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a CD (N Exhibit B New 527 Group Debut* Ad Attacking Mollohan i September 5,2006
The ad attacking Mollohan is being funded by the Economic Freedom Fund, which Is based In Sacramento, Calif., at the law offices of Charles Bell, the general counsel to the California Republican Party. The group registered with the Internal Revenue Service on Aug. 1.
"News reports say federal prosecutors have opened an Investigation of Alan Mollohan's finances,* an announcer says In the spot The ad also charges that Mollohan received campaign money from people who benefited from legislation he promoted. The ad ends with these words: To be continued." Mollohan has denied any wrongdoing. He faces state Del. Chris Waklm (R) In November. • Meanwhile, Mollohan's campaign began running an ad attacking Waklm's controversial past association with "gray" video poker machines, which are now Illegal In the state.
"Republican Chris Waklm wont come clean about his Illegal gambling machines," the ad's announcer says, while Waklm Is shown In front of video poker terminals. Waklm, a bar owner, admitted In 2001 that he paid out winnings on the 16 gray machines he operated, even though they were for amusement only and and payouts were Illegal.
The state outlawed the gray machines altogether In 2002.
A spokesman for Waklm told the Charleston Dally Mall last week that Waklm's practice of paying customers what they had won was then common at establishments across the state. - Lauren W. WhttUngton • •
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MM • |* |» I Y * » 10 03 2006 Cty B5t14 NN I U M ' T « OB 23 2G06 D00004 X Haul 1M4.I4 TOTAl IN • y y » » 10 04 2006 GA HN • 10 04 2006 12 Lft oo For O rsi TOTM.TN1 ,18 101 10 L/l CO Danjocrafto pnaUanMaj hopaM John KMiybi2004lh) RndtngMpjavtfalalBMWonadsandpBylnQtor _ • >^ ^fc^HW ^^mA ^M^hBBW^BA ^k§A^i^^&^^ B^h^ <\BM^ AaT^Ml^kM^ tf%_tAJ &J^ Sacmm^ Calf.4>aaadB27 group. Nan^ convanoonai campajon aiianca nNaiooonB! hi 2004. Ptny gava $446 mBtan to Swft Boat Valarara andPOWktorTratitoiuntatowWonada igKafry.Panygavaai»otriar$3iiaatotoPrDgrMifr Ife i 2004 fiat ratoad $38 mtt Tha Economic Freadom Fund WBB craalad on Aug. 1. Parry, \Mho owns Parry Homaa baaad hi HouHon. to via groups only contributor, at (aaataofar.Parryrnadapaymantaof$2rnmononAug. 18 and $3 mBton on SapL 5. BngwMh Fadaral EtocHona Commlaalon, nahaid ravaaladRlaiocualnglliarlortiontiMo —Mollohanand Rap. Jm Marahal. F>Qa. Tha Econornicrraadofn Fund hadakaady apart aaghtty mora than $600,000 buying MavWon ada, aooordinglotriaFB^tUng. Parry haa doaa Haa to Kad Rova, Bush's top advtoar, and formar Housa Majority Laadar Tom DaUy, R-T< Tha Economic Fraadom Fund raoantty hlrad Stavana Raad Curdo A Pothobn, an ArUnglon, Va., madia flrm. to prapara ada againat Molohan and Marshal. Thai Irm^aopraparadthaSwABoatadi attKlang Karry^ rraWary aarvfoa In VMna^ '. "ttiiatramandoualnvattmanllntwD Taxaa. tha norm of Tom Delay. KM Row and olhar toka who gad* campaigning. •WaatVlrglntoihouMbaalarniadatthtoatta^ Fao^nrialaollonla«Maflowoongraaak)nal<)an(fldalM campaign. But hi fadaral campaigM, 627 pjroupariavanooonktjutlonlmltt. i am prohfetad flroffl GOiinMintoillno wNh anyona woriunglior a 527 group. lAMWaii U^^Bnoaay., ^^kdhk^l^^A^dfapoKaamant &»nr •iwoaona AJ^Jk^ft^^n a^ opponani-- —^^^^ A, uaiagaif%^J^I^l^Aa^ cnr tf^k^a^ vvaNn Ufl^^^x^ ivunioM f^Jl^! BHI-- •-, • nnrKKfla^ loao• m&mw ... vi^Wa^ fadaral hwaj and we hava had no contact «4iaitoavar«Ahvia group. ConvnttM to §and aannaiki to nonpralo ha aat up that ajanjnbyfannaralnnniand bualnaai conservalvapolM group, acajsedhta of h^ to June. -._.- me Inadvertent won on ray past flmncW dtoctosure They also thaw mat NLPC to dMd wrong In Implying mat I have bnprapMlyb«wAMlftQmmyofllMM The NLPC Mnl to 500-page report tome U.S. Attorney for the Dtotntt of Cohmbto end leaked But tt» group oomrtitsfioVrs»jses to lelsessiJfuB report to T^ DOUQ MOOre, MarelMaTe preSS SOCfOlOfy WHO • ROW lUmifelQ Ml n*flMCDOn campaign, eaid( ~inSSO (Economic Freedom Fund) ads M abeokjlsly noitoadng." Tetovtoton advertisements hi Georgto portray Marshal, whose district InchidesMocon, as being fled to SM. T«d KMWMdy. D4teM., 8tn. Htay Canton. DM.Y., and top. OynHteMeNniwy.CVGL, who tost VMu^kR •^ WipnD^ •«-• I|U FBM I piMOMIWIM * "Jbn (MorshoJI] to not a aoeraL Ha to a coneerveeve. And mh to a guy who dropped out of Princeton to go »n~f t JlABM^M VMWiMnh •AaWA^a, iwner *-•• •MMA^^Bde nifeBM e nNeivehBflMUH^ A AMaMa MIW -^^QJ M uiuiufla tI^^ A ie i^M «•«^ • AAaA^• enA o1- *e runjiie nean, Moore sera. Moore said people running me Eoonomlc Freedom Fund "dont eel back. Thto to a shadow group. They are not taking to reporters. •Whenever you have a group operating on the fringes ate Into, volsri have ma right to know who to rnaldiig ttwM atladoj. Ttia aajdes are n^ Charles H. Ben Jr., a Sacramento lawyer who to general courtseitofjeCalhlomtorUpubfcanParty, signed the Economic Freedom Fund's FEC report and has been listed as the contact person on the group•—s wea*a—o i^ M|§sneA. Bel refused to return several telephone eels Unto weak. A receptJontot at hto oUtoa said, ^Ve have no *~ Irifannaion to give out He wont eel you beck. Thto to not the Freedom Fund's office. "Any ama I tal him someone has caled, ha has told ina to give out anomar number. You are not ma any one who to calng us about Into,' aha said. No ()ne responded to sevenriceas placed to net number. PatM DojwiMm, ooinintmteMkm the ftat I have ever heard of mat group. I have no idea wlwA ft tow what Chuck's InvolvenNiit In the group to.' Between 19^ aiid 2005, Perry gave $15,000 In coritrtN^^ counto tor inoney laundering end o)nsplnjcystsnMnlno^ Pany atoo makee donations to state electionrace s.I n 2002. ha donated more ttian $3.8 m«on to ihiTi Today, ttia Eoonomlc Freedom Fund to atoo aandmg maHnga auppontng two Rapublcan gubaniatortaj i Gov. Sonny Perdue, who to running tor re-etocb^lnOeorgto.aridlncumbenlRsp. Jbn i wno IB niHNNQ for QQWHDT of MNM. To contact iWr writer Pwl J. Nydw, UN t-iMI or cri 348-6104. cr> m oo O 0) rsi o (JO oo rsi O 0> rsi PO Box 111006 SacriMnto.CA 16819 Alan Mollohan used his seat in And over the last decade, their Congress to send $250 million to employees and contractors organizations he helped set up. gave Mollohan almost $400,000 (Source CtMHtstonDriyMil WB) for his campaigns. (MIRK NMvYbffc IIMI WMl Piid for by uw Eoononw FfMdoHi rand PO Box 191006 Sacramento, CA 9BB19 ••••-f:••.--.-t^-^^tf.: «••,-:*-<•. . -..».!:."MIV- •*•• ^e Death Tax It allows the government to tax people a second time on die does not help money they earn and could force family farms and many Georgians to sell their small businesses. when flttri* parents pass OIL Maybe Jim Marshall voted to keep the Death Tax because he wants to fit in... \\ I I I I 1 I M'Ul S i I.I 11 .V- •^ *^ ^^ ww « -^r1 ^v ^ ^ ^^ V^^B OOT7PON Jim Marshall does I represent Georgia values! PiM far toy QM Economic firttdoMfiind Pft Box 191006 Jim Marshall voted against law mmgrants enforcement funding that aids od stamps. local police in reporting illegal immigrants to federal authorities - making it harder for law enforcement to crack down on those who are in this country illegally. (SourceRolCalMU/MM) Congressman Jim Marshall gave into liberal peer pressure. In addition to voting with ibera Nancy Pelositoaid illegal immigrants with tax paid benefits, Jim Marsha joined with ultra-liberal Cynthia McKinney and voted to keep the Death Tax. Jim Marshall does NOT represent Georgia values! Mrifcrfcyfttl ralnltlte Jim Marshall, a slick talking politician \ He has ah \ saying one • •/••'.-.• • • ..i,.: **p $:/V..^.yW£::tfv.- .^. .: • • • •• • ••• : "•••-• . • ..'>••!•'-:•••-.•' .;• •.v' •••• . . • —'i-.'j,"'.s.*.•.:*:.•. •»;.. ».-..•.. ...but • whenhefBtet1 1 o _ _ L _i •'.•.V-SFs. ! - • .. : Example Example Example O He s^ys be ^Qppp payers, tat Em jW&id«JUi •*W .. L voted with Jiberai with tax paid benefit* In feet, K^rsb against ^Wrr.$&fi&i^a, ••.. •' ••;1 .^-:.i In Georgia, Jim Marshall talks like a conservative. But in Washington, Marshall's votes prove he really IS a liberal. The Real Jim Marshall After reviewing the votes, a pattern has developed — a pattern ofliberal votes. KLI:P the Dc^th Tax allowing the government to tax people a second time on the money they earn. (Souru;. HR 8,4/13/03) Jim Marshall voted to AID illegal immigrants with tax-pai• d benefits. In iact, Marshall voted againso t prohibiting illegal immigrants from getting food stamps. Jim Marshall voted AGAINST sanctioning the group Hamas. llamas is responsible lor kill hundreds of Israeli eiti/ens ushu' suicidle homhebon i The votes say it all - is just Washington Paid for by tht Eco POBoxIftttC The Two Lives Marshall In Georgia, Jim Marshall But in Washington, Jim Marshall sounds like Zell Miller... votes likff Cynthia McKinncy anj MO Ubenl San Francisco politician Jim Marshall? )eath Tax allows the government to tax people a second on the money they earn and could force many Georgians to sell ir family farm or small business when their parents pass on, tion to voting numerous times to keep the Death Tax, 9/sfta// voted with liberal San Francisco fan Nancy Pelosi more than 70 percent ime. He also accepted more than I from Pelosi's PAC—the same PAC s been fined for illegally funneling to Democratic candidates. igranhmil Qutmrty Vbting Studtai.wwvtfriy.coin) f mOiDBml«l fcwi Dluf OMiNa fnnmtmmACCOnOnNGm FmmmlnmrfNOOnil nln O-• PO'Boxllltni 8acrairanto,CA96B19 THE DEATH TAX IS KILLING GEORGIA'S FAMILY FARMS AND SMALL BUSINESSES 85 percent of ^mail-business owners reported the Death Tax would make survival of tteir business more difficult or impossible. (Source Th§ Center for tht Study of Tuition) ho is Jim Marshall representing... trial lawyers or Georgia families7 When lawsuit abuse put good doctors out of business and drove up the costjof health care for Georgia families, guess who Jim Marshall supported? Jim Marshall sided with trial lawyers, who donated thousands of dollars to his re-election campaigns, by voting repeatedly against reforming the medical malpractice system and limiting lawsuit abuse. (Source: HR 5,3/13/05,7/2OT& www.tray.com) Paid for by thi Economic FrMdom Rnd ro to into eacraimnto.CASttlB Maybe that explains these votes: Jim Marshall acted more Hillary Clinton and Jim Jim Marshall aided with like Ted Kennedy when he Marshal (must think alike. Cynthia McKinney in voting voted to keep letting trie! lawyers sue Marshall voted repeatedly to keep the egainst sanctioning the terrorist group little Leegue for scrapes end bruises death tax, which could force many Homes—slowing our tax dolars to be during s geme. Georgians to sel their farms and smal sent to the Hemss government in the (Source HR OH, V1404) businesses just to pay inheritance taxes. form of foreign eid. (Source HR I, IfllW) f • 00 fM O Exhibit F CD fsl ?*™*&*f*i&lfn* Alan Mollohan voted AGAINST giving seniors affordable prescription drug coverage. (Source: HR1.il/22/03) Alan Mollohan voted AGAINST additional protection for children from sexual predators and against stricter sentencing for child pornography. (Source: Roll Cad Vote 127,2003) Alan Mollohan voted AGAINST making the child tax credit permanent which means families would be forced to pay more in tax (Source: HR 586, TH1 COMMISSION Alan Mollohan voted AGAINST implementing the security recommendations from the bipartisan 9/11 Commission. (Sourer HR 10.1WD4» *iM for by tto Economic ftwfdon Fund •otoxiimoB :icmmntD,CA 95811 Alan Mollohan voted AGAINST making the child tax credit permanent which means families would be forced to pay more in taxes. (Sourer HR 586,4/18/02) Alan Mollohan voted AGAINST continuing ead Start—an education program that helps prepare ~ung children for school. (Source: HR 2210,7/25/03) TUB Alan Mollohan voted AGAINST the Aviation Security and Antiterrorism Act and AGAINST implementing the security recommendations from the bipartisan 9/11 Commission. (Sourer HR 3953, WB4HR10,1WM) Prid tar by tht Economic Frttdom Fund PMwIIUOB SMramMfcCAMU ?,,; additional protection fo children .-cdat Pitd tar by flu Econonte FrattdoRi Rind PO Box H1W SicrinMffio,CA9M19 So what has Alan Mollohan done for our families? For starters, Alan Mollohan voted against making the child tax credit permanent which means families would be forced to pay more in taxes. (SowwcHRMtVIMHI Mollohan also voted against continuing Head an education program that prepare young children for POBoxlllQQB seconds, a child VI 8 3 £ Ift 00 CO (N Skyrocketing health care costs and good doctors being driven out of business — •5T West Virginia families can't take much more. o Alan Mollohan SIDED with trial lawyers, who have donated thousands of dollars to his campaigns, by opposing efforts to reform the medical malpractice system and limit lawsuit abuse. (Soiree MR t, VWML 7/Wff, mmMUriyMnt More than 325,000 West Virginia seniors are now receiving prescription drug benefits. Congress created the first prescription drug benefit for seniors in Medicare history—increasing coverage in West Virginia by 62%. Each senior is now saving an average of $1,100 a year. Mollohan voted to dony seniors this important new benefit PlWtStd MwW^^MM^i M^Q ^^^VW FBI and Federal Prosecutors have opened an investigation of Alan Mollohan's Finances Congressman Mollohan used his powerful perch on the House Appropriations Committee to funnel $250 million into organizations he helped setup. •*• •'> Qverthe last decade, their employees and Mollohan almost $400,000 for ons h|we;prompted a complaint •'X: uestions whether ^^_ a parallel growth in his personal fortune. ^-t_« m— «...^i— £ —^ ^J bMB^fliBibMMl rMQ IV Of mi BGQmmm m Cm nVHDHI IVw PQBoxWOtt V^N0W"V^^WNMf w^% ^^^vl W Health Care in West Virginia Skyrocketing C Medical Bills Doctors Leaving Our State Senior Access to Prescription Drugs e Real Jim Marshall After reviewing the voles, a pattern has developed — a pattern of liberal votes. allowing the government to tax people a secoi time on the e\' earn (Source: HR S, 4/15/05) Jim Marshall voted to AID illegal immigrants \vith tax-paid benefits. In fact, Marshall voted against egal immigrants iood stamp: (Soimc: HR 4766, 7/13/0.;) Jim Marshall voted AGAINST sanctioning the terroris group Hamas, llamas is responsible for killing hundreds of Israeli citi/ens usin 11 R .;(>Sj, 5/2,3/o(>) The votes say it all - is just Washington o O) 00 (N O en (N Exhibit G Paga 3 Former Swift Boat Attack-ad backar takaa on Houaa Daaocrata Tha Aaaociatad Praaa State ft Local Win Saptatibar 14, 2006 Thursday iXdTXOH-TCTIt Kavavire Copyright 2006 Aaaociatad Praaa All Righta Raaarvad 00 rsi 'ST (N o O) Page 2 Former Swift Boat attack-ad backer takes on House Democrats The Associated Press State fc Local Hire September 14, 2006 Thursday According to its Sept. 8 disclosure, the Economic Freedom Fund has spent $337,753 on the Heat Virginia race, where Mollohan, a 12-term Democrat, faces Republican state delegate Chris Hakim. The group has spent $163,599 in Georgia, where two-term incumbent Marshall is being challenged by former Republican con- gressman Mac Collins. The fund1 a Meat Virginia ada address recant allegations regarding Mollohan'a •thics, citing news reports that he is the subject of a federal investigation into whether ha ateered government money to nonprofit groups that donated to his campaigns. Hakim1 a spokesman Hill Holley said the group is helping to inform voters about Mollohan. •The voters have a right to know Alan Mollohan's dismal voting record on is- sues like child aafaty," said Holley, who noted that Hakim* a campaign has had no contact with the Economic Freedom Fund, which would be illegal. One of the direct mailings paid for by the group accuses Mollohan of voting •against additional protection for children from sexual predators," which Hollo- nan's campaign denies. Mollohan campaign spokesman Gerry Griffith said he thinks the advertising is turning people off. •The influx of negative campaigning from Sacramento is unprecedented, cer- tainly in my 25 years of West Virginia politics, • Griffith said. The Georgia ads portray Marshall, a conservative Democrat from Nacon, as a liberal, associating him with the policies of Democratic Sens. Hillary Clinton of Mew York and Ted Kennedy of Massachusetts, es well as Georgia Democratic Rep. Cynthia NcKiimay, who lost her seat in a Democratic primary this year after a highly-publicised scuffle with a Capitol Hill police officer. Marshall spokesman Doug Moore eaid voters in the district are familiar enough with Marshall's record to know the ads are off base. •Getting out there and calling Jim Marshall a liberal in the Nacon media mar- ket isn't going to be effective," Moore said. •Everybody here knows Jim, and they know he'a conservative." Unlike with Kerry and the Swift Boat group, the Economic Freedom Fund has not questioned Marshall's Vietnam Har service. A former Army Ranger platoon sergeant and recent inductee into the Army Ranger Hall of Ferns, Marshall was awarded two Bronze Stars and a Purple Heart for hie service in Vietnam. •Jim Marshall baa a great military record, and X hope they bring that up be- cause we would love to make that an issue in this campaign," Moore aald. The group also made automated phone calls supporting Republican Rap. Mike Sodral and criticising his Indiana rival, but the effort may have dona more harm than good. A spokeswoman for the Indiana Attorney General's office aald Thursday it will investigate a complaint that the calls violate the state's law against automated phone calls. According to ita filing, the Economic Freedom Fond waa formed to "promote policies and issues favoring economic freedom, growth and prosperity of the economy." The group'a "527" statue refers to a section of the tax law. Such groups can accept unlimited donations for voter mobilisation and issue advertisements aimed at influencing federal elections. on The Hat: Economic Freedom Fundi httpi//www.economicfreedomfund.com LOAD-DATBi September 15, 2006 ENGLISH Page 1 23 of 23 DOCOHBHTS Tha Associated Praia Stata 6 Local Hire September 14, 2006 Thursday 8:42 PM GMT Former Swift Boat attack-ad backer takes on House Democrats W mini By BBH BVAN8, Aaaociatad Praaa Writer O) CO SBCTXOfJl POLITICAL NIKS (N [t 949 words -M ™ DATBUHBi WASHINGTON n Tha Texas homabuildar who helped bankroll tha attack on Democratic presiden- r: tial candidate John Kerry's war record in 2004 ia setting his sights on Democ- ^ rata seeking re-election to Congress, including W.Va. Rap. Alan Nollohan. Bob J. Parry i a major Republican donor with close tiaa to White House adviser Karl Rove and former House Majority Leader Tom DaLay. has donated $5 million since Aug. 18 to a newly formed California group called tha Bcoaomie Freedom Fund. Like tha ant i-Kerry Swift Boat Veterans for Truth, tha fund ia a so-called 527 group that is not subject to conventional campaign finance restrictions and can spend unlimited amounts on election advocacy. So far, tha new group which waa formed laat month and liata Parry aa ita sole donor has spent slightly more than $500,000 on television ada and mailers criti- cising Nollohan and Democratic House Rep. Jim Marshall of Georgia, according to a disclosure form filed laat weak with the Federal Election Commission. According to ita Web site, the group alao ia distributing mailers supporting Republican Georgia Gov. Sonny Perdue's re-election campaign and Jim Nusale of Iowa, a Republican congressman running for governor. Anthony Holm, a spokesman for Parry, declined to comment on tha contribution or on further plans for using the group'a money. Charles H. Ball Jr., a Sacra- mento attorney liatad aa tha fund'a contact, did not return phone calls Wednes- day or Thursday. On ita FBC filings, tha group liata aa ita address the Sacramento office as Ball'a law firm, Ball, McAndrawa fc Hiltachk. Tha Weat Virginia and Georgia congressional races that tha group ia targeting are considered among tha OOP'a beat shots at picking up seats in an election year where some experts believe tha party ia in danger of losing its majority in Congress. Tha amount of money involved ia significant. Perry's $5 million donation, made din two payments on Aug. 18 and Sept. 5, ia among the largest, if not tha largest, donation from an individual to any 527 group thia year, although contribution records are still being filad. It exceeds tha nearly $4.5 million that Parry gave tha Swift Boat Veterans for Truth in i 2004, whan ha provided tha aaad money to help launch tha group and was ita big- gait donor. And it'a more than double tha amount that billionaire Democratic do- nor George Soros has given to 527 groups thia year, according to tha Web aita Political MonayLina, which tracks campaign finances. Soros has given about $2.3 million this year to several outside groups. 01 CO (M O O> (N Exhibit H Swift Boat ad bankroller targets 2 Ga. Democrats By Bob Dart Cox Washington Bureau Published on: 09/23/06 Washington — The Texas millionaire who paid for die Swift Boat ada against Democratic presidential candidate John Kerry in 2004 is now taking aim ata pair of Democratic congressmen from Georgia, Bob J. Perry gave $5 million to the Economic Freedom Fund, which is headquartered in California and has paid for TV ads, fliers and telephone messages criticizing Jim Marshall and John Barrow, whose re-election bids are among me hottest races in the country this tall. Perry, a home builder who lives near Houston and has long ties with White House adviser Karl Rove, gave $4.45 million to Swift Boat Veterans for Troth during the 2004 election cycle, according to the Center for Responsive Politics, a nonpartisan group that tracks campaign financing. The Swift Boat group paid for ads that questioned the Vietnam wartime heroism of Kerry, the Democratic presidential candidate. Both the Economic Freedom Fund and Swift Boat Veterans for Truth are 527 political groups, named for the tax provision under which they operate. Their donors are not subject to donation limits because the groups are supposedly independent from the political parties and candidates. Campaign spending reports have yet to be filed, but Perry's donation to the Economic Freedom Fund probably makes him the largest donor so tar to such groups in the 2006 election cycle, said Massie Kitsch, a spokesman for the Center for Responsive Politics. Perry has drawn some comparisons with George Soros — the multimillionaire Democratic donor who funded MoveOn.org and other left-leaning 527 groups during the last election cycle — though Perry gave only about a third of Soros' $23.4 million in the 2004 election cycle. But this time out, Perry is well ahead of Soros, who has given $1.9 million to 527 groups, according to the reports filed so tar. Campaign finance filings show Perry as the only donor to the Economic Freedom Fund, which was formed hut month to "educate the public concerning issues related to the preservation of economic freedom, the promotion of economic growth and prosperity for the people of the United States of Ai Ptoriecsibtotrienjirfsheadquarten spots in die Georgia races were created by Stevens Reed Qircio ft Potholm, an Alexandria, Va.t political consulting firm that also created the Swift Boat spots. In one spot, Marshall is accused of talking like a conservative in Geocgia and voting as a liberal in Washington. In another, his votes are cooipaied to those of Sens. Ted Kennedy and Hillary Clinton and Rep. Cynthia McKinney, and his vote for Nancy Pelosi to be speaker of the Home is highlighted In the TV spot hi his nee, Barrow is depicted as voting to benefit trial lawyers and against small bush Doug Moore, a spokesman for the Marshall campaign, called the ads "Bob Perry's attempt to go around the campaign finance laws." "I'd like to get Bob Perry in a room with the truth and introduce them," Moore said He said the ads could have an effect on the campaign, "but I don't know that they will" "They're pretty much over the top," he said, citing an accusation of wasteful spending for Marshall's vote on a continuing resolution mat kept the government running and was also supported by the Republican House leadership. Barrow's campaign also labeled the ads dishonest "This shady, third-party group is polluting Georgia's airwaves with false, negative TV ads, clogging up phone lines with annoying and deliberately deceitful 'push polls,1 and filling 12th District mailboxes with dishonest, negative mailers," the campaign said in a written response. The Economic Freedom Fund ad came "from an independent group. There was no coordination whatsoever11 with the Bums campaign, said Tim Baker, campaign manager for Barrow's opponent, Republican Max Burns. He said he saw the ad for the first time when his wife called him to a TV set to point it out "Thafs nothing we would have any control over," said ted Prill, campaign manager for Mac Collins, Marshall's Republican opponent He said the candidate had no connection with third-party ads. The Economic Freedom Fund is also advertising in congressional campaigns hi Indiana, where Democrat Baron Hill is trying to regain the scathe lost in 2004 to Republican Mike Sodrel, and hi West Virginia, where Republican Chris Wakim is trying to unseat incumbent Democratic Rep. Alan Mollohan. In Iowa, the group has run TV spots in the congressional race in which Democratic Rep. Leonard Boswell is defending his seat against Republican challenger Jeff Lamberti. The fund's Web she also shows pamphlets it has prepared saying Republican Gov. Sonny Perdue, who is seeking re-election, is "getting the job done for Georgia." 0 "4 Get to Know Congressman John Barrow John Barrow has been quoted saying, "We have 11 million illegal aliens we need to do a good job of assimilating into the country first." - some say that would cost taxpayers $29 billion a year. (Some: Boston Gtota, 4AM06) Barrow also voted against ending the temporary protected status to hundreds of thousands of immigrants in the United States — allowing them to work and live hen without having to file for citizenship. (Sourca ft* aH vote 222,5/25/06) John Barrow's liberal habits dont stop there... A Record of Liberal Voting John BaiTOW voted to make liberal San Francisco politician Nancy Petosi the Speaker of tlw House even though Pelosi has advocated a policy of "cut and rah" in Iraq and votedto weaken oar ability to track down teirortsts Mho are planning attacks herein America. (Some GonyMBtoMl Quvtoriy Raooidi) .:±...... ,. •..-•.• *f-'< ":*1' "•''** '•''" '•' • • : John Barrow's liberal votes do NOT represent Georgia values. nriniitm i^ji^\,,^f*:m^-*^&& WTfVW -.-.- ••.".• gffl .•«»».. ii- ••••,•.•.•.••• •••••& .••'• .•• . ... : .•• .• ^BP™ of Congress, <*#.-, ^. -. -^" Soft on Illegal Immigration Illegal immigration costs taxpayers Q' •^^. ° . "" IP * • * * ^f ^^ O> rvi O CT» (N Unfortunately, John Barrow has been quoted saying, "We have 11 mllUpn Illegal aliens we need to do a .good job of assimllatlitg Into the country first" - some say that would cost taxpayers $29 billion a year. And, John Barrow voted against ending the temporary dreds of thousands of I live clteenshlp. JBaiHMiAi BuH j^rfi IM^M 9M KJMUMH POtolglOM V^HN VN^N^HIJ v^v ^W^B • w •f-\ 1 Georgia Children Ijohn Barrow made the wrong choice. Congressman John Bairow nadthe<)pportunityto.^ for improving the quality of education for Georgia children; ftjt:'^' instead he voted against ending the temporary protected status for non-dozens. (SOURK M CMtMt 71. ton* RM CrttMi 222. MM* ^ •*£; - o en rsi Unfortunately John Barrow must disagree. d6ngressman Barrow voted AGAINST increasing education funding lor important math, science and foreign language teachers—al| of which would help give children tfie skills they need to be more competitive in a global economy. So what does John John Barrow voted against ending the temporary protected States, allowing th file for citizenship. /VOJT Georgia values, Paid lorfe y* • EconomicftMdo mFin d B CA 96619 John Barrow o en Congressman John Barrow's latest liberal vote was (N AGAINST voter ID cards, • ^ which could reduce voter fraui "We have 11 million illegal aliens we need to do a good job of similating into the country first/1 ml how did Barrow vote on other issues against ending the temporary protected status to hundreds of thousands of aliens in the United States PHQ forty mi Economic FiMdofii Rnd This is the Annual Salary of Georgia's LEAST Effective Member of Congress to earn his six nou n Barrou/f Lift of Since being elected, J|o(\n Barrow ka$ only introduced A kandfuf of bilk And not one become In H\e week? before tt\e London AtrpUne plot ui4? foiled, Jokn Barrow voted to cu for nir travel ;eci4ri{\j by over f 10 million. : Roll CUII Vofe 217. 5/25/06) Barrow A(;O voted AGAINST ending H\e temporary protected ^tat^^ for kundred? of tkoM^and^ of immigrant^ in tt\e United ^tate^ — allowing tl to work and live tare without Uving to file for : Roll Cull Vote 222, 5/25/06) A? a rebuilt of Jonn Barrow1^ record, ne i? lifted i tke bottom ten of ALL member? of Congress. • 1.-•-.- • Mi "-- - Mriii neoc! for by *• EC POBMlOK1008 Sacnmmto.CA 96810 o o> (N Getting to know John Barrow has been a disappointment. Cutting Funding for Air travel Security In the weeks before the London airplane bombing plot was foiled, John Barrow voted to cut funding for air travel security by over $10 million. (Sourc* M CM VWt 217, SOSflQ That's bad, but so is John Barrow's other vote... Barrow voted AGAINST ending the temporary protected status for hundreds of thousands of immigrants in the United Stales— allowing them to work and live here without having to file for citizenship. (Source Rot CM tut 222, sasiam ot Representing Georgia Values o »-i O> O CD Exhibit J '•idLfor bythf Economic Freedom Fund >0 Box 191006 Jicnmtnto.CA 96819 Working Families and Small Businesses are Feeling the Squeeze. The Death Tax is Killing Iowa Family Farms and Small Bus 65 percent of small-business owners reported the Death Tax-would make survival of their business more difficult or impossible. (Souee The Genter far the Stud/ off Dorian) But in 2001, Congressman LumoidBosw&votedlokeep the Death Tbx - allowing the Don't ask government to tax people a second BOSWell for help. time on the money they earn. (tame Rofl Cd \fota 149, S/26/01) Paid for by tfw Economic Frttdom Fund PO box 191 to Sacramwto,CAS5819 Who do you trust to spend your money... government or yourself? lo\\ J£W- So what has Congressman Boswell done Congressman Leonard Boswrll voted AC,AINS1 making the lax cuts permanenl, u rote ttuil would main higher taxe^jor loira families Leonard /ll has also \oted MOUS es AGA1NS I education sa\in^s accouiUs and against providing education lax incenlives - tilings thai would help Iowa (aniilie> alloi'd to send their eliildrm to college 'aid for by thf Economic RMdom Fund •OfallltfH )icramMto,CA 95119 Congressman Leonard Boswell is taxing\f on Iowa small iniswesses The death of Iowa's Small Businesses and Family Farms 65 percent of small-business owners reported the Death Tax would make survival of their business more difficult or impossible. (Source: The Center for the Study of Taxation) But Congressman Leonard Boswell voted to keep the Death Tax—allowing the government to tax people a second time on the money they earn. (Source: Roll Cell Vote 149,5/28/01) Congressman Boswell t Imavy tax cm Nn^a '.-•i^M \mt Piid for by the Economic Freedom Fund POdoxIffldOS Sacramtnto,CA 96819 ;• tax c 10 MOW PUTTING HIGHER EDUCATION OUT OF REACH Multiple times, Leonard Boswell voted AGAINST education saving accounts and AGAINST providing education tax incentives - things that would help Iowa families afford to send their children to college. LEONARD BOSWELL — T00TAXING ON IOWA FAMILIES Piid for by tfM Economic Freedom Rind poboxi9ite SicramtntaCA 96819 Many Iowa small businesses pay the fifth highest income tax in the entire country. ,____«* CM at hurts jobPJrowttif Yet Congressman Leonard Boswell voted AGAINST tax relief for small businesses. SO WHOSE SIDE is BOSWELL ON...? ' '"*J^"^ Leonard Boswell sided with trial lawyers, Who have donated over $30,000 to his re-election campaign. t (Source, www.oponsecrcls.org. Roll Call Vote 64, 3/13/03, Roll C.ill Vote 9/26/02) And Leonard Boswell sided AGAINST farmers and small businesses (Source: Roll Call Vote 149 5 26/01) Wd for by tin Economic freedom Fund W Box Kite Sacramtnto.CA 95119 WHOSE SIDE IS LEONARD BOSWtH ON AND ON TAXES, LEONARD BOSWELL IOWA FAMILIES. HIGHER AND HIGHER TAXES Congressman Leonard Boswell voted AGAINST meaningful tax relief, which would make tax rates for working Iowa families go up and the per child tax credit go down -forcing families to pay more in taxes. (SnifMC Rol Ctl Vote 135, MMO LEONARD BOSWELL SIDED WITH HIGHER TAXES THE DEATH TAX — TAXING PEOPLE A SECOND TIME ON THE MONEY THEY EARN. rsi CT> rsi In 2001, Congressman Leonard Boswell voted to keep the Death Tax, which could force many lowans to sell off their family farm or small business when their parents pass away. (Source: Ron Cal Vote 148,5/28/01) BUT BOSWELL DIDN'T STOP AT TAXING FAMILY FARMS AND SMALL BUSINESSES... TAKING MONEY OUTOf YOUR POCKET The average employee works for 116 days just to pay for one year's taxes. That hurts families. Unfortunately, Congressman Leonard Boswell voted AGAINST meaningful tax relief, which would make tax rates for working lowans go up. And Boswell's vote would also make the per child tax credit go down - forcing families to pay more in taxes. (Source: Roll Call Vote 135,5/10/06) CONGRESSMAN LEONARD BOSWELL TAXING ON FAMILIES- OVER AND OVER AGAIN. in (N o> (M 1 Of 1 DOCUMENT The Asaociated Press State fc Local Wire September 18, 2006 Monday 10:58 PM GMT Indiana sues California group over automated calls SECTION t STATE AND REGIONAL U0 LENGTHi 552 words (M O> DATELINE i INDIANAPOLIS The state sued a California-based group Monday to atop it from making auto- mated phone calls attacking Democratic candidate Baron Hill in the 9th Diatrict congressional race. The group behind the calls, the Sacramento-baaed Economic Freedom Fund, is being funded by the Republican donor who helped bankroll the Swift Boat attack ada on Democratic Sen. John Kerry'a war record during the 2004 presidential cam- paign. The attorney general's office filed a lawauit in Brown Circuit Court in Nash- ville seeking temporary and permanent injunctions against the calls as viola- tions of Indiana's telemarketing law and fines of $5,000 for each violation. A hearing in the caae ia aet Sept. 27. Attorney General Steve Carter received 12 consumer complaints over the calls, including one from Philip Wilkinson, 41, of Bloomington, who said ha waa on the state's do-not-call list and ia offended by negative political ada. "When somebody gets real ugly, I'll say, 'Heck, I'll vote for the other guy, '" Wilkinson said, adding he does not support Hill or Sodrel. Carter aaid representatives of the Economic Freedom Fund agreed to stop the calls when his office contacted them Friday. He said he waa unaware of any more being placed aince then. •They implicitly acknowledged they were making the calls," Carter, a Republi- can, said during a news conference to announce the lawsuit. The Aaaociated Press left messages with ths fund and ita attorney Monday seeking comment on the lawauit. Bob J. Perry, a Texas homebuilder with close ties to White House adviser Karl Rove and former House Majority Leader Tom DeLay, recently donated $5 million to the fund, a newly created California group targeting Democratic candidates. Carter played a recording of one of the automated calls in which the uniden- tified speaker attacka Hill for votes while the Democrat atill represented southern Indiana'a 9th Diatrict. Republican Nike Sodrel unseated Hill in 2004, and the two are vying for the seat again this year. Hill's campaign thanked Carter for "setting aaide partisan alliances and do- ing what'a right for all Hooaiers." Sodrel'a campaign alao supported Hill's lawauit. For 14 months the campaign has battled liberal apecial intereet groups using the same tactica, but target- ing Sodrel. •It'a the worst kind of politics, and they've got to atop," Sodrel spokesman Cam Savage aaid of the automated calls. Page 2 Indiana BUM California group over automated call* The Associated Press State 6 Local Wire September 18. 2006 Monday The Economic Freedom Fund1* political status ie 527, which exempts it from conventional campaign finance restrictions and allows it to spend unlimited amounts on election advocacy, similar to the Swift Boat Veterans for Truth. In the 2004 presidential race, the group of Vietnam veterans made unsubstantiated allegations challenging Kerry's record of wartime heroism. According to its filing, the Economic ' Freedom Fund was formed to "promote policies and issues favoring economic freedom, growth and prosperity of the economy.11 , Carter sent an Aug. 22 letter to state1 Democratic and Republican parties in- forming them that a 1988 state law prohibited automated phone calls for politi- cal purposes and promising to enforce it, even though the law had been widely ignored during past political campaigns. ^ On The Net O) Economic Freedom Fund: http://www.economicfreedomfund.coin 2J Indiana Attorney General consumer services: ~ http://www.in.gov/attorneygeneral/conaumer/ fNl *T LOAD-DAT! i September 19, 2006 *T Q LAHOUAOli ENGLISH PUBLICATION- TYPE! Newswire CM Copyright 2006 Associated Press All Rights Reserved 00 rvi on rvi *T (N O 0) rsi Exhibit L Case1:06-cv-01403-UM-WTL Document 1 Filed 08/21/2006 Page 1 of 11 IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF INDIANA 5.1- rrv> INDIANAPOLIS DIVISION -'"^.P?/ R, , FREEEATS.COM, INC., ) I , ^ •' . i. ; ? • ."' •" - i ) Ct£ffjflllu^S Plaintiff, ) v. ) Civil Action No. STATE OF INDIANA ) - -I tri* T TM WFT EX REL STEVE CARTER, ) i* •UO-CVA - 14 U5 -btl»-W ILi ATTORNEY GENERAL, and, ) STEVE CARTER, Attorney General, ) Defendants. ) COMPLAINT FOI^ DffQ^ARATQRV AND INJUNCT1VE RlftLff F FreeEats.com. Inc. ("plaintiff), by counsel, alleges: 1. Among other things, plaintiff files this action to have this Court enter an order, declaring void and unenforceable Indiana Code § 24-5-14-5 (the "Automatic Dialing Machine" or "ADM" statute), which restricts the making of prerecorded telephone calls to residents of Indiana, on the ground that it is preempted by the Telephone Consumer Protection Act of 1991, Pub. L. No. 102-243,105 Stat 2394 (1991), and the implementing rule adopted by the Federal Communications Commission ("FCC"), 47 C.F.R, § 64.1200(a)(2XuX2005), as the ADM statute is applied to prerecorded interstate telephone calls that seek to either survey the recipient's political views or deliver a political message. Case1:06-cv-01403-UM-WTL Document 1 Filed 09/21/2006 Page 2 of 11 JURISDICTION AND VENUE 2. This action arises under the Constitution of the United States, 28 U.S.C. §J 2201 and 2202 and 42 U.S.C. § 1983. This Court has jurisdiction over this action pursuant to 28 U.S.C. § 1331. 3. Venue for this action is proper hi the United States District Court for the Southern District of Indiana. Sfifi 28 U.S.C. § 1391(b). 4. Plaintiff is a Virginia corporation with its principal place of business in Herndon, Virginia. Plaintiff ia a survey and database company that relies upon interactive voice response, speech recognition technology on outbound calls using prerecorded messages to query households through survey polls; identify supporters and later encourage those supporters to turn out to vote; and to deliver political advocacy messages. The company has been active in many political campaigns and initiatives, on behalf of candidates or of groups that support candidates. including the making of interstate calls into Indiana in support of congressional candidates in that state for the election year 2006. 5. Defendant STATE of INDIANA has enacted a law that purports to prohibit calls into the state containing pre-recorded telephone calls, potentially calls such as those made by plaintiff. 6. Defendant STEVE CARTER is the Attorney General of the State of Indiana. Under the Indiana Constitution, the Attorney General is the chief law enforcement officer of the Case 1:06-cv-01403-UM-WTL Document 1 Fled 09/21/2006 Page 3 of 11 State and hai the duty to enforce its laws, including the Automatic Dialing Machine statute, Indiana Code Section 24-5-14-5. The Attorney General is sued in his official capacity. NATURE OF THE ACTION AND BACKGROUND 7. This case concerns the Indiana1 Automatic Dialing Machine statute that, as interpreted and enforced by defendants, makes it illegal for plaintiff to make prerecorded, intentate telephone calls to citizens of the State of Indiana, to communicate a political message. 8. The Automatic Dialing Machine statute provides, in part: Sec 5. (b) A caller may not use or connect to a telephone line an automatic dialing-announcing device unless: (1) The subscriber has knowingly or voluntarily requested, consented to, permitted, or authorized receipt of the message; or (2) The message is immediately preceded by a live operator who obtains the subscriber's consent before the message is delivered. 9. There is no exclusion in the statute for interstate calls that are entirely political in nature. 10. An actual controversy exists. Defendants have made statements to the media warning political parties against automated political phone calls to Indiana voters during the upcoming election campaigns, and have in fact filed an action in Indiana state court, seeking to enforce the statute against the Economic Freedom Fund related to calls made by plaintiff on the Economic Freedom Funds' behalf for intentate calls that are entirely political in nature. 11. The ADM statute conflicts with a rule issued by the FCC pursuant to authority delegated by Congress in the Telephone Consumer Protection Act of 1991 (the TCPA"). 12. Plaintiff seeks a declaration that the Automatic Dialing Machine statute, insofar as it applies to prerecorded interstate calls for political purposes, is preempted by the TCPA and Case1:06-cv-014034JM-WTL Document 1 Filed 09/21/2006 Page 4 of 11 violates the Commerce Clause and the First Amendment of the United States Constitution, and an injunction permanently barring enforcement of the law to such calls. 13. The ADM statute is preempted because it regulates interstate telephone calls. Under the Constitution and the TCPA, statesi lack jurisdiction to regulate such interstate communications. Congress enacted TCPA to provide specific federal regulation of certain interstate telephone calls precisely because the States cannot regulate interstate telephone calls. THE FEDERAL REGULATORY REGIME 14. Federal Communications Act of 1934. The FCA grants the FCC exclusive jurisdiction to regulate interstste telephone calls. 47 U.S.C. § 152(a). Subject to certain exceptions, the FCA generally commits to the States exclusive jurisdiction to regulate intrastate communications. Id. § 132(b). The FCA denies States any jurisdiction to regulate interstate telephone calls. 15. The Telephone Consumer Protection Act fTCPA"!. The TCPA made it "unlawful for any person within the United States ... (B) to initiate any telephone call to any residential telephone line using an artificial or prerecorded voice to deliver a message without the prior express consent of the called party, unless the call is initiated for emergency purposes or is exempted by rule or order by the Commission under paragraph (2KB)." 47 U.S.C. § 227(b)(l)(B). The phrase "any telephone call" establishes federal jurisdiction over defined categories of both intrastate and interstate telemarketing calls. 16. The TCPA further delegates to the FCC the power to create an exception to this prohibition for telephone calls "that are not made for a commercial purpose." 47 U.S.C. § 227(bX2)(B). In 1992, the FCC exercised the authority granted by Congress in Section Case1:06-cv-01403-UM-WTL Document 1 Red 00/21/2006 Page 5 off 11 227(bX2)(B) and adopted a rule Ibat exempted all prerecorded call! made for a noncommercitl purpoae from the prohibition that otheiwiae would apply. 47 C.FJL ( 64.1200(aX2XM)- 17. The TCPA regulates intenUte ffld intrastate ctlli. The statute includes a saving clause that provides that the TCPA does not preempt State regulation of jnjrjslaje. telemarketing calls that are more restrictive than the federal minimum standards. STATE LAW Nor PREEMPTED.—Except for [certain specified provisions of the TCPA], nothing in this section or in the regulations prescribed under this section shall preempt any State law that imposes more restrictive mtrastate requirements or regulations on, or which prohibits— (C) the use of artificial or prerecorded voice messages.... 47 U.S.C. § 227(eXO. Plaintiff seeks a declaration that this saving clause does not permit States to regulate interstate telemarketing calls that the FCC permits; i.e., calls of a political (noncommercial) nature. THE INDIANA STATUTE 18. The ADM statute provides: 24-5-14-5. Conditions for using automatic dialing-announcing device - Exceptions. (a) This section does not apply to messages: (1) From school districts to students, parents, or employees; (2) To subscribers with whom the caller has a current business or personal relationship; or (3) Advising employees of work schedules. (b) A caller may not use or connect to a telephone line an automatic dialing-announcing device unless: (1) The subscriber has knowingly or voluntarily requested, consented to, permitted, or authorized receipt of the message; or (2) The message is immediately preceded by a live operator who obtains the subscriber's consent before the message is delivered. Case1:06-cv-01403-UM-WTL Document 1 Filed 09/21/2006 Page 6 of 11 19. The ADM statute provide! for injunctive relief against those who violate the statute, as well as civil penalties. INJURY TO PLAINTIFF i 20. Plaintiff will suffer immediate and irreparable injury if it is prohibited by the ADM statute from using automatic dialing-announcing devices to place "unsolicited" interstate telephone calls to Indiana residents for political purposes. As applied to interstate telephone calls, the ADM statute would deprive plaintiff of its constitutional rights, and would violate its right to tree speech, which is protected by the United States Constitution. These losses cannot be quantified. Even if these losses could be quantified, the Eleventh Amendment would bar Plaintiff, should it prevail, from seeking monetary recovery from the defendants. COUNT 1 (Preemption) 21. Plaintiff repeats, re-alleges and incorporates the allegations in paragraphs 1 - 20, as though fully set forth herein. 22. The Supremacy Clause provides, in pertinent part: "This Constitution, snd the Laws of the United States which shall be made in pursuance of thereof... shall be the Supreme Law of the Land." U.S. Const., art. VI, cl. 2. 23. The Federal Communications Act of 1934 ("FCA") denies the States jurisdiction to regulate interstate communications. 24. The FCC has promulgated a rule, 47 C.F.R.} 64.1200(aXn). pursuant to authority delegated by Congress in the TCPA, which exempted interstate prerecorded noncommercial telephone calls from the prohibition of telemarketing calls otherwise established by the TCPA. Case1:06-cv-01403-UM-WTL Document 1 Filed 08/21/2006 Page 7 of 11 25. The ADM statute purports to regulate both prerecorded intnstate and interttate telephone calls, and without regard to whether the call seeks to elicit political views or communicate a political message. 26. The ADM statue is preempted by the FCA snd the FCC implementing rule insofar as it purports to regulate prerecorded interstate telephone calls msde to communicate a political measage. 27. Enforcement of the ADM statute with respect to prerecorded interstate telephone calls to residents of Indiana tor political purposes will cause Plaintiff immediate and irreparable harm for which there is no adequate remedy at law. COUNT II (Undue Burden on Interstate Commerce) 28. Plaintiff repeats, re-alleges and incorporates the allegations in paragraphs 1 - 27, as though fully set forth herein. 29. Under the dormant Commerce Clause, a state may not impose undue burdens on interstate commerce. 30. Insofar as it regulates interstate telephone calls to residents of Indiana for political purposes, the ADM statute imposes an undue burden because it produces no local benefit 31. Insofar as it regulates interstate telephone calls to residents of Indiana for political purposes, the ADM statute imposes an undue burden because the burden exceeds any local benefit and is not adequately tailored to its goal. 32. Therefore, insofar as it regulates interstate telephone calls to residents of Indiana for political purposes, the ADM statute violates the dormant Commerce Clause. Case1:06-cv-01403-UM-WTL Document 1 Filed 00/21/2006 Page 8 of 11 33. Enforcement of the ADM ititutc with respect to interstate telephone calls to residents of Indiana fin- political purposes will cause Plaintiff immediate and irreparable harm for which there is no adequate remedy at law. COUNT HI (Indiana Constitution) 34. Plaintiff repeats, re-alleges and incorporates the allegations in paragraphs 1-33 as though fully set forth herein. 35. By enforcing the ADM statute with respect to interstate telephone calls to residents of Indiana for political purpose, Defendants will unlawfully and substantially deprive Plaintiff, and the organizations on whose behalf it makes calls, of free speech rights secured by the Free Speech Clause of the Indiana Constitution, Article 1, Section 9. Statistical analysis shows that Plaintiffs interactive voice response system is one of the most effective means of communicating political messages and, if Defendants are successful in banning the use of that system, then Plaintiffs, Plaintiffs clients, and the citizens of Indiana will all suffer from an infringement of their free speech rights. 36. Plaintiff has no adequate remedy at law. COUNT IV (First Amendment) 37. Plaintiff repeats, re-alleges and incorporates the allegations in paragraphs 1-36 as though fully set forth herein. 38. By enforcing the ADM statute with respect to interstate telephone calls to residents of Indiana for political purpose, Defendants will unlawfully and substantially deprive Case1:06-cv-01403-UM-WTL Document 1 Rled 09/21/2006 Page 9 of 11 Plaintiff, and the organizations on whoae behalf it makes calls, of free speech rights seemed by the Pint Amendment to the United States Constitution. Statistical analysis shows that Plaintiffs interactive voice response system is one of the most effective means of communicating political messages and, if Defendants are successful in 'banning the use of that system, then Plaintiffs, Plaintiff's clients, and the citizens of Indiana will all suffer from an infringement of their free speech rights. 39. Plaintiff has no adequate remedy at law. COUNTY (42U.S.C{1983) 40. Plaintiff repeats, re-alleges and incorporates the allegations in paragraphs 1-39 as though fully set forth herein. 41. By enforcing the ADM statute with respect to interstate telephone calls to residents of Indiana for political purpose, Defendants will unlawfully and substantially deprive Plaintiff of rights secured by the Supremacy Clause and the Commerce Clause of the United States Constitution and the First Amendment to the United States Constitution. 42. Defendants are "persons" under 42 U.S.C. § 1983 who have acted under color of state law to deprive Plaintiff of rights secured by the United States Constitution. 43. Plaintiff has no adequate remedy at law. Case1:06-cv-01403-UM-WTL Document 1 Filed 09/21/2006 Page 10 off 11 PRAYER WHEREFORE, Plaintiff prayt that this Court: 1 . enter i judgment declaring that, insofar as it applies to interstate telephone calls to i . residents of Indiana for political purposes, the ADM statute is preempted by the Federal Communications Act of 1 934, and is null and void; 2. enter a judgment declaring that, insofar as it applies to interstate telephone calls to residents of Indiana for political purposes, the ADM statute violates the dormant Commerce Clause, and is null and void; 3. enter a judgment declaring that, insofar as it applies to interstate telephone calls to residents of Indiana for political purposes, the ADM statute violates the First Amendment and the Indiana Free Speech Clause, and is null and void; 4. enter a judgment declaring that, insofar as it applies to interstate telephone calls to residents of Indiana for political purposes, the ADM statute violates 42 U.S.C. § 1983, and is null and void; 5. enter a permanent injunction enjoining Defendants and their agents from taking any action under or to enforce or implement the ADM statute with respect to interstate communications; and 6. award plaintiff reasonable attorneys' fees and costs; and grant plaintiff such additional or different relief as it deems just and proper. 10 Case 1:06-cv-01403-UM-WTL Document 1 Filed 08/21/2006 Page 11 of 11 I I Respectfully submitted, W.Cividanei VewlbleLLP ( 575 Seventh Street, NW Washington, DC 20004 ecividanos@venable. Tel.: (202)344-4414 Fax: (202)344-8300 John R. Matey Piul L. Jefferson BARNES ft THORNBURG LLP 11 South Meridian Street IhdiuMpofii, Inditna 46204 Telephone: (317)236-1313 Facsimile: (317)231-7433 E-mail: [email protected] [email protected] Attorneys for Plaintiff IMCRUIMIvl 11 o «T CD rvi O on (N Exhibit M 8871 Political Organization Notice of Section 827 Status OMB NO. 154S.1603 eft* Information Mojorky Action 35-2231122 2207VybyOidi CtQr or UP « 3 Cheeky rfP/H/DOS a rt SF TbG 2207 Valley Orefc Akurtta. VA 22302 or RHBHDCCi MV0U) BBB VaaM 9f flHIM 2207 Villey Circte Oljr MT Uw«, MMc, MM) ZIP cade Aleundrta. V A 22302 NONE Notification of Claim or local potted Mprimhn? Y«_ Kb ^ lib lfY 11 Ataf Pom fN (cr MMZ), Retani ef Or|MUMlM E> i Ten, •«• i orfecdefllcWi? Ya. 12 TB CMWJB ike publlk o« poliilal I4a 14d^WP 14o Addra EucMh* DbMor 2207 Vdley Circle AIWMLVA22302 Under pmMH of pvpcyt I QMMM OMt •• ofDjinBBlion MRNOfe iPu t I •t o« • •Tfltlh» •IMIl^^^^^l^kA V^^^.^^^ nWIHW^ tf^tf^^^ l^^^ WUMd ^^^A i ••! ViV §BO to •• but of my knowtadojc •nd HriMt II • kiNi ooiwolt mo rsi 07/13/2005 Hgn NHMOf rsi O CT* (N rvi O O) rxi Exhibit N Published on Majority Action fhttp://majorirvaciion.nert Majority Action Launches Television Ads to Educate Public About Disastrous Record of House Republicans i By NOP Admin , Created 2006-09-07 09:01 Independent Political Group shines spotlight on records of Rep. James Walsh and Rep. Deborah Piyce; First to Use Text Messaging as Political Communication in Ad Washington, D.C. - Majority Action today launched two television ads, one criticizing Rep. James Walsh (NY-25) for his open-ended support for President Bush's war in Iraq, and one criticizing Deborah Piyce (OH-15) for her record on congressional travel and votes to weaken ethics roles m the House. These ads are the first in a national series of ads that will spotlight the disastrous record of House Republicans. Majority Action is an independent organization focused on exposing the record of the current Republican Congress and on promoting a progressive Democratic agenda in the U.S. House of Representatives. "Republicans in Congress have failed this country," said Majority Action executive director Mark'Longabaugh. "They have failed us by supporting Bush's open-ended policy in Iraq, they have failed to clean up a scandal plagued House leadership, and they have failed to accomplishs anything of significance in this Congress to move our economy forward. James Walsh and Deborah Pryce reflect this failure and that is why we have spotlighted their records." "These are only two examples of a Republican Congress that is out of touch with the values and the interests of the American family," added Majority Action leadership circle member Joe Andrew. "We plan to continue to aggressively shine a spotlight on the failed record of Congressional members. One ad focuses on Congresswoman Pryce's special interest funded travel and votes to end the investigation into Jack Abramotf. The Ad "Trips" will run in the Columbus media market in Ohio for one week. The second ad focuses on Congressman Walsh's continued support of President Bush's foiled "stay the course" Iraq policy. "Iraq" will run in the Syracuse media market in New York for two weeks. Majority Action intends to shine the spotlight on Republican members of Congress using traditional communications efforts, like television advertising, and new, emerging technologies, like text messaging. In these ads, the first to use text messaging, people can text the word "IRAQ" to 35328 for more information on their mobile phones in the Walsh ad and text the word "TRIPS" to the short code 3S328 on their mobile phones in the Pryce ad. Both ads can be viewed on MaioritvAction.net and on YouTube.com m. Majority Action is led by veteran Democratic campaign operative! and has a leadership board that consists of prominent political figures, including several former Members of Congress, two former Democratic National Committee Chairmen and two former DCCC Chairmen. Source URL: http://rnaioritvaction.net/riode/9 £ Links: o> [ 1 ] http://www.youtubc.com/uscr/MajoriryAction (N a cn Exhibit O CALL Democrats Form New 527 to Win Back House June 5, 2006 By Josh Kurtz, Ron Call Staff With the Republican National Committee poised to dump tens of millions of dollars Into key House races this year, Democratic operatives and party leaders on Friday launched a new 527 fundralslng committee to help the party win control of the House In November. The leaders of the new 527 group, called Majority Action, are working in tandem with a two-month-old Senate-oriented 527, Fresh Start America. The groups' founders are scheduled to meet with potential donors on the West Coast later this month and will also travel to New York for a fundraiser hosted by Leo Hlndery, a media mogul and major Democratic financial angel. Mark Longabaugh, the executive director of Majority Action, said the new 527 already has received financial commitments from Democratic-oriented Interest groups such as the Association of Trial Lawyers of America. The group's launch comes amid House Democratic worries that the Democratic National Committee will not be able to do enough financially this cycle to augment the work of the Democratic Congressional Campaign Committee. The new group Intends to target "eight to 12 to 15" vulnerable House Republicans this fall, primarily through TV and radio ads, Longabaugh said. Like Fresh Start America, which was rounded by top Democratic strategists Mike Gehrke, Jim Jordan and Nick Baldlck, Majority Action will be run by a seasoned team of Democratic operatives and boasts several big-name party leaders as advisers. Longabaugh was the political director for the League of Conservation Voters in the 2004 political cycle and Is currently filling a similar role, as a consultant, for the group Defenders of Wildlife. A veteran of several presidential and Congressional campaigns, he unsuccessfully challenged Rep. Steve Chabot (R-Ohlo) In 1996. The Majority Action staff also Includes Donnte Fowler, son of former DNC Chairman Don Fowler and an innovator In party efforts to use technology to make electoral gains, and Amanda Crumley, who has worked on three presidential campaigns and served as communications director to Iowa Gov. Tom Vllsack (D), a possible 2008 presidential candidate. Fowler and Crumley are partners In a California-based consulting firm. The group's leadership board includes two former DGCC chairmen, former Reps. Tony Coelho (D-Callf.) and Martin Frost (D-Texas); ex-Reps. Buddy Darden (D-Ga.), Tom Downey (D-N.Y.), Cleo Fields (D-La.)f Uz Patterson (D-S.C) and Lynn Schenk (D-Callf.); the elder Fowler and follow former DNC Chairman Joe Andrew; and Harold Ickes, the conslgllere to Sen. Hillary Rodham ainton (D-N.Y.). Copyright 2006 O Ral cJk Inc. AM righto CO *T or* (N O CD tN en O (J> (M Exhibit P woshinglonpostxiom New Group Is Racing To Slow Down GOP By Chris Cifflzu Thursday, September 7,2006; A10 A new independent political organization made up of former Democratic members of Congress and high-level party operatives has begun running television ads targeting two Republican incumbents. The group, Majority Action, is sponsoring commercials that hit Reps. Deborah Pryce (Ohio) and James T. Walsh (N. Y.) on corruption and the war in Iraq, respectively. "The course set by President Bush and Congress isn't working," says a narrator in one of the ads. "But Congressman Walsh wants to give us more of the same." The goal of Majority Action, according to co-chairman Joe Andrew, is to level the financial playing field in Republican-held seats where a potential national wave could wipe out a number of incumbents not considered top targets at the moment. "Poll after poll [show] that the only thing standing between Democrats being able to win the House back is Republicans being better able to execute their campaigns," Andrew said. Andrew and Don Fowler - both former Democratic National Committee chairmen — anchor the group's leadership circle, which includes a panoply of former lawmakers, including past Democratic Congressional Campaign Committee chairmen Tony Coelho (Calif.) and Martin Frost (Tex.). While he shied away from specifics, Andrew said Majority Action had a "seven-figure" budget -- between S8 million and $10 million, an informed source said — and was spending in the "six figures" in individual House districts. The group is registered as a 527 (so named for its place in the tax code) with the Internal Revenue Service and had raised $210,000 as of June 30. Ads in two additional districts are expected to launch shortly. Majority Action's founders have insisted the organization will succeed where other outside groups - which can accept contributions of unlimited size - targeting House and Senate races have failed because of the high-profile figures aligned with the effort and the amount of attention being paid to the fight for control of this cycle. Presidential Run for Armey? Other former shaken on Capitol Hill likewise seem to be in the mood, if not to resume shaking, to at least jiggle a little. Witness former House majority leader Richard K. Armey (R-Tcx.) who retired from the House in 2002 and has spent his time since heading up Freedom Works - a group that advocates shrinking government and lowering taxes. Armey is now headed to Iowa for a speech on'Sept. 19, stoking speculation that he may fancy himself a candidate for president in 2008. Although Armey told ABC News that he has "no interest in Dick Armey for president,* he left the door open - wide open. "•* Aides were quick to point out that the former leader is likely to visit the presidential JJJ proving grounds of New Hampshire and South Carolina later this year. An aide said Armey hopes to "keep the Reagan legacy alive in the presidential primary.1 fsl An Armey bid would have any number of hurdles, most importantly the weight of history. The previous former House member to be elected president was George H.W. BushRiixh. o> CM O 2006 The Washington Post Company in 0) rsi «T (N O O> (M Exhibit Q 8872 Political Organization Report of Contributions and Expenditures OMB No. IMS-iaW 07/12/2003 12/31/2003 laUMreport .. 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(DMiyttM IWR Mp^tto LM l| 0/8 MM • to to '*«•«• 10 06 2006 1814 N CRy 12DOOOO DC H N i D 0 ' v v ID 08 2G06 NY TOM REYNOLDS oo CD 120QOJOO TOTAL TIM PHtod()MlplflilHftlM(imbftrort0, (BHiy Wri tan M pigit oI N 10) un CO 0> (N 'SI CM *r *r o o (N Exhibit R Published on Majority Action fhnp://majoritvaction.nefl New Radio Ad Focuses on Congressman James Walsh Pro-Congressional Pay Raise, Anti-Minimum Wage Increase Votes i By NGP Admin Created 2006-09-20 18:00 Walsh Blatantly Misrepresents His Record on Radio Call-in Show Washington, D.C. - Majority Action today launched a nrv nflfifl frt [0] criticizing Congressman James Walsh (NY-25) for his record of supporting $23,000 in Congressional pay raises while voting multiple times against increasing the minimum wage and making false claims during a radio call-in show. During a call-in show on WXXI Walsh claimed that he "never" voted against increasing the minimum wage despite the fact that he did vote eight times against increasing the minimum wage. He also claimed that his pay raise was "automatic" when the Congressional Record is clear: he voted six times to raise his pay - a total of $23,000. "Congressman Walsh should explain why he voted for pay increases for himself of $23,000 while voting against pay raises for working families," said Mark Longabaugh, Executive Director of Majority Action. "Majority Action intends to ensure that his constituents are well aware of Congressman Walsh's record: voting for a Congressional pay raise and against an increase of the minimum wage." The radio ad is the third to focus on Walsh's pro-pay raise, anti-minimum wage increase voting record. The audio is available on MajorityAction.net as are the television and Internet ads. (Listen to the ad now [0] - mp3 format) Majority Action is an independent organization focused on exposing the record of the current Republican Congress and on promoting a progressive Democratic agenda in the U.S. House of Representatives. Majority Action is led by veteran Democratic activists and has a leadership board that consists of prominent political figures, including several former Members of Congress, two former Democratic National Committee Chairmen and two former DCCC Chairmen. Source URL: http://niaiQritvaction.net/node/13 (N *r CM *r *r 0 o> Source URL: httn'//mAioritvaction.net/node/l CO O O* rsi Published on Majority Action fhttpi//majoritvactiQii.nert Majority Action Launches Television Ads to Educate Public About Disastrous Recor• d of House Republicans By NGP Admin Created 2006-09-07 09:01 Independent Political Group shines spotlight on records of Rep. James Walsh and Rep. Deborah Pryce; First to Use Text Messaging as Political Communication In Ad Washington, D.C. - Majority Action today launched two television ads, one criticizing Rep. James Walsh (NY-25) for his open-ended support for President Bush's war in Iraq, and one criticizing Deborah Pryce (OH-15) for her record on congressional travel and votes to weaken ethics rules in the House. These ads are the first in a national series of ads that will spotlight the disastrous record of House Republicans. Majority Action is an independent organization focused on exposing the record of the current Republican Congress and on promoting a progressive Democratic agenda in the U.S. House of Representatives. "Republicans in Congress have failed this country," said Majority Action executive director Mark Longabaugh. "They have failed us by supporting Bush's open-ended policy in Iraq, they have foiled to clean up a scandal plagued House leadership, and they have failed to accomplishs anything of significance in this Congress to move our economy forward. James Walsh and Deborah Pryce reflect this failure and that is why we have spotlighted their records." "These are only two examples of a Republican Congress that is out of touch with the values and the interests of the American family,11 added Majority Action leadership circle member Joe Andrew. "We plan to continue to aggressively shine a spotlight on the failed record of Congressional members. One ad focuses on Congresswoman Pryce's special interest funded travel and votes to end the investigation into Jack Abramoff. The Ad "Trips" will run in the Columbus media market in Ohio for one week. The second ad focuses on Congressman Walsh's continued support of President Bush's Ailed "stay the course" Iraq policy. "Iraq" will run in the Syracuse media market in New York for two weeks. Majority Action intends to shine the spotlight on Republican members of Congress using traditional communications efforts, like television advertising, and new, emerging technologies, like text messaging. In these ads, the first to use text messaging, people can text the word "IRAQ" to 35328 for more information on their mobile phones in the Walsh ad and text the word "TRIPS" to the short code 35328 on their mobile phones in the Pryce ad. Both ads can be viewed on MajorityAction.net and on YouTube.com [1]. Majority Action is led by veteran Democratic campaign operatives and has a leadership board mat consists of prominent political figures, including several former Members of Congress, two former Democratic National Committee Chairmen and two former DCCC Chairmen. Source URL: http://maioritvaction.net/hode/9 r-l on Links: 0* [ 1 ] http://www.youmbe.com/iiser/MajorityAction (N O CD O O) rsi Exhibit T Published on Majority Action (http://inaioritvactiQn.nert Majority Action Spotlights Leadership Handling of Page-Gate By NGP Admin Created 2006-10-06 08:34 i Majority Action Launches Radio and Internet Adi Focused on Reps. Hastert, Reynolds and Pryce Inaction in the Rep. Foley Page-Gate Scandal Washington, D.C. - Majority Action today turned a bright spotlight on three Republican Members of Congress who turned a blind eye to Rep. Foley's inappropriate relationships with boys who were House Pages. Listen to the radio ads "Scandal" [0] and "The Buck Stops Here" [0] The behavior of former Congressman Mark Foley is reprehensible," said Donnie Fowler of Majority Action. "Majority Action wants the public to know that Rep. Hastert, Rep. Reynolds and Rep. Pryce failed to use their top leadership posts in the House to immediately protect children. Even worse, they took money from Foley." The radio ads are airing in the Buffalo, Rochester and Washington, DC media markets. • The Internet ads can be seen on MajorityAction.net and on YouTube.com, the radio ads are also available on MajoritvAction.net F01. Reynolds: http://voutube.com/watch7v-hcehVWoHowE [ 1 ] Pryce: htro://www.voutube.com/watoh?v!=eSi9mel Iqc [2] Majority Action is an independent organization focused on exposing the record of the current Republican Congress and on promoting a progressive Democratic agenda in the U.S. House of Representatives. Majority Action is led by veteran Democratic activists and has a leadership board that consists of prominent political figures, including several former Members of Congress, two former Democratic National Committee Chairmen and two former DCCC Chairmen. Source URL: http^/maioritvaction.net/node/16 Links: [1] http://yournbe.com/watch7v-hcehVWoHowE [2] http://www.youtube.com/watch7v-cSj9ineMqc en O en (N Exhibit U Published on Majority Action (http://mqjoritvaction.nert Majority Action Spotlights Records on Stem Cell Research By NGP Admin Created 2006-10-09 23:22 Launches Powerful Ad Spotlighting Cong. Chocola, Drake, Sherwood and Walsh Washington, D.C. - Majority Action today launched ads that turn a powerful spotlight on four Republican Members of Congress who voted against federal funding for stem cell research. "Stem cell research offers great medical hope for patients and families suffering from devastating illnesses or injuries,11 said Mark Longabaugh, Executive Director of Majority Action. "This ad, in very powerful terms, lays out what is at stake in the stem cell debate. Majority Action wants the public to know that these four Members of Congress do not believe that doctors and scientists should be able to carry out critical research and do not support critical federal funding of stem cell research." "Republicans have made choices that pick ideology over life-saving medical research. They have chosen interest group politics over the ability of science to give families more options when making decisions about their health care," continued Longabaugh. The ads are airing in the Norfolk, South Bend, Syracuse, and Wilkes Barre-Scranton media markets. The ads can be seen on MajorityAction.net and on YouTube.com. Chocola: Drake: Sherwood: Walsh: Majority Action is an independent organization focused on exposing the record of the current Republican Congress and on promoting a progressive Democratic agenda in the U.S. House of Representatives. Majority Action is led by veteran Democratic activists and has a leadership board that consists of prominent political figures, including several former Members of Congress, two former Democratic National Committee Chairmen and two former DCCC Chairmen. Source URL: httD://maioritvaction.net/stem cells