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1.J 3,- Lawrence M I c PERKINS COIE A LAW PA~NERSHIPINCLUDING PROFESSIONAL CORWRATIONS 607 FOURTEENTHSTREET. N.W. WASHINCT~N.D.C. 20005-201 I TELEPHONE:(202) 628-6600 . FACSIMILE:1202) 434-1690 March 7, 1996 12 4 ,’I, 1.j 3,- Lawrence M. Noble, Esq. I General Counsel E = on Federal Election Commission -In 999 E Street, N.W. - 6th Floor m go:. w :;[email protected], Washington, D.C. 20463 X‘Cn- u1 ,:gz$i c r-x0-a ’o nZ-4 Re: Complaint Against Michael Huckabee s;5 =- $zc W Dear Mr. Noble: Q) The Democratic Senatorial Campaign Committee DSCC through undersigned counsel, files this complaint charging violations of the Federal Election Campaign Act of 1971 CFECA” or the “Act”), as amended, 2 U.S C. 5 43 1 et H., and related regulations of the Federal Election Commission (“FEC” or the “Commission”), 1 1 C.F.R. 9 100.1 et w..by Michael Huckabee. In sum, publicly available state and federal election campaign records as well as newspaper accounts portray Huckabee as an individual who has disregarded the requirements of the state and federal campaign finance laws.* The record contains numerous examples of Huckabee commingling money raised for his state and federal races, and accepting and using state and corporate money to benefit his federal campaign. Unfortunately, the fill scope of Huckabee’s violations of state and federal campaign finance laws is impossible to determine without further investigation. If, after the Commission has completed such an investigation, it finds reason to believe that Huckabee has violated the law, the Commission should take swift remedial action with regard to violation of federal campaign finance laws, and refer all potential violations of state campaign finance laws to the proper Arkansas state authorities. Huckabee has a history of indifference to federal and state campaign finance laws and sloppy recordkeeping. For example, in response to a recent complaint that The allegations in this complaint are based on published news accounts, FEC reports and other publicly available information. Copies of those matcrials that arc principally relied upon are attached. [04005~l/DA960670.036] March 7, I996 Page 2 Huckabee had illegally accepted corporate contributions for his Senate election campaign, a Huckabee spokesman told the media that the corporate contributions were intended to retire Huckabee’s debt from his 1994 race for Arkansas Lieutenant Governor. In other words, Huckabee’s defense for having accepted corporate contributions for a federal election was that the contributions, which were solicited for ..6 -... and received by his federal campaign committee, should have, in fact, been solicited L... ...... for and received by his former state committee. .. ,. A recent article in the Arkansas Times entitled “Huckabee Gets a Bipartisan Scolding” provides further insight and details into Huckabee’s past problems. For ... .. example, in addition to detailing a number of violations of Arkansas state campaign I finance laws, the article notes that in 1995, Huckabee had his Lieutenant Governor’s campaign pay the expenses for him and his campaign aide, Brenda Turner, to travel to , il. .; , .; Washington, D.C. According to the article, the trip was taken “in part to explore his ..,. Senate prospects.” Commission regulations make clear that “only funds permissible i-. c under the Act may be used for such [testing the waters] activities.” 1 1 C.F.R. .~ , x;: 0 lOO.S(b)( l)(i). In this instance, Huckabee has acknowledged that he used state campaign funds - which are not permissible under the FECA -- to fund his “testing the waters” activities. Indeed, section 110.3(d) ofthe Commission’s regulations specifically prohibits the use of state campaign committee funds in connection with federal elections. Similarly, in July 1995, the Arkansas Democrat Gazette reported that Huckabee was prepared to form an exploratory committee because “of the ‘incredible’ response he has received to letters sent to Republicans across the state asking if should run for the Senate.” In fact, several weeks later, Huckabee did form such a committee. However, Huckabee’s FEC reports failed to show any expenses related to the mailing referenced in the newspaper article. Not surprisingly, news reports state that Huckabee spent $3,000 in printing and $5,000 in “oflice supplies” from his state campaign account in the month of July. It thus appears that Huckabee may have used state campaign funds to finance “testing the waters” activities for his inevitable Senate run, in violation of federal law. The violations noted above are consistent with Huckabee’s history of sloppy bookkeeping. For example, a May 5, 1992 letter from the Commission’s Reports Analyst Division to the Huckabee campaign cites numerous examples of missing or improperly reported information. A follow-up letter on May 28, 1992 also alludes to incomplete reports and Huckabee’s inability to correctly state the total of the contributions his campaign had received. In December 1992, the Reports Analyst ~04005wO1/DAP60670.036~ 3n196 March 7, 1996 Page 3 Division again sent a letter to the Huckabee campaign, this time noting that the campaign had not responded to the FEC’s previous letter requesting more complete information on three prior disclosure reports. It is precisely this attitude that caused a bipartisan state ethics panel that included foxmer Huckabee campaign workers to find that Huckabee’s state campaign records were “inaccurate.” In addition to the violations noted above, Huckabee’s 1996 Senate campaign has already filed 1995 year-end FEC reports that list 44 donors without their occupations identified. Furthermore, there is no evidence that Huckabee or his campaign has complied with the Commission’s “best effort’’ requirements. See 1 I C.F.R. 8 104.7(b). Already, in response to a complaint filed earlier this month, Huckabee has acknowledged that his campaign accepted illegal corporate contributions. Instead, Huckabee appears to have shown indifference to the FEC’s prohibitions, limitations, and reporting requirements. There is no better evidence of this than the Audit Division’s numerous correspondence with Huckabee’s 1992 Senate campaign. In order to prevent a replay of those events, and in order to remedy past violations of the Act, the undersigned requests the Commission to undertake a full and comprehensive investigation of Huckabee and his campaign. Respectfully submitted, df&Marc E. Elias Counsel for Democratic Senatorial Campaign Committee March 7, 1996 Page 4 +K(LT OF1 7T COcuul.4BlA ) a SUBSCRIBED AND SWORN to before me this 7day of fihW-4-1996. ..i::*..A. ly took $195 ' ' BYRACHELO'NEAL actually was itn individual c0ntri.- DanrraaW3n8CppMBubsU bution @rn Roger Meek Jr., a man- ,Republican U.Gov. Mike Huck- aging partner of the Fort Smith abee of Texarkana is the subject of company. a Complaint filed Friday with the He said tbe Relta Beverage Federal Eleclioa Commission. Group contributioa?wa~i intended io The Democratic Senatorial Cam- help retire Huckabee's debt ftom paign Committee at Washington his 1884 race for lieutenant govff- lodged the complaint, alleging that nor. "he money will be returned to HUckabee accepted S1,XMin illegal the Memphis corn any, Lott said. corporate contributions. Corporate Democrats ti e race are AUOP contnbutions art prohibited in all ney Cenerel Wmton Bryant, Jones- federal races. born lawyer Bill Bristow, State Sen. ;Uuckabee is expected to be the Lu Hardin of Rusellville, Little GQP nominee in Rock lawyer sandy McMath, state the race to suc- Sen. Kevin Smith of StutQart and ! ceed Sen. David Mark Brown of CIbot mor. @Ark Huckabee and Bryant already mor an- have reported contributions for the nouoced last Nov Sgeneral election even thou$$ April that he they have yet to CFin their paat wvold nor seek a nominations. An F'EC spokesman .I fourth term. Ar- said Friday that candidates are al- hn-S.5 VOWN lowed to accept money For a geud have never election campaign Woore winning elected a Re- Mike Huckabee the priaran. U !.be candidate does i pablican to the Senate not win his party3 nomination. be -Bruce LoLC a spokesman for genenleleclloncvntribulionsmust HuPkabec's campaign. said the beretumed. campaign conmihution report con. None of tht other Senete eandi- (ai& erran. He said an amended dates reported contributions for the report will be filed with the FEC. general election. .,Democrats charge that Huck- According to FEC reports flied abee accepted money from two Jan. 31. Bryant received money for ceporations that do not have PO- his general election campaign bm l~kalaction committees. The corn. two contribubm - Graham Catlet& p%ies and the amounts of their $500, and Meredith C&tt SW. mtions are Fort Smith Coca- Both are LiMe Ruck kwjers. Tbey C& Bottling Co.. 5500; and Delta also gave Bryant $l,oeO ea& for his Beverage Group Inc. of Memphis, primary campaign. $m. Huckabee's general election ' :;Congressional candidates may campaign contributions were from qcepl campaign contributions of Linda Weaver of Mawtdlc, $1,ooO; u to $1,OOO per election from indi- Virginia Bailey of Littie Rwk, m, viiiials political action committees and Colin McMillan Roswell, and political part^ committees. N.M.,$l,oOO. Each of the three con- '79 Mike Huckabee is having so Lri~utorsgave$1,000EorHuckabee1s m&h wuble raising money for his primarycampaign. Bryant reponed Senate race that he has to take ill6 total contributions of $422.518 and galcontributions, then maybe he Huckabee reported total contribu. 4ouldnl be running" said Don Frt tions.~..~. of It2Q8..903. ley, executive director of the Dems Charies Miiler, Bryant's cam- cri~ticSenatorial Campaign Com- paign manager, said the attorney @tee. general is not actively soliciting ::Asaid the $so0 contribution contributions for FI fall campaign. .- . ... .. __ -._. .. :=-,- I li ..i.:li : n ,n v c F' t. P .. .. I ?or ordo r r ..
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