Lawyers Used Ex-Milwaukee County Sheriff's Name In PAC Scam: Feds

WISCONSIN — Two North Carolina lawyers have pleaded guilty to fraud and conspiracy charges after federal prosecutors said they used political action committee cash for their own benefit after raising the money under a false claim it was to convince former Milwaukee County Sheriff David Clarke Jr. to run for U.S. Senate.

Nathanael Pendley, 61, and Jack Daly, 51, pleaded guilty on Friday to charges of conspiracy to commit mail fraud and conspiracy to lie to the Federal Election Commission, according to a news release Monday from U.S. Attorney for the Eastern District of Wisconsin Gregory Haanstad.

Called the Draft PAC, it was formed by Daly and Pendley "ostensibly" to convince Clarke to run for U.S. Senate, according to the news release, but the two falsely represented what donor contributions would be used for, and they managed to solicit $1.6 million in contributions, federal prosecutors said.

"Most of this money was spent on additional fundraising to personally benefit Daly and Pendley, not genuine efforts to convince Clarke to run for office," said Haanstad's news release.

Clark later confronted the two after he announced he isn't running for senate and called the PAC a "scam," according to the news release. Daly and Pendley lied to Clark when confronted and claimed their new treasurer was responsible, prosecutors said.

The two also gave misleading information to the FEC that falsely listed an intern as its treasurern, replacing Daly, according to prosecutors. Prosecutors said Daly and Pendley knew the intern was not actually performing treasurer duties.

Daly and Pendley are expected back in court by September for a sentencing hearing before District Court Judge J.P. Stadtmueller, authorities said.