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An Annapolis-based political consultant with ties to Republicans including former Gov. Larry Hogan is under federal indictment for allegedly embezzling from at least one of his clients as part of a scheme to finance a yacht.
James Appel faces three counts of wire fraud and three counts of money laundering in the indictment that was unsealed Monday in U.S. District Court in Baltimore.
Prosecutors, in the 10-page indictment, alleged that Appel stole money from the account of at least one elected official and one community organization with which he was associated.
Appel is accused of not only stealing money from the two accounts to finance his yacht lifestyle, but of also signing campaign finance reports misrepresenting the balances of the account. He is also accused of lying about bank balances to board members of the community group from which he allegedly stole.
Appel is the owner of GOP Compliance, an Annapolis-based political consulting firm, that assists Republican candidates and other organizations with campaign finance reporting.
He is listed as the treasurer on as many as 20 campaign accounts, according to a search of Maryland State Board of Elections records. Included in those are accounts for Sen. Stephen S. Hershey Jr (Upper Shore), Dels. Jefferson Ghrist (Upper Shore) and Robin Grammer (Baltimore County), and Adam Wood, the former communications director for the state Republican Party who is now a candidate for Maryland Senate. Appel is also listed as the treasurer for the House Republican Caucus and the Talbot County Republican Central Committee.
Prosecutors allege that Appel stole from at least one of those clients, transferring about $100,000 total from an account controlled by an unnamed politician. The indictment alleges Appel transferred money out of the politician’s campaign account.
Sometimes those funds went to an account associated with his firm. Other transfers were sent to a dummy firm that appeared to belong to the politician but was allegedly controlled solely by Appel.
Eventually the money landed in various personal accounts controlled by Appel. The money was used to pay off debt or to bolster his personal wealth as he sought to finance a Pacific Mariner 65 yacht.
The indictment does not name the elected official from whom Appel is alleged to have stolen.
Del. Kathy Szeliga (R-Baltimore County) said in a text exchange that she is the person referred to as “Politician 1.”
“Today’s indictment confirms what many of us suspected,” Szeliga said in a statement. “As a trusted professional, political, and commercial treasurer, James Appel exploited that trust and stole from the very people he was hired to serve. It’s a betrayal beyond words.”
In her statement, Szeliga implied there may be other victims.
“I am one of the victims in this case,” she said. “Like others, I relied on him to handle campaign finances honestly and transparently. Instead, he allegedly diverted and embezzled funds that were contributed in good faith by hardworking Marylanders, who are also victims of his alleged crimes.”
Szeliga, in a text exchange with a reporter, declined to confirm an exact dollar amount taken from her. She said she continues to “work with the FBI.”
Szeliga paid more than $7,500 in accounting, legal and consulting fees to Appel’s firm since 2020, according to state campaign finance records.
Appel is also accused of transferring a total of $100,000 from the bank account of a community organization in Anne Arundel County. The indictment does not name the group but describes it as one that organized and promoted tennis events in the county.
The indictment states that in 2018, Appel was treasurer of the unnamed organization.
Appel is currently listed as a board member of the Anne Arundel County Tennis Association.
In 2017, when he was a candidate for the Annapolis City Council, Appel’s official biography notes that he served as treasurer for the Anne Arundel Tennis Association.
In that biography, Appel described himself as appointed by then Gov. Larry Hogan (R) as the executive financial officer at the Maryland Department of Information Technology. He also served as controller to Hogan’s reelection campaign.
He also listed himself as a member of the Eastport Yacht Club.
Appel pleaded not guilty on Monday and was released.
As part of the conditions of his release, Appel was ordered to surrender his passport and not attempt to obtain any international travel documents. He was also ordered not to access bank accounts identified in the indictment, and to not open new accounts.
Additionally, U.S. Magistrate Judge Erin Aslin ordered Appel to notify, within 48 hours, any individual or entity with whom he offers consulting services of his federal criminal charges.
If convicted, Appel faces a maximum of up to 20 years in federal prison for each wire fraud count. He faces up to 10 years in federal prison for each money laundering count.
