Home>Campaigns>Schmid paid back $100,000 personal loan before Election Day

House Candidate Stephanie Schmid. (Photo: Kevin Sanders for the New Jersey Globe)

Schmid paid back $100,000 personal loan before Election Day

Failed Democratic congressional candidate continued raising money after repaying herself

By David Wildstein, December 03 2020 8:38 pm

Either Stephanie Schmid knew her campaign for Congress was doomed or her personal $100,000 investment was just a head fake.

While still raising money from other people for her failed challenge to Rep. Christopher Smith (R-Hamilton) in New Jersey’s 4th district, records show that Schmid quietly repaid herself the money she loaned her campaign.

Schmid paid $50,000 of the loan 18 days before the election – one day after her last report with the Federal Election Commission – and the other $50,000 in October 26, 9 days before Election Day.

Smith beat Schmid by 91,683 votes, 60%-38%, to win his 21st term in the U.S. House of Representatives.

Even after repaying herself, Schmid finished her campaign with $62,018 in the bank and no reported debt.

Republicans called Schmid’s campaign a “train-wreck” after facing criticism for false citations on campaign mailers and threats of legal action from the FEC.

Schmid had been facing an internal investigation by the FEC over allegations that she didn’t properly disclose some campaign contributions for her run for Congress.

As a result, Schmid refunded thousands of dollars in contributions and acknowledged several reporting errors.  She blamed it on a miscommunication with her campaign treasurer, Jason J. Hinton.

Among the issues related to Schmid’s filings was a $100,000 loan she made to her own campaign on June 27.

Schmid did not report the contribution immediately before the FEC before the July 7 Democratic primary.  Federal law requires candidates receiving donations of over $1,000 in the final days of a campaign be reported within 48 hours.

The Yale-educated lawyer also neglected to report the contribution on her July 15 report and did not disclose her own loan until an amended report on July 29.

In her amended report, the Schmid campaign says her $100,000 loan was “based on new information.”

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