ADR program update

The Commission recently resolved 10 additional cases under the Alternative Dispute Resolution (ADR) program. The respondents, the alleged violations of the Federal Election Campaign Act (the Act) and final disposition of the cases are listed below.

1. The Commission reached an agreement with M. Jaliman for US House of Representatives, M. Kathryn Jaliman, treasurer regarding failure to register, failing to report and failing to include a disclaimer with public communications. The respondents stated that the committee’s financial reports were filed in accordance with the provisions of the Act; however, they acknowledged distributing direct mail without the required disclaimer notice and failed to include appropriate disclaimers on the web site and phone messages. They agreed to correct the committee web site to ensure it complies with the Act and send the treasurer to an FEC seminar. (ADR 258)
2. The Commission reached an agreement with Walcher for Congress, Lon Carpenter, treasurer, regarding failure to accurately report debts. The respondents acknowledged that their staff is inexperienced with reporting responsibilities. They have hired an accounting firm to facilitate reporting and agreed to maintain the contract with that firm. They also agreed to establish an internal control system to monitor all campaign related expenditures, establish a campaign finance resource library for staff, send a staff member to an FEC seminar and pay a $9,000 penalty. (ADR 263*)
3. The Commission rejected the settlement agreement for Brady for Congress, W. R. Eissler, treasurer, and closed the file. The agreement suggested the Commission prematurely had found a violation of law and further indicated that it would be inappropriate for the Commission to make even a preliminary finding when, as here, the committee had failed to make a “best efforts” showing to the Reports Analysis Division. In a Statement of Reasons issued by Commissioners Michael Toner, Danny McDonald, David Mason, Ellen Weintraub and Scott Thomas, the Commission found that this agreement would confuse the ADR process and the “best efforts” requirements. (ADR 264*)
4. The Commission reached an agreement with Jim Feldkamp for Congress, Ronald D. Calkins, treasurer, regarding failure to disclose disbursements. The respondents contend that the alleged “campaign-related activity” occurred during a personal trip and involved incidental encounters. They agreed to amend the committee’s 2004 Quarterly Report to reflect the candidate’s expenditures, establish and maintain a resource center for staff and pay a $300 penalty. (ADR 265)
5. The Commission reached an agreement with Millican for U.S. Senate, Marc J. Millican, treasurer, regarding failure to register and report. The respondents acknowledged misunderstanding the Commission’s requirement to file a Statement of Candidacy, register with the Commission and file reports. They explained that the committee filed the necessary reports with the Commission on receipt of the complaint and receiving guidance from the Commission. They agreed to send a staff member to an FEC seminar and pay a $7,500 penalty.
6. The Commission reached an agreement with the Law Offices of James G. Sokolove, regarding failure to file an independent expenditure statement, lack of disclaimer and making an illegal corporate contribution. The respondent stated that the letter in question did not constitute a prohibited corporate contribution or a corporate independent expenditure given the respondent’s status as a sole proprietorship. Instead, it was a “permissible” independent expenditure as defined in the regulations. He acknowledged the error in failing to file an independent expenditure report and failing to include a disclaimer notice on the letter. The respondent acknowledged receipt of a letter of admonishment from the Commission. (ADR 274)
7. The Commission reached an agreement with Republican Main Street Partnership PAC, Sara Chamberlain Resnick, treasurer, regarding failure to file 24-Hour reports. The respondents failed to file the reports because they believed they had not authorized the expenditure. They agreed to pay the $1,250 civil penalty and to establish internal operating procedures that will require prior review by the committee before expenditures are authorized. (ADR 281*)
8. The Commission reached an agreement with Magnum for Congress, Thomas Diehl, treasurer, regarding failure to accurately report receipts. The respondents explained that the committee had software problems and contended that there was no intent to mislead. They have instituted a number of changes to their procedures for reporting, including hiring a professional accounting firm, which they have agreed to keep under contract for the length of the campaign. They also agreed to send a staff member to an FEC seminar, train personnel on reporting requirements, prepare a manual on reporting responsibilities, set up and maintain a resource center on reporting requirements and pay a $2,000 penalty. (ADR 286*)
9. The Commission reached an agreement with Hostetler for Congress, John Grab, treasurer, regarding failure to accurately report disbursements. The respondents acknowledged inadvertent violations of the Act due to inexperience. They agreed 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. (ADR 291*)
10. The Commission rejected the settlement agreement for Thelma for Congress, Robert J. Catron, treasurer, and closed the file. The agreement suggested the Commission prematurely had found a violation of law and further indicated that it would be inappropriate for the Commission to make even a preliminary finding when, as here, the committee had failed to make a “best efforts” showing to the Reports Analysis Division. In a Statement of Reasons issued by Commissioners Michael Toner, Danny McDonald, David Mason, Ellen Weintraub and Scott Thomas, the Commission found that this agreement would confuse the ADR process and the “best efforts” requirements. (ADR 293*)

* This case was internally generated.