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Federal Election Commission | United States of America
  • Press Release

Four Compliance Cases Made Public

October 14, 2004

For Immediate Release
October 14, 2004		 Contact: Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis
COMPLIANCE CASES MADE PUBLIC
 

WASHINGTON -- The Federal Election Commission has recently made public its final action on four matters previously under review (MURs). This release contains only disposition information.

1. MUR 4788  
     
  RESPONDENTS:

(a)    California Democratic Party

(b)   Democratic State Central Committee of California ? Federal, Katherine Moret, treasurer

(c)   Democratic State Central Committee of California ? Non-Federal, Katherine Moret, treasurer

(d)   Friends of Lois Capps, David Powdrell, treasurer
  COMPLAINANT:

Michael Schroeder, Chairman, California Republican Party (CRP)

  SUBJECT: Use of non-federal funds which contained prohibited funds; disclaimers; failure to disclose independent expenditures; failure to report contribution; excessive contribution; exceeding coordinated expenditure limit
  DISPOSITION:

(a-c)   Probable cause to believe, litigation initiated

  January 2003*

  -Final Order and Judgement: June 4, 2004

  $30,000 civil penalty [See FEC v. California Democratic Party , 2004 WL 865833 (E.D. Ca. 2004)]

  [re: use of non-federal funds which contained prohibited funds; disclaimers; failure to disclose independent expenditure]

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

  [re: excessive contribution; exceeding coordinated expenditure limit]

(d)   Reason to believe, but took no further action*

  [re: use of prohibited funds; failure to report contribution]

  The complaint alleged that the Democratic State Central Committee of California (a.k.a. the California Democratic Party (CDP)) made illegal expenditures, including ?soft money? expenditures for direct mail pieces that expressly advocated Ms. Capp''''s election in the March 10, 1998 , special election. The FEC found probable cause to believe that CDP and its federal and non-federal committees used impermissible funds to finance express advocacy communications, misreporting the disbursements for the communications as allocable generic voter activity instead of independent expenditures, and for failing to include proper disclaimers in the communications. The Commission then rejected the CDP counter offer in conciliation and authorized a law suit.

The U.S. District Court for the Eastern District of California ordered the defendants to pay a $30,000 civil penalty. The Court found that the defendants violated the Act by using non-federal funds to pay for mass mailings and radio advertisements that constituted express advocacy of a clearly identified federal candidate; failure to include the required disclaimers; failure to report the ads as independent expenditures and enjoined them from further similar violations of the FECA.
  DOCUMENTS ON PUBLIC RECORD: Documents from these matters are available from the Commission''''s web site at http://eqs.sdrdc.com/eqs/searcheqs by entering 4788 under case number. They are also available in the FECs Public Records Office at 999 E St. NW in Washington.
     
2-3. MUR 4935 and 5057  
     
  RESPONDENTS:

(a)   Dear 2000, Inc. [4935 and 5057]

(b)   Dear for Congress Inc. [4935 and 5057]

(c)   Friends of Noach Dear ''''93 [4935 and 5057]

(d)   Abraham Roth [4935 and 5057]

(e)   Shael Bellows [4935 and 5057]

(f)   Joseph P. Billig [4935 and 5057]

(g)   Trina Cayre [4935 and 5057]

(h)   Abraham Chehebar [4935 and 5057]

(i)   Jerome Cooper [4935 and 5057]

(j)   Samuel Cygler [4935 and 5057]   

(k)   Yosef Davis [4935 and 5057]

(l)   Michael Fuchs [4935 and 5057]

(m)   Eugene Gluck [4935 and 5057]

(n)   Edith Gross [4935 and 5057]

(o)   Harry Gross [4935 and 5057]

(p)   Frank Johnson [4935 and 5057]

(q)   Jomarr Realty Company [4935 and 5057]

(r)   Andrew Lowinger [4935 and 5057]

(s)   Joseph Mermelstein [4935 and 5057]

(t)   Boris Motovich [4935 and 5057]

(u)   J. L. Rajchenbach [4935 and 5057]

(v)   Carl Rosen [4935 and 5057]

(w)   Manny Weiss [4935 and 5057]

(x)   Steve Zakheim [4935 and 5057]

(y)   Steven Adelsberg [4935 and 5057]

(z)   Boris Kandov [4935]

(aa)   Banjamin Landa [4935 and 5057]

(bb)   Shimon Lefkowitz [4935 and 5057]

(cc)   Abraham Lesser [4935 and 5057]

(dd)   A. & E. Consultants of NY, Ltd. [4935 and 5057]

(ee)   Zev Anfang [4935 and 5057]

(ff)   Ari H. Friedman Associates, Ltd. [4935 and 5057]

(gg)   Sharon Avital [4935 and 5057]

(hh)   Yakov Baum [4935 and 5057]

(ii)   Baruch Beilush [4935 and 5057]

(jj)   Jose Bernstein [4935 and 5057]

(kk)   Hershel Biggelson [4935 and 5057]

(ll)   Blue Spot Co. [4935 and 5057]

(mm)   Leah Brecher [4935 and 5057]

(nn)   C.G.B.P. [4935]

(oo)   James Campbell [4935 and 5057]

(pp)   Nat Cheney [4935 and 5057]

(qq)   Yitchak Ciper [4935 and 5057]

(rr)   Morris Cohen [4935 and 5057]

(ss)   James Cunningham [4935 and 5057]

(tt)   Bashev Dear [4935 and 5057]

(uu)   David Donenberg [4935 and 5057]

(vv)   EDH Associates [4935 and 5057]

(ww)   Yaakov Einhorn [4935 and 5057]

(xx)   Chaskel Elias [4935 and 5057]

(yy)   Elite Insurance Agency, Inc. [4935 and 5057]

(zz)   Avrum Farber [4935 and 5057]

(ab)   Anchil Feder [4935 and 5057]

(ac)   Barney Freeman [4935 and 5057]

(ad)   Moishe Geller [4935 and 5057]

(ae)   Pearl Greenbaum [4935 and 5057]

(af)   Jon Hamil [4935 and 5057]

(ag)   Tony Haugh [4935 and 5057]

(ah)   Health and Home Management [4935 and 5057]

(ai)   Tom Hennessey [4935 and 5057]

(aj)   Sam Hollander [4935 and 5057]

(ak)   Joe Horagh [4935 and 5057]

(al)   Horizon Insurance Agency, Ltd. [4935 and 5057]

(am)   Bill Huppert [4935 and 5057]

(an)   Susan Hyatt [4935 and 5057]

(ao)   Aron Igel [4935 and 5057]

(ap)   Intimate Resources, Ltd. [4935 and 5057]

(aq)   Jacobwitz c/o Jay Import Company [4935 and 5057]

(ar)   Matthew Jones, Jr. [4935 and 5057]

(as)   Irwin Kahan [4935 and 5057]

(at)   Temi Kahan [4935 and 5057]

(au)   Chaim Kahan [4935 and 5057]

(av)   Reuven Kaufman [4935 and 5057]

(aw)   Hershel Klein [4935 and 5057]

(ax)   Yedah Klein [4935 and 5057]

(ay)   Knit Nat Mills, Ltd., Inc. [4935 and 5057]

(az)   Kramer and Shapiro [4935 and 5057]

(ba)   Sterling Krieger [4935 and 5057]

(bc)   Menachen Langer [4935 and 5057]

(bd)   Pesach Lemberger [4935 and 5057]

(be)   Markus Mandelkorn [4935 and 5057]

(bf)   Mark Milberg Marketing, Inc. [4935 and 5057]

(bg)   Conor McHughs [4935 and 5057]

(bh)   Midway Nursing Home Associates [4935 and 5057]

(bi)   Serge Muller [4935 and 5057]

(bj)   Frank Nolan [4935 and 5057]

(bk)   Northernway Mgmt Corporation #1 [4935 and 5057]

(bl)   Berel Oberlander [4935 and 5057]

(bm)   Luzer Obstfeld [4935 and 5057]

(bn)   Nelson Patino [4935 and 5057]

(bo)   Hershel Perslstein [4935 and 5057]

(bp)   Dovid Piller [4935 and 5057]

(bq)   Plymouth Rock Fuel Corp. [4935 and 5057]

(br)   Michelle Portnor [4935 and 5057]

(bs)   Ayre Ringel [4935 and 5057]

(bt)   Pesach Ringel [4935 and 5057]

(bu)   Salvatore Realty Corp. [4935 and 5057]

(bv)   Joshua Salwartz [4935 and 5057]

(bw)   Joshua Schwartz [5057]

(bx)   Sarah Scherman [4935 and 5057]

(by)   Chaim Sieger [4935 and 5057]

(bz)   Mendel Sternhill [4935 and 5057]

(ca)   Bernard Strulovich [4935 and 5057]

(cb)   Surfside Manor Home for Adults [4935 and 5057]

(cd)   Ralph Tabbush [4935 and 5057]

(ce)   The Esplande Hotel [4935 and 5057]

(cf)   Alexander Vais [4935 and 5057]

(cg)   Joshua Weinstein [4935 and 5057]

(ch)   Chaim Welt [4935 and 5057]

(ci)   Martin Wesel [4935 and 5057]

(cj)   Leo Yakubouich [4935 and 5057]

(ck)   Zitta Yakubouich [4935 and 5057]
  COMPLAINANTS:

Sandy Aboulafia, Vice President, Women''''s Democratic Club of New York City [4935]

FEC Initiated (Audit) [5057]
  SUBJECT: Excessive contributions; contributions in the name of another; corporate contributions; failure to file timely and accurate disclosure reports; failure to file and timely file 48-hour reports; failure to report a contribution; improperly reporting refunds and failure to report debts
  DISPOSITION:

(a-d)   Probable cause to believe, litigation initiated May 2003 *

   -Consent Judgement: June 9, 2004

 [See FEC v. Dear for Congress, et al., 03-CV-2897]

  [re: excessive contributions; contributions in the name of another; corporate contributions; failure to file timely and accurate disclosure reports; failure to file   and timely file 48-hour reports; failure to report a contribution; improperly reporting refunds and failure to report debts]

(e)   Conciliation Agreement: $4,500 civil penalty *

(f)   Conciliation Agreement: $1,000 civil penalty *

(g)   Conciliation Agreement: $1,300 civil penalty *

(h)   Conciliation Agreement: $2,000 civil penalty *

(i)   Conciliation Agreement: $1,100 civil penalty *

(j)   Conciliation Agreement: $1,600 civil penalty *

(k)   Conciliation Agreement: $1,000 civil penalty *

(l)   Conciliation Agreement: $1,000 civil penalty *

(m)   Conciliation Agreement: $1,500 civil penalty *

(n)   Conciliation Agreement: $1,000 civil penalty *

(o)   Conciliation Agreement: $1,900 civil penalty *

(p)   Conciliation Agreement: $1,000 civil penalty *

(q)   Conciliation Agreement: $1,500 civil penalty *

(r)   Conciliation Agreement: $6,000 civil penalty *

(s)   Conciliation Agreement: $1,000 civil penalty *

(t)   Conciliation Agreement: $1,000 civil penalty *

(u)   Conciliation Agreement: $1,000 civil penalty *

(v)   Conciliation Agreement: $1,000 civil penalty *

(w)   Conciliation Agreement: $ 900 civil penalty *

(x)   Conciliation Agreement: $2,000 civil penalty *

(y-cc)   Probable cause to believe, but took no further action*

  [re: excessive contributions]   

(dd-ck) Reason to believe, but took no further action*

  [re: corporate contributions or excessive contributions] The Commission sent admonishment letters to 21 companies and 1 individual (S. Muller).

In MUR 4935 the complaint alleged the Dear for Congress Committee (1998 election cycle) accepted excessive contributions and prohibited corporate contributions, filed an incorrect disclosure report and failed to timely file disclosure reports. The complaint also alleged that Friends of Noach Dear ''''93, a state committee, funded a poll which had the purpose of measuring whether Mr. Dear should become a candidate in the 2000 election for a federal election.

MUR 5057 was generated from a Commission audit of the Committee''''s activities during the 1998 election cycle. The audit found that the committee accepted excessive contributions and did not disclose as debts those excessive contributions which it had not been able to refund, accepted contributions in the name of another, and the committee''''s failure to file required 48-hour reports and timely file 48-hour reports. The FEC found probable cause to believe that the committee received contributions in the name of another, excessive contributions and prohibited contributions, failed to timely file disclosure reports, improperly reported refunds and failed to report debts, failed to file 48-hour reports and timely file 48-hour reports and failed to report a contribution. The Commission not being able to conciliate with the respondents filed a law suit.

The parties, solely for the purpose of settling this case, stipulated that the court could enter a consent judgment, with the defendants neither admitting nor denying the findings included in the judgment. The U. S. District Court for the Eastern District of New York provided declaratory, injunctive and monetary relief in favor of the Commission. The Court found that the defendants violated the Act by receiving contributions in the name of another, excessive contributions and corporate contributions, failing to timely file disclosure reports, improperly reporting refunds and failing to report debts, failing to file 48-hour reports and timely filing of 48-hour reports and failing to report a contribution. The Court ordered Dear for Congress, Dear 2000 and Friends of Noach Dear to pay to the Commission all funds remaining in their accounts as of the date that the parties entered into the agreement, Dear for Congress and Dear 2000 will terminate as a federally registered committee, and Abraham Roth, as treasurer, to pay $45,000 civil penalty to the FEC.
  DOCUMENTS ON PUBLIC RECORD: Documents from this matter are available from the Commission''''s web site at http://eqs.sdrdc.com/eqs/searcheqs by entering 4935 under case number. They are also available in the FECs Public Records Office at 999 E St. NW in Washington.
     
4. MUR 5442  
     
  RESPONDENTS:

(a)   Keyes 2000, Inc., William L. Constantine, treasurer

(b)   Paul True
  COMPLAINANT: FEC Initiated (Audit)
  SUBJECT: Excessive contributions; excessive contributions in the form of stale-dated checks; failure to dispose of cash contributions over $50; excessive cash disbursements
  DISPOSITION:

(a)   Conciliation Agreement: $23,000 civil penalty*

  Respondents will remit $95,302 to the United States Treasury.

(b)   Reason to believe, but took no further action*

  [re: excessive contribution]

  Sent admonishment letter.

The Commission audited the Committee for the period from January 1, 1999 through December 31, 2000 . The audit report found that Respondents violated FECA by accepting excessive contributions; had excessive contributions related to stale-dated checks; failed to dispose of a total of anonymous cash contributions that exceeded $50; failed to adhere to an appropriate accounting method for contributions under $50; and made cash disbursements in excess $100.
  DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission''''s web site at http://eqs.sdrdc.com/eqs/searcheqs by entering 5442 under case number. The audit report is also available at the Commission''''s web site at http://www.fec.gov/audits/2000/p00-01-08.pdf These documents are also available in the FECs Public Records Office at 999 E St. NW in Washington .

     

*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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This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public.

The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.