Compliance Cases Made Public
May 4, 2001
Contact:
For Immediate Release
May 4, 2001Kelly Huff
Ron Harris
Sharon Snyder
Ian Stirton
COMPLIANCE CASES MADE PUBLIC
WASHINGTON -- The Federal Election Commission has recently made public its final action on 12 matters previously under review (MURs). This release contains only summary information. Closed files should be thoroughly read for details, including the FEC’s legal analysis of the case. (See footnote at the end of this release.) Closed MUR files are available in the Public Records Office.
| 1. | MUR 4742 | |
| RESPONDENTS: | (a) Vargas for Congress ’96, Deanna Liebergot, treasurer (CA) (b) Juan Vargas (CA) (c) Committee to Re-Elect Vargas, Deanna Liebergot, treasurer (CA) (d) The Primacy Group (CA) (e) Larry Remer, Owner, The Primacy Group (CA) | |
| COMPLAINANT: | Derrick W. Roach (CA) | |
| SUBJECT: | Failure to report debt timely; excessive contribution; failure to register and report; excessive contributions from prohibited sources | |
| DISPOSITION: | (a) Conciliation Agreement: $1,100 civil penalty* [re: failure to report debt timely] Respondents will amend all reports currently on file to accurately reflect debt owed. Reason to believe, but took no further action* [re: excessive contributions from prohibited sources] (b) Reason to believe, but took no further action* [re: excessive contributions from prohibited sources] (c) Reason to believe, but took no further action* [re: excessive contribution from prohibited sources; failure to register and report] (d) Reason to believe, but took no further action* [re: excessive contribution] | |
| 2. | MUR 4843 | |
| RESPONDENTS: | (a) Friends of Maurice Hinchey, Frank Koenig, treasurer (NY) (b) Ansaldo North America, Inc. (NY) (c) Besicorp Group, Inc. (NY) (d) Michael Zinn, President and CEO, Besicorp Group, Inc. (NY) | |
| COMPLAINANTS: | John S. Hicks, Chairman, Orange County Republican Committee (NY) | |
| SUBJECT: | Corporate contributions; contributions in the names of others; failure to refund contributions timely | |
| DISPOSITION: | (a) Conciliation Agreement: $17,000 civil penalty* Respondents will refund $3,000 to Ansaldo North America, Inc. (b-d) Reason to believe [knowing and willfull], but took no further action* [re: corporate contributions; contributions in the names of others] Sent admonishment letters. |
| 3/4. | MUR 4936 and 5038 | |
| RESPONDENTS: | (a) DNC Services Corporation/Democratic National Committee, Andrew Tobias, treasurer (DC) (b) Hollywood Women’s Political Committee (HWPC), Judith Dornstein, treasurer (CA) | |
| COMPLAINANTS: | FEC Initiated (RAD) [See MUR 4558 - Complainants: Mark Kleinman, People for Truth (DC)] | |
| SUBJECT: | Excessive contributions; failure to report contributions; failure to accurately report contribution; depositing non-federal funds in federal account; failure to amend Statement of Organization | |
| DISPOSITION: | (a) Conciliation Agreement: $3,500 civil penalty* [This conciliation agreement is a joint agreement for MURS 4936 and 5038] Respondents will amend reports. (b) Reason to believe, but took no further action* [re: excessive contributions; failure to accurately report contribution; depositing non-federal funds in federal account; failure to amend Statement of Organization] Sent admonishment letter. |
| 5. | MUR 4973 | |
| RESPONDENTS: | Marta Macias Brown for Congress, M.S. Stan Tomlinson, treasurer (CA) | |
| COMPLAINANT: | Sua sponte | |
| SUBJECT: | Disclaimer | |
| DISPOSITION: | Conciliation Agreement: $2,500 civil penalty* | |
| 6. | MUR 5067 | |
| RESPONDENTS: | (a) Patrick J. Buchanan (VA) (b) Buchanan Reform, Inc., Angela M. Buchanan, treasurer (VA) (c) Angela M. Buchanan (VA) | |
| COMPLAINANT: | John Hagelin (IA) | |
| SUBJECT: | Under the Fund Act: misrepresentation of material facts and furnishing fraudulent evidence as proof of entitlement to federal funds | |
| DISPOSITION: | (a-c) No reason to believe* | |
| 7. | MUR 5068 | |
| RESPONDENTS: | (a) Patrick J. Buchanan (VA) (b) Buchanan Reform, Inc., Angela M. Buchanan (VA) (c) Angela M. Buchanan (d) Gerald Moan | |
| COMPLAINANT: | James Mangia (CA) | |
| SUBJECT: | Under the Fund Act: misrepresentation of material facts and furnishing fraudulent evidence as proof of entitlement to federal funds | |
| DISPOSITION: | (a-b) No reason to believe* | |
| 8. | MUR 5081 | |
| RESPONDENTS: | (a) Patrick J. Buchanan (VA) (b) Ezola Foster (CA) | |
| COMPLAINANTS: | Frank M. MacKay, Cathy L. Stewart, Philip Goldstein, David Lewis, Daniel Forbes, Gerald Everett, Lenora Fulani, Eve Rose, Robert Conroy, Luvenia Suber, Ainka Fulani, Sheryl Williams, Sarah Lyons, Kitty Reese, Jessie Fields, Allen Cox, Tara Lewis (New York State delegation to the National Convention of the Reform Party USA) | |
| SUBJECT: | Under the Fund Act: misrepresentation of material facts and furnishing fraudulent evidence as proof of entitlement to federal funds | |
| DISPOSITION: | (a-b) No reason to believe* | |
| 9. | MUR 5150 | |
| RESPONDENTS: | (a) Missouri Democratic State Committee, Donna Knight, treasurer (MO) (b) Kathy J. Weinman (MO) (c) Mary B. Schroeder (MO) (d) Donald Schupak (NY) | |
| COMPLAINANT: | FEC Initiated (Audit) | |
| SUBJECT: | Excessive contributions; failure to properly allocate expenditures, refunds and rebates between its federal and non-federal accounts | |
| DISPOSITION: | (a) Conciliation Agreement: $20,000 civil penalty* [re: excessive contributions; failure to properly allocate expenditures, refunds and rebates between its federal and non-federal accounts] Respondent contends they properly allocated expenditures between its federal and non-federal accounts. Respondent will reimburse its non-federal account $30,662 which represents the non-federal share of refunds and rebates of allocable expenses that were deposited in federal account. In the future, Respondent will refund, reattribute, or transfer to its non-federal account excessive contributions within 60 days of receipt; and will notify the excessive contributors of their right to seek a refund of the excessive contribution within 60 days of receipt. (b) Conciliation Agreement: $4,000 civil penalty* [re: excessive contribution] (c-d) Reason to believe, but took no further action* [re: excessive contributions] Sent admonishment letters. | |
| 10. | MUR 5165 | |
| RESPONDENTS: | Citizens for the Republic, Angela M. Buchanan, treasurer (VA) | |
| COMPLAINANT: | FEC Initiated (RAD) | |
| SUBJECT: | Failure to file disclosure report timely | |
| DISPOSITION: | Conciliation Agreement: $2,700 civil penalty* | |
| 11. | MUR 5177 | |
| RESPONDENTS: | (a) Ferraro for Senate ’98, Addie Guttag, treasurer (NY) (b) Geraldine Ferraro (NY) | |
| COMPLAINANT: | FEC Initiated (RAD) | |
| SUBJECT: | Corporate contribution (loans secured by stocks in candidate’s brokerage account); failure to accurately report loan | |
| DISPOSITION: | (a) Reason to believe, but took no further action* [re: corporate contribution (loans secured by stocks in candidate’s brokerage account); failure to accurately report loan] (b) Reason to believe, but took no further action* [re: corporation contribution (loans secured by stocks in candidate’s brokerage account)] |
The Enforcement Priority System (EPS) rates all incoming cases against objective criteria to determine whether they warrant use of the Commission’s limited resources.
Cases dismissed under EPS fall into two categories: low-rated cases and stale cases. Low rated cases are those that do not warrant use of the Commission’s resources to pursue because of their lower significance relative to other pending matters. Stale cases are those that initially received a higher rating but have remained unassigned for a significant period due to a lack of staff resources for effective investigation. Effective enforcement relies upon the timely pursuit of complaints and referrals to ensure compliance with the law. Investigations concerning activity more remote in time usually require a greater commitment of resources, primarily due to the fact that the evidence of such activity becomes more difficult to develop as it ages. The utility of commencing an investigation declines as these cases age, until they reach a point when activation of a case would not be an efficient use of the Commission’s resources. As cases reach this point, they are recommended for dismissal.
Dismissed - Stale
| 12. | MUR 4516 | |
| RESPONDENTS: | (a) DNC Services Corporations/Democratic National Committee, Andrew Tobias, treasurer (DC) (b) Democratic Senatorial Campaign Committee, James P. Fox, treasurer (DC) (c) AFL-CIO/Committee on Political Education/Political Contribution Committee, Richard L. Trumka, treasurer (DC) (d) State Democratic Executive Committee of Alabama Federal and Non-Federal Committees, Anthony J. Fani, treasurer (AL) (e) Democratic Party of Arkansas Federal and Non-Federal Committees, Ron Oliver, treasurer (AR) (f) Democratic State Central (Colorado) Federal and Non- Federal Committees, Lawrence N. Beer, treasurer (CO) (g) Idaho State Democratic Party Federal and Non-Federal Committees, Barbara Barber, treasurer (ID) (h) Kansas Democratic State Federal and Non-Federal Committees, Daniel Lykins, treasurer (KS) (i) Kentucky State Democratic Central Executive Committee Federal and Non-Federal Committees, Darryl Tattrie, treasurer (KY) (j) Democratic State Central Committee of Louisiana General FECA Account and Non-Federal Account, Henry A. Smith, treasurer (LA) (k) Maine Democratic State Federal and Non-Federal Committees, James S. Bowers, treasurer (ME) (l) Minnesota Democratic-Farmer Labor Party - Federal and Non-Federal Accounts, Paul K. Schulte, treasurer (MN) (m) New Hampshire Democratic State Committee Federal and Non-Federal Accounts, Sophia Collier, treasurer (NH) (n) New Jersey Democratic State Committee Federal and Non-Federal Accounts, Raul R. Garcia, treasurer (NJ) (o) Democratic Party of Oregon Federal and Non-Federal Committees, Carl Hosticka, treasurer (OR) (p) Roger H. Bedford for US Senate, Roger H. Bedford, treasurer (AL) (q) Committee to Elect Winston Bryant US Senate, Clifford P. Block, treasurer (AR) (r) Friends of Tom Strickland, Inc., Christopher W. Romer, treasurer (CO) (s) Friends of Max Cleland for the US Senate, Inc., Harry P. Stephens, treasurer (GA) (t) Minnick for Senate, Gardner W. Skinner, Jr., treasurer (ID) (u) Friends of Dick Durbin Committee, Michael E. Daly, treasurer (IL) (v) Sally Thompson for U.S. Senate, Peggy Hanna, treasurer (KS) (w) Docking for U.S. Senate, William R. Docking, treasurer (KS) (x) Beshear for U.S. Senate Committee, Charles L. Stiver, treasurer (KY) (y) Mary Landrieu for Senate Committee, Inc., G. Anthony Gelderman, III (LA) (z) Kerry Committee, Sean Reilly, treasurer (MA) (aa) Brennan for US Senate, William B. Troubh, treasurer (ME) (bb) Friends of Senate Carl Levin, Robert H. Naftaly, treasurer (MI) (cc) The Progressive Politics Network (fka Wellstone for Senate), Richard S. Kahn, treasurer (MN) (dd) Swett for Senate, Katrine Lantos Swett, treasurer (NH) (ee) Torricelli for U.S. Senate, Inc., Angelo Genora, Esq., treasurer (NJ) (ff) Elliot S. Close for US Senate, Harry M. Dalton, treasurer (SC) (gg) Tom Bruggere for U.S. Senate, Robert D. VanBrocklin, treasurer (OR) (hh) Houston Gordon for Senate (Friends of Houston Gordon), Charles W. Bone, treasurer (TN) | |
| COMPLAINANTS: | Craig M. Engle, General Counsel, National Republican Senatorial Committee (DC) | |
| SUBJECT: | Excessive contributions; corporate and labor contributions; disclaimer; excessive coordinated expenditures; failure to accurately report coordinated expenditures |
*There are four administrative stages to the FEC enforcement process:
| 1. Receipt of proper complaint | 3. "Probable cause" stage |
| 2. "Reason to believe" stage | 4. Conciliation stage |
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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