Citizens for Responsibility and Ethics in Washington - FEC

FEC vote should mean campaign funds can't pay all Vitter's legal fees tied to D.C. Madam case

crew — Fri, 22 Aug 2008 08:43:39 -0500

CREW released this statement after we got the news that the FEC Commissioners deadlocked

Today’s decision indicates the FEC has finally recognized that at least in some cases, members of Congress should not be allowed to use campaign funds to bail them out of legal problems of their own making. This breaks with the FEC’s pattern of granting members permission to pay lawyers with campaign funds nearly every time the issue has been raised. It remains to be seen whether this is a one-time decision or whether the FEC really is breaking with its past precedents.

Here's how the Times-Picayune described the FEC proceedings:

Dividing along partisan lines, the Federal Election Commission couldn't agree Thursday on whether Sen. David Vitter, R-La., can use campaign money to pay all the legal costs related to his involvement in a Washington escort service scandal.

In a 3-3 vote, with all three Republicans voting yes and all three Democrats no, the commission deadlocked on whether Vitter could use campaign money to pay more than $160,000 in legal fees accrued in monitoring the federal criminal case against Deborah Jeane Palfrey, the so-called "D.C. Madam," and quashing her defense team's subpoenas of the senator. A majority vote is required for passage of a resolution.

FEC Staff: VItter shouldn't be allowed to use campaign funds to pay legal fees from D.C. Madam case

crew — Thu, 21 Aug 2008 07:23:09 -0500

This staff decision makes sense to us. Vitter's involvement with the D.C. Madam had nothing to do with his status as a federal candidate. His campaign account shouldn't be a legal slush fund. We hope the FEC upholds the staff recommendation:

In asking for permission to use campaign money for legal expenses, Vitter's attorneys said that he would not have been subpoenaed by the Palfrey defense were it not for his status as a U.S. senator.

The commission's lawyers said that "even assuming that to be true, " it would not be enough to justify use of campaign money to pay the $85,322 in legal fees to quash the Palfrey subpoenas and another $75,213 for lawyers to monitor the Palfrey legal proceedings. Vitter's attorneys said that the senator already has spent $70,000 of his own money to cover the legal bills, which amounted to more than $200,000.

"Here Sen. Vitter's need for legal representation to quash Ms. Palfrey's subpoenas stemmed from his role as a potential witness in Ms. Palfrey's trial and was not related to information known to or acquired by Sen. Vitter during the course of his candidacy or in the performance of his duties as a U.S. senator, " the FEC attorneys wrote. "Moreover, Sen. Vitter's obligation as a witness to comply with a valid subpoena would exist irrespective of Sen. Vitter's campaign or duties as a U.S. senator."

In the end, Palfrey didn't call Vitter as a witness, although the federal judge overseeing the case said there was no legal impediment to her doing so.

CREW, joined by two Floridians who worked for Rep. Vern Buchanan, files FEC complaint against Rep. Vern Buchanan

crew — Tue, 19 Aug 2008 10:57:44 -0500

Today, CREW and Florida citizens Carlo Bell and D.J. Padilla (both of whom worked for Buchanan's car dealerships) filed a complaint with the Federal Election Commission (“FEC”) against Rep. Vern Buchanan (R-FL) alleging serious violations of campaign finance law. The complaint and affidavits of Bell and Padilla can be found here.

Rep. Buchanan owns several car dealerships in Florida. In September 2005, dealership employees were pressured into contributing to Rep. Buchanan’s congressional campaign and some were reimbursed for making contributions. Former employee Carlo Bell was called into a manager’s office and told that if he was part of the “team” he would make a contribution. Fearing for his job, Bell agreed to make the donation and was handed $1,000 in cash. Bell also saw two other employees, Jack Prater and Jason Martin take cash in return for promising to write checks and FEC reports confirm that both men made $1,000 contributions to the Buchanan campaign.

Dealership employee D.J. Padilla was told that any employee who donated to the campaign committee would be repaid, but he refused to participate knowing that accepting repayment for a contribution is illegal.

CREW’s complaint alleges three violations of campaign finance law: 1) threatening employees with reprisals to coerce them to make campaign donations; 2) making contributions in the name of another; and 3) making corporate contributions.

CREW’s executive director Melanie Sloan said today:

The allegations against Rep. Buchanan, which are backed up with affidavits and a bank deposit slip, are very serious and may involve criminal conduct. The FEC should investigate and refer the matter to the Department of Justice for further action.

The FEC is operational again, but don't expect any decisions anytime soon

crew — Fri, 27 Jun 2008 10:40:37 -0500

CREW has been calling for a functioning FEC for awhile now. Finally, the Senate has approved the full slate of Commissioners, but don't expect any decisions anytime soon:

“The FEC moves at a snail’s pace,” said Richard Hasen, an election law expert a Loyola Law School in Los Angeles. “People think the FEC wakes up in the morning and just starts issuing rules on things it doesn’t like,” Hasen added. “It just doesn’t work like that.”

The commission has been unable to issue rulings since January due to a standoff between the White House and Senate Democrats over nominees that left it without a working quorum. But the decision last month by former Republican Commissioner Hans von Spakovsky to withdraw his nomination quickly ended the deadlock.

The Senate confirmed five nominees Tuesday. An FEC spokesman said they will be sworn in within days.

With one holdover commissioner, Democrat Ellen Weintraub, and five new ones, the commission faces pressure to hit the ground running.

The Democratic National Committee has filed a complaint with the FEC charging McCain, the presumptive Republican presidential nominee, committed himself to remaining in the public financing system through August by using the prospect of having the money as collateral for a loan. As a result, McCain has broken the law by spending private funds, the DNC charged.

A spokeswoman said a related DNC lawsuit filed Tuesday aims to “make it clear this issue should be at the top of the FEC’s agenda.”

McCain’s camp calls the lawsuit a publicity stunt. FEC watchers agree that while the DNC complaint may help highlight the candidate’s maneuvering around laws he has championed, the commission almost certainly will not take a step that affects McCain’s chances before November.

“There is little chance they are going to do anything to hurt a presidential candidate,” said Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington.

Tennessee papers pick up FEC complaint against Blacburn

crew — Thu, 12 Jun 2008 09:50:12 -0500

Yesterday, CREW and Tennessee citizen Barbara Kaye Ginsberg filed an FEC complaint against the campaign committee of Rep. Marsha Blackburn. Today, The Memphis Commercial=Appeal covered the complaint:

A Washington watchdog group and a Germantown constituent have filed a complaint against U.S. Rep. Marsha Blackburn's campaign committee with the Federal Election Commission.

Barbara Kaye Ginsberg, 68, a retired homemaker and a resident of the 7th Congressional District since 1977, jointly filed the complaint with Citizens for Responsibility and Ethics in Washington, citing "serious violations of the Federal Election Campaign Act."

In April, Blackburn announced that she was revising most of the campaign finance disclosure reports she had filed since first seeking office in 2002 because she had failed to report $286,278 in expenditures and $102,044 in contributions.

Blackburn campaign spokesman Darcy Anderson responded to the complaint in a prepared statement: "Rep. Blackburn, in holding her campaign to a strict ethical standard, self-initiated a reconciliation of her campaign accounts. The reconciliation confirmed that all funds were properly raised and properly spent. She is confident that FEC review of those records will agree with this assessment."

Ginsberg was awaiting surgery and was unavailable for comment Wednesday, but her husband, David, a retired U.S. Army lieutenant colonel, said she approached CREW because "she just felt like she wanted to do something to deal with corruption in high places."

Also, The Nashville City Paper weighed in:

A Washington, D.C.-based good government group filed a complaint Wednesday with the Federal Election Commission alleging Congressman Marsha Blackburn’s campaign and her treasurer violated federal campaign finance law.

Citizens for Responsibility and Ethics in Washington (CREW) said Blackburn (R-Brentwood) violated campaign finance law through failing to report more than $100,000 in contributions and about $286,000 in spending dating back to 2002.

“Given the Blackburn campaign committee’s longstanding pattern of filing inaccurate FEC reports and the large amounts of money involved, the FEC should step in, investigate the committee and sanction it appropriately,” said Melanie Sloan, CREW’s executive director, in a statement.

CREW files FEC complaint against campaign committee of Rep. Marsha Blackburn (R-TN)

crew — Thu, 12 Jun 2008 07:32:33 -0500

CREW and Germantown, Tennessee resident Barbara Kaye Ginsberg filed a complaint with the Federal Election Commission (FEC) today against Rep. Marsha Blackburn’s campaign committee, Marsha Blackburn for Congress, and the committee’s treasurer, Tea Hoffman.

After receiving 33 letters from the FEC regarding possible reporting errors since Blackburn first ran for Congress in 2002, the campaign committee undertook its own internal audit, handled by Don McGahn, who has been nominated to become an FEC Commissioner. The review showed that the campaign had failed to file correct FEC reports since Rep. Blackburn first ran for office in 2002. The committee had received over $100,000 in unreported contributions, including a $1,000 contribution from former Rep. Duke Cunningham's campaign committee and had failed to report $286,000 in expenditures, including nearly $19,000 paid to Blackburn’s own daughter. Blackburn was forced to file amendments to all 32 previously filed FEC reports.

Blackburn’s campaign committee had been the subject of an FEC investigation in 2006, resulting in a $1,500 penalty. The campaign committee’s failure to report certain contributions was a focus of the investigation. Nevertheless, at the same time that investigation was underway – and as the Cunningham scandal was breaking – the campaign committee failed to disclose the Cunningham contribution. In fact, the Blackburn campaign did not disclose the Cunningham contribution until three and a half years after it was received.

CREW’s complaint alleges that Blackburn’s campaign committee violated federal campaign finance laws by failing to report the contributions and expenditures. The complaint also alleges that the campaign committee may have committed perjury by signing a statement that all information provided to the FEC to resolve the then pending enforcement matter was true and accurate when the committee had failed to report the contribution from Friends of Duke Cunningham.

CREW’s executive director Melanie Sloan said:

Given the Blackburn campaign committee’s longstanding pattern of filing inaccurate FEC reports and the large amounts of money involved, the FEC should step in, investigate the committee and sanction it appropriately. In addition, if it turns out that the campaign committee deliberately hid the Cunningham contribution when negotiating a settlement with the FEC, the Department of Justice should consider whether a perjury prosecution is appropriate.

CREW: FEC nominee Donald McGahn must answer questions about role in FEC case against Tom DeLay's PAC

crew — Fri, 6 Jun 2008 12:45:28 -0500

CREW has serious concerns about the nomination of Donald McGahn as FEC Commissioner. We're raised them before at FixTheFEC.org. McGahn is being sued for malpractice in a case stemming from his representation of Tom DeLay's leadership PAC. As Melanie Sloan states so forcefully, McGahn must answer questions about that case:

Before voting on the nomination of Donald McGahn to be a member of the Federal Election Commission, the Senate should require Mr. McGahn to answer questions about his role in a FEC enforcement case against Tom DeLay’s former leadership PAC, Americans for a Republican Majority PAC (ARMPAC). Former ARMPAC treasurer Corwin Teltschik has sued Mr. McGahn for malpractice in federal court for settling the case, which included claims against Mr. Teltschik, without his knowledge or consent. In his complaint, Mr. Teltschik alleges that he may lose his license to practice law in Texas as a result of McGahn’s allegedly improper conduct.

If Donald McGahn committed malpractice in settling a campaign finance matter, clearly he cannot lead the agency charged with enforcing those very same laws. Mr. Teltschik’s case raises questions not only regarding Mr. McGahn’s credentials as a campaign finance lawyer, but also his understanding of legal ethics.

Oppose Donald McGahn's nomination to the FEC

crew — Wed, 28 May 2008 12:39:06 -0500

Sign our petition at FixTheFEC.org opposing Donald McGahn's nomination as FEC Commissioner.

Here's why Donald McGahn is not the right choice for FEC Commissioner:

Mr. McGahn has shown disdain for the FEC. He once described the FEC as “not like other agencies because you have ... the fox guarding the hen-house. You gonna appoint your guys to make sure you are taken care of. The original intent was for it to be a glorified Congressional committee. That’s the way I see it.”

Mr. McGahn was a member of former Majority Leader Tom DeLay’s (R-TX) legal team, representing Mr. DeLay in legal and ethics matters regarding the Jack Abramoff affair at the time when Mr. DeLay was indicted on campaign finance violations in Texas and admonished for unethical conduct by the House Ethics Committee.

These facts suggest that Mr. McGahn would be unable to vigorously enforce campaign finance laws fairly and without regard to party affiliation. He is not the right choice for FEC Commissioner.

Von Spakovsky withdraws FEC nomination

crew — Fri, 16 May 2008 16:18:54 -0500

As we reported earlier this week, Senate Majority Leader Harry Reid told the Bush adminstration that unless the nomination of Hans Von Spavoksy was withdrawn, there would be no FEC:

REID: I've had private discussions with Bolten, Josh Bolten. I've had many things public in nature, in fact most publicly, we've exchanged a number of letters back and forth. Here's where we are now. We have three Democrats that we are happy to have on the Federal Election Commission. They have three Republicans they're happy to have on the Federal Election Commission. We will not let one of them be approved. His name is Von Splotsky or something like that. (Laughter) So they're going to have to make a decision, they're going to have to replace him or there will be no FEC.

Today, Von Spakovksy withdrew his nomination according to TPM Muckraker:

"It is with regret that I write to request that you withdraw my nomination," Spakovsky wrote in a letter to the President today. In his letter, Spakovsky explains that Democrats' opposition to his nomination has caused a battle that has been "extremely hard on my family and quite frankly, we do not have the financial resources to continue to wait until this matter is resolved."

Senator Reid on the Bush administration: "They're going to have to replace [von Spakovsky] or there will be no FEC"

crew — Wed, 14 May 2008 14:57:18 -0500

On Monday, Senate Majority Leader Harry Reid held a question and answer session with progressive journalists. Reid was asked about the FEC nominations and provided a very blunt answer:

Question: [W]hat do you foresee in general with presidential nominations going forward this session and particularly with the FEC?

REID: I've had private discussions with Bolten, Josh Bolten. I've had many things public in nature, in fact most publicly, we've exchanged a number of letters back and forth. Here's where we are now. We have three Democrats that we are happy to have on the Federal Election Commission. They have three Republicans they're happy to have on the Federal Election Commission. We will not let one of them be approved. His name is Von Splotsky or something like that. (Laughter) So they're going to have to make a decision, they're going to have to replace him or there will be no FEC. And they need it worse than we do. I will also say this, Mason had an uncharacteristic trait, he was fair. And I have tried to be fair in the people I choose to go on the FEC, for example Steve Walther, he's not even a Democrat, he's an independent. He's one of the Democrats on the Federal Election Commission. I think the Federal Election Commission is important, I wish it had more power, more teeth than what it has legislatively. But it still is a lot better than nothing. And the Republicans have always hated the FEC, but now when McCain needs something, they're rushing around trying to get something done. We'll do it our way or it won't get done.