MUR #5428

RESPONDENTS: Republican Party Of Arkansas; Fortner, Blair L.; Lindsey, Lloyd E.; Mazander, Charles; Potlatch Corporation

COMPLAINANT: Audit Division

SUBJECT: Allocation; Contributions-Excessive; Contributions-Corporations; Disbursements; Non-federal; Reporting

DISPOSITION: The Commission decided by a vote of 5-0 to take the following actions in MUR 5428: 1. Accept the conciliation agreement with the Republican Party of Arkansas and Charles Mazander, in his official capacity, as treasurer, as recommended in the General Counsel?s Report #3 dated April 19, 2005. 2. Take no further action against Lloyd E. Lindsey, in his personal capacity. 3.Close the file. 4. Send the appropriate letters.
Accept the conciliation agreement with, and close the file as to, Potlatch Corporation , as recommended in the General Counsel's Report #2 dated August 27, 2004. Approve teh appropriate letter, as recommended in the General Counsel's Report #2 dated August 27, 2004.
Decided by vote 6-0 to 1. Open a MUR. 2. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 434(b)(1), (2) and (4) for misstating its 1999 and 2000 financial activity. 3. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 441a(f) for accepting excessive contributions. 4. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 441b for accepting prohibited contributions. 5. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 432(c) and (d) and 11 CFR 102.9(a), (b) and (c) for failing to maintain records of contributions and disbursements. 6. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 434(b)(3)(A), (B),(C), (D) and (G) for failing to itemize contributions from individuals, contributions and other receipts from political committees and transfers from affiliated committees. 7. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 434(b)(3)(D) and 11 CFR 104.3(a)(4)(iii)(B) for failing to correctly report transfers from affiliates. 8. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 434(b)(5)(A) and 11 CFR 104.3(b)(3)(i) for failing to correctly report disbursements for operating expenditures. 9. With respect to Findings 8A and 8B of the audit referral, find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 441a(f) and 441b, 11 CFR 102.5(a), 106.5(a), 106.5(g) and 104.10(b) by using impermissible funds from its non-federal accounts to pay for federal expenses and the federal share of allocable expenses, by failing to allocate certain expenses, by failing to pay for federal and allocable expenses from a federal account and by failing to report certain federal and allocable expenses. 10. With respect to Finding 9 of the audit referral, find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 434(b)(5)(A) and 11 CFR 104.10(b) for incorrectly reporting allocable disbursements and 2 U.S.C. 441b and 441a(f), and 11 CFR 102.5(a), 106.5(a) and 106.5(g) by making disbursements for a portion of the federal share of allocable activity from a non-federal account containing impermissible funds, by improperly allocating disbursements for joint activity, and by failing to make payments for allocable disbursements through a federal account; and, in the alternative: find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 441a(a)(2)(A) for making excessive in-kind contributions on behalf of a federal candidate, 2 U.S.C. 434(b)(6)(B)(i) by failing to report the contributions; and 2 U.S.C. 441b and 441a(f), and 11 CFR 102.5(a) by making disbursements for federal activity from a non-federal account containing impermissible funds; and, in the alternative: find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 434(b)(6)(B)(iii) for failing to report an independent expenditure made on behalf of a federal candidate, and 2 U.S.C. 441b and 441a(f), and 11 CFR 102.5(a) by making disbursements for federal activity from a non-federal account containing impermissible funds. 11. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 434(b)(8) and 11 CFR 104.11 for failing to itemize certain outstanding debt. 12. Find RTB that the Republican Party of Arkansas and Blair L. Fortner, as treasurer, violated 2 U.S.C. 433(b)(6) and 433(c) for failing to amend the Committee's Statement of Organization to disclose its bank depositories. 13. Find RTB that Potlatch Corporation made a prohibited contribution in violation of 2 U.S.C. 441b. 14. Find RTB that Lloyd Lindsey, former treasurer of the Republican Party of Arkansas, violated 2 U.S.C. 434, 441a, and 441b. 15. Approve the Factual and Legal Analyses (2), as recommended in the GC Report dated February 18, 2004; subject to the appropriate revisions pursuant to the meeting discussion. 16. Enter into conciliation with the Republican Party of Arkansas and Blair L. Fortner, as treasurer, prior to a finding of probable cause to believe, subject to execution of an agreement to extend the statute of limitations. 17. Enter into conciliation with the Potlatch Corporation prior to a finding of PCTB. 18. Approve the Conciliation Agreements (2), as recommended in the GC Report dated February 18, 2004; subject to the appropriate revisions................REDACTED.................. 19. Approve the use of compulsory process to investigate this matter, including subpoenas and orders to submit written answers directed to the Republican Party of Arkansas; Firstar Bank (formerly Mercantile Bank); Bank of America; Strategic Media Services; Olsen & Delisi; Vista Productions; Metzner Media; Millenium Marketing; Direct Strategies; Bill Freeman Consulting Services; Olympia; John Hudgen's Advertising; Targeted Creative Communication; the Republican National Committee; and the National Republican Congressional Committee; and appropriate additional orders to submit written answers and subpoenas for documents and depositions, as necessary. 20. Approve the appropriate letters.