Eric Swalwell drops another $250,000 in campaign funds on legal bills

Former Rep. Eric Swalwell has used over $300,000 in campaign funds to pay a lawyer defending him against allegations of sexual assault and harassment by multiple women, according to his latest campaign finance disclosure filed Thursday night.

Swalwell suspended his campaign last month after the Chronicle reported allegations that he sexually assaulted a former staffer. But he has continued to use campaign funds he collected from political supporters before the allegations broke to pay a high-profile lawyer, Sara Azari, who has responded to media requests on his behalf and has appeared on television to defend him.

Between April 19 and May 16, Swalwell paid Azari's law firm more than a quarter million dollars for "campaign legal compliance" work, according to the Thursday filing. Prior to April 18, his campaign paid her $40,000.

California campaign finance laws allow candidates to use campaign funds for litigation costs only when they are directly related to the activities of the campaign committee or the activities, duties and status of the candidate. That includes compliance with election laws, challenges to ballot language and recounts, and action to halt defamation.

Swalwell dropped out of the race on April 12, two days after the Chronicle's story broke. Several additional women have since come forward with allegations he harassed or assaulted them. He resigned his congressional seat on April 14.

Azari appeared on NewsNation last month on Swalwell's behalf. Azari also works as a legal analyst for the network.

"It's not my style to litigate my own cases in media, but I'm here because these allegations are false and he's been advised not to make any statements, so I'm doing that on his behalf," she told anchor Chris Cuomo.

Azari did not immediately respond to a request for comment Thursday night.

Swalwell's use of campaign donations to pay lawyers has angered donors and political rivals of the former congressman. Hundreds of Swalwell donors had been seeking more than $1.5 million in refunds from the campaign, according to an internal campaign document viewed by the Chronicle.

The latest filing shows that some donors have received refunds, but many are still waiting. One donor who had been set to host an event for Swalwell said she has not received a refund for her $10,000 donation. The event was scheduled for the same day the Chronicle called Swalwell to ask him about his former staffer's allegations. He abruptly canceled the fundraiser.

Mike Hsieh, an El Sobrante man who donated $250 to Swalwell's campaign in early February, said he was incensed last month when he read in the Chronicle that the campaign had paid Azari $40,000. He had been trying to get a refund since shortly after the allegations against the former congressman broke.

"I was very much incensed. It feels truly unjust because it has nothing to do with the campaign," Hsieh told the Chronicle last month. "This seems to me to be illegal, or at least it should be."

Shortly after Swalwell ended his campaign, former state Controller Betty Yee, who at the time was also running for governor, called for Swalwell to return all unused donations and not use campaign funds for his legal defense.

"Campaign funds should never be weaponized to intimidate, threaten, or silence alleged victims," she wrote in a statement. "Swalwell should pay for his legal defense using personal funds."

Candidates are separately allowed to raise money into a legal defense fund for expenses related to sexual assault claims, but they must reimburse those funds if they are found liable. Swalwell has not opened a legal defense fund, according to state campaign finance records.

As of May 16, Swalwell's campaign reported $2.6 million in cash on hand and about $60,000 in unpaid debts.

Swalwell, whose financial records indicate he carries significant personal debts, is the subject of several law enforcement investigations. The former staffer who says the congressman assaulted her confirmed to the Chronicle that she is cooperating with an investigation by the Manhattan district attorney's office. Another former Swalwell staffer who spoke to the Chronicle on condition of anonymity said they were contacted by both the Manhattan district attorney's office and the FBI, though they said the subject of the latter's investigation was unclear.

The Los Angeles County Sheriff's Office is investigating accusations by another woman, Lonna Drewes, who came forward four days after the Chronicle published its story and said Swalwell drugged and raped her in 2018. The Alameda County district attorney has encouraged any potential victims to contact her office.

There's some precedent for a politician to use campaign contributions for personal legal bills. After leaving office in 2021, President Donald Trump spent more than $100 million he raised to challenge his 2020 election defeat to defend himself against congressional investigations, multiple indictments and a criminal trial in which he was convicted of falsifying business records to cover up hush-money payments to a porn actress.

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