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For Immediate Release
August 10, 2005
Contact: Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis
ADR PROGRAM RESOLVES CASES

WASHINGTON -- The Federal Election Commission is making public three cases resolved in the Alternative Dispute Resolution (ADR) program. This brings to 187 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 It should be noted that cases resolved through ADR are not precedential.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 242  
     
  RESPONDENTS:

(a) Capri Cafaro for Congress (OH/14), Ronald             Silvestri, treasurer

(b) Renee Cafaro

 

  SOURCE: MUR 5510: Donald F. McGahn II
  SUBJECT:

Excessive contributions

  NEGOTIATED SETTLEMENT:

$1,000 civil penalty Respondents acknowledge that violations of the Federal Election Campaign Act (FECA) inadvertently occurred. Respondents, in an effort to avoid similar errors in the future agree to have a committee representative attend an FEC seminar within 12 months of the effective date of the agreement.

  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 242 under case number in the Enforcement Query System.  They are also available in the FECs Public Records Office at 999 E St. NW in Washington.
     
2. ADR 244  
     
  RESPONDENTS:

Amalgamated Transit Union – COPE, Oscar Owens, treasurer

  SOURCE:

FEC Initiated (RAD)

  SUBJECT: Failure to file 48 hour reports
  NEGOTIATED SETTLEMENT:

$5,000 civil penalty

Respondents acknowledge that a violation of FECA occurred due to the fact that they had not previously made independent expenditures and their misunderstanding of the timing of the reporting of these disbursements. Respondents, in an effort to avoid similar errors in the future agree to develop an FEC compliance manual containing updated information.

 

  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 244 under case number in the Enforcement Query System.  They are also available in the FECs Public Records Office at 999 E St. NW in Washington.
     
3. ADR 249  
     
  RESPONDENTS:

Freshmen PAC, David Metzner, treasurer

  SOURCE:

FEC Initiated (RAD)

  SUBJECT: Failure to report disbursements
  NEGOTIATED SETTLEMENT:

Respondents acknowledge that a violation of the FECA occurred and in response to a FEC request, stated that after the 2004 July Quarterly Report was filed, the Committee determined that there were two disbursements that had been made during the reporting period but had not cleared the bank by the end of the reporting period. The Committee contends that as the checks had not cleared the bank, the disbursements were overlooked in preparing the report. Respondents contend that procedures have been put in place in an effort to avoid similar errors in the future, such as changed filing frequency to monthly to improve reporting and ensure timely receipt, established additional bank depository for contributions, retained FEC reporting consultant to confirm bank reconciliation, and prepare FEC reports to ensure compliance with FECA. Respondents, in order to resolve this matter, agree to compile a Compliance Manual detailing procedures and maintain internal control to educate Respondents’ staff about campaign finance to further ensure compliance.

  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 249 under case number in the Enforcement Query System.  They are also available in the FECs Public Records Office at 999 E St. NW in Washington.

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