I am writing to bring attention to omissions in Congressman Ben Ray Lujan’s annual House financial

disclosures. After reviewing the congressman’s FEC statements it is apparent he failed to disclose two
loans the Congressman took out in 2007-2008 in the amount of $200,000 and the more than $30,000 in
interest he earned from that loan to his campaign. According to Lujan’s FEC records he took out a
$50,000 loan from Century Bank Federal Savings Bank, De Vargas Branch. According to his FEC 2007 year
end disclosure the loan amount was $50,000 with a 5% interest rate and origination date of 12/6/2007
with a due date of 12/6/2008. In his July 2008 filing Lujan lists a $150,000 loan from Valley National Bank
with a 7% rate with the date incurred listed as 12/16/2008 (Likely a typo and should have been 2007)
and due date of 12/16/2009. Below is a chart detailing the amount and dates of principal and interest
payments the Congressman received from his campaign.

Principal Payments Interest Payments

Made Date Made Date
49,993.06 5/20/2008 423.62 6/4/2008

2,962.50 4/8/2009 2,500.00 3/31/2009

10,000.00 5/8/2009 7,037.50 4/8/2009
10,000.00 8/14/2009 2,269.97 7/1/2009
11,760.97 6/21/2010 8,239.03 6/21/2010
11,400.00 12/29/2010 6,787.50 7/18/2011
10,500.00 1/25/2011 4,165.71 6/22/2012
10,200.00 3/2/2011
10,000.00 6/2/2011
10,000.00 1/12/2012
10,000.00 4/3/2012
17,834.29 6/22/2012
11,000.00 5/29/2012
24,342.24 6/30/2012

The Congressman earned a total of $31,423.33 in interest from 2008-2012 yet he never listed this
income on his financial disclosures. Additionally, the Congressman earned a higher interest rate than
what the terms of his loan state he should have received. On the $150,000 loan his schedule C (FEC
Form 3) it states he would receive a 7% interest rate. Depending on how you amortize the loan it would
result in different interest amounts owed to Lujan. I called the FEC information and public records
department to request a copy of the loan documents from the bank as is required by FEC guidelines to
have been submitted, they advised me that the campaign did not submit those documents. The
Congressman’s Schedule C should also have been signed by a representative of the bank to confirm the
loan terms were accurate, there is no signature on the Schedule C, so it is impossible to independently
verify the truthfulness of the Congressman’s documents or to see the agreed upon amortization of the
loan and payments. Regardless of the amortization schedule the Congressman collected a more than 7%
rate.
A loan of $150,000 with a one year term with a 7% interest rate with monthly payments would total
$5,748.14 in interest payments. If you extended the terms to a 42 month loan rather than the 12 month
listed in the FEC filings interest payments would total $19,559.47. However, the Congressman received
$30,999.71 in interest payments. This means the Congressman realized about a 10.85% return over 42
months. If we assume the interest was compounded monthly and all payments were applied to accrued
interest first and then to principal based on the dates of the actual payments made, the Congressman
realized more than an 8.66% return.

So not only did the Congressman fail to disclose both the liability and the interest income, but he also
collected between $6,000 and $25,000 more in interest than the terms of his loan stipulated. This is
fraud funded on the backs of his donors. The interest income was also required to be reported to the
IRS. This is now the second major issue I have brought to the committee’s attention about the
Congressman’s financial disclosures. With my two complaints and the Congressman’s past issues with
the IRS ($54,000 in back taxes and fines and interest from the 2008 campaign) it is apparent the House
Ethics committee must do a full and thorough investigation of Ben Ray Lujan’s financials to determine if
there are more sources of revenue and income the Congressman is failing to disclose. I believe there is.
The Congressman must disclose his tax returns for every year he has been in office and provide the
committee with year-end financial statements from his banks and his pension fund. I have attached the
FEC filings showing the loan and interest payments.