Compliance Cases Made Public

1.

MUR 5514

RESPONDENT:

(a)   Community Water System, Inc. (CWS)

(b)   Gill Elrod Ragon Owen & Sherman P.A.

(c)   Charles McLaughlin

(d)  Greg Smith

(e)   Heartsill Ragon III

(f)    Cora McLaughlin

(g)   Charles C. Owen

(h)   Luke Quinn

(i)    Danny Roberson

(j)    Sharon Smith

COMPLAINANT:

Pre-MUR 413: Referral from Birkett Wooten, Investigator, State of Arkansas Licensing Board

SUBJECT:

Corporate contributions/contributions in the name of another

(a-e)    Reason to believe, but took no action*

            [re: knowing and willful corporate                                    contributions/contributions in the name of another]

(f-k)     Reason to believe, but took no action*

            [re: contributions in the name of another]

This matter was a referral from the State of Arkansas Contractors Licensing Board. The referral indicated that Community Water System, Inc. (CWS), an Arkansas non-profit domestic corporation, through the activities of former CWS General Manager Greg Smith, might have reimbursed political contributions made by outside vendors of CWS to the campaigns of Senator Tim Hutchinson and Representative Marion Berry. Three respondents, Heartsill Ragon, Charles Owen and Chris Travis, each confirmed in interviews that they made contributions to either or both Marion Berry and Tim Hutchinson for Senate in August 2002, but each denied participating in a reimbursement scheme. CWS denied it violated any laws and should not be held responsible for any alleged unlawful conduct of its former general manager, Greg Smith. They further stated that upon learning of the allegations, members of the Board of Directors of CWS made several attempts in the fall of 2002 to bring allegations against Mr. Smith to the attention of various authorities with no success. Mr. Smith’s response stated that the source of this complaint was attempting to use the Federal Election Commission to promote and advance private interests, and obtain a favorable posture in civil litigation pending in the Circuit Court for Cleburne County, State of Arkansas. Furthermore he maintained that he knew and understood the law regarding election campaign donations and that neither he nor Community Water Services violated any of those provisions. The Commission decided to take no further action against the respondents and close the file.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 5514under case number in the Enforcement Query System.  They are also available in the FEC’s Public Records Office at 999 E St. NW in Washington.

2.

MUR 5555

RESPONDENTS:

(a)   Dave Ross

(b)   Friends of Dave Ross, Philip Lloyd, treasurer

COMPLAINANT:

Chris Vance

SUBJECT:

In-kind corporate contribution; media exemption

(a-c)     No reason to believe

            (re: any provision of the Act)

The complainant alleged that Dave Ross received free air time on his own show to promote his candidacy, and that the radio station illegally contributed to his campaign by providing him with that air time and continuing to promote the Show throughout the 2004 campaign season. The collective response by Friends of Dave Ross and Dave Ross stated that the activities mentioned in the complaint were legitimate press activities and are entitled to the media exemption. Furthermore they stated that if the Commission found that these activities did not qualify for the media exemption, any communications made by Dave Ross could not be considered expenditures or electioneering communications because they were not for the purpose of influencing a federal election. Entercom responded that it took extraordinary steps to ensure that it did not undertake any activities that could, in any way, support electioneering activities by Dave Ross except for the airing of his announcement of his impending candidacy as well as a legitimate news interview of Dave Ross, both legitimate news events. The Commission found no reason to believe that the respondents violated the Act and closed the case.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 5653 under case number in the Enforcement Query System.  They are also available in the FEC’s Public Records Office at 999 E St. NW in Washington.

3.

MUR 5633

RESPONDENT:

(a)   Cannon for Congress, Curtis S. Bramble, treasurer

(b)   Christopher B. Cannon

(c)   Western Leadership Fund (“WLF”)

COMPLAINANT:

Craig Nelsen

SUBJECT:

Failure to disclose a contribution

The complainant alleged that the Coalition for Lower Internet Information Costs PAC, a 527 group, failed to report a contribution from Western Leadership Fund. The respondents claimed that the disbursement that was made by WLF to the CLIIC was not received by the PAC, but rather directed and deposited with CLIIC, Inc., is a separately incorporated section 501(c)(4) organization. Respondents contend that CLIIC, Inc. has no reporting responsibilities with the Commission and only a limited responsibility to file forms with the Internal Revenue Service.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 5633 under case number in the Enforcement Query System.  They are also available in the FEC’s Public Records Office at 999 E St. NW in Washington.

4.

MUR 5670

RESPONDENTS:

(a)   Phillip L. Capitano

(b)   Friends of Bobby Jindal, Inc., Williams C. Potter,   treasurer

(c)        Kenner Professional Women’s Association (KPWA)

COMPLAINANT:

Daniel Zimmerman

SUBJECT:

Prohibited in-kind contribution

The complainant alleged that Phillip Capitano, the Mayor of Kenner, Louisiana and the Kenner Professional Women’s Association (KPWA) made prohibited in-kind contributions to the Friends of Bobby Jindal Campaign Committee. The complaint stated that the in-kind contributions took place when the KPWA sponsored a luncheon where Bobby Jindal was the featured speaker. KPWA, in sponsoring the luncheon and the City of Kenner in paying for a table at the luncheon allegedly made illegal in-kind contributions to Congressman Jindal’s campaign committee. The respondents stated that the luncheon was not a fundraiser or political event, nor did the candidate mention his candidacy and therefore the payment for the luncheon was not an in-kind contribution.

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 5670 under case number in the Enforcement Query System.  They are also available in the FEC’s Public Records Office at 999 E St. NW in Washington.