Former U.S. Rep. Steve Stockman blames 'deep state' conspiracy for arrest Federal charge unsealed Friday says he lied on campaign reports

Rep. Steve Stockman, R-Texas, second from right, participates in a mock swearing-in ceremony with Speaker of the House Rep. John Boehner, R-Ohio, for the 113th Congress on Thursday, Jan. 3, 2013 in Washington. Rep. Steve Stockman, R-Texas, second from right, participates in a mock swearing-in ceremony with Speaker of the House Rep. John Boehner, R-Ohio, for the 113th Congress on Thursday, Jan. 3, 2013 in Washington. Photo: Evan Vucci, AP Photo Photo: Evan Vucci, AP Photo Image 1 of / 59 Caption Close Former U.S. Rep. Steve Stockman blames 'deep state' conspiracy for arrest 1 / 59 Back to Gallery

Former Congressman Steve Stockman Friday blamed a "deep state" shadow government conspiracy for his arrest on federal charges, saying he is innocent of allegations he conspired to divert charitable contributions to his political campaign and personal use.

The controversial Republican politician - who twice served in the U.S. House before losing a 2014 bid for the U.S. Senate against incumbent John Cornyn – appeared Friday afternoon before U.S. Magistrate Judge Stephen Smith, just hours after the criminal complaint against him was unsealed.

Stockman said after the hearing that he had been targeted for speaking out against the Internal Revenue Service, and cited the right-wing conspiracy theory that contends bureaucrats are secretly running the U.S. government.

"This is part of a deep state that's continuing to progress," he said.

He was released from federal custody Thursday on a $25,000 unsecured appearance bond after being arrested a day earlier as he tried to board a plane at Bush Intercontinental Airport to the Middle East. He said he was going to the United Arab Emirates to help Sunni Muslims, which he described as an ongoing project after serving on the foreign affairs committee in Congress.

In addition to the allegation he illegally diverted charitable funds, Stockman is charged with making false statements in reporting campaign contributions in an effort to hide the sources of the cash.

"It is a crime to make a campaign contribution by one person in the name of another, and to make a false statement to the Federal Elections Commission," according to a sworn statement by FBI Special Agent Vanessa Walther that was included with the criminal charges.

From HoustonChronicle.com: Stockman mum about ties to Vegas charity

Federal prosecutors declined to comment after Stockman's court appearance. Stockman has not yet hired a lawyer, though he told the judge he would.

In court documents filed with the criminal complaint, the FBI agent said that shortly after Stockman took office for the second time in January 2013, he solicited a $350,000 donation from an unidentified "wealthy businessman" from Chicago on behalf of a Las Vegas-based nonprofit, Life Without Limits, which had been set up to help people through traumatic events.

The donation ostensibly was for renovation of a so-called Freedom House to serve as a meeting and training facility in Washington, D.C. The businessman's charitable organization issued a check the same day.

Instead of going to the house project, however, the check was deposited six few days later in a Webster bank account set up by Stockman doing business as Life Without Limits - an account that had a balance of only $33.48 at the time, according to the agent.

"Beginning shortly after the $350,000 charitable donation was deposited into his Life Without Limits account, rather than spending the money on the 'Freedom House,' Stockman secretly diverted the funds to pay for a variety of personal expenses and to fund illegal contributions to Stockman's campaigns for public office," the agent stated.

From HoustonChronicle.com: House ethics panel to review Stockman's campaign finances

Records show he made no "significant" contributions toward the renovations and that the Freedom House never opened.

According to the agent, some of the funds were funneled directly into the campaign through "conduit contributors," who received cash from the Life Without Limits account and then made contributions to Stockman's campaign.

Outside of court on Friday, Stockman said the amount in dispute is $15,000 - not the $350,000 described in court. He did not explain the higher dollar amount.

He said he has been investigated by at least three grand juries over the past three years after he tried to have Lois Lerner of the IRS arrested for contempt of congress in July 2014.

Earlier this year, the U.S. Supreme Court rejected an appeal from a nonprofit group that wanted to sue Lerner and other individual IRS officials for allegedly harassing tea party groups that applied for tax-exempt status with burdensome scrutiny in 2014.

On Friday, Stockman blasted the FBI and other federal officials for holding him without access to insulin. He said he is "extremely diabetic" and takes several injections a day.

"As a joke they gave me doughnuts for breakfast and wouldn't give me my insulin," he said.

Stockman served twice in the U.S. House of Representatives. He served one term, from 1995 to 1997, representing Texas' 9th congressional district, and then another term from 2013 to 2015 representing Texas' 36th congressional district.

He challenged Cornyn in the GOP primary for the U.S. Senate but lost. He entered the race at the last minute, sparked in part by Cornyn's role in helping end a federal shutdown of the government over the Affordable Care Act.

He called for the impeachment of Obama and invited right-wing rocker Ted Nugent to an Obama State of the Union speech as his guest.

Kevin Diaz in Washington, D.C. contributed to this report.