ADR program update

The Commission recently resolved 16 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. Cases marked with an asterisk were internally generated.

1. The Commission rejected the consolidated settlement agreement for LeSueur for Congress ’04 and its treasurer Eddie “Edie” D. Ingrum, regarding the committee’s alleged excessive salary payments thus resolving four ADR cases and closed the files. Statements of Reasons were issued by Chairman Thomas and Commissioners Mason, Smith and Weintraub. The Commission also dismissed a complaint against LeSueur for Congress ’04 as it was a duplicate. (ADRs 196, 198, 199, 200, and 213/MURs 5433/5435/545 7/5459/5596)
2. The Commission reached agreement with the National Right to Life PAC, and its treasurer, Amarie C. Natividad, regarding their failure to disclose all of the Committee’s receipts on its 2003 Year-end Report. The respondents acknowledged reporting errors and agreed to pay a $5,000 civil penalty. In addition, the committee has taken steps to ensure complete disclosure reports are filed timely. In an effort to avoid similar errors in the future, respondents agree to send the director of records maintenance to an FEC seminar within 12 months of the effective date of this agreement. (ADR 225*)
3. The Commission reached agreement with Peter Hort for Congress, and its treasurer, Tal Weitzman. Respondents acknowledge that some inadvertent reporting omissions may have occurred due to their inexperience, but denied allegations of excessive or prohibited contributions and failure to include required disclaimers on public communications (i.e., the committee website). Respondents, in an effort to resolve this matter, agree to work with Commission staff to terminate the committee. (ADR 238/MUR 5529)
4. The Commission closed a failure to file case against the Committee to Elect Gabriel Pearse for Congress 2004, and its treasurer, Emmanuel Roy. The ADR Office recommended that the case be closed, and the Commission agreed and closed the file. (ADR 266/MUR 5551)
5. The Commission closed the case against Gordon S. and Eileen Harang for failure to file a 24-Hour Report of Independent Expenditures made. The ADR Office recommended that the case be closed, and the Commission agreed and closed the file. (ADR 269/MUR 5603)
6. The Commission reached agreement with the Committee to Elect John Barker, and its treasurer, Alicja Barker, regarding the failure to accurately disclose a loan, operating expenses and an excessive contribution on the committee’s 12-Day Pre-Primary Report. The respondents acknowledged reporting errors and agreed to pay a $500 civil penalty. Respondents also acknowledged that a loan from the candidate’s daughter should have been reported as a contribution and that it represented an excessive contribution to the committee. An amended report was subsequently filed and respondent John Barker reported a payment of $25,000 recently made to his daughter to cover the aforementioned loan. (ADR 176*)
7. The Commission reached agreement with the Mike Thompson for Congress Committee, and its treasurer, Tom Hannigan, regarding the committee’s failure to disclose a $65,115 disbursement. The respondents agreed to pay a $2,500 civil penalty, but attributed the omission to an inadvertent failure to record a wire transfer made to a media company, exacerbated by subsequent staff changes. After discovering the error, respondents filed an amended report with the Commission. Additionally, respondents explained that they have instituted procedural changes to ensure that wire transfers are properly recorded by the committee as disbursements, in order to prevent a repetition of this reporting error. Additionally, respondents agree to send their assistant treasurer to an FEC seminar on federal election campaign reporting requirements. (ADR 261*)
8. The Commission reached agreement with the National Italian American PAC, and its treasurer, Anthony N. Mallace, regarding the failure to accurately report expenditures, accepting excessive contributions and failure to file disclosure reports. The respondents acknowledged the inadvertent reporting violations occurred due to the inexperience of a volunteer staff and agreed to pay a $10,000 civil penalty. After discovering the reporting violations and prohibited contributions/loans, the Committee initiated corrective actions. In an effort to avoid similar errors in the future, respondents agree to employ an election law compliance officer within 30 days of the effective date of this agreement; send the treasurer and compliance officer to a FEC seminar appropriate for PACs within 12 months of the effective date of this agreement; and work with a RAD analyst to ensure that all required reports are filed within 90 days of the effective date of this agreement. The Commission and respondents initially determined that an appropriate civil penalty to resolve these matters was $35,000. However, by respondents consenting to certain terms and conditions, the Commission agrees to a special arrangement. Respondents will pay $10,000 of the civil penalty within 60 days of the effective date of this agreement. In the event that the terms of this agreement are violated, or the respondents fail to comply with the requirements of the Act during the 24 months following the effective date of this agreement, the unpaid balance of the civil penalty of $35,000 shall be due immediately to the Commission. (ADR 223* & 256* / OAR 1130, 1325, 1386)
9. The Commission reached agreement with Rick for Congress, and its treasurer, Doreen Penberthy, regarding the failure to file disclosure reports electronically and in a timely manner. The respondents acknowledged they misunderstood the Commission’s reporting requirements and agreed to pay a $1,500 civil penalty. In order to avoid similar errors in the future, respondents agree to send a representative to a FEC seminar on federal election campaign finance reporting requirements. (ADR 237/MUR 5521)
10. The Commission reached agreement with Independent Action, Inc., and its treasurer, Ralph Santora, regarding the failure to file disclosure reports. The respondents acknowledged that staff turnover and unfamiliarity with the Commission’s reporting requirements led to delays in submitting the required reports and agreed to pay a $12,000 civil penalty. Respondents also agree to send a representative to a FEC seminar on campaign reporting requirements within 15 months of the effective date of this agreement and to prepare and maintain guidelines that will assist their staff in complying with FEC reporting requirements. (ADR 246*)
11. The Commission reached agreement with Community Action Program PAC, and its treasurer, Cathy Hoskins, regarding the failure to disclose receipts in a timely manner. In an effort to avoid similar errors in the future, respondents agree to contract with an accounting firm, familiar with the Commission’s reporting requirements, to oversee and regularly review the Committee’s reports prior to their filing with Commission; to establish and maintain a file of FEC regulations and Commission materials to guide the their staff in complying with the Act’s reporting requirements; and to send the Director of Administration to a FEC seminar on reporting requirements. (ADR 276*)