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Washington, DC 20005 4 FEDERAL ELECTION COMMISSION WASSESIO. DC X*3 THIS ISTE GII4NII5 OF MWR # i47E FILED CNA O. 4 - R PORTS ANALYSIS REFERRAL TO OFFICE OF GENERAL COUNSEL DATE: 26 Apr11 1989 ANALYST: Anthony D. Raymond I. COUITTt3: Keep Hope Alive Political Action Committee (C00229286) Cirilo A. McSween, Treasurer (October 15, 1988 - Present) Alvin J. Boutte, Treasurer (June 28, 1988 - October 14 1988) 733 15th Street, NW, Room 7001/ Washington, DC 20005 II. RELEVANT STATUTE: 11 CFR 102.5(a) (1) (i) I I I. BACKGROUND: Receipt of Apparent Impermissible Contributions From Unregistered Organizations The Keep Hope Alive Political Action Committee ("the Committee*) received apparent impermissible contributions from four (4) unregistered organizations totalling $5,850 during the 1988 October Quarterly reporting period. The 1988 October Quarterly Report disclosed the following contributions from unregistered organizations: $5,000 from Friends of Jesse Jackson on July 13, 1988; $250 from the John Wiley Price Campaign on July 9, 1988; $500 from the Committee to Elect Rev. A.R. Polk on July 10, 1988; and $100 from the Mid-Brooklyn Political Association on September 15, 1983 (Attachment 2). On December 7, 1988, a Request for Additional Information (wRFAI" ) was sent to the Committee concerning the permissibility of the funds received from the unregistered organ' zations. The RFAI stated that if the funds were impermissible, the Committee should refund the amounts to the donors or transfer the funds to a non-federal account with the donor's consent (Attachment 3). l/ Prior to the 1988 Year End Report, the Committee listed its address as 1074 Thomas Jefferson Street, Washington DC 20007. KXEP ROPE ALXVE POLITICAL ACTION COMSTTEE RPORTS ANALYSIS OGC REFERRAL PAGE 2 On December 15, 1988, Cirilo A. NcSween, the Comittee1.', treasurer, filed a response that stated: We have transferred $6,975 from our Federal funds account to our Non-Federal funds account, while we work to verify the source of the money donated by the following groups--$5,000 from Friends of Jackson; $100 from the Mid-Brooklyn Political Association; $500 from the Committee to Elect Rev. A. R. Polk; $250 from the John Wiley Price Campaign; and $1,000 from Eddie Bernice Johnson; and another $125 to cover two checks which may be corporate. (Attachment 4 ). On December 30, 1988, a Second Notice was sent to the Committee requesting a photocopy of the transfer (Attachment 5)- On January 13, 1989, Steve Cobble, the Committee's Executive Director, met with the Reports Analysis Division (uRAD") analyst to discuss the Second Notice. The RAD analyst stated that a photocopy of the transfer-out was needed. Mr. Cobble explained that logistics problems had probably caused the omission but he was not certain the transfer had occurred. He stated he would investigate and that a written response to the Second Notice would be filed soon (Attachment6 ). On January 30, 1989, Mr. Cobble submitted a letter addressing issues discussed in the meeting with the RAD analyst. Mr. Cobble acknowledged the transfer-out; however, the photocopy of the transfer-out was again omitted (Attachment 7 ). On January 31, 1989, the Committee filed a copy of a debt memo for $6,975 noting the transfer-out which occurred on January 24, 1989 (Attachment8 ). IV. OTHER PENDING MATTERS INITIATED BY RAD: None. 0* ATTACHIIEMT #1 F w BETION COISSION DATE 14APR9 197-1999 C(N'IITIEE 1UEK OF 919CLOg1 9O9CWENTS - (C) PAGE 3 CITTEE DOCDENT RECEIPTS D19MR1MENTS 0 OF MICROFILM COEME DATES PAGES LOCATION TYPE OF FILER KEEP HOPE ALIVE POLITICAL ACTION COMIITTEE ID C0022929 NON-PMTY NON-QUALIFIED 3IECTED OWIIATION: WE 1999 STATEMENT OF ORGANIZATION 303UNDS 3 99FEC/532/1035 STATEMENT OF ORGANIZATION - AIMN 2NT 27OCT9 I 99FEC/561/3639 JULY UMIER.LY 0 0 2931LH9 -30D08 3 98FEC/541/13'3 OCTOBER WTERLY 219,417 23,399 -30SEP98 24 88FEC/561/3641 131199IJLki3 OCTOBER UARTERLY - AflMEtOENT -30SEP9 2 BFEC/574i4746 25 OCTOBER QUARTERY - AFM ENT -30SE98 99FEC/581/0690 OCTOBER QARTERLY - Nw IJLILB1JUL99 -30SEPBB I 99'EC1591/0687 OCTOBER QUARTERLY - 3I -30SEP9 3 B9FEC/581/1298 V(ELST FOR ADDITIONAL INFORATION 13LIL98 -30SEP99 4 88FECt568/2721 FELF.ST FOR ADDITIONAL. INFORMATION -30SEP9 3 99FEC/575/4818 .'NT-GEERAL 2,969 18,290 1OCT99 -29NV 5 88FEC/574i4516 -r YEAR-END 1,096 26,922 29NOV8 -31DEC88 8 89FEC/583/2706 YEAR-END - AMENDMENT 1,096 35,797 29NOV8 -31DEC86 6 M9ECI599/4946 REQUEST FOR ADDITIONAL INFORMATION 29NOV8 -31DEC8 I B9FEC586/0159 TOTAL 223,481 0 77,486 89 TOTAL PAGES All reports have been reviewed. Cash-on-hand as of 12/31/88: $ 146,045 Debts and obligations owed to the committee as of 12/31/38: S-0- Debts and obligations owed by the committee as of 12/31/300: S-- - I A 1 en Met,L . .Io h illlllll IFle IIIlllll ...... (I 1 ATTACHMENT #2 m or Us0 AlIWO ioliIUl Actlom C*etO*3 p - I g" W" I dw,VMS ftIud of Jom Jokom h 1btli mnn - -nson 7/1ISl ashingtom. D.C. 0000.0 -_ Ur: Ljuw Z~~ n "el tort 01omp0meeO IP.O. Sox 2265 1.G1e[_ , 0 10 aounga Pw- i~ Leo Dzo/UIS1"2.000 MY *bf- Assn, Mid Brooklyn political IO 13 S T f10O 100.00 __m% I! - Pm - Isec.iTroeas- 0f Rensonols S10115-00 4 / oIVv - - - 7/19 88 $ 2 S 00 - 40 E. $th St. 94 - 114 7/oSB 25.0 Dallas, TX 75203 gnft %Ywt o o., i 4 O0 aimm. Ad*=Oo ad JVap ftmmooww ofn - I Vw- -~ %,MM 71 ftlea_ s~ goo, 06r." Ob U-06W9V LA -~- --- ~- ilot T 17 " w. ATTACHNT #3- PICco " .1. .__ l fee *ermte N4mtf~tISO mom a C O 4M ' "is l t W-rvie t (7/r/e/30/SO D.z . lmeasm Ibis letter is pceqpted b/ the lissims p---_t -b- - review of the repet(Ia, ereoed aOraies quetiinS @omncralm certain informutioa cataimed In t.. report(s). Am itemiation followas - th leetifIeation of om @cmtsibuto.e iNG& the coes om~ o and Seof ~le~u be .Aproed t epm hasbtibute isin_0e $2e in the ggregate during the oseaSar year Pasm a..nd Schoelo A =fMqP, tiay. ime ll(a)(i) h e entry lacking a coat betor a eoIupti oad of Notes iIf rt cemlttee as mae at least eO effort per solicitation, either by a written request or by an oral request documnted in writing to obtain this Information from the contributoc, your =mitte 357 have ezercised "best efforts.' Under 11 C3 L4.7(b). wcb effort shall consist of a clear request for the Information (i.e. am, sailing address. m, etie5, and name of eeplqer) M~h g j~ n st a•es U e best efforts e provision. y" al4 provide a copy of your solicitation or an epl-astios of the method (s) used to obtain catribut ic information. Clarifioation regarding 'beet efforts' should be disclosed dgri-e _ck two year aleU O"a beginning witb the first report f11d4 t e election year. 11 C€PS 104.3 (a) (4) (M) -T cu report discloses limited paymnts foC administrative expenses. Adminitrative eepemoes are payments made for the purpose of operating a politioel . 0e- r. PAGE 2 OF ATTACHMENT #3 Oe te inlding# but not limited to. J utillities@. Sla lea. telepbm service, am an!d sl liege aW" pay s to a *10 ngg4in is 3005 of .Mo toa alendar so"t im o_ btORrDetil"e 8uaw I SoebduleP00,99 D,(2 Quportins9.8.c. 434Liae (b) (So I SdIiom. it eave boon imcred but -m is a [email protected], the activitW shuid be diewseed as a ~ O seele, Do if the obIlgtion i OW mere or 0Gtatanding for sixty (60) day8 or mOeO -i 164.11. if a* expene* age being paid by a eew eailtlos, your statement of Organimation ml be minded to reflect this relationaship a u.S.0. 3433(b) (2). Any goods or services provided to your cmittee b, a pe•ma, except volunteer activity (i.e.. mc 's time). w d be considered as in-kind contributIm tram that persono, and muld be subject to the dIMlomero 2 irementg of 2 U.S.C. 1434(b) (3) and 11 Cft 104.13, tie limitations and prohibitions of 2 U.S.C. 15441 and 44lb. Plueae provide carifLicstion regarding admielotrative expenms incurred by your committee and/or memO you repart to disclose mach expenses according to tIe refecenced provisions of the Act and Os=86108 regulations. Clarifietion regarding admimistreeto ePeoses should be disclosed b gg NLj-rt a" tiLt Sxck beginning with the first report 1 is th inilecton year. -Aebodule A of your report (pertinet portiels) atta hed) discloses a contribtion(5) I ro an organisation(s) whicb is not a plitiosl omittee registered with tbe Cission. der 11 Clt 101.5()b. organizatios which are not political emittees w" the Act must either& 1) establish a soparate samset wbicb contains only those funds pecitted ender the Act* or 2) deownstrate through a reason6lo ecostise method that the organisetion he received ufficlieat funds subject to the limitations and preiblitiae In order to make the conttibution. It your Cmittee doe not finanCe aOm-fodoe I activity* the receipt of the referenced contrihtlnle) 10y violate the Isitat iona oan prohibitime of the Act. (2 U.S.C. 694410(f) ad 441b) If Your Venittue onsqes in both federal and noN-tedetol activity. *ithef through a separat* nocn-federal aocmant0 at " acount that financoo artivity in cootectioa with beth .v. '3 PAGE 3 OF ATTACHMENT #3 edeal me se-federal eleotionss your emOite• loy be in wiolation of 11 C"3 102.S(a).
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