Ken Welch campaign in turmoil after $200K-plus stolen from PAC, stagnant fundraising

St. Petersburg Mayor Ken Welch got robbed blind. Sort of.

The committee supporting his re-election, the Pelican Political Action Committee, suffered $207,500 in unauthorized expenditures that appear to have been taken by the committee’s registered agent, Yolanda Brown. Brown is the founder of Brown Financial & Consulting Services Group, which frequently provides campaign finance services for Democratic political candidates.

Brown’s phone number appears to have been disconnected, and Florida Politics was unable to reach her for comment.

The committee transferred funds beginning Aug. 6 from the PAC to O’Reilly Business LLC, a private business active in Florida for which Brown is the registered agent.

On Aug. 6, the committee in two separate transactions transferred $100,000 and $25,000 to the business, followed by a $20,000 transfer on Oct. 3, $25,000 on Oct. 6, $20,000 on Oct. 8, $10,000 on Oct. 15, and $2,500 and $5,000 on Oct. 30. All of the expenditures are listed as “unauthorized” in the committee’s amended third-quarter report and its new fourth-quarter report.

Asked about the missing funds, those affiliated with the committee said committee officials will speak with state and federal law enforcement to determine next steps.

Adrienne Bogen, an advisor for Welch, said they terminated the contract with Brown “immediately upon discovering” the improper transactions and appointed a new treasurer.

Bogen also offered a statement supporting Welch, though without responding to the possible theft.

“Mayor Welch has spent his time in office delivering real results for the people of St. Petersburg, advancing historic investments in affordable housing, expanding infrastructure improvements across neighborhoods, strengthening public safety, and supporting economic growth that creates jobs and opportunity,” she said in a prepared statement.

Under his leadership, the City has increased housing resources, invested in streets and stormwater infrastructure, and prioritized community-driven solutions to improve quality of life. The Mayor shows up every day focused on governing, listening, and getting things done for St. Petersburg.”

This isn’t the first time Welch has had an issue with a political committee. The state revoked his original committee, the Pelican PAC, citing its failure to file timely reports, its failure to appoint a replacement Treasurer after one resigned, and its failure to maintain a registered office and registered agent. Its closure prompted the creation of the new committee, which is now facing its own troubles.

And the loss of more than $200,000 is even more problematic for Welch, given that his fundraising was largely stagnant in the most recent quarter, October through December. The committee raised just $48,225 in the fourth quarter, down nearly six figures from the more than $142,000 raised in the third quarter.

With fundraising slowing and unauthorized fund distributions, Welch has just about $32,000 on hand.

That is a significant disadvantage for the incumbent Mayor, who faces credible opposition in this year’s re-election contest. City Council member Brandi Gabbard has already said publicly that she intends to run, and former Mayor Charlie Crist has said he’s seriously mulling a bid. St. Pete Shines, a political committee expected to support his eventual campaign, launched late last year and raised $725,000 in just 49 days.

“I’m sad to see this happen to my longtime friend, Ken Welch. It is a shame he is facing campaign finance challenges again,” said Michelle Todd Schorsch, the Chair for St. Pete Shines, referring to Welch’s past troubles with his previous political committee.

“While we are hopeful the situation is appropriately addressed with law enforcement, St. Pete Shines will continue its work supporting leaders who can support the city of St. Petersburg today, tomorrow and beyond,” she added.

To put Welch’s fundraising position into perspective, he had two banner fundraising months for his now-defunct committee, one in September 2021 of more than $233,000 and another the following month of nearly $179,000. Not counting his political committee, Welch’s official campaign raised more than $500,000.

It’s important to note that Welch does not oversee his PAC, and, by design, he cannot. Political committees cannot directly coordinate with candidates’ campaigns. Brown was involved in Welch’s first mayoral PAC, but was assigned only after problems came to light. She has also worked with him since his first mayoral run.

It’s not clear yet whether the new committee will be able to recoup any of the lost funds.

The Pelican Political Action Committee’s fourth quarter fundraising included a $25,000 check from the Tampa Bay Rays, but other than that, not a single contribution exceeded $2,500.

Welch has not filed to run for re-election yet, and therefore does not have a campaign account. The only candidate filed to date is Maria Scruggs, who has run for office unsuccessfully several times before, including against Welch when he was a Pinellas County Commissioner.

While Welch has plenty of time to bridge the funding gap — the Primary is Aug. 18, with a General Election runoff, if necessary, scheduled for Nov. 3 — slow fourth-quarter fundraising suggests to potential opponents that Welch may be an incumbent worth challenging.

“It’s clear from the extensive support we received for St. Pete Shines’ mission to identify and support a leader who can usher St. Petersburg into its next chapter, and the comparatively lackluster support for maintaining the status quo, that our fine city is ready for fresh perspectives and experienced leaders. We will continue to work tirelessly to ensure the city has the support needed to grow and thrive for current and future generations,” Todd Schorsch said.