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For Immediate Release
June 13, 2002
Contact: Kelly Huff
Ron Harris
Bob Biersack
Ian Stirton

 

COMPLIANCE CASES MADE PUBLIC
WASHINGTON – The Federal Election Commission has recently made public its final action on 22 matters previously under review (MURs). This release contains only disposition information.

Specific released documents placed on the public record within the following closed MURs are cited following DISPOSITION heading. Release of these documents is consistent with the district court opinion in the December 19, 2001, decision of AFL-CIO v. FEC, now on appeal to the D.C. Circuit Court of Appeals. Once an appellate decision is rendered, the Commission will review documents related to cases released in the interim.

1. MUR 4901
RESPONDENTS: (a) Rust Environmental & Infrastructure, Inc.

(b) James E. Gonzales

COMPLAINANT: FEC Initiated
SUBJECT: Corporate contributions; contributions by federal contractor; contributions in the name of another
DISPOSITION: (a) Conciliation Agreement: $3,800 civil penalty*

(b) Conciliation Agreement: $5,000 civil penalty*

DOCUMENTS ON PUBLIC RECORD: Conciliation Agreement (Rust), certification of vote by Commissioners (dated September 7, 2001), receipt of payment (dated August 8, 2001), Conciliation Agreement (Gonzales), certification of vote by commissioners (dated November 20, 2001), receipt of payment (dated December 8, 2001), letters to recipient committees of prohibited contributions requesting them to disgorge those funds, receipt of disgorgements to FEC from recipient committees.
2. MUR 4961
RESPONDENTS: DNC Services Corporation/Democratic National Committee; Andrew Tobias, treasurer
COMPLAINANT5: FEC Initiated
SUBJECT: Misdeposited contributions; excessive contributions; failure to accurately report initial receipt of contributions and subsequent transfers
DISPOSITION: Conciliation Agreement: $70,000 civil penalty*

Respondents will file on the public record miscellaneous reports for 1995 & 1996 regarding the 95-96 disclosure reports to show the full initial receipt of contributions into the federal account, the subsequent transfers to the non-federal account, and the receipts by the non-federal account.

DOCUMENTS ON PUBLIC RECORD: Conciliation Agreement, certification of vote by Commissioners (dated July 1, 2001), receipt of payment (dated August 8, 2001)
3. MUR 4994
RESPONDENTS: (a) New York Senate 2000, Andrew Grossman, treasurer

(b) Hillary Rodham Clinton for U. S. Senate Committee, Inc., William J. Cunningham, III, treasurer

(c) Hillary Rodham Clinton

(d) New York State Democratic Committee, David Alpert, treasurer

(e) Democratic Senatorial Campaign Committee, James P. Fox, treasurer

(f) Metabolife International, Inc.

(g) New York Republican Federal Campaign Committee, Michael Avella, treasurer

(h) National Republican Senatorial Committee, Stan Huckaby, treasurer

(i) Ashcroft Victory Committee, D. Jan McBride, treasurer

(j) Michigan Senate 2000, James P. Fox, treasurer

(k) New York Democratic Victory 2000, Andrew Tobias, treasurer

(l) Rudolph W. Giuliani

(m) Friends of Giuliani Exploratory Committee, John H. Gross, treasurer

(n) Giuliani Victory Committee, D. Jan McBride, treasurer

(o) Santorum Victory Committee, D. Jan McBride, treasurer

COMPLAINANTS: Scott Harshbarger, Common Cause

Fred Werthheimer, Democracy 21

SUBJECT: Coordinated expenditure limit
DISPOSITION: (a-j) Took no action*

(k-o) No reason to believe*

[re: any provisions of the Act in connection with this matter]

DOCUMENTS ON PUBLIC RECORD: First General Counsel’s Report, certification of vote by Commissioners (dated September 25, 2001), Statement of Reasons by Commissioner Thomas, Statement of Reasons by Commissioner Sandstrom, Statement of Reasons by Commissioners Mason, Smith and Wold, Supplemental Statement of Reasons by Commissioner Wold, Supplemental Statement of Reasons by Commissioner Smith
4. MUR 5041
RESPONDENTS: (a) Wuesthoff Memorial Hospital, Inc.

(b) Robert Carman

(c) Terence Murphy

(d) Rebecca Colker

(e) Jospen Bogdan

(f) Brian Collins

(g) Chris Finton

(h) Emily Rothenberger

(i) Bernard Van Someren

(j) Kathleen Weldon

COMPLAINANT: Sua sponte
SUBJECT: Corporate contributions/contributions in the names of others
DISPOSITION: (a) Conciliation Agreement: $32,000 civil penalty*

(b) Conciliation Agreement: $20,000 civil penalty*

(knowing and willful)

(c) Conciliation Agreement: $8,500 civil penalty*

(d) Conciliation Agreement: $2,000 civil penalty*

(e-j) Reason to believe, but took no further action*

Sent admonishment letters.

DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report #3, certification of vote by Commissioners (dated December 12, 2000), Conciliation Agreement (Weusthoff), receipt of payment (dated February 1, 2001), Conciliation Agreement (Carman), receipt of payment (dated February 2, 2001), Conciliation Agreement (Colker), receipt of payment (dated June 23, 2001), certification of vote by Commissioners (dated February 20, 2001), Conciliation Agreement (Murphy), certification of vote by Commissioners (dated April 27, 2001), receipt of payments (dated May 5, 2001, June 27, 2001, and July 29, 2001), letters to recipient committees of prohibited contributions requesting them to disgorge those funds, receipt of disgorgements to FEC from recipient committees
5. MUR 5082
RESPONDENTS: (a) Don Sherwood for Congress, John A. Brady, treasurer

(b) Friends of Don Sherwood, John A. Brady, treasurer

(c) Connie Van Horn

(d) Donald L. Sherwood

(e) Roger E. Madigan

(f) Commonwealth of Pennyslvania

COMPLAINANT: Ronald Williams
SUBJECT: Excessive contribution/use of state campaign employee
DISPOSITION: (a) Reason to believe, but took no further action*

Send admonishment letter.

(b) Reason to believe, but took no further action*

(c) No reason to believe*

(d-f) Took no action*

Report the matter over to the Pennsylvania State Senate Committee on Ethics, the Pennsylvania State Ethics Commission, and the Pennsylvania Attorney General.

DOCUMENTS ON PUBLIC RECORD: First General Counsel’s Report; certification of vote by Commissioners (dated April 3, 2001); General Counsel’s Report #2, certification of vote by Commissioners

(dated May 7, 2002)

6. MUR 5147
RESPONDENTS: (a) Richard S. Beltram

(b) Intedge Industries, Inc.

(c) Spartanburg County Republican Party

(d) Entercom Greenville, LLC and Entercom Greenville License, LLC

COMPLAINANTS: Elaine W. Marks, Chairwoman, Spartanburg County Democratic Party
SUBJECT: Corporate contribution; disclaimer
DISPOSITION: (a) Reason to believe, but took no further action*

[re: corporate contribution]

(b) Reason to believe, but took no further action*

[re: corporate contribution, disclaimer]

(c-d) No reason to believe*

[re: any provision of the Federal Election Campaign Act of 1971, as amended, or Commission regulations in connection with this matter]

DOCUMENTS ON PUBLIC RECORD: First General Counsel’s Report, certification of vote by Commissioners (dated May 7, 2002)
7. MUR 5212
RESPONDENTS: Free Cuba PAC, Mario L. del Valle, treasurer
COMPLAINANT: FEC Initiated
SUBJECT: Failure to file disclosure reports timely; failure to complete required information of summary and detailed summary portions of reports; failure to report activity for the entire period covered by the 1999 Year End report; failure to timely file an amended Statement of Organization
DISPOSITION: Conciliation Agreement: $13,000 civil penalty

Respondents will complete the missing information contained on the summary and detailed summary portions of all previously filed reports by filing amendments to reports and will send a representative who will have ongoing responsibility for the submission of Free Cuba PAC’s FEC disclosure reports to the March 2002 FEC Conference in Washington DC, as a means of education to the reporting obligations under the Act.

DOCUMENTS ON PUBLIC RECORD: Conciliation Agreement, certification of vote by Commissioners (dated December 27, 2001), receipt of payments (dated April 18, 19, 22 and 24, 2002)
8. MUR 5220
RESPONDENT: Engel for Congress
COMPLAINANT: Barry Ziman
SUBJECT: Excessive contribution
DISPOSITIOM: Reason to believe, but took no further action*
DOCUMENTS ON PUBLIC RECORD: General Counsel’s report, certification of vote by Commissioners (dated April 16, 2002)
     
9. MUR 5227
RESPONDENTS: Republican Party of Alaska, Glenn Clary, treasurer
COMPLAINANT: FEC Initiated
SUBJECT: Failure to file disclosure report timely; received contributions and made expenditures while the position of committee treasurer was vacant; failure to amend Statement of Organization timely
DISPOSITION: Conciliation Agreement: $4,800 civil penalty*
DOCUMENTS ON PUBLIC RECORD: Conciliation Agreement, certification of vote by Commissioners (dated January 4, 2002), receipt of payment (dated December 4, 2001)
10. MUR 5233
RESPONDENTS: Bank One Good Citizenship Committee, Max Chiddister, treasurer
COMPLAINANT: FEC Initiated
SUBJECT: Failure to file disclosure report timely
DISPOSITION: Conciliation Agreement: $3,400 civil penalty*
DOCUMENTS ON PUBLIC RECORD: Conciliation Agreement, certification of vote by Commissioners (dated November 20, 2001), receipt of payment (dated October 23, 2001)
11/12. MURS 5239 & 5240
RESPONDENTS: (a) Democratic Party of Arkansas, Marcus Vaden, treasurer

(b) C. J. Giroir [5239]

(c) Chester D. Phillips [5239]

COMPLAINANT: FEC Initiated (Audit) [5239]

FEC Initiated [5240]

SUBJECT: Excessive contributions; corporate contributions; failure to obtain and preserve disbursement records; failure to collect and report contributor information; failure to maintain records, properly allocate expenditures, and report accurate disbursement information; acceptance of excessive contributions by over-funding federal account and failure to itemize allocable activities
DISPOSITION: (a) Conciliation Agreement: $30,000 civil penalty

[Joint Conciliation]

Respondents will implement accounting procedures that are designed to identify and detect reporting errors and substantive irregularities. Respondents will also conduct an accounting review by an outside accounting firm which brings all records up-to-date and in compliance with the law, and which includes advice for continued compliance. The new treasurer and appropriate personnel responsible for complying with the Act and the Commission’s regulations will be required to attend a Commission-sponsored training program during 2002-03. Respondents will prepare an internal training manual to assist appropriate personnel in understanding laws and regulations concerning federal elections.

(b-c) Reason to believe, but took no further action*

[re: excessive contributions]

Sent admonishment letters.

DOCUMENTS ON PUBLIC RECORD: First General Counsel’s Report; certification of vote by Commissioners (dated December 11, 2001); Conciliation Agreement; certification of vote by Commissioners (dated May 3, 2002)

 

The Enforcement Priority System (EPS) rates all incoming cases against objective criteria to determine whether they warrant use of the Commission’s limited resources.

Cases dismissed under EPS fall into two categories: low-rated cases and stale cases. Low rated cases are those that do not warrant use of the Commission’s resources to pursue because of their lower significance relative to other pending matters. Stale cases are those that initially received a higher rating but have remained unassigned for a significant period due to a lack of staff resources for effective investigation. Effective enforcement relies upon the timely pursuit of complaints and referrals to ensure compliance with the law. Investigations concerning activity more remote in time usually require a greater commitment of resources, primarily due to the fact that the evidence of such activity becomes more difficult to develop as it ages. The utility of commencing an investigation declines as these cases age, until they reach a point when activation of a case would not be an efficient use of the Commission’s resources. As cases reach this point, they are recommended for dismissal.

 

Dismissed -Low Rated
13. MUR 5097R
RESPONDENT: Nielsen for Congress
COMPLAINANT: Democratic Congressional Campaign Committee
SUBJECT: Excessive in-kind contributions
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated April 16, 2002)
14. MUR 5109R
RESPONDENT: Steve Chabot for Congress Committee
COMPLAINANT: John D. Cranley
SUBJECT: Prohibited in-kind contributions; failure to report in-kind contributions
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated April 16, 2002)
15. MUR 5209
RESPONDENT: Russ Francis for Congress
COMPLAINANT: Eugene F. Douglass
SUBJECT: Failure to file disclosure reports
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report; certification of vote by Commissioners (dated May 7, 2002)
16. MUR 5210
RESPONDENT: Committee to Re-Elect Nydia M. Velazquez
COMPLAINANT: Stephen P. Dresch
SUBJECT: Failure to accurately report contribution
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated April 16, 2002)
17. MUR 5221
RESPONDENTS: Hugh Hewitt and Hugh Hewitt Program
COMPLAINANT: Sidney Gold
SUBJECT: Soliciting contributions for federal candidates
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated May 7, 2002)
     
18. MUR 5223
RESPONDENTS: Greg Stevens, Mauricio Aguirre-Orcutt, Barbara Hunt, and John Taylor
COMPLAINANTS: Melissa Lauderdale, former General Counsel, National Council for a Republican Congress (NCRC)
SUBJECT: Filing false or misleading Statement of Organization
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated April 16, 2002)
19. MUR 5228
RESPONDENTS: Citizens for Randy Borow
COMPLAINANT: Bob F. Holas
SUBJECT: Excessive contributions (in the form of loans)
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated April 16, 2002)

 

Dismissed - Stale
20. MUR 5000
RESPONDENT: Sanders for Congress
COMPLAINANT: Andrew B. Brown
SUBJECT: Disclaimer; alleges false statements in advertisements
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated April 16, 2002)
21. MUR 5115
RESPONDENT: 7-Eleven, Inc.
COMPLAINANT: Kimberly Wilder
SUBJECT: Corporate contribution
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated April 16, 2002)
     
22. MUR 5145
RESPONDENTS: Unknown
COMPLAINANT: Kirk for Congress Campaign Committee
SUBJECT: Disclaimers
DOCUMENTS ON PUBLIC RECORD: General Counsel’s Report, certification of vote by Commissioners (dated April 16, 2002)

 

*There are four administrative stages to the FEC enforcement process:

1. Receipt of proper complaint 3. "Probable cause" stage
2. "Reason to believe" stage 4. Conciliation stage

It requires the votes of at least four of the six Commissioners to take any action. The FEC can close a case at any point after reviewing a complaint. If a violation is found and conciliation cannot be reached, then the FEC can institute a civil court action against a respondent.