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A complaint has been filed with the Texas Commission on Law Enforcement against Hays County sheriff candidate Anthony Hipolito over an alleged campaign finance violation.
The complaint, which alleges a Class A misdemeanor, stems from an $8,000 payment Hipolito’s campaign made to his wife last year that has since been refunded. According to Hipolito’s campaign finance reports, an $8,000 payment was made to his wife, Peggy Hipolito, on July 24, 2023. When previously questioned about the payment, Hipolito responded on Facebook that he believed the payment was legal, according to screenshots provided by the advocacy- based publication Caldwell/Hays Examiner. The Examiner first reported the alleged violation.
In a Facebook comment, Hipolito said: “Sarah, did you donate to my campaign? Let me check…NO! So stop already. I don’t care what the optics look like. It’s either legal or illegal. People need to understand I am not a politician and don’t play stupid games. My wife has put in hundreds and hundreds of hours for the campaign.
I paid her and will pay her again. Very proud of her! My donors support us, not just me!”
Hipolito’s campaign finance reports show the payment was reimbursed on Sept. 27, 2024, though he said amended reports are being filed to correct the date to Oct. 7. On Oct. 8, Hipolito released a statement saying that “early in the campaign,” they were advised by a consultant that it was permissible under state law to pay a spouse for campaign-related work.
“After receiving a challenge to that information, we immediately sought guidance from a political attorney, who informed us that, because Texas is a community property state, spouses cannot be paid for campaign work. Upon receiving this information, we acted quickly to correct the mistake. We filed the appropriate paperwork with the local filing authority and ensured everything is now fully compliant with Texas campaign laws,” Hipolito said.
Texas Election Code, Title 15, states that a candidate or officeholder “may not knowingly make or authorize a payment from political contributions for personal services rendered by the candidate or the candidate’s spouse.” Such violations are classified as a Class A misdemeanor.
The San Marcos Daily Record reached out to several political and law professors across the state for context on the alleged violation. Brian Owsley, associate professor of law at the University of North Texas at Dallas College of Law, said the issue appears to involve “some kind of criminal violation,” but prosecution depends on discretion.
Owsley compared it to marijuana possession, noting that although it is illegal, the district attorney in Dallas often chooses not to prosecute for personal use. “Similarly here, just because there was a criminal violation related to this election matter doesn’t mean the Hays County District Attorney will prosecute, especially since the money was repaid,” Owsley said. He added that the Texas Commission on Law Enforcement could investigate, and depending on its findings, that could prompt further action.
Owsley noted that prosecutorial discretion often hinges on available resources. “If you’re the district attorney in Hays County, you have limited assistant DAs, funds, political capital, and goodwill. How you spend all that in the interest of justice is a consideration,” Owsley said. “Is this the crime you want to go after, as opposed to others?”
On Oct. 18, Mikel Borg, a Hays County resident, sent the Daily Record a copy of the complaint he filed with the Texas Commission on Law Enforcement. Borg said he also submitted the complaint to the Hays County District Attorney and the Hays County Sheriff’s Office.
In addition to outlining the $8,000 payment and subsequent refund, the complaint alleges that Hipolito knew about the situation earlier than he has publicly stated. The finance reports show the reimbursement occurred on Sept. 27, but Hipolito claims he learned about the issue on Oct. 7.
When reached for comment Friday, Hipolito said the campaign “prematurely filed a Schedule K credit on the 30-day report in an effort to make the commitment of repayment public as soon as possible.” He added that the campaign used a date that would be accepted on the report but will adjust the Schedule K transaction to the 8-day report to reflect the actual repayment date of Oct. 7.
“Campaign finance is tough for non-politicians,” Hipolito said. “That’s why my campaign got an election attorney to guide us through making sure this is handled with accuracy.”
This article was originally published in the San Marcos Daily Record on October 20, 2024. The San Marcos Record is a sister publication to the Dripping Springs Century News.
