The Post reported Steele's 2006 Senate campaign finance chairman told federal prosecutors that Steele arranged for his campaign to pay a defunct company run by his sister for services that were never rendered.
"It's not true," Steele told George Stephanopoulos on "This Week" Sunday.
"Those allegations were leveled by a convicted felon who was trying to get a reduced sentence on his conviction," Steele said. "The reality of it is that the US attorney, as well as the judge, looked at what he presented and it did not apply. He said there was no credibility to it."