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Utah's biggest political donor is a swindler, foundation claims
This is an archived article that was published on sltrib.com in 2004, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

WASHINGTON - Utah's most prolific political donor may have built his fortune off of cheating schools and his employer, according to court records.

Cameron J. Lewis and his wife gave $93,000 to political campaigns in 2003 and 2004, making them the largest donors in the state.

But in a bankruptcy filing last month, the National School Fitness Foundation (NSFF), which Lewis founded, claims Lewis cheated the foundation out of millions of dollars, using the money to buy a jet for personal use, to help build his home in Highland, and to channel thousands of dollars to political causes.

If the foundation's claims are true, both the Federal Elections Committee and the Department of Justice could become involved, because it is against the law to divert corporate funds to federal campaigns, said Kent Cooper, vice president of the watchdog group Political Moneyline and a former official with the FEC.

Lewis' partner, J. Mont Beardall, pleaded guilty to a federal indictment in Minnesota last month, admitting to knowingly defrauding the schools out of millions of dollars. The case is the subject of a continuing federal criminal investigation.

Lewis' attorney did not respond to repeated phone calls. Lewis has not formally replied to the foundation's allegations.

The bulk of Lewis' contributions went to the Republican Governors Association and Democratic Governors' Association in spring 2003.

Nicole Harburger, spokeswoman for the Democratic Governors' Association, said Lewis also had a meeting with DGA staff and was invited to one event that was attended by Democratic governors. She said staff checked out the contribution at the time and had no reservations about accepting the check.

Harvey Valentine, spokesman for the Republican Governors Association, said he would not discuss what interaction, if any, Lewis had with RGA staff or GOP governors.

Both party organizations say they spent the money in their 2003 gubernatorial campaigns and would not be refunding the money to NSFF or the schools.

In addition to his donations to the gubernatorial committees, Lewis and his wife, Danielle, each contributed $6,000 to Utah Republican John Swallow's congressional campaign and he has given $1,000 to the Utah Republican Party.

If the contributions were deemed to be illegal, the campaigns are generally required to dispose of the funds, either by giving them to charity or to the federal treasury, Cooper said.

A spokesman for the Swallow campaign said the campaign was not aware of Lewis' case and would look into the matter.

Lewis' business, the National School Fitness Foundation, sold about 600 schools in 20 states a package of high-tech fitness equipment, promising to obtain government grants to repay the schools - in essence guaranteeing them free top-of-the-line sports equipment.

Beardall acknowledged that executives knew the schools were being compensated with proceeds from other sales - basically a Ponzi scheme - and that the schools would not fully be compensated. Although many schools received partial payments, as the money dried up, some schools were left holding the bag for up to $250,000 each in fitness equipment.

gehrke@sltrib.com

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