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For Immediate Release
March 26, 2004
Contact: Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis
AFFILIATED LEADERSHIP PACS FINED

WASHINGTON -- The Federal Election Commission (FEC) has resolved a number of allegations concerning contributions made and received by two affiliated committees, PAC to the Future and Team Majority, leadership PACs that are associated with Representative Nancy Pelosi (D ? CA). The FEC has entered into conciliation agreements with PAC to the Future and Team Majority, and three campaigns that were recipients of excessive contributions.

The conciliation agreements resulted in total civil penalties of $28,000. PAC to the Future and Team Majority will pay $21,000, Julie Thomas for Congress Campaign Committee (D ? IA) and Van Hollen for Congress (D ? MD) will each pay $2,500, and Joe Turnham for Congress (D ? AL) will pay $2,000. The three campaigns have also agreed to disgorge $5,000 each to the U.S. Treasury.

The Federal Election Campaign Act (FECA) states that committees that are established, financed, maintained, or controlled by the same person or group of persons are "affiliated committees." Contributions made to or by such committees shall be considered to have been made to or by a single committee. Under the FECA, a multicandidate PAC is limited to receiving $5,000 per calendar year from individual contributors. Further, a candidate may only accept $5,000 per election from a multicandidate PAC. If a committee accepts contributions that exceed these limits, its treasurer must either refund the excessive contributions or seek redesignation to another election or reattribution to another donor within sixty days.

According to the conciliation agreement with PAC to the Future and Team Majority, the PACs failed to identify themselves as affiliated with each other when they registered with the FEC, and both PACs made contributions to several candidates for the 2002 General Election, which, when aggregated, exceeded their shared $5,000 contribution limit . The PACs also received contributions from individuals that exceeded their shared $5,000 contribution limit and did not refund the excessive portion of contributions within 60 days.

The investigation stemmed from a complaint filed by Kenneth F. Boehm, Chairman of the National Legal and Policy Center.

1. MUR 5328  
     
  RESPONDENTS: (a) PAC to the Future, Leo McCarthy, treasurer

(b) Team Majority, Leo McCarthy, treasurer

(c) Julie Thomas for Congress Campaign Committee, Stephen B. Jackson, treasurer

(d) Van Hollen for Congress, Jennifer Lewis Smith, treasurer

(e) Joe Turnham for Congress, Pete Turnham, treasurer

(f) Nancy Pelosi for Congress, Paul F. Pelosi, treasurer

(g) Representative Nancy Pelosi

(h) Chellie Pingree for U.S. Senate, Daniel N. Crewe, treasurer

(i) Clark for Congress, Marilyn Hoffman, treasurer

(j) Committee to Elect Lincoln Davis, Sharon B. Davis, treasurer

(k) Dutch Ruppersberger for Congress, David C. Deger, treasurer

(l) Wofford for Congress, Andrew Greenberg, treasurer

(m) Sally Hambrecht

(n) William Hambrecht

(o) George Zimmer

  COMPLAINANTS: Kenneth F. Boehm, Chairman, National Legal and Policy Center
  SUBJECT: Excessive contributions; failure to disclose affiliated status
  DISPOSITION: (a-b) Conciliation Agreement: $21,000 civil penalty*

Respondents waived their right to any refund of excessive contributions referenced in this agreement and notified the appropriate authorized committees.

(c) Conciliation Agreement: $2,500 civil penalty*

Respondents will disgorge to the U. S. Treasury $5,000 in excessive contributions.

(d) Conciliation Agreement: $2,500 civil penalty*

Respondents will disgorge to the U. S. Treasury $5,000 in excessive contributions.

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

Respondents will disgorge to the U.S. Treasury $5,000 in excessive contributions.

(f) Took no action*

(g-n) No reason to believe*

(re: any provision of the Act)

(o) Took no action*

  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission?s web site at fec.gov by entering 5328 under case number. They are also available in the FECs Public Records Office at 999 E St. NW in Washington DC.

 

*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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