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For Immediate Release
February 1, 2006
Contact: Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis
ADR PROGRAM RESOLVES CASES

WASHINGTON -- The Federal Election Commission is making public 10 cases resolved in the Alternative Dispute Resolution (ADR) program. This brings to 236 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 It should be noted that cases resolved through ADR are not precedential.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 258

RESPONDENTS:

M. Jaliman for US House of Representatives, M. Kathryn Jaliman, treasurer

SOURCE:

MUR 5561: Scott C. Johnson

SUBJECT:

Failure to register and report; disclaimer

NEGOTIATED SETTLEMENT:

Respondents stated that the Committee’s financial reports were filed in accordance with the provisions of the Act. However, Respondents acknowledged distributing direct mail pieces without the required disclaimer notice and that the referenced website and phone messages, failed to include the appropriate disclaimer notices. In order to resolve this matter and avoid any repetition, Respondents agree to amend and correct the Committee’s website and ensure it is in compliance with the provisions of the Act and send the treasurer to a FEC seminar on campaign reporting requirements within 12 months of the effective date of this agreement.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 258 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 263

RESPONDENTS:

Walcher for Congress, Lon Carpenter, treasurer

SOURCE:

FEC Initiated (RAD)

SUBJECT:

Failure to accurately report debts

NEGOTIATED SETTLEMENT:

$9,000 civil penalty

Respondents acknowledged the inexperience of their campaign staff and their lack of knowledge regarding the Committee’s FECA reporting responsibilities.  Respondents have hired an experienced accounting firm to facilitate FECA reporting. In order to avoid related problems in the future, Respondents agree to maintain the contract with the professional accounting firm that will facilitate FECA reporting; establish an internal control system akin to a purchase order procedure to monitor all campaign related expenditures; establish a federal election campaign resource library to guide Committee staff in compliance with the FECA; select an appropriate Committee representative to attend a FEC seminar on committee reporting responsibilities within 12 months and pay the civil penalty.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering XX 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 264

RESPONDENTS:

Brady for Congress, W. R. Eissler, treasurer

SOURCE:

FEC Initiated (RAD)

SUBJECT:

Failure to provide contributor information

NEGOTIATED SETTLEMENT:

The Commission rejected the settlement agreement for Brady for Congress and closed the file. A Statement of Reasons was issued by Chairman Toner, Vice Chairman McDonald and Commissioners Mason, Thomas and Weintraub.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 264 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.

     

4.

ADR 265

RESPONDENTS:

Jim Feldkamp for Congress, Ronald D. Calkins, treasurer

SOURCE:

MUR 5543: Neel Pender

SUBJECT:

Failure to disclose disbursements

NEGOTIATED SETTLEMENT:

$300 civil penalty

Respondents contend that the alleged “campaign-related activity” occurred during a personal trip and involved incidental encounters. In order to resolve this matter and avoid similar errors in the future, Respondents agree to amend the Committee’s 2004 Quarterly Report to reflect the candidate’s expenditures; establish and maintain a resource center to guide Committee staff in complying with the requirements of the FECA; and pay the civil penalty.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 265 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.

     

5.

ADR 270

RESPONDENTS:

Millican for U.S. Senate, Marc J. Millican, treasurer

SOURCE:

MUR 5606: Bridget Gallagher, on behalf of Alaska Democratic Party

SUBJECT:

Failure to register and report

NEGOTIATED SETTLEMENT:

$7,500 civil penalty

Respondents acknowledged misunderstanding the Commission’s requirement to file a Statement of Candidacy, register with the Commission and file reports of receipts of disbursements. Respondents explained that the committee filed the necessary reports with the Commission on receipt of the complaint and after receiving guidance from the Commission. In order to avoid similar errors in the future, Respondents agree to send a representative from the Committee to a FEC seminar on federal election campaign finance reporting requirements within 12 months of the effective date of the agreement and pay the civil penalty.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 270 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.

     

6.

ADR 274

RESPONDENTS:

Law Offices of James G. Sokolove

SOURCE:

MUR 5599: Timothy O’Brien

SUBJECT:

Failure to file an independent expenditure statement; disclaimer; corporate contribution

NEGOTIATED SETTLEMENT:

Respondent stated that the subject letter did not constitute a prohibited corporate contribution or a corporate independent expenditure given the Respondent’s status as a sole proprietorship and was a “permissible” independent expenditure as defined in the Regulations. Respondent acknowledged the error in failing to file an independent expenditure report and the failure to include a disclaimer notice on the letter. In concluding this matter, the respondent acknowledged receipt of a letter of admonishment from the Commission.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 274 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.

     

7.

ADR 281

RESPONDENTS:

Republican Main Street Partnership PAC; Sara Chamberlain Resnick, treasurer

SOURCE:

FEC Initiated (RAD)

SUBJECT:

Failure to file 24-Hour reports

NEGOTIATED SETTLEMENT:

$1,250 civil penalty

Respondents acknowledged that their failure to file 24-Hour reports was due to the fact that they were unaware at the time of any obligation for the subject independent expenditure and contend they believed they had not authorized the expenditure. In order to avoid similar errors in the future, Respondents agree to pay the civil penalty and to establish internal operating procedures that will require prior review by the committee before expenditures are authorized, copies of which will be forwarded simultaneously to their accounts office.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 281 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.

     

8.

ADR 286

RESPONDENTS:

Magnum for Congress, Thomas Diehl, treasurer

SOURCE:

FEC Initiated (RAD)

SUBJECT:

Failure to accurately report receipts

NEGOTIATED SETTLEMENT:

$2,000 civil penalty

Respondents explained that the Committee had software-related problems recording its receipts and contended there was no intent to mislead. Respondents explained that they have instituted a number of changes to their procedures for recording and reporting the Committee’s financial activity including hiring a professional accounting firm with experience in filing FEC disclosure reports. In order to avoid similar errors in the future, Respondents agree to extend the contract of the professional accounting firm at least through the life of the election campaign; send a Committee representative to a FEC seminar on Federal election campaign reporting requirements within 12 months of the effective date of this agreement; train Committee personnel on the reporting requirements of the Act and Regulations and the internal procedures to be followed to comply with those responsibilities; prepare and maintain a manual on Committee reporting responsibilities; set up and maintain a resource center to guide Committee personnel on the reporting requirements of the Act and Regulations; and pay the civil penalty.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 286 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.

     

9.

ADR 291

RESPONDENTS:

Hostetler for Congress, John Gräb, treasurer

SOURCE:

FEC Initiated (Audit)

SUBJECT:

Failure to accurately report disbursements

NEGOTIATED SETTLEMENT:

Respondents acknowledged inadvertent violations of the Federal Election Campaign Act (FECA) due to inexperience. In an effort to resolve this matter, Respondents agree to file all amended reports with an accurate and adequate description of the purpose of each disclosure; and work with Commission staff to terminate the Committee.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 291 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.

     

10.

ADR 293

RESPONDENTS:

Thelma Drake for Congress, Robert J. Catron, treasurer

SOURCE:

FEC Initiated (RAD)

SUBJECT:

Failure to provide contributor information

NEGOTIATED SETTLEMENT:

The Commission rejected the settlement agreement for Thelma for Congress and closed the file. A Statement of Reasons was issued by Chairman Toner, Vice Chairman McDonald and Commissioners Mason, Thomas and Weintraub.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 293 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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