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Federal Election Commission | United States of America

FEC v. McCallum

Summary

On December 11, 1996, the U.S. District Court in Massachusetts issued a judgment and consent order to which both parties agreed. Under the order, Elkin McCallum must pay a $50,000 civil penalty to the FEC for making excessive contributions to the Tsongas for President Committee.

The FEC filed the lawsuit against Mr. McCallum alleging that he had made $250,000 in loans to Paul Tsongas's campaign in 1991 and 1992. These loans constituted excessive contributions. Specifically, the FEC alleged that Mr. McCallum had made the following contributions:

  • He purchased a ticket for $1,000 to a Tsongas Committee fundraiser on April 8, 1991;
  • He contributed $100,000 to the Tsongas Committee on August 13, 1991 , and $50,000 on October 21, 1991; and
  • He wrote a $100,000 check on February 10, 1992, payable to Mr. Tsongas's chief fundraiser, Nicholas Rizzo, intending it to be a loan to the Tsongas Committee.

The Federal Election Campaign Act (the Act) states that an individual has a $1,000 contribution limit for a candidate or that candidate's authorized committee per election and that the definition of contribution includes loans. 2 U.S.C. §§431(8)(A)(i) and 441a(a)(1)(A). Additionally, FEC regulations make it unlawful for a person to make a loan that exceeds the contribution limits whether or not it is repaId. 11 CFR 100.7(a)(1)(i)(A).

In a settlement agreement, Mr. McCallum did not contest the allegations. In addition to the civil penalty, the court permanently enjoined Mr. McCallum from making excessive contributions.

Source:   FEC Record — February 1997

This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public.

The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.