ADR program update (October 2005)

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

1-3. The Commission reached agreement with LeSueur for Congress ’04 and Eddie “Edie” D. Ingrum, its treasurer, regarding their failure to include required disclaimers in political advertising. The respondents acknowledged that inadvertent violations of the Act occurred when disclaimers were omitted from political advertising. They agree that an appropriate aggregate civil penalty in these matters would be $10,000, but contended that financial hardship prevents the committee from paying any civil penalty. The respondents submitted financial documentation in support of this claim of financial hardship, and the Commission agreed that no civil penalty shall be owed.

With regard to two other respondents named in these cases, Lamar Outdoor Advertising and Lamar Advertising Company, the ADR Office recommended the case be dismissed, and the Commission agreed and closed the file. (ADR 197/MUR 5434, ADR 237/MUR 5521 and ADR 240/5608)

4. The Commission reached agreement with the Nebraska Republican Federal Campaign Committee and Demarus Carlson, its treasurer, regarding their failure to report disbursements. The respondents agreed to pay a $10,000 civil penalty and acknowledged that the failure to file accurate reports of the Committee’s financial activity was due to internal staffing problems and difficulties with software. These problems caused several disbursements to be omitted from the 2003 Year End Report. Also, the respondents have not had time to implement all of the corrective procedures adopted as a means of resolving an earlier case referred to the ADR Office by the FEC’s Reports Analysis Division. The respondents reiterated their commitment to the earlier terms of settlement (ADR 226) and agreed, as stated in the earlier settlement agreement, to send a minimum of four officers and/or staff of the Committee to an FEC seminar on federal election campaign reporting requirements within 12 months of the effective date of the agreement. They will also create and maintain in the Committee’s offices a resource center to guide the Committee in complying with the requirements of the Act and amend internal procedures to provide for an additional review of the Committee’s reports before the reports are submitted to the Commission. (ADR 254*)

5. The Commission dismissed the matter involving Jene M. Witte regarding alleged violations of the Act’s disclaimer requirements. The ADR Office recommended the case be closed, and the Commission agreed and closed the file. (ADR 267/MUR 5558)

6. The Commission dismissed the matter involving Amy Otis-Wilborn regarding alleged violations of the Act’s disclaimer requirements. The ADR Office recommended the case be closed, and the Commission agreed and closed the file. (ADR 272/MUR 5592)

7. The Commission reached agreement with Capri Cafaro for Congress, Ronald Silvestri, its treasurer, and Renee Cafaro, regarding excessive contributions. The respondents acknowledged that violations of the Act inadvertently occurred and agreed to pay a $1,000 civil penalty. In an effort to avoid similar errors in the future, they agreed to have a Committee representative attend an FEC seminar within 12 months of the effective date of the agreement. (ADR 242/MUR 5510)

8. The Commission reached agreement with Amalgamated Transit Union-COPE and Oscar Owens, its treasurer, concerning their failure to file 48-Hour reports of independent expenditures. The respondents acknowledged that a violation of the Act occurred, explaining they had not previously made independent expenditures and did not understanding the time frame for reporting these expenditures. In an effort to avoid similar errors in the future, they agreed to pay a $5,000 civil penalty and to develop an FEC compliance manual containing updated information. (ADR 244*)

9. The Commission reached agreement with Freshmen PAC and David Metzner, its treasurer, regarding their failure to report disbursements. The respondents acknowledged that a violation of the Act occurred. After their 2004 July Quarterly Report was filed, they determined, while responding to an FEC request for information, that two disbursements made during the reporting period had not cleared the bank by the end of the reporting period. They stated that the disbursements were overlooked in preparing the report because the checks had not cleared the bank. According to the respondents, they have created procedures to avoid similar errors in the future, such as changing to a monthly filing schedule, establishing an additional bank depository for contributions and retaining an FEC reporting consultant to confirm bank reconciliation and prepare FEC reports. In order to resolve this matter and ensure future compliance with the Act, they agreed to compile a Compliance Manual detailing procedures and to maintain internal controls to educate their staff about the campaign finance laws. (ADR 249*)

Footnote:

*This case was internally generated within the Commission.