The former House speaker's complex financing network raised legal questions. Legal concerns cloud Gingrich event

Newt Gingrich’s aborted presidential campaign announcement was prompted by concerns from his legal team that he had not fully divested from his various outside income streams to clear the way for his candidacy, sources told POLITICO.

Among the issues on the table: Gingrich’s contract with Fox News, which the network on Wednesday abruptly announced would be suspended for 60 days.


The former House speaker’s complex financing network, however, raised both big and small legal questions.

For instance, some campaign finance experts said Gingrich’s mode of transportation to the Georgia meetings at which he was expected to make his announcement on Thursday could have raised thorny legal questions.

If he was flying in a corporate jet, the transportation costs would have been considered an in-kind contribution to a campaign that didn’t yet exist.

If the plane was paid for by Gingrich’s think-tank, American Solutions for Winning the Future, which was the official sponsor of the Georgia event and is considered a charity under tax law, the costs could violate Internal Revenue Service regulations.

Gingrich’s allies said the former House speaker still intends to run and that he will make the announcement when all of the legal issues have been resolved.

However, the messy start to his presidential launch could dog him in the coming weeks since his presidential intentions are now apparent.

“If he utters a word now that smacks of being a presidential candidate, he’s got a problem,” said one campaign finance attorney.

Campaign finance regulations allow prospective candidates to raise money to cover the costs of “testing the waters,” which include lining up early support and raising enough money to pay for travel related to making an assessment of the potential strength of a candidacy.

However, candidates operating in that gray area can’t openly advocate for their election.

Reporters gearing up to cover Gingrich’s Georgia appearance were led to believe that in addition to the announcement of an exploratory committee, the former congressman would also receive his first endorsement from newly-elected Georgia Gov. Nathan Deal.

“It ain’t complicated stuff,” said one attorney. “Once you start an exploratory committee, you can’t be taking corporate jets or doing Fox News.”