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  • Press Release

$71,100 Civil Penalty Paid By Broyhill for Violations of Millionaire's Amendment

July 19, 2006

FEC Home Page

For Immediate Release
July 19, 2006



Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis


Washington -- The Federal Election Commission (FEC) announced today that J. Edgar Broyhill II, a candidate in the 2004 primary election in North Carolina’s 5th district, the Broyhill for Congress Committee, and its treasurer Tim Nerhood have agreed to pay a $71,100 civil penalty for violating the reporting requirements of the Millionaire’s Amendment, along with other reporting requirements of federal election law. The Millionaire’s Amendment was passed as part of the Bipartisan Campaign Reform Act of 2002 (BCRA).

Under the Millionaire’s Amendment, House candidates must notify the FEC and their opponents when they exceed $350,000 in personal spending and also with each additional $10,000 in expenditures of personal funds thereafter.  The law allows opponents of these candidates to receive larger individual contributions than would otherwise be permitted.  Mr. Broyhill and Broyhill for Congress failed to file a notification within 24 hours of the candidate making a loan to the campaign that brought his spending of personal funds to more than $350,000 in the primary, and they subsequently failed to file notifications within 24 hours regarding additional expenditures of personal funds totaling $365,000.  The Respondents also failed to include $1,500 in contributions made by Mr. Broyhill on all 14 notifications filed with the Commission.

MUR 5648


(a)   J. Edgar Broyhill, II

(b)   Broyhill for Congress, Tim Nerhood, treasurer 


FEC Initiated (RAD)


Failure to timely file Form 10s (Notification of Expenditures from Personal Funds); failure to report candidate contribution



Conciliation Agreement: $71,100 civil penalty*


Documents from this matter are available from the Commission’s web site at by entering 5648 under case number in the Enforcement Query System.  They are also available in the FEC’s 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.                                                     

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