MUR 5388: Accepting excessive contributions

The Commission has entered into conciliation agreements with James Treffinger, the James Treffinger for Senate Committee and Robert A. Mathers, in his personal capacity and as treasurer, regarding excessive contributions and improper use of campaign funds. The respondents have agreed to pay civil penalties totaling $171,000.

Background

Before the passage of Bipartisan Campaign Reform Act of 2002 (BCRA), a person contributing to a federal candidate could only donate $1,000 for each election, e.g. for both the primary and general elections.¹ 2 U.S.C. 441a(a)(1)(A). Although it is permissible to accept contributions designated for the general election before the primary is held, the committee must employ an acceptable accounting method to ensure that general election funds are distinguishable from those raised for the primary.

If the candidate does not participate in the general election, the committee must reattribute, redesignate or refund all contributions designated for that election within 60 days; otherwise, the contributions will be considered excessive and impermissible. 11 CFR 110.1(b)(5), 110.1(k), 102.9(e).

Excessive contributions

During Mr. Treffinger’s 2000 campaign, he received $227,080 in contributions designated for the general election. During the primary campaign, the committee impermissibly spent $50,000 of the general election funds for primary election expenses. When Mr. Treffinger lost in the primary, the committee did not redesignate or refund the general election contributions within 60 days of the general election as required by FEC regulations.

Additionally, the $50,000 spent on the primary election was not available to be refunded. In fact, at the time the conciliation agreement was signed, the campaign had refunded only $6,400 of the general election contributions it had received. Additionally, the committee received $10,550 in excessive primary election contributions from individuals who had already met their $1,000 limit for the primary election. The committee failed to disclose any reattribution or refund of the excessive funds.

On two occasions in 2002, the FEC provided detailed notification to the committee and Mr. Mathers indicating that they had an obligation to refund the contributions. To date, the committee has refunded only $7,650 of the $237,630 in excessive contributions.

Improper use of campaign funds

Due to Mr. Treffinger’s guilty plea to criminal charges in connection with other conduct relating to his 2000 campaign, the committee asked the Commission for an advisory opinion on the ability of the committee to use campaign funds for Mr. Treffinger’s legal fees. On July 25, 2003, the Commission issued AO 2003-17, which notified the committee that it had to meet any remaining refund obligations before it could pay any of Mr. Treffinger’s legal fees. Despite the explicit language of the advisory opinion, the committee used campaign funds to pay for Mr. Treffinger’s legal fees without meeting its refund obligations.

Conciliation agreements

The Treffinger committee and Mr. Treffinger each agreed to pay $57,000 in civil penalties and cease from violating 2 U.S.C. 441a(f). Mr. Mathers agreed to pay $57,000 and cease from violating 2 U.S.C. § 441a(f) and 11 CFR 102.9(e).

¹ These incidents occurred before the implementation of BCRA. Today, the limit for individual contributions to candidate committees is $2,100 per election.