FEC v. LaRouche (94-0658)

On September 28, 1994, the U.S. District Court for the Eastern District of Virginia issued an order stipulated by the parties holding Lyndon H. LaRouche, Jr., and his 1988 Presidential campaign committee jointly and severally liable for repayment of $146,464.44 in Presidential primary matching funds-plus accrued interest-to the U.S. Treasury.

Background

Mr. LaRouche received $833,577 in 1988 primary matching funds. The Commission determined that he had to repay $151,260 in funds received in excess of his entitlement and funds spent on nonqualified campaign expenses. The campaign repaid part of that amount in February 1992, leaving $146,464 still outstanding.

The Commission claimed that, in a letter of September 22, 1992, it notified defendants that the repayment was due within 30 days. On October 22, instead of repaying the funds, Mr. LaRouche and his campaign filed suit against the FEC to challenge the repayment amount.[1] They did not ask the FEC to stay the repayment until the court decided the case; nor did they deposit the repayment amount in an interest-bearing account. See 11 CFR 9038.5(c).

The FEC asked the court to find that Mr. LaRouche and his 1988 Presidential primary campaign had violated the public funding law by failing to repay the remaining $146,464. The agency further asked the court to order Mr. LaRouche and his campaign to repay that amount-plus interest accruing from October 22, 1992-to the U.S. Treasury.

Stipulation

The order stipulated that a $158,304.84 check (the security), given to the court by Democrats for Economic Recovery-LaRouche in '92,[2] be deposited into an interest-bearing account and used for the repayment, if appropriate.

The FEC agreed to refrain from all efforts to collect on the defendants' repayment obligation until after the Commission issued a final repayment determination with respect to the Presidential primary matching funds received by the LaRouche in '92 committee.

If the FEC's final repayment determination concluded that the LaRouche in '92 committee had at least $158,304.84 in excess campaign funds, then the court would release the security-plus interest-to the FEC as repayment of the defendants' repayment obligation. In this event, the FEC and the defendants would voluntarily dismiss all claims and counterclaims associated with this case.

If the FEC's final repayment determination for the LaRouche in '92 committee concluded that the committee did not have at least $158,304.84 in excess campaign funds, then the court would issue the FEC a check for that portion of the security equal to the amount of the committee's excess campaign funds. That amount would represent a partial repayment of the defendants' repayment obligation. The balance of the security (including accrued interest) would be returned to the LaRouche in '92 committee. In this event, the FEC could use any available legal procedures to collect the remaining amount owed by the defendants.

The Commission reserved the right to conclude that the LaRouche in '92 committee's payment to the court was not a qualified campaign expenditure (for the 1992 campaign) and to contest the sufficiency of the security to pay the defendants' obligation. The defendants and the LaRouche in '92 committee reserved the right to contest any Commission finding.

FOOTNOTES:

[1] The campaign did not contest the entire repayment amount but only $109,149 of the total. See LaRouche v. FEC (92-1555).

[2] Democrats for Economic Recovery-LaRouche in '92 was Lyndon LaRouche's 1992 authorized Presidential campaign committee.

Source:   FEC Record — December 1994; July 1994