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For Immediate Release
July 21, 2003
Contact: Kelly Huff
Ron Harris
Bob Biersack
Ian Stirton
ADR PROGRAM RESOLVES CASES
WASHINGTON -- The Federal Election Commission is making public 13 additional cases resolved in the Alternative Dispute Resolution (ADR) program. This brings to 78 the total number of cases released thus far. The program’s goal is to expedite resolution of some enforcement matters, reduce the cost of processing complaints, and enhance overall FEC enforcement. Closed ADR negotiated settlement summaries are available in the FEC’s Press and Public Records offices.

For a case to be considered for ADR treatment, a respondent must express willingness to engage in the ADR process, agree to set aside the statute of limitations while the case is pending in the ADR Office, and agree to participate in bilateral negotiations and, if necessary, mediation.

Bilateral negotiations through ADR are oriented toward reaching an expedient resolution with a mutually agreeable settlement that is both satisfying to the respondent(s) and in compliance with the Federal Election Campaign Act (FECA). Resolutions reached through direct and, when necessary, mediated negotiations are submitted to the Commissioners for final approval. If a resolution is not reached in bilateral negotiation, the case proceeds by mutual agreement to mediation. It should be noted that cases resolved through ADR are not precedential.

 

1. ADR 081
RESPONDENTS: Dutch Ruppersberger for Congress, David Deger, treasurer

C. A. Dutch Ruppersberger

SOURCE: MUR 5267: Oz Bengur
SUBJECT: Use of non-federal funds to purchase materials for federal election campaign
NEGOTIATED SETTLEMENT: Respondents, in an effort to resolve this matter, agree to appoint a Federal Election Commission (FEC) compliance officer and have a staff person attend an FEC sponsored seminar with 12 months of the effective date of this agreement.
2. ADR 084
RESPONDENT: Ross for Congress, Veronica McLeod, treasurer
SOURCE: FEC Initiated (RAD)
SUBJECT: Failure to disclose loan information; failure to file Schedule C-1; failure to clarify whether the candidate used personal funds or borrowed the money for the loan from another source
NEGOTIATED SETTLEMENT: Respondents, in effort to resolve this matter, agree to work with the FEC staff to file amended reports, in order to terminate the committee.
3. ADR 088
RESPONDENT: Mark Fleisher
SOURCE: MUR 5291: Maureen T. Schneider
SUBJECT: Failure to register and report timely
NEGOTIATED SETTLEMENT: Respondents, in effort to resolve this matter, acknowledge that the Statement of Candidacy was not filed timely and accept admonishment for the late filing. Regarding the matter that respondents exceeded the reporting threshold, the ADR office concludes, based on a review of documents, that the allegation is unsubstantiated. The ADR Office has determined that the aforementioned resolutions conclude this matter and the Commission concurs by dismissing this matter.
4. ADR 093
RESPONDENTS: Jeff Ballenger for Congress Committee, M. Eastman Chance, treasurer
SOURCE: FEC Initiated (RAD)
SUBJECT: Failure to provide a signed Schedule C-1 for one loan reported as from a lending institution and to clarify the source of one loan reported from the candidate
SETTLEMENT: The ADR Office recommends the case be closed and the Commission agrees to close the file.
5. ADR 103
RESPONDENTS: Committee to Elect Lindsey Graham, Neil Byerley, treasurer
SOURCE: FEC Initiated (Audit)
SUBJECT: Excessive contributions
NEGOTIATED SETTLEMENT: $1,000 civil penalty

Respondents acknowledge that a violation of the Federal Election Campaign Act (FECA) occurred and of learning of the prohibited contributions, issued refunds of all excessive contributions, with exception of $810 which was disgorged to the U.S. Treasury. In addition, the respondents sent committee staff to an FEC seminar on campaign finance in February 2003, instituted new procedures for recording and reporting campaign finances, and in further effort to avoid similar errors in the future agree to appoint an FEC Compliance Officer.

6. ADR 105
RESPONDENTS: Marquette County Democratic Party, William G. Davis, treasurer
SOURCE: MUR 5311: Rusty Hills, on behalf of Michigan Republican State Committee
SUBJECT: Failure to register
NEGOTIATED SETTLEMENT: Respondents acknowledged the requirement to register and subsequently did register with the Commission and filed the appropriate Statement of Organization. In order to resolve this matter and avoid similar errors in the future the respondent agrees to select an appropriate representative to attend a FEC sponsored workshop within 12 months of the effective date of this agreement and set-up and maintain in their office permanent files with copies of federal election laws, regulations and guidelines regarding FEC-related activity.
7. ADR 107
RESPONDENTS: Sean Mahoney for Congress, James McKay, assistant treasurer
SOURCE: FEC Initiated (RAD)
SUBJECT: Failure to accurately disclose loans
NEGOTIATED SETTLEMENT: Respondents, in an effort to resolve this matter and avoid similar errors in the future agree to amend reports previously filed with the Commission and to put in place procedures to avoid similar reporting errors and select an appropriate representative of the Committee to attend a FEC sponsored workshop on federal election campaign laws and regulations within 12 months of the effective date of this agreement.
8. ADR 108
RESPONDENTS: Leelanau County Democratic Committee, John C. Dick, treasurer
SOURCE: MUR5309: Rusty Hills, on behalf of the Michigan Republican State Committee
SUBJECT: Failure to register
NEGOTIATED SETTLEMENT: Respondents acknowledge that they violated the FECA when they failed to register with the Commission. In order to resolve this matter and avoid violating federal election campaign regulations in the future, they agree to complete the process of registering the committee with the Commission, establish and maintain in their offices a file on FEC regulations to provide guidance to the committee on matters pertaining to federal election campaign activity, and attend a FEC sponsored workshop on federal campaign regulations within 12 months of the effective date of this agreement.
9. ADR 113
(a) Phelps for Congress, Todd Stonewater, treasurer

(b) David Phelps

(c) Great Ideas for Advertising, Inc.

(d) Lary’s Electric

(e) Diefenbach Construction

(f) Arclay Company, LLC

(g) Medicap Pharmacy

(h) Kevin Davis

SOURCE: National Republican Congressional Committee
SUBJECT: Corporate contributions; excessive contribution
NEGOTIATED SETTLEMENT: (a-b) $300 civil penalty

Respondents acknowledge that a violation of the FECA occurred during the tenure of a previous treasurer. On learning of the prohibited and excessive contributions, the current treasurer refunded the contributions. The Respondents agree to terminate the Phelps for Congress Committee.

(c) Respondent acknowledges that a violation occurred and on learning of the prohibited contributions, secured a refund of the contribution. In an effort to avoid similar errors in the future, respondent agrees to circulate a memorandum to all corporate officers and staff concerning the prohibition against contributions or expenditures in connections with any election to any political office by corporations.

(d-h) The ADR Office recommends dismissal of this matter and the Commission agrees.

10. ADR 114
RESPONDENTS: Clinton Township Democratic Club, Judith L. Strong, treasurer
SOURCE: MUR 5306: Rusty Hills, on behalf of the Michigan Republican State Committee
SUBJECT: Failure to file campaign finance reports
NEGOTIATED SETTLEMENT: $500 civil penalty

Respondents acknowledge that they violated FECA by failing to file the required financial reports. In order to resolve this matter and avoid violating federal election campaign regulations in the future, they agree to hire an accountant familiar with reporting requirements of the regulations to regularly review the records and reports and to select and send an appropriate representative to a FEC sponsored workshop on federal campaign reporting requirements within 12 months of the effective date of this agreement.

11. ADR 118
RESPONDENTS: (a) Mike Halleck for Congress Committee, Charles Presley, treasurer

(b) Columbiana County (Ohio) Republican Central Committee

SOURCE: MUR 5324: Margaret Cartier, on behalf of Ted Strickland for Congress Committee
SUBJECT: Excessive contributions
NEGOTIATED SETTLEMENT: (a) $250 civil penalty

In order to conclude this matter, respondents acknowledge accepting the subject contribution and refunding the excess portion to the contributor after the 30-day period required in the regulations, agree to attend FEC sponsored seminar for candidate committees within 12 months and file for termination in accordance with the FECA.

(b) $500 civil penalty

Respondent, in order to resolve this matter and avoid violating federal election campaign regulations in the future agrees to select a committee representative to attend a FEC sponsored workshop on federal campaign regulations within 12 months and to establish and maintain in its offices a file on FEC regulations to provide guidance to the committee matters pertaining to federal election campaign activity including material governing committee contributions to federal election campaigns.

12. ADR 121
RESPONDENTS: (a) Halleck for Congress Committee, Charles Presley, treasurer

(b) Gallia County Republican Century Club, Thomas Moulton, Jr., treasurer

SOURCE: MUR 5329: Margaret Cartier, on behalf of the Ted Strickland for Congress Committee
SUBJECT: Excessive contribution
NEGOTIATED SETTLEMENT: (a) A review of Respondents’ reports filed with the Commission confirms that the subject contribution was refunded to the contributor within 30-days as required in the Commission’s regulations. Based on that review, the ADR Office concludes that the alleged violation of the FECA is unsubstantiated. The Commission concurs by dismissing this matter.

(b) $200 civil penalty

The Respondent acknowledges that when it contributed to Halleck for Congress Committee it exceeded the contribution limits prescribed in the Act. In order to resolve this matter and avoid violating federal election campaign regulations in the future, respondents agree to establish and maintain, in its offices, a file on FEC regulations to provide guidance to the Club on matters pertaining to federal election campaign activity including material governing committee contributions to federal election campaigns.

13. ADR 123
RESPONDENTS: Hagelin 2000 Committee, Blanche Woodward, treasurer
SOURCE: FEC Initiated (Audit)
SUBJECT: Corporate contribution; excessive contributions
NEGOTIATED SETTLEMENT: Respondents, in order to resolve these issues, agree to acknowledge the errors that contributed to the audit findings and the admonishment conveyed in this statement and complete reports filed with the Commission prior to terminating and file for termination in accordance with the provision of the FECA.

 

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