ADR program update

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. The Commission reached an agreement with Friends of Greg Parke, Wayne A. Carlson, treasurer, regarding their impermissible use of a contributor list for solicitation purposes. The respondents acknowledged that they inadvertently and mistakenly included 30 names from a list of contributors in a merged mailing database. They agreed to send a representative from the Committee to attend an FEC seminar on reporting requirements within 12 months of the effective date of the agreement and pay a $500 penalty. (ADR 235)
2. The Commission reached an agreement with Kevin Kelley for Congress, Karen P. White, treasurer, regarding excessive contributions. The respondents acknowledged that they inadvertently violated FECA by mistakenly believing that a spouse’s credit card was a joint personal account. They agreed to work with Commission staff to terminate within 60 days of the effective date of the agreement and pay a $500 penalty. (ADR 241*)
3. The Commission reached agreement with Women’s Campaign Fund, Nancy Clack, treasurer, regarding failure to accurately disclose receipts. The respondents acknowledged a violation occurred due to software interface issues and inexperienced staff. They agreed to conduct a two-year internal audit within 60 days, work with Reports Analysis Division (RAD) staff to ensure all past reports were accurate, develop a compliance manual for the Committee staff to use and pay a $3,500 penalty. (ADR 247 & 280*)
4. The Commission reached agreement with Chicago Board of Options Exchange, Inc. PAC, Alan J. Dean, treasurer, regarding failure to accurately report all financial activity. The respondents acknowledged that some reports filed in 2003-2004 contained incomplete financial data due to a software problem. They agreed to designate a Committee compliance officer who will attend an FEC campaign finance seminar for PACs within 12 months of the effective date of the agreement. (ADR 262*)
5. The Commission reached agreement with Bob Ney for Congress, Terrence A. Lee, treasurer, regarding failure to accurately report all disbursements. The respondents acknowledged that a violation of FECA occurred when two wire transfers were not recorded properly. They have retained a compliance specialist to review the Committee’s reporting process, and have agreed to send the treasurer to an FEC seminar within 12 months and pay a $2,000 penalty. (ADR 268*)
6. The Commission reached agreement with Lott for Congress Committee, Jerry Deas, treasurer, regarding failure to file disclosure reports. The respondents acknowledged an inadvertent violation of FECA due to inexperienced staff, and agreed to work with Commission staff to terminate the Committee and pay a $2,000 penalty. (ADR 273)
7. The Commission reached agreement with Arab American Leadership Council PAC, James J. Zogby, treasurer, regarding failure to file disclosure reports. The respondents acknowledged a violation of FECA due to inexperienced staff. They agreed to file missing reports, hire a PAC administrator/compliance specialist, develop a compliance manual for Committee staff reference, send a Committee representative to an FEC seminar within 12 months and pay a $4,000 penalty. (ADR 277*)
8. The Commission reached agreement with Rick Renzi for Congress, Nancy H. Watkins, treasurer, regarding failure to accurately report all receipts. The respondents acknowledged an inadvertent violation of FECA due to a software problem. They agreed to pay a $1,000 penalty and appoint a compliance officer for the Committee who will attend an FEC seminar within 18 months. (ADR 282*)

* Case was internally generated by the FEC.