FEDERAL ELECTION COMMISSION WASHINGTON. D.C. 20M3
THIS IS THE BEGINNING OF U #
ETFII.ED 0139F- A ND auvoata ANALuss IlptR$&L TO,
I18 December 1990
ANLYST: ,Todd Gerlau'glh
I. COMmITmiB: Committee to Elect "Duke" Cunningham (C00242446) Kenneth Burnell Batson, Treasurer 4177 Yale Avenue La Mesa, CA 92041
II. RELEVANT STATUTE: 2 U.S.C. 5434(a)(6) 11 CFR 5104.5(f) NO Ill. BACKGROUND: Failure to File Forty-Eight Hour Notifications The Committee to Elect "Duke" Cunningham ("the Committee") has failed to file the required Forty-Eight (48) o Hour Notifications ("48-Hour Notices") for seven (7) contributions/loans totaling $20,250 received prior to the 1990 Primary Election. The candidate was involved in the 1990 Primary Election held on June 5, 1990. Prior Notice was sent to the Committee on April 30, 1990 (Attachment 2). The Notice includes a section titled "Last Minute Contributions". This section reads "Committees must also file special notices on contributions of $1,000 or more, received during the period May 17 through June 2, 1990. The notice must reach the appropriate federal and state offices within 48 hours of the committee's receipt." Schedules A and C of the 1990 July Quarterly Report indicate that the Committee failed to file seven (7) 48-Hour Notices for contributions/loans received during the afore- mentioned reporting period (Attachment 3). The following is a list of the contributions for which no 48-Hour Notices were filed: (asreir. ,~N
DOW A* Adam 5. Lee Poses,$1,0 Ben R. Rechter ",. i :/0 $ 1,000. Christopher COx Co q? :_t*l
Randall Cunningha 0 $ 2,000 Randall Cunningham (I0an) 0S/31/90 $10,250 Randall Cunningham (loan) 06/02/90 $ 4,000 On September 18, 1990, a Request for Additional Information ('RFAI") was sent to the Committee (Attachment 4). The RFAI noted on an informational basis that the ISO Committee may have failed to file one or more of the required 48-Hour Notices for *last minute" contributions of $1,000 or qT more. The notice requested the Committee to review their U") procedures for checking contributions received during the aforementioned time period. In addition, the notice stated .10 that although the Commission may take legal steps, any response would be taken into consideration. 0: In a written response received November 27, 1990, Mr. WBatson contended that he was unsure which notices were missing. He stated that the person responsible for filing the notices "has quit the campaign and we cannot find her records." He asked for copies of the notices sent to the Clerk of the House to determine which notices were not filed. 0-1 The Reports Analysis Division analyst mailed copies of these 48-Hour Notices to the treasurer on December 11, 1990 (Attachment 5). To date, no further response has been received.
IV. OTHER PENDING MATTERS INITIATED BY RAD:
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Cash on hand as of 11/26/90: $12,174.38 Debts and obligations as of 11/26/90: $41,307.14 " All reports have been reviewed. REPOR' NOTICE FEDERAL ELECTION COMMISSION
CALI FORWZA April 30t 1990
NAZLING F1l REPORT aRPORN PnxoDi' VAT21E
PRE-PRIMARY 04/01/90 - 0S/16/90 0S/21/90 05/24/90 JULY QUARTELY 0S/17/90 - 06/30/90 07/15/90 07/5/90
WHO RUST FILE PRINCIPAL CAMPAIGN COMMITTEES OF CONGRESSIONAL *CANDIDAT3SN vho seek nomination In the June S, 1990t California Primary.
WHAT MUST BE REPORTED All financial activity that occurred during the reporting period (or before, if not previously reported).
REPORTING FORKS Candidate committees use Form 3 (enclosed). If the campaign has more than one authorized committee, the principal campaign committee must also file a consolidated report on Form 3Z.
WHERE TO PILE Consult the instructions on the back of the Form 3 Summary Page. Note state filing requirements also.
LABEL Committees should affix the peel-off label from the envelope to Line 1 of the report. Corrections should be made on the label.
KLAST-INUTZE CONTRIBUTIONS I Committees must also file special notices on contributions o I $1,000 or more, received during the period May 17 through f7 June 2, 1990. The notice must reach the appropriate federal of the committee's receipt L and state offices within 48 hours COMPLIANCE TREASURERS OF POLITICAL COMMITTEES ARE RESPONSIBLE FOR FILING ALL REPORTS ON TIME. FAILURE TO DO SO IS SUBJECT TO ENFORCEMENT ACTION. COMMITTEES FILING ILLEGIBLE REPORTS OR USING NON-FEC FORMS WILL BE REQUIRED TO REFILE.
I/The period begins vith the close of the last report filed by the committee. If the committee has filed no previous reports, the period begins vith the date of the conitttees first activity. 2/Reports sent by registered or certified mail must be postmarked by the mailina date. Otherwise, they must be :eCeived by the filing date.
FOR INFORMATION, Call: 800/424-9530 or 202/376-3120 SC4IDOJLI A
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Kenneth Burnell Stoft, Treasurer Committee to Duke9l6et Cunningham 4177 Yale Avenue'', La Mesa, CA 92042,:, Identification umbers C00242446
References July Quarterly Report (S/17/90-6/30/90) Dear Mr. Batsons
Thi a letter is prompted by the Commission's preliminary review of the report(s) referenced above. The review raised questions concerning certain information contained in the report(s). An itemization follows: -Commission Regulations require the continuous reporting of all outstanding loans. This report omits the loan(s) itemized on your previous report(s). Please amend your report(s) to indicate the current status of the following loan(s): Randall Cunningham -- $10,510. (11 CFR SS104.3(d) and 104.11) -Schedule A of your report indicates that your committee may have failed to file one or more of the required 48 hour notices regarding "last minute" contributions 1 received by your committee after the close of books for the 12 Day Pre-Primary report. A principal campaign committee must notify the Commission, in writing, within 48 hours of any contribution of $1,000 or more received between two and twenty days before an election. These contributions are then reported on the next report required to be filed by the committee. To ensure that the Commission is notified of last minute contributions of $1,000 or more to your campaign, it is recommended that you review your procedures for checking contributions received during the aforementioned time period. Although the Commission may take legal action, any response you wish to make concerning this matter will be taken into consideration. (11 CFR S104.5(f)) -When a committee reports receiving a loan from the candidate, it is necessary to clarify whether or not the candidate used his/her personal funds or borrowed the money from a lending institution or any other source. If the candidate borrowed funds from a lending a •
institution Other source, please prov$de the n ritotn IesoUit"e ondt the orPilte terns eo the b os fis pld ase ack Z0515II fIf )sot t fay be foundateof rt in letterIt M IfABC.10. 'onassistance, (11 CrI 11100.7(a)(1)one and and 104.3(d)) or an amendment to your original report(s) A written respose of correcting the above proble(a) should be filed with the Clerk the souse of meorontatives, 1036 Longworth souse office Waahingtonlf be 7"20SIS within fifteen (1S) days of the Building, free to date of this letter. Ityou need assistance* please feel local contact me on our toll-free number, (800) 424-9530. My number is (202) 376-2480. Sincerely,
R. Todd Gerlough Reports Analyst Reports Analysis Division OCT jo,,0
Ievjral Election Comm ison -Artl: .1ohn O. Gibson 990 E street NW Washington, DC 20463
Dear Mr. Gibson: -C t,' An,,fr" .= I have been able to find the information necessar' Todd Gerbucsh'. two of the three items mentioned in Mr. letter. Hours reports that I can not locate the copies of the 49 were mailed to your commissinn. Thp person who 'As rampaicen and we responsible for that reportin-s has quit the can not find her records. th-V- You h *v- forward copies of th,. 44 Hf,,,. reportts Please mnde contributions )nd I will compare ther t,, th-ie wh,, .t, let y,,s kn,.,w if we nut in-i that time period. I ,t ,r missed filing any reports. to the committee the loans made by the candidate "-- I reviewed funds of the and found that all of the tknis were personal involved. candidate and that no othor funds were the original am enclosing an amended tetturi showing that I in reported on a provision report is still outstanding loan that amount of $10,510. 1 Al-- am showing on the report the period the loan aide by the candidate during this reporting was from personal funds. o 'incerely,
3-. ,
lenneth B. Batson Ticr iurer
cBb,sare Enclosure
I 50Ts 48 Aourv' .ot ic'S
vmsB Todd Gerlough
tool Kenneth Batson
Committee to Elect "Duke" Cunningham
9=2 12/11/90
I mailed copies of the 48 hour noticesreceived by the Clerk NO of the House.,to the treasurer on this date. FEDERAL ELECTION COMMISSION 999 3 Street, N.W. Washington, D.C. 20463
FItST GENERAL COUNSELS R310RT RAD Referral #90L-62 STAFF MERER Tanara Rapper SOURCE: I N T E R N A L L Y G E N E R A T E D RESPONDENTS: Comittee to Elect "Duke" Cunningham and Kenneth Burnell Batson, as treasurer RELEVANT STATUTE: 2 U.S.C. S 434(a)(6) INTERNAL REPORTS CHECKED: Referral Material Li) Disclosure Reports FEDERAL AGENCIES CHECKED: None
I. GENERATION OF MATTER The Office of the General Counsel received a referral from U-) the Reports Analysis Division on December 18, 1990. Attachment 1. The basis of the r attached referral is the failure Ln of the Committee to Elect "Duke" Cunningham and Kenneth Burnell Batson, as treasurer (the "Committee"), to timely file forty-eight hour notifications ("48 Hour Notices") for seven (7) contributions totalling $20,250. The candidate, Randy "Duke" Cunningham, won the June 5, 1990 Primary Election for the U.S. House of Representatives from the 44th Congressional District in the state of California with 45% of the vote. II. FACTUAL AND LEGAL ANALYSIS
For the Factual and Legal Analysis, see Attachment 2.
III. DISCUSSION OF CONCILIATION AND CIVIL PENALTY IV. 3BCOU3UI Wig
1. Open a Mm. 2. Find reason to believe that the Committee to Elect "Duke" Cunningham and Kenneth Burnell Batson, as treasurer, violated 2 U.S.C. 5 434(a)(6), and enter into conciliation prior to a finding of probable cause to believe.
3. Approve the attached Factual and Legal Analysis and conciliation agreement.
4. Approve the appropriate letter.
Lawrence N. Noble General Counsel
BY: Lz. e Date rner Associate General Counsel
Attachments: 1. Referral Materials 2. Factual and Legal Analysis 3. Proposed Conciliation Agreement BF1ORE THE FEDERAL EL3CTION CORNISSXON
in the Ratter of ) RAD Referral #90L-62 Committee to Elect "Duke ) Cunningham and Kenneth ) Burnell Batson, as treasurer.
CERTIFICATION
I, Marjorie W. Emmons, Secretary of the Federal Election Commission, do hereby certify that on March 6. 1991, the Commission decided by a vote of 5-0 to take the following actions in RAD Referral #90L-62: 1. Open a MUR. 2. Find reason to believe that the Committee to Elect "Duke" Cunningham and Kenneth Burnell Batson, as treasurer, violated 2 U.S.C. S 434(a)(6), and enter into conciliation prior to a finding of probable cause to believe.
3. Approve the Factual and Legal Analysis and conciliation agreement, as recommended in the General Counsel's Report dated March 4, 1991.
(continued) Federal Election Couaission Wa, 2'r Certification for AW eIetirfral 490L-62 Wednesday, March 6, 1991
4. Approve the letter, as recommended in the General Counsel's Report dated March 4, 1991.
Commissioners Aikens, Elliott, Josefiak, McDonald and McGarry voted affirmatively for the decision; Commissioner
Thomas did not cast a vote.
Attest:
Date See retary of the Commission
Received in the Secretariat: Monday, March 4, 1991 1:38 p.m. Circulated to the Commission: Monday, March 4, 1991 4:00 p.m. Deadline for vote: Wednesday, March 6, 1991 4:00 p.m. dh FEDERAL ELECTION COMMISSION WASHNCTON. D.C. 2063 March 13, 1991
Kenneth Burnell Batson, Treasurer Committee to Elect "Duke* Cunningham 4177 Yale Avenue La Nesa, CA 92041 RE: NUR 3233 Committee to Elect "Duke* Cunningham and Kenneth Burnell Batson, as treasurer Dear Mr. Batson:
On March 6, 1991, the Federal Election Commission found IS that there is reason to believe the Committee to Elect wDuke" Cunningham ("Com ittee") and you, as treasurer, violated qqr 2 U.S.C. S 434(a)(6), a provision of the Federal Election in Campaign Act of 1971, as amended ("the Act"). The Factual and Legal Analysis, which formed a basis for the Commission's finding, is attached for your information. o Under the Act, you have an opportunity to demonstrate that no action should be taken against the Committee and you, as treasurer. You may submit any factual or legal materials that you believe are relevant to the Commission's consideration of this matter. Please submit such materials to the General __ Counsel's Office within 15 days of your receipt of this letter. Where appropriate, statements should be submitted under oath. In the absence of any additional information demonstrating that no further action should be taken against the Committee and you, as treasurer, the Commission may find probable cause to believe that a violation has occurred and proceed with conciliation. In order to expedite the resolution of this matter, the Commission has also decided to offer to enter into negotiations directed towards reaching a conciliation agreement in settlement of this matter prior to a finding of probable cause to believe. Enclosed is a conciliation agreement that the Commission has approved. If you are interested in expediting the resolution of this matter by pursuing preprobable cause conciliation and if you agree with the provisions of the enclosed agreement, please sign and return the agreement, along with the civil penalty, to the Kenneth Burnell Batson Page 2
Commission. In light of the fact that conciliation negotiations, prior to a finding of probable cause to believe, are limited to a maximum of 30 days, you should respond to this notification as soon as possible.
Requests for extensions of time will not be routinely granted. Requests must be made in writing at least five days prior to the due date of the response and specific good cause must be demonstrated. In addition, the Office of the General Counsel ordinarily will not give extensions beyond 20 days. If you intend to be represented by counsel in this matter, please advise the Commission by completing the enclosed form stating the name, address, and telephone number of such counsel, and authorizing such counsel to receive any notifications and other communications from the Commission. This matter will remain confidential in accordance with 2 U.S.C. 55 437g(a)(4)(B) and 437g(a)(12)(A), unless you notify the Commission in writing that you wish the investigation to be made public. For your information, we have attached a brief description of the Commission's procedures for handling possible violations of the Act. If you have any questions, please contact Tamara Kapper, the staff member assigned to this matter, at (202).,, 376-5690.
John Warren McGarry Ch~i rman
Enclosures Factual and Legal Analysis Procedures Designation of Counsel Form Conciliation Agreement F1DERAL ELE1CTIO CORISSION
rACTUA AND LEGAL ANALYSIS RESPONDENTS: Committee to Elect "Duke" HUR: 3233 Cunningham and Kenneth Burnell Batson, as treasurer
The Federal Election Campaign Act of 1971, as amended (the "Act"), requires principal campaign committees of candidates for federal office to notify either the Clerk of the House, the Secretary of the U.S. Senate, or the Commission, as appropriate, and the Secretary of the State, in writing, of each contribution totaling $1,000 or more received by any authorized committee of the candidate after the 20th day but more than 48 hours before any election. 2 U.S.C. S 434(a)(6)(A). The Act further requires this notification to be made within 48 hours after the receipt of the contribution and to include the name of the candidate and office sought by the candidate, identification of the contributor, the date of receipt and the amount of the contribution. Id. The notification of these contributions shall be in addition to all other reporting requirements. 2 U.S.C. S 434(a)(6)(B).
According to its Statement of Organization filed with the Commission, the Committee to Elect "Duke" Cunningham is the authorized principal campaign committee of Randy "Duke" Cunningham. Kenneth Burnell Batson is the treasurer of the Committee to Elect "Duke" Cunningham. Mr. Cunningham was a candidate for the U.S. House of Representatives from the 45th District of the state of California in the June 5, 1990 Primary -2- Election. The Primary Election in the state of California was held on June 5, 1990. Pursuant to 2 U.S.C. S 434(a)(6)(A), the Committee was required to notify the Commission, in writing, of all contributions of $1,000 or more received from May 17, 1990 to June 2, 1990 within 48 hours of their receipt. On April 30, 1990 the Committee was reminded by the Commission, in writing, that the receipt of contributions of $1,000 or more must be reported within 48 hours if received during the period of May 17, 1990 through June 2, 1990. The notice further stated that these notifications must reach the appropriate federal and state offices within 48 hours of the committee's receipt. The Committee received seven (7) contributions during the period prior to the Primary Election that required written notification to the Commission. The contributions were received as follows: Name of Contributor (as Reported by the Committee) Date of Receipt Amount S. Lee Pozez 5/25/90 $ 1,000 Don A. Adam 5/29/90 1,000 Randall Cunningham (loan from 5/29/90 2,000 candidate)
Randall Cunningham (loan) 5/31/90 10,250 Ben R. Rechter 5/31/90 1,000 Christopher Cox Congressional Comm. 6/1/90 1,000 Randall Cunningham (loan) 6/2/90 4,000 Total $20,250 3- None of :th#* aftributions were reported to the Commis ion until the Conmttee filed its 1990 July Quarterly Report, which was not received by the Commission until July 14, 1990.
It thus appears that the Committee may have violated 2 U.S.C. S 434(a)(6) by failing to disclose seven (7) contributions of $1,000 or more before a primary election within 48 hours of their receipt. Therefore, there is reason to believe that the Committee to Elect "Duke" Cunninhan and Kenneth Burnell Batson, as treasurer, violated 2 U.S.C. S 434(a)(6).
Ir)
Clip" FEDERAL- ELECTION -CQMOSION WASHINGTON, D.C. *W
xpril 11, 1991
CERTIFIED MAIL RETURN RECEIPT REgQSTED Kenneth Burnell Batson, Treasurer Committee to Elect "Duke" Cunningham 4177 Yale Avenue La Mesa, CA 92041 RE: HUR 3233 Committee to Elect "Duke" Cunningham and Kenneth Burnell Batson, as treasurer Dear Mr. Batson:
On March 13, 1991, you were notified that the Federal Election Commission determined to enter into negotiations LO directed toward reaching a conciliation agreement in settlement of this matter prior to a finding of probable cause to believe. 1On that same date you were sent a conciliation agreement offered 0: by the Commission in settlement of this matter. Please note that conciliation negotiations entered into prior to a finding of probable cause to believe are limited to a maximum of 30 days. To date, you have not responded, in writing, to the proposed agreement. The 30 day period for - negotiations will soon expire. Unless we receive a response from you within five days, this Office will consider these negotiations terminated and will proceed to the next stage of the enforcement process. Should you have any questions, please contact Tamara Kapper, the staff member assigned to this matter, at (202) 376-5690.
Sincerely,
Lawrence M. Noble General Counsel
BY: Lois G. Lerner Associate General Counsel W D. Stphen 320 Wirst St. 83. Washington, D.C. 20003
woo April 11, 1991 Me. Tamara Kapper Paralegal Specialist M Federal Election Commission 999 E Street, N.W. Washington, D.C. 20463 RE: NUR 3233
Dear Ms. Kapper: Thank you for taking the time to talk with me today regarding MUR 3233. Attached you will find a Designation of Counsel. The Committee to elect Duke Cunningham is in agreement with the Factual and Legal Analysis
UL)
lcl Respondents problems involve "48 Hour" reports during the primary election. More specifically, there were 7 tO contributions of $1,000.00 or more which were not properly reported. During the same period, approximately 25 contributions were reported. Respondents acted in good faith and tried to meet their legal obligations during the primary election. After the primary election, several changes were implemented in order to ensure that no further compliance problems of this type would occur. The 9 individual responsible for bookeeping during the primary election was replaced. Also, all records of receipts and -- disbursements are now computerized.
The lack of compliance difficulties during the 1990 general election clearly indicates that Respondents made every effort to correct the problems previously encountered.
Yours truly,
D. Stephen Edwards 4 ' wSam m
uL2-)22 am-:r 717o 12r SE
v 'Z Lk.. m-r
2=8s (2p2 1q1* -Ioo0
The above-named individual is hereby designated an my
counsel and is authorized towreceive any notifications and other O c omunications from the Commission and to act on my behalf before n * the Commission.
Date Signatu
RESPONDENT'IS MAlE: 'YNMk~N>i It,A ADRES: .\0V Lo j "O".o Vac N CcAA-) 7O.5 HSOS PRO= S BUSXiin P0Hms: ~2~2~ZS 5~h5Z- -iv
3Une 21, 1991
Ms. Tanara K I-)r Paralegal Speci 1ist 3 Office of the Genewal Counsel Federal Election Comimion )x 999 a Street, NW.' Washington, D.C. 0463 RE: NUR 3233 - Dear Ms. Kapper: Enclosed please find the Statement of Designation of Counsel for the Committee to Elect Randy "Duke" Cunningham, Kenneth Burnell Batson, Treasurer, wherein I am named as Counsel. I will be in contact regarding the Cunningham Committee's response to the proposed conciliation agreement on Monday, June 24th. This is to acknowledge my receipt of the agreement on behalf of the Committee Thursday, June 20th.
u 7 V~del 9w
m. ,asinU
- IIIde gNahinaal D.c. 200o2
UMAZEHXORI (202) 470-7025 cO The above named individual is hereby designated as my counsel and is authorized to receive any notifications and other communications from the Commission and to act on my NIT behalf before the Commission.
/ JunA 21. 1991 Date
REEBPONDNTO' NAM: "committee to Elect ADDREBB "Dukes.Cunninaham and Kenneth Burnell Btson, Trem-seurmvz"
NONM PHGOE: 169;- - i- BUSfIX288 POMW (6191 463--5548 IS, e, /'-V
June 25, 19521
.. Ns. Tamara lape.= Paralegal ast N Office of the "naal Counsel CO Federal ZlectLon ComisIon
999 Z street, WV =w RZI NUR 3233
C, Dear Ms. lapper: - This letter will serve as aaknovledgement and acceptance of those terms contained in the proposed Conciliation Agreement betveen Respondent and the Federal zlection C-mmission.
Treasurer for Respondent is in the process of signing the proposed agreement, which viii be forvarded to your 0 off ice at the earliest possible time. Payment will be forvarded vithin the required 30 days, this period beginning upon signature of agreement.
nSincerely,
Sue Wadel GUY #VANDE*JAGT, lMC.
SPENCER ABRAHAM C04CmOMAN 91JL-1'U2.S 20Q-479-= TOM COLE Im UCA? BxCITNctmDOWFORo
'July 1t 1991 .%).,; CArra
Ms. Tamara Kapper = -o Paralegal Specialist Federal Election Commission 999 E Street, f.W. Washington, D.C. 20463 RE: MUR 3233 Dear Ms. Kapper: Enclosed please find the signed conciliation agreement for MUR 3233. Payment pursuant to section VI of the agreement will be made by Respondent within 30 days of formal acceptance by the Commission.
1FIcer I
Ief CWadel- Chief Counsel
cc: Frank Collins Kenneth B. Batson
PAID FOR BY THE NATIONAL REPUBLICAN CONGRESSIONAL COMMrTEE. NOT PRINTED AT GOVERNMENT EXPENSE, FEDERAL 91 JUL 12 A",t55 BEFORE TEE FEDERAL ELECTION COMMISSION In the Matter of
Committee to Elect "Duke" MUR 3233 ~~ST7VE Cunningham and Kenneth Burnell Batson, as treasurer
GENEA COUNSBLS REPORT I. BACKGROUND
Attached is a conciliation agreement which has been signed by Kenneth Burnell Batson, treasurer for the Committee to Elect "Duke" Cunningham.
The attached agreement contains no changes from the
agreement approved by the Commission on June 3, 1991. To date, the $1,900 civil penalty has not been received by the Commission.
I II. RECOMMENDATIONS
1. Accept the attached conciliation agreement with the C Committee to Elect "Duke" Cunningham and Kenneth Burnell Batson, as treasurer. 2. Close the file in this matter.
3. Approve the appropriate letter.
Lawrence M. Noble General Counsel
______BY: ______Date Lois G.Lerner Associate General Counsel Attachment Conciliation Agreement Staff Assigned: Tamara Kapper iROF3l Till FIDIRUA LiCT][ON COMMISION
in the Rattet of Committee to Elect *Duke* MM 3233 Cunningham and Kenneth Burnell Batson, as treasurer.
CEUTI FICATIOW
1, Marjorie W. Emmons, Secretary of the Federal Election Commission, do hereby certify that on July 17, 1991, the Commission ('V decided by a vote of S-0 to take the following actions in MUR 3233:
1. Accept the conciliation agreement with the Committee to Elect "Duke* Cunningham and Kenneth Burnell Batson, as treasurer. 2. Close the file in this matter.
U-) 3. Approve the appropriate letter, as recommended in the General Counsel's Report dated July 11, 1991.
Commissioners Aikens, Elliott, McDonald, McGarry and Thomas
voted affirmatively for the decision; Commissioner Josefiak did
not cast a vote.
Attest:
Date' Cmm on Secretaryr rJorie of theW. Commission
Received in the Secretariat: Fri., July 12, 1991 9:55 a.m. Circulated to the Commission: Mon., July 15, 1991 11:00 a.m. Deadline for vote: Wed., July 17, 1991 11:00 a.m. dr FEDERAL ELECTION COMMISSION WASHINGTON D.C. 20463
July 24, 1991
Sue Wadel, Esquire 320 First Street, 8.3. Washington, D.C. 20003
RE: MUR 3233 Committee to Elect "Duke" Cunningham and Kenneth Burnell Batson, as treasurer Dear Ms. Wadel: On July 17, 1991, the Federal Election Commission accepted the signed conciliation agreement submitted on your clients' behalf in settlement of a violation of 2 U.S.C. S 434(a)(6), a provision of the Federal Election Campaign Act of 1971, as LO amended. Accordingly, the file has been closed in this matter. rPlease be advised that payment of the civil penalty is due within thirty (30) days from the date that the conciliation o: agreement becomes effective. IThis matter will become a part of the public record within 30 days. If you wish to submit any factual or legal materials to appear on the public record, please do so within ten days. - Such materials should be sent to the Office of the General Counsel. Please be advised that information derived in connection with any conciliation attempt will not become public without the written consent of the respondent and the Commission. See 2 U.S.C. S 437g(a)(4)(B). The enclosed conciliation agreement, however, will become a part of the public record. w ;Ii ':: l:J:
nebosed you Wl find a copy of the fully executed conciliation agreementfor your files. If you have any questions, please contact""Tmara Kapper, the staff member assigned to this matter, at (202) 376-5690.
Sincerely, Lawrence N. Noble General Counsel
BY: Lois G./Lerner Associate General Counsel Enclosure Conciliation Agreement tn tod tot--
irk the norml 'cotars. of carrylng "ut Its responsibiliti.. The Coi *$ilova d trsa*o' tE be Itve that the Committee to, Slet 'Ptke* Cimsniaghams au"dZ *th Surnll
Batson, as treasurer (-lespondents-) violated 2 U.S.C. S 434(a)(6). o NOW, TH M31OIN, the Commission and the Respondents, having participated in informal methods of c€Onillation, prior to a finding of probable cause to believe, do hereby agree as -- follows:
I. The Commission has Jurisdiction over the Respondents and the subject matter of this proceeding, and this agreement has the effect of an agreement entered pursuant to 2 U.S.C. 5 437g(a)(4)(A)(i).
II. Respondents have had a reasonable opportunity to demonstrate that no action should be taken in this matter. III. Respondents enter voluntarily into this agreement with the Commission. 2.* trnlt-'v is 4h tc~ *91R
Committee to xlet "Duke"s Cunni,.. 3. The federal Electkon "Cmign of It70 , s aMended (the "Act), requires-pe-Lripal.--campaign 'committees of candidates for federal office to 0tify eitozz the Clerk. of the House, the Secretary of the U.S. Senate, or the Commission, as appropriate, and the Secretary of State, in writing, of any contribution totaling $1,000 or more received by any authorized committee of the candidate after the 20th day but sore than 48 hours before any election. 2 U.S.C. 5 434(a)(6)(A). The Act further requires this notification to be made within 48 hours after the receipt of the contribution and to include the name of the candidate and the office sought by the candidate, identification of the contributor, the date of receipt and the amount of the contribution. Id. The notification of these contributions shall be in addition to all other reporting requirements. 2 U.S.C. S 434(a)(6)(B). 4. Pursuant to 2 U.S.C. S 431(8)(a), a "contribution" is defined as any gift, subscription, loan, advance, or deposit of money or anything of value made by any person for the purpose Wen~ *~iL4~0,,.,-4* J.c inip~a.1#g~.. nt
. the name of theiremlployer and in !the clse of any Ot)+r p+'@ the full name and miErling addres8. + 7. Respondents •received leven (7) contributiorns totaling $20,250 that were received after the 20th day but mtore than 48 hours before the primary election.
8. On the 1990 July Quarterly Rport, respondents disclosed the receipt of a $1,000 contribution from 8. Lee Pozem on 25, 7ay1990. Respondents were required to file a 48-Hour Notice no later than May 27, 1990. 9. On the 1990 July Quarterly Report, respondents disclosed the receipt of a $1,000 contribution from Don A. Adam on may 29, 1990. Respondents were required to file a 48-Hour Notice no later than May 31, 1990. 10. On the 1990 July Quarterly Report, respondents disclosed the receipt of a $2,000 contribution from Randall
Cunningham on May 29, 1990. Respondents were required to file a 48-Hour Notice no later than May 31, 1990. 11. On the 1990 July Quarterly Report, respondents disclosed the receipt of a $10,250 contribution from Randall toW"
Coxrequirmed Congressina2 tw t#l CIti ;tee on Jun 1, 1990."Wt Respondentsro hisabr were
required to file 6 46-Hour Notice no later thon June 3, 1990. 14. On the 1990 July Quarterly Report, respondents disclosed the receipt of a $4,000 contribution from Randall V-r- Cunninghan on June 2, 1990. Respondents were required to file a tn 48-Hour Notice no later then June 4, 1990.
15. None of the contributions listed in subparagraphs 7-14 above, were disclosed until respondents filed their 1990 July Quarterly Report, which was not received by the Commission until July 14, 1990.
V. Respondents failed to file 48-Hour Notices for the above contributions in violation of 2 U.S.C. 5 434(a)(6). VI. Respondents will pay a civil penalty to the Federal Election Commission in the amount of one thousand nine hundred dollars ($1,900), pursuant to 2 U.S.C. S 437g(a)(5)(A).
VII. The Commission, on request of anyone filing a complaint under 2 U.S.C. 5 437g(a)(1) concerning the matter at issue herein or on its own motion, may review compliance with this agreement. If the Commission believes that this agreement date tat f v.~ imlement ti-Nr*nt contols 4 in,this 4 to, notify the, io" , IT Xaeltion ehie Agreeet constitute* the entiro agreement beftwe% theparties on the matters tatsed hbein, and no other statestprotmise, or Ln agreement, either written or oral, made by either party or by agents of either party, that is co not contained in thisw ritte; agreement shall be enforceable. C
FOR THE CORINXSSON: Lawrence X. Noble General Counsel
BY: &asoLoi lte4 teGneraCn General Counsel Date V- /
FOR THE RESPONDENTS:
I i r (Name) Date (Position) FEDERAL ELECTION COMMISSION WASHINCTON. D.C. 2W-
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