickly pay off his immediate creditors. The lender’s attorney said he did not know if the undisclosed lender is a lobbyist.
‘An expectation of return’
Under Iowa law, candidates are barred from taking personal loans from lobbyists outside regular commercial banking channels. The law also prohibits public officials from receiving gifts from donors seeking contracts with the state or businesses.
End Citizens United President Tiffany Muller said Wulf’s financial woes created an opportunity for corruption.
“It appears a wealthy donor saw a politician drowning in debt and decided to throw him a $540,000 lifeline just as he was running for statewide office,” Muller said in a written statement. “While Lahn and Wulf want voters to believe this arrangement is all a coincidence, nobody hands a politician that kind of money without an expectation of a return.”
The Iowa Ethics and Campaign Disclosure Board determines whether it will accept a complaint after a review from the board’s legal counsel, review by the chairperson, and a vote of the board. If the complaint is determined to be sufficient to proceed, notice will be provided to the subject of the investigation.
