A Republican campaign treasurer long active in Maryland politics has been indicted on charges that he embezzled $200,000 from a politician and a community organization and funneled the money toward a luxury yacht, according to an indictment unsealed in federal court on Monday.
James Phillip Appel, 58, who has served as treasurer for several campaigns, pleaded not guilty on Monday in U.S. District Court to charges of wire fraud and money laundering. The indictment alleges Appel needed the money to refinance a loan for a Pacific Mariner 65 Motoryacht.
Magistrate Judge Erin Aslan on Monday freed Appel but added several stipulations, including he not open any bank accounts while on pre-trial release. The year of the yacht and other details were not provided in the court documents; Yachtworld lists prices for the yacht for as much as $800,000.
The indictment and other documents filed in court on Monday do not identify the politician who authorities say was victimized. Efforts to reach Appel were not successful; an attorney for the Annapolis resident was not listed in court filings on Monday.
Appel has long been active in state and local Republican Party politics in Maryland, including as campaign treasurer for several campaigns and the conservative Maryland Freedom Caucus in the General Assembly.
He was removed from that role after the caucus learned of some discrepancies in Del. Kathy Szeliga’s campaign accounts, Del. Matt Morgan (St. Mary’s), chair of the caucus, told the Baltimore Sun earlier this month. In 2017, Appel ran for an alderman seat in Annapolis, losing that election by 221 votes. It could not be determined Monday if the unnamed politician listed in the indictment is Szeliga. She did not return calls or a text message seeking comment.
On Monday, Maryland House Minority Leader Jason Buckel (R-Allegheny County) said the House Republican Caucus will remove Appel as treasurer. In an interview, Buckel said the caucus inherited Appel five years ago when he took over. After hearing about issues with Szeliga’s campaign, he said he ordered the caucus’ books reviewed but found no issues.
Buckel said he didn’t know the severity of the issues until the indictment became public on Monday. “It’s disappointing to see someone who accepted the responsibilities to serve as a campaign treasurer … being indicted for breaking the trust,” Buckel said.
The indictment, announced by Kelly O. Hayes, the U.S. Attorney for Maryland, and Jimmy Paul, the special agent in charge of Baltimore’s FBI field office, alleges the improprieties began in May 2023 when Appel transferred $100,000 from one of the politician’s accounts to another in that same politician’s name. Appel was listed on the second account as the “sole designated representative,” prosecutors said.
The indictment alleges that beginning in April 2024, Appel transferred that money into his personal financial accounts in installments of $20,000 and $40,000. In total, authorities said he transferred $100,000 of the politician’s money his accounts.
On June 5, 2024, the indictment said, Appel transferred another $100,000 from the community organization to his business account, and then to his personal account. That same day, the indictment says that Appel emailed a bank about refinancing a loan that he can produce statements showing “balances of 70k and 100k.”
The community organization is not named in court documents. Appel is listed as treasurer of the Anne Arundel County Tennis Association. Its president, Mike Bernhard, did not respond to an email seeking comment.
Erin Cox contributed to this report.
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