AO 2009-10: Federal officeholder may use campaign funds to pay certain legal fees

A federal officeholder may use campaign funds to pay legal fees and expenses incurred in connection with a federal investigation of allegedly improper campaign contributions and legislative appropriations because the fees would not exist irrespective of his campaign or duties as a federal officeholder. However, use of campaign funds to pay for the Congressman's representation in legal proceedings regarding allegations that are not related to his campaign activity or duties as a federal officeholder would constitute an impermissible personal use of campaign funds.

Background

Representative Visclosky is the U.S. Representative from the First District of Indiana. Visclosky for Congress (the Committee) is Rep. Visclosky’s principal campaign committee.

According to media reports contained in the advisory opinion request, the FBI and federal prosecutors are investigating whether a lobbying firm, PMA Group, made improper political contributions to Rep. Visclosky and other members of the U.S. House of Representatives. Although many details of the federal investigation are not public at this time, media reports indicate that the investigation centers on more than $500,000 in alleged campaign contributions from PMA Group and its clients to three Congressmen, including Rep. Visclosky.

Analysis

The Federal Election Campaign Act (the Act) identifies six categories of permissible uses of contributions accepted by a federal candidate, including otherwise authorized expenditures in connection with the candidate's campaign for federal office and ordinary and necessary expenses incurred in connection with the duties of the individual as a holder of federal office. 11 CFR 113.2(a)-(e). The Act prohibits the "personal use" use of campaign contributions by any person. 2 U.S.C. §439a(b)(1) and 11 CFR 113.2(e). The Act specifies that conversion to personal use occurs when a contribution or amount is used "to fulfill any commitment, obligation, or expense of a person that would exist irrespective of the candidate's election campaign or individual's duties as a holder of Federal office." 2 U.S.C. §439a(b)(2); see also 11 CFR 113.1(g).

The Committee may use campaign funds to pay legal fees and expenses incurred by Rep. Visclosky in connection with a federal investigation into the alleged provision of illegal campaign contributions by the PMA Group and its clients to the Committee and Rep. Visclosky's alleged improper earmarking of appropriations for clients of PMA, and any other legal proceedings that involve the same allegations. These allegations relate to Rep. Visclosky's campaign or duties as a federal officeholder, or both, and the legal fees would not exist irrespective of Rep. Visclosky’s campaign or duties as a federal officeholder. The Committee may not, however, use campaign funds to pay legal fees or expenses regarding allegations unrelated to Rep. Visclosky’s campaign or duties as a federal officeholder.

In accordance with the Act and Commission regulations, the Committee must maintain appropriate documentation of any disbursements made to pay legal expenses incurred in connection with the federal investigation and other legal proceedings. 11 CFR 102.9(b) and 104.11.

AO 2009-10: Date Issued: June 18, 2009; Length: 5 pages.