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THIS IS. T-Aegivil of IMUR FEDERAL ELECTION COMMISSION "VHT0)%OC _NWs THIS IS.T-aEGIVil OF IMUR # 3566 ITE FILMED /VZ2.§Jg CAMERA NO. 20 CAMERAMAN , E 10 J. &PH GRAMMSMON 14&ZRI o"t' 1627 OCEAN BOULVARD RYE. NEW HAMPSIR 03870 July 27, 1992 Office of General Counsel Federal Election Commission MufK 999 E Street, NW Washington, DC 20463 Dear Sir or Madam, N3 The purpose of this duly notarized sworn statement is to file a formal complaint with the Federal Election Commission against Judd Alan Gregg, con a candidate for the U.S. Senate from the State of New Hampshire. C4~ -7. According to The Judd Gregg Committee report dated July 15, 1992, -cc $219,479.39 was transferred from the Judd Gregg for Governor Comittee to the federal campaign account. Of that amount, $38,020., and an estimated $4,249.36 in interest received for the same, is not in accordance with federal election law and therefore illegal. FEC procedures specifically outline how all the transferred funds must have been legal under federal law and that the "pool of funds" from which a transfer is made is considered to be the funds most recently received. The discrepancy between Gregg's report and the enclosed analysis can be explained by the fact that Gregg chose to cherry pick. If a contribu- tion was over the federal legal limit or from an unauthorized source, he simply back-tracked to legal contributions until he reached the $219,479.39. That is clearly illegal! What makes Judd Gregg's actions especially onerous is his obvious awareness of the law. He listed only the legal portion of a given contribution and then intentionally tried to circumvent the law itself. His deliberate distortions clearly reflect his disdain from the law itself as well as the citizens of the state who expect him to comply. Acknowledgement by the Federal Election Commission of this serious complaint and prompt action in forcing Judd Gregg to comply with the same laws as everyone else is anticipated. Sincerely, J. Joseph Grandmaison personally appeared before me on July 27, 1992, County of Rockingham, City of Ports- mouth, State of New Hampshire to sign and swear to the validy of this complaint. z~*~ Vy COMM"N ESxp OCTOBER 30, lIM r7 The Judd Gregg for Governor Committee reported on May 15, 1992 in their "Statement of Receipts and Expenditures" 6-month report filed at the New Hampshire Secretary of State's Office that they have made two financial transfers to The Judd Gregg Committee. In a letter to the Secretary of the U.S. Senate, copy of which was filed at the New Hampshire Secretary of State's Office, The Judd Gregg Committee was formally identified as having been organized on behalf of Judd Gregg's candidacy for the U.S. Senate and is therefore required as a matter of federal law to comply with all federal laws as to campaign finance. The two financial transactions officially closing out the state campaign account and transferring the balance of the same to the federal campaign account are as follows: 4-17-92 The Judd Gregg Committee $218,377.38 5-15-92 The Judd Gregg Committee 1,102.01 $219,479.39 Federal election laws permit such a transfer only under certain specific conditions. A complete report must be made clearly identifying who mede the contributions and all of the contributions must be legal under federal election laws. Regulations specifically state that a "first-in, first-out" formula must be used to determine-in Gregg's case--where the $219,479.39 actually came from. An analysis of who actually contributed the last $219,479.39 to The Judd Gregg Comittee is attached. The analysis reveals a breakdown of the *me by percentage is as follows: Identified and Legal 65Z Unitemized 6% Interest 111 Identified and Illegal 18% The $38,020.00 in contributions transferred from the state to the federal account fall into three distinct categories: 1. State law permits an individual to contribute up to $5,000. in both the primary and general election. Federal law permits only $1,000. in each case. Individual contributions over $1,000. made to the Judd Gregg for Governor Committee after the September 5, 1990 filing are illegal and cannot be used in a federal election. (The attached financial analysis specifically outlines how the receipts beginning with the period covered in the September 21, 1990 report--9-6-90 through 9-21-90--are included in the period over which the $219,479.39 was actually collected.) 2. Both federal and state laws permit Political Action Commuittees to contribute up to $5,000. in each election--primary and general. However, PAC's must be properly and legally registered with the Federal Elections Commission in order to contribute in a federal campaign. 3. Lastly, a state party and/or its affiliates may contribute up to $5,000. per election. Therefore, contributions in excess of the $5,000. legal limit made during the general election cycle and are now part of the $219,,479.39 are considered to be illegal and non-trans ferrable. Should in the unlikely case, justification be made that the New Hampshire Republican State Commit tee's two contributions amounting to a total of $25,000. were actually from the Republican National Committee (the RNC $25,000. contribution originally deposited by the Judd Gregg for Governor Committee on August 2, 1990 was returned to the RNC on September 21, 1990). all of the in the September 21, 1990 report and $19,185. of the receipts of the $45,315. received on September 4, 1990 would fall under the federal laws in order to be transferred into a federal campaign account. $18,855. of the September 4, 1990 receipts would not be legal to transfer as outlined on the attachment. The NH Republican State Coimmittee did not file a report on their so-called "federal account" for either of the two periods--l0-17-90 and lO-31-90-at the NH Secretary of State's Office. The coimittee's state account only shows a transfer from their federal account and the resulting contribution to the Judd Gregg for Governor Coimmittee. The original $25,000. contribution from the Republican National Committee was returned in that it did not comply with state law. The missing state comuittee's federal account reports would presumably indicate whether or not the RNC subsequently contributed to the state party itself, presumably on behalf of Gregg. The federal campaign is not allowed to benefit in any fashion from contributions that are not in accordance with federal law and therefore $4,249.46 in interest included in the transfer should not be permitted. 93040984 5 3 6 ANALYSIS OF FINANCIAL REPORTS Report Date Total Receipts Identified & Legal Unitemized Interest Identified & Illegal 5-16-92 $ 14,024.08 $ 1,325.00 $ 235.00 $12,464.08 11-16-91 28,223.52 20,155.00 4615.00 1,403.52 $ 1,050.00 1,000.00* 27,223.52 5-16-91 25,848.44 11,815.00 280.36 5,116.19 4,000.00 4s631.89** 21,211.55 11-16-90 28,204.32 14,850.00 845.00 1,017.85 770.00 10 721-47** 17,482.85 10-31-90 61,368.00 37,269.00 3599.00 20,500.00 10-17-90 61,006.48 42,240.00 3460.00 3,606.48 11,700.00 9-21-90 17,974.36 16,430.00 545.00 999.36 17,162.91*** 15,618.55*** Total $220,290.84 $144,048.00 $13,579.36 $24,607.48**** $38,020.00 219,479.39*** 143,272.55*** * Return of loan by the Inaugural Committee. ** Return of overpayments by vendors. Reflects actual portion of the total needed to properly identify source of the contribution. Given the fact that 182 of the funds represented in the transfer are not in accordance with federal law, 18% of the accumulated interest not including the $999.36 on the September 21, 1990 report-- a total of $4,249.46--should not be permitted as the federal campaign cannot benefit in any way from those contributions. 3 0 4 0 9 8 4 5 3 7 CONTRIBUTIONS IDENTIFIED AS ILLEGAL TO BE TRANSFERR D INTO A FEDERAL ACCOUNT Report Dated 11-16-91 9-25-91 Daniel E. Hogan $ 1,000. (Made $1,000. contribution on 6-17-91) 44 Woodvue Road Windham, NH 03087 9-25-91 NH Credit Union 50. (Not a registered PAC with the FEC) League PAC PO Box 2167 Concord, NH 03302 05-16-91 12-31-90 John F. Curley 5,000. ($4,000. over the individual limit. Incorrectly 0 333 Goodwin Ave. reported as NH and is presumably New Jersey) Ridgewood, NJ 07450 11-16-90 11-13-90 A. L. Williams PAC 500. (Not a registered PAC with the FEC) 350 Harvey Road Manchester, NH 03103 11-13-90 NH Credit Union 100. (Not a registered PAC with the FEC) League PAC PO Box 2167 Concord, NH 03302 11-13-90 Donald T. Rondeau 170. (Made a $1,000. contribution on the same date) 1118 Hooksett Road Hooksett, NH 03106 10-31-90 10-23-90 ADPAC 2,500. (Automobile dealers PAC not registered with the FRC)0 RR3, Box 12 Concord, NH 03301 10-29-90 Sylvia Brennick 2,500. ($1,000. individual campaign limit) 100 Federal Street 29th Floor Boston, MA 02110 10-29-90 Jack Brennick 2,500. ($1,000. individual campaign limit) 27 Glades Road PO Box 23 Minot, MA 02055 S3fl409845,.
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