Press

PRESS

October 31, 2007

CREW FEC Complaint Against MZM & Wade results in $1,000,000 Penalty - 2nd Largest in FEC History

Washington, D.C. – Today, as the result of a complaint filed by Citizens for Responsibility and Ethics in Washington, the Federal Election Commission (FEC) announced the second largest fine in FEC history -- $1,000,000 -- has been imposed against MZM and Mitchell Wade.

In June 2005, Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the FEC alleging that MZM, Inc. and its president, Mitchell Wade, violated the Federal Election Campaign Act. CREW's complaint was based on an article appearing in the San Diego Union-Tribune and alleged that Wade had used corporate funds to reimburse employees for contributions made to members of Congress who Wade believed could be helpful to MZM.

MZM and Wade have entered into an agreement with the FEC admitting that MZM made corporate conduit contributions to the campaigns of Rep. Virgil Goode (R-VA) and former Rep. Katherine Harris (R-FL) and agreeing to pay $1,000,000 to settle the matter.

Melanie Sloan, executive director of CREW, said today, "We are gratified to learn of the FEC's disposition of this matter. As the presidential campaign season progresses, a fine of this magnitude should serve as a warning to all political donors that violating federal campaign finance laws has serious consequences."

The FEC release can be found here: http://www.fec.gov/press/press2007/20071031mzm.shtml

Click Here to read CREW FEC complaint and exhibits

Click Here to read FEC response

Click Here to read FEC General Counsel's Report

Click Here to read Wade Conciliation Agreement

Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions. For more information, please visit www.citizensforethics.org or contact David Merchant at 202.408.5565 or dmerchant@citizensforethics.org