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For Immediate Release
December 18, 2003
Contact: George Smaragdis
Ron Harris
Bob Biersack
Ian Stirton
CORPORATE REIMBURSEMENT SCHEME RESULTS IN $168,000 CIVIL PENALTY
WASHINGTON -- The FEC has entered into a conciliation agreement with Centex Construction Group, Inc. (CCG), Centex-Rooney Construction Co., Inc. (Rooney), headquartered near Ft. Lauderdale, FL, former CCG and Rooney CEO Bob Moss, and various current and former CCG and Rooney officers. The conciliation agreement settles violations of the Federal Election Campaign Act (FECA) stemming from the reimbursement of $56,125 in contributions with corporate funds made by the company officers. The reimbursed contributions went to seven federal candidates, two political party committees and one political action committee between 1998 and 2002. The investigation stemmed from a sua sponte submission and complaint filed with the FEC by Centex Corporation, headquartered in Dallas, TX.

The conciliation resulted in total civil penalties of $168,000. Centex Construction Group, Inc., Centex-Rooney Construction Co., Inc., and the following corporate officers approved the reimbursement plan: Bob Moss, Gary Esporrin, Brice Hill, Ken Bailey, Chris Genry, and Mark Layman. They are responsible for $112,000 of the penalty.

The officers and employees who served as conduits for the contributions were Bob Moss, Gary Esporrin, Bruce Moldow, Gary Glenewinkel, D.J. McGlothern, Albert Petrangeli, Ted Adams, J. Michael Wood, Raymond Southern, Larry Casey, and David Hamlin. They are responsible for $56,000 of the penalty.

According to the conciliation agreement, former Rooney CEO Robert Moss encouraged employees to make political contributions and to send copies of contribution checks to him or the company�s CFO. Employees understood that each of their political contributions for which they submitted a check to the company would be considered in determining their year-end bonus. At bonus time, the contribution amounts were increased to offset tax liability and added to the bonus amounts each employee would have otherwise received from any incentive plan.

The FECA prohibits corporations from making contributions or expenditures from their general treasury funds in connection with any election of any candidate for federal office. In addition, the FECA prohibits making a contribution in the name of another, knowingly permitting one�s name to be used to effect such a contribution, and knowingly accepting such a contribution. Further, no person may knowingly help or assist any person in making a contribution in the name of another. This prohibition also applies to any person who provides the money to others to effect contributions in their names.

There is no indication that any of the recipient federal candidates and political committees were aware that the contributions were being reimbursed with corporate funds.

1. MUR 5357  
     
  RESPONDENTS: (a) Centex Construction Group, Inc.

(b) Centex-Rooney Construction Co., Inc.

(c) Bob L. Moss

(d) Gary Esporrin

(e) Chris Genry

(f) Mark Layman

(g) Ken Bailey

(h) Brice Hill

(i) Bruce Moldow

(j) Gary Glenewinkel

(k) D.J. McGlothern

(l) Albert Petrangeli

(m) Ted Adams

(n) J. Michael Wood

(o) Raymond C. Southern

(p) Larry D. Casey

(q) David Hamlin

(r) Sandra Moss

(s) Kathryn Young

(t) Robin McGlothern

  COMPLAINANT: Centex Corporation
  SUBJECT: Corporate contributions; contributions in the name of another
  DISPOSITION: (a-q) Conciliation Agreement: $168,000 civil penalty

(r-s) Take no further action, send admonishment letter

(t) Take no further action

  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission�s web site at http://eqs.sdrdc.com/eqs/searcheqs by entering 5357 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.