Corporate Reimbursement Scheme Results in $168,000 Civil Penalty
News Releases, Media Advisories
| For Immediate Release December 18, 2003 |
Contact: | George Smaragdis Ron Harris Bob Biersack Ian Stirton |
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| CORPORATE REIMBURSEMENT SCHEME RESULTS IN $168,000 CIVIL PENALTY | |||||||||||||||||||||||||||
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WASHINGTON -- The FEC has entered into a conciliation agreement with Centex
Construction Group, Inc. (CCG), Centex-Rooney Construction Co., Inc.
(Rooney), headquartered near Ft. Lauderdale, FL, former CCG and Rooney CEO
Bob Moss, and various current and former CCG and Rooney officers. The
conciliation agreement settles violations of the Federal Election Campaign
Act (FECA) stemming from the reimbursement of $56,125 in contributions with
corporate funds made by the company officers. The reimbursed contributions
went to seven federal candidates, two political party committees and one
political action committee between 1998 and 2002. The investigation stemmed
from a sua sponte submission and complaint filed with the FEC by Centex
Corporation, headquartered in Dallas, TX. The conciliation resulted in total civil penalties of $168,000. Centex Construction Group, Inc., Centex-Rooney Construction Co., Inc., and the following corporate officers approved the reimbursement plan: Bob Moss, Gary Esporrin, Brice Hill, Ken Bailey, Chris Genry, and Mark Layman. They are responsible for $112,000 of the penalty. The officers and employees who served as conduits for the contributions were Bob Moss, Gary Esporrin, Bruce Moldow, Gary Glenewinkel, D.J. McGlothern, Albert Petrangeli, Ted Adams, J. Michael Wood, Raymond Southern, Larry Casey, and David Hamlin. They are responsible for $56,000 of the penalty. According to the conciliation agreement, former Rooney CEO Robert Moss encouraged employees to make political contributions and to send copies of contribution checks to him or the company�s CFO. Employees understood that each of their political contributions for which they submitted a check to the company would be considered in determining their year-end bonus. At bonus time, the contribution amounts were increased to offset tax liability and added to the bonus amounts each employee would have otherwise received from any incentive plan. The FECA prohibits corporations from making contributions or expenditures from their general treasury funds in connection with any election of any candidate for federal office. In addition, the FECA prohibits making a contribution in the name of another, knowingly permitting one�s name to be used to effect such a contribution, and knowingly accepting such a contribution. Further, no person may knowingly help or assist any person in making a contribution in the name of another. This prohibition also applies to any person who provides the money to others to effect contributions in their names. There is no indication that any of the recipient federal candidates and political committees were aware that the contributions were being reimbursed with corporate funds.
*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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