AMEC Construction Pays $85,000 Civil Penalty

Washington -- The Federal Election Commission (FEC) today announced a conciliation agreement with AMEC Construction Management, Inc. (AMEC), in which AMEC agreed to pay an $85,000 civil penalty for violating the Federal Election Campaign Act (the Act) by reimbursing employee contributions. 

AMEC provided information to the FEC regarding employee contributions that it had reimbursed.  Specifically, AMEC’s predecessor, Morse Diesel International reimbursed employee contributions first by using its expense account system, and later by paying special bonuses through its payroll system. AMEC’s then chief operating officer and/or its then chief financial officer determined which contributions to make and which employees would make them and then be reimbursed by the corporation.  The contributing employee then received a bonus which, after taxes, equaled the amount of the contribution.  AMEC provided information to the FEC indicating that AMEC reimbursed $16,935 in contributions between October 15, 1998, and December 22, 1999.  Additional reimbursements were made in earlier years.

The Act prohibits corporations from making contributions or expenditures from their general treasury funds in connection with any election of any candidate for federal office. The Act also prohibits any officer or director of any corporation from consenting to any such expenditure or contribution by the corporation. In addition, it is unlawful for any person to make a contribution in the name of another, or for any person to knowingly permit his or her name to be used to make such a contribution.         

The conciliation agreement states that the FEC relied on the truthfulness and completeness of AMEC’s submissions, and AMEC agrees that if it made false statements or failed to disclose material information concerning the reimbursement scheme, then such conduct would constitute a violation of the conciliation agreement.  If a court determined that AMEC violated the agreement, AMEC would consent to court’s entry of a civil penalty equal to 200% of the reimbursements.

*There are four administrative stages to the FEC enforcement process:

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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