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For Immediate Release
December 1, 2004
Contact: Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis
ADR PROGRAM RESOLVES CASES

WASHINGTON -- The Federal Election Commission is making public nine cases resolved in the Alternative Dispute Resolution (ADR) program. This brings to 142 the total number of cases released since the ADR program began October 2, 2000 . 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 It should be noted that cases resolved through ADR are not precedential.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 157  
     
  RESPONDENTS: Charlie Dent for Congress, Jeff Berdahl, trea
  SOURCE: MUR 5397: Jim Logue
  SUBJECT: Failure to report disbursements
  NEGOTIATED SETTLEMENT:

Respondents acknowledge some reporting of expenditures was incomplete and that the listing of the Committee's testing-the-water expenditures was not recorded on Respondent's first report filed with the Commission as instructed by the regulations. In an effort to resolve this matter, Respondents agree to amend and in the interim amended their 2003 reports to correct omissions in the Committee's initial reports. In addition, Respondents agree to send an appropriate representative to attend a FEC seminar on federal election campaign reporting requirements within 12 months of the effective date of this agreement.

     
2. ADR 167  
     
  RESPONDENTS:

Tim Johnson for South Dakota, Inc., Berniece Mayer, treasurer

  SOURCE: FEC Initiated (Audit)
  SUBJECT: Misstatements of receipts, disbursements and cash on hand
  NEGOTIATED SETTLEMENT:

Respondents, in an effort to resolve these matters and avoid similar problems in the future, agree to reconcile on a regular basis the Committee's reported activity to relevant bank records; immediately following the effective date of this agreement, submit separately 2 quarterly reports of the Committee's financial activity, with accompanying work papers showing the reconciliations noted above, for review by the Audit staff; and select a Committee staff representative to attend a FEC seminar of Federal election campaign reporting requirements within 12 months of the effective date of this agreement.

     
3. ADR 172  
     
  RESPONDENTS:

(a)   Citizens for Tracy L. Boyland, Sabrina   Postles, treasurer

(b)   R & M Health Systems Management

(c)   Schuman Lichtenstein Architects

(d)   Gotham Construction Company

(e)   Herrick Feinstein

(f)   HPS Holding Company

(g)   Michaels Development Co.

(h)   Loewen Development

(i)   L & M Development

(j)   Full Spectrum

(k)   Signa Contracting Co.

(l)   Ocean Hill Developers

(m)   FTC Management

(n)   Novalex Contracting

(o)   A. Aleem Contracting

(p)    4502 Park Avenue LLC

(q)   R&J Brick Masonry

(r)   A. Kornegay Senior Housing

(s)   MHR Management

(t)   Shinda Management

(u)   SBA Management

(v)   E&M Electric Contracting

(w)   Solon Contracting Corporation

(x)   National Real Estate Services

(y)   Grafton Construction

(z)   Major Sewer & Water Contractors

(aa)    Kent Construction

(bb)   Sanita Construction

(cc)   L&S Mechanical

(dd)   Delta Funding Corporation

(ee)   Kay Organization H&K Realty Group

(ff)   Bina Drugs

(gg)   Delight Construction

(hh)   E-Z Pay

(ii)   Comprehensive Healthcare

(jj)   The Hudson Companies

(kk)   New Foundation Rental & Management   Association

(ll)   L&C Builders

(mm)   Precise Management

(nn)   The Osborne Group

(oo)   Sure Drugs
  SOURCE: MUR 5431 : Representative Major R. Owens
  SUBJECT: Prohibited contributions
  NEGOTIATED SETTLEMENT:

(a)   $5,000 civil penalty

Respondents acknowledge that inadvertent   violations of the FECA occurred due to their   inexperience. However, on learning of the   prohibited contributions, respondents made   refunds of all contributions named in the complaint. Respondents then filed an   amended report. In addition, prior to receiving a copy of the complaint, they   contracted with a firm experienced in campaign finance requirements to assist the   committee with compliance. In an effort to   avoid similar errors in the future,   Respondents agree to send two individuals   to an FEC sponsored seminar on campaign   finance for authorized committees within 12   months of the effective date of this agreement and develop a compliance manual   for the education of the committee staff.

(b-f)   The ADR Office recommends that the matter   be dismissed and the Commission agrees to   close the file.

(g-oo)   The ADR Office recommends to take no   further action and the Commission agrees   to take no further action and close the file.
     
4. ADR 174  
     
  RESPONDENTS:

Ohio State Republican Party, Sarah Brown, treasurer

  SOURCE: FEC Initiated (RAD)
  SUBJECT: Failure to accurately report receipts
  NEGOTIATED SETTLEMENT:

$2,000 civil penalty

Respondents acknowledged filing their August 2003 Report with incomplete data rather than not file. Immediately after filing they advised RAD that they were having problems retrieving contributor information. In order to resolve this matter and avoid similar problems in the future, Respondents agree to send two staff members to a FEC seminar on Federal Election campaign reporting requirements within 12 months of the effective date of this agreement.
     
5. ADR 179  
     
  RESPONDENTS:

Schneider for Congress, Harold Schneider, treasurer

  SOURCE: FEC Initiated (Audit)
  SUBJECT: Failure to properly report and accurately account for earmarked contributions; failure to accurately report disbursements
  NEGOTIATED SETTLEMENT:

$1,500 civil penalty

Respondents acknowledge that inadvertent violations of the FECA occurred due to inexperience. In an effort to avoid similar errors in the future, Respondents enlisted the services of a financial manager experienced in electronic filing and had her attend an FEC seminar. They also agreed to maintain a campaign finance manual for the education of their staff.
     
6. ADR 185  
     
  RESPONDENTS:

Jesse Jackson Jr. for Congress, Carol Stanley-Robbins, treasurer

  SOURCE: FEC Initiated (RAD)
  SUBJECT: Failure to accurately report disbursements
  NEGOTIATED SETTLEMENT:

$3,500 civil penalty

Respondents acknowledged the reporting errors and described problems in transcribing and retrieving data that led to errors in reports filed with the Commission. In an effort to resolve these matters and avoid similar problems in the future, Respondents agree to designate a staff member to be responsible for FEC compliance and send two staff members to attend a FEC seminar on Federal election campaign reporting requirements within 14 months of the effective date of this agreement.
     
7. ADR 186  
     
  RESPONDENTS:

National Committee to Preserve Social Security and Medicare PAC, Shelly C. Shapiro, treasurer

  SOURCE: Pre-MUR 421: Sua sponte
  SUBJECT: Failure to file 24 hour-notices
  NEGOTIATED SETTLEMENT:

In order to resolve this matter and avoid similar errors in the future, Respondents agree to designate one member of the Committee's staff as FEC Compliance Officer responsible for monitoring and supervising FEC compliance and send a staff member to a FEC seminar on Federal election campaign reporting requirements within 14 months following the effective date of this agreement.

     
8. ADR 193  
     
  RESPONDENTS:

Dean for America, Don Beyer, treasurer

  SOURCE: MUR 5494 : Keith Gromèzano
  SUBJECT: Failure to itemize contributions
  NEGOTIATED SETTLEMENT:

The ADR Office recommends the case be closed and the Commission agrees to close the file.

     
9. ADR 203  
     
  RESPONDENTS:

Crowson for Congress, Anna M. Broadhead, treasurer

  SOURCE: MUR 5451: Paul Berendt, Chairman, Washington State Democratic Central Committee
  SUBJECT: Failure to file disclosure reports
  NEGOTIATED SETTLEMENT:

The ADR Office recommends the case be closed and the Commission agrees to close the file.

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