MUR 5408: Reverend Al Sharpton, Sharpton 2004 and National Action Network

The Commission reached settlement agreements totaling $285,000 in civil penalties with Rev. Alfred C. Sharpton, Sharpton 2004 and the committee’s treasurer, Andrew Rivera; and National Action Network, Inc., a non-profit organization Sharpton founded and served as President of since its inception.

Background

During his 2004 Presidential campaign, Sharpton traveled extensively and routinely mixed travel for his campaign committee and National Action Network. An FEC audit and investigation revealed that National Action Network and other entities paid $387,192 in campaign expenses. The FEC determined that National Action Network made payments totaling $107,615 for committee expenses and $73,500 in payments to consultants and vendors for campaign-related work, violating the prohibition against corporate contributions. Sharpton's sole proprietorships, Rev-Als Production and Sharpton Media LLC, also paid $214,577 in campaign travel expenses and an additional $65,000 came from unknown sources. None of these in-kind contributions were disclosed in the committee’s disclosure reports.

Outcome

Sharpton, his Presidential campaign committee, Sharpton 2004, and Andrew Rivera, in his official capacity as treasurer, agreed to pay a civil penalty of $208,000 for failing to report accurately all receipts and expenditures, receiving excessive and prohibited in-kind contributions and accepting impermissible corporate contributions. They also agreed to refund $10,500 in unresolved excessive contributions, disgorge $9,000 in excessive contributions and refund $181,115 to National Action Network or disgorge funds to the U.S. Treasury. National Action Network, Inc. and Sharpton, as president, agreed to a civil penalty of $77,000 for making prohibited contributions to Sharpton 2004.

Respondents also agreed that they misstated receipts and disbursements and cash on hand, understated by $231,753, received $15,000 in loans from unknown sources and received $10,500 in excessive contributions from individuals.