Politics | RNC RNC Chief Sacks Staff; Feds Probe His 2006 Race Steele accused of misusing 2006 campaign funds By Matt Cantor Posted Feb 7, 2009 10:52 AM CST Copied Former Maryland Lt. Gov. Michael Steele, center, is congratulated by supporters after being elected the first black Republican National Committee chairman, Jan. 30, 2009 in Washington. (AP Photo/Pablo Martinez Monsivais) New RNC chief Michael Steele is quickly making headlines, but not exactly of the good-news sort. The Post reports that he's laid off practically all of the RNC staff, a not-too-startling development given the GOP's big election losses, but one that forces him to start from scratch as the party tries to hold its own against the Obama administration. Steele also is facing allegations of financial shady business related to his 2006 Senate race. His finance chairman from that campaign—seeking leniency on unrelated charges—told federal agents that Steele used campaign cash to pay for services never rendered by his sister’s business. A Steele rep said agents had contacted his sister but called the charges nonsense. “It's from, what, a convicted felon? And it has no substantiation in fact,” he said. Read These Next New York Times ranks the best movies of the 21st century. A man has been deported for kicking an airport customs beagle. White House rolls with Trump's 'daddy' nickname. Actor Sam Rockwell gets residuals from movie he wasn't in. Report an error