The 21 months in prison will be followed by two years of supervised release. He was also ordered to pay a fine of $150,000. Additionally, the co-defendant, 67-year-old Dale C. Emmons of Richmond, Kentucky, was sentenced to nine months in a halfway house, followed by three years of supervised release. He was ordered to pay a fine of $50,000.
Lundergan is the father of former Kentucky Secretary of State Allison Lundergan Grimes. He was convicted in September for orchestrating a multi-year scheme to funnel approximately $200,000 in secret, unlawful corporate contributions to Grimes' failed U.S. Senate campaign in 2014.
Lundergan used funds from S.R. Holding Company Inc, a company he owned, to pay for consulting and vendors for Grimes Senate campaign. It is believed that Lundergan also issued a number of payments from S.R. Holding funds for services to benefit the campaign between July 2013 and December 2015.
The contributions also included monthly payments from S.R. Holding to Emmons and his company during the time period. Emmons provided additional services to the campaign and received compensation from Lundergan and S.R. Holding. Emmons also used the funds of his corporation, Emmons & Company Inc., to pay other vendors and a campaign worker for services provided during the campaign.
The evidence established that Lundergan and Emmons concealed the activities from other officials associated with the campaign. The concealments caused the campaign to file false reports with the FEC.
"This case should underscore the fundamental principle that breaking the law has consequences. The defendants circumvented the campaign finance laws, by knowingly making over $200,000 in unlawful corporate campaign contributions and causing false filings to be submitted to the Federal Election Commission. These are important laws that regulate the integrity of our elections. A jury convicted them, and the Court has now sentenced them for their crimes,” said Robert M. Duncan Jr., U.S. Attorney for the Eastern District of Kentucky. "I commend the FBI for their thorough investigation, and the members of the prosecution team for their dedication to enforcing the law and in presenting this important case."
"Kentuckians place a great deal of trust in the political process. Regardless of the perpetrator’s position or status, when that trust is broken by corrupt individuals, law enforcement has a duty to protect the people's interests. Today's sentence demonstrates that no one is above the law and we will rigorously pursue anyone who tries to undermine the strength of our democracy." said Special Agent in Charge Robert Brown, FBI Louisville Field Office.
"Kentuckians place a great deal of trust in the political process. Regardless of the perpetrator’s position or status, when that trust is broken by corrupt individuals, law enforcement has a duty to protect the people's interests. Today's sentence demonstrates that no one is above the law and we will rigorously pursue anyone who tries to undermine the strength of our democracy." said Special Agent in Charge Robert Brown, FBI Louisville Field Office.
