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For Immediate Release
January 26,  2004
Contact: George Smaragdis
Bob Biersack
Ian Stirton
Kelly Huff
COMPLIANCE CASES MADE PUBLIC
 

WASHINGTON -- The Federal Election Commission has recently made public its final action on three matters previously under review (MURs). This release contains only disposition information.

 

1. MUR 5372  
     
  RESPONDENTS: Campbell for Senate, Charles P. Zahl, treasurer
  COMPLAINANTS: Internal
  SUBJECT: Excessive contributions; personal use of campaign funds; failure to file accurate reports;
  DISPOSITION: Conciliation Agreement: $79,000 civil penalty

Campbell for Senate and Charles P. Zahl violated the Act by accepting excessive contributions; excessive contributions not exceeding a total of $104,434 will be refunded. Campaign funds were used to pay for two items for the benefit of the treasurer, which were later reimbursed by the treasurer. Finally, the respondents violated the Act by failing to correctly itemize transferred contributions as memo entries and failing to correctly disclose the financial activity on its accounts.

  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission?s web site at fec.gov

by entering 5372 under case number. They are also available in the FECs Public Records Office at 999 E St. NW in Washington.

     
2. MUR 5382  
     
  RESPONDENTS: South Carolina Republican Party, Glen O'Connell, treasurer
  COMPLAINANTS: Internal
  SUBJECT: Use of nonfederal funds to pay for federal expenditures
  DISPOSITION: Conciliation Agreement: $60,000 civil penalty

Respondents violated the Act by using nonfederal accounts to pay for a portion of federal expenditures and to pay for allocable expenses: the nonfederal account overfunded the federal account by $108,839. Respondents additionally failed to provide documentation to support their reported allocation of $249,751 in payments to the Altus Group.

  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission?s web site at fec.gov

by entering 5382 under case number. They are also available in the FECs Public Records Office at 999 E St. NW in Washington.

3. MUR 5014  
     
  RESPONDENTS: (a) Jeffry Flake

(b) Jeff Flake for Congress, Jack Gibson, treasurer

(c) Ira Fulton

(d) Arizona School Choice Administration Corporation

(e) Arizona School Choice Trust, Inc., Tom Patterson, Chairman

  COMPLAINANTS: Marty Harper, General Counsel, Arizona Democratic Party
  SUBJECT: Corporate contributions; contributions in the name of another, excessive contributions
  DISPOSITION: (a) Take no further action [re: corporate contributions, contributions in the name of another]

(b) Take no further action [re: corporate contributions, contributions in the name of another]

(c) Take no further action [re: excessive contributions, contributions in the name of another]

(d) Take no further action [re: corporate contributions, contributions in the name of another]

(e) No reason to believe [re: any provision]

The complaint alleged that Jeffry Flake entered into a sham arrangement with Arizona School Choice Trust, Inc. (ASCT), whereby donations made by individuals and corporations to ASCT were used to cover Flake's salary while he campaigned for election. However, the evidence from the investigation indicated that Flake entered into a bona fide consulting agreement independent of his candidacy with the Arizona School Choice Administration Corporation, a nonprofit corporation affiliated with ASCT. Flake's salary was exclusively in consideration for his services and was commensurate with what similarly qualified persons earned over the same period of time.

  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission?s web site at fec.gov

by entering 5014 under case number. They are also available in the FECs Public Records Office at 999 E St. NW in Washington.

 

*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.

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