MUR 5628: Contributions in the name of another

The Commission has entered into a conciliation agreement with AMEC Construction Management, Inc. (AMEC), in which AMEC has agreed to pay an $85,000 civil penalty for violating the Federal Election Campaign Act (the Act) by reimbursing employee contributions. The company has fired or demoted those implicated in the scheme.

Background

The Act prohibits corporations from making contributions or expenditures from their general treasury funds in connection with any election of any candidate for federal office. The Act also prohibits any officer or director of any corporation from consenting to any such expenditure or contribution by the corporation. In addition, it is unlawful for any person to make a contribution in the name of another, or for any person to knowingly permit his or her name to be used to make such a contribution.

AMEC voluntarily provided information to the FEC regarding employee contributions that it had reimbursed several years before it made its submission to the Commission. Specifically, AMEC’s predecessor, Morse Diesel International, reimbursed employee contributions first by using its expense account system, and later by paying special bonuses through its payroll system. AMEC’s then chief operating officer and/or its then chief financial officer determined which contributions to make and which employees would make them and then be reimbursed by the corporation. The contributing employee then received a bonus which, after taxes, equaled the amount of the contribution. AMEC provided information to the FEC indicating that AMEC reimbursed $16,935 in contributions between October 15, 1998, and December 22, 1999. Additional reimbursements were made in earlier years. AMEC had determined that four officers and two supervisory-level employees were involved in its contribution reimbursement program. After concluding its internal investigation, AMEC fired or demoted those implicated employees who still worked there.

Conciliation agreement

Having accepted an $85,000 civil penalty payment (more than five times the amount of the disclosed reimbursed contributions) for violations that AMEC itself brought to the agency’s attention, the Commission chose not to impose additional civil penalties that it otherwise may have sought from the six employees identified in AMEC’s internal investigation. Similarly, the FEC chose not to expend its resources conducting a protracted investigation of admitted violations several years old, but instead decided to rely on the truthfulness and completeness of AMEC’s submissions. However, in the conciliation agreement, AMEC agrees that if it made false statements or failed to disclose material information concerning its reimbursements, then such conduct would constitute a violation of the conciliation agreement. If a court determined that AMEC so violated the agreement, AMEC would consent to a civil penalty equal to 200% of such reimbursements.

Additional information

For additional information on this case, please visit the Commission’s Public Records Office or consult the Enforcement Query System on the FEC’s website and enter case number 5628.