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Michael Brunelle Executive Director, New Hampshire Democratic Party 105 N

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Michael Brunelle Executive Director, New Hampshire Democratic Party 105 N Michael Brunelle Executive Director, New Hampshire Democratic Party 105 N. State Street, Concord, NH 03301 October 11, 2010 Christopher Hughey, Esq. Acting General Counsel Federal Election Commission 999 E Street, N.W. Washington, D.C. 20463 Re: Frank Guinta, Friends of Frank Guinta and Revere America, Jamestown Associates, Magnolia Media Dear Mr. Hughey: Pursuant to 2 U.S.C. § 437g(a)(1) and 11 C.F.R. § 111.4, please accept this letter as a Complaint for violations of the Federal Election Campaign Act of 1971, as amended (the “Act”), and regulations of the Federal Election Commission (the “FEC” or the “Commission”) against New Hampshire candidate for U.S. House of Representatives Frank Guinta (“Guinta”), his campaign committee, Friends of Frank Guinta, (the “Guinta Committee”), Jamestown Associates, LLC, a New Jersey limited liability company (“Jamestown Associates”), Magnolia Media, LLC, an inactive Louisiana limited liability company (“Magnolia Media”), and Revere America Association, a Delaware not-for- profit corporation (“Revere America”). Guinta, the Guinta Committee, and Revere America have collectively (a) violated the prohibition on accepting coordinated communications paid for by individuals and/or corporations as set forth in 2 U.S.C. § 441a(a)(7)(B)(i) and 11 C.F.R. §§ 114.2(b) and 109.22, and (b) Revere America has made impermissible corporate contributions to a candidate for U.S. Congress, and his federal candidate campaign committee. I. Facts Guinta is a candidate for the United States Congress for the State of New Hampshire, First Congressional District, and the Guinta Committee is the authorized campaign committee for Guinta. See Exhibit A . Revere America is a domestic Delaware not-for-profit corporation, registered as a 501(c)(4) organization with the IRS. See Exhibit B . On September 9, 2010, former Governor of New York George Pataki, Revere America’s Chairman, stated that Revere America’s intention was to contribute “seven figures” to influence certain congressional races in the coming weeks. See http://www.youtube.com/watch?v=4GVwJZDXi5o . At that press conference, Chairman Pataki played a “pilot ad” which criticizes the Patient Protection and Affordable Care Act, and in particular, the incumbent congressional candidates who supported that legislation. Id . The pilot advertisement is substantially the same as advertisements that have run in opposition to Congresswoman Carol Shea Porter (NH-1), Congressman John Hall (NY-19), and Ms. Anne McLane-Kuster (NH-2) See http://www.youtube.com/user/revereamerica . While the advertisement played at the press conference does not reference any particular candidate, Chairman Pataki stated at the press conference that “obviously we will target [the message] to the specific districts.” http://www.youtube.com/watch?v= 4GVwJZDXi5o . On September 22, Revere America expended $327,566 to a shell entity, Magnolia Media, which is closely affiliated with the media consulting company retained by the Guinta Committee, Jamestown Associates, for a version of that advertisement specifically in opposition to Congresswoman Shea-Porter to be extensively broadcast on New Hampshire television. See Exhibit C On information and belief, Jamestown Associates has served as media consultant to Guinta since at least August 2009. Between July 21, 2010 and September 30 alone, Guinta paid Jamestown Associates $114,192 for television and radio advertisement purchases. See Exhibit A . Jamestown Associates is a domestic limited liability company in the State of New Jersey (see Exhibit D ), and is also registered to do business in the State of Louisiana. See Exhibit E . On its website, Jamestown Associates indicates that it maintains an office in Baton Rouge, Louisiana (the same city as the purported offices of Magnolia Media). http://jamestownassociates.com/who. As of the date of this Complaint, Revere America has expended more than one million dollars in media purchases in connection with substantially similar versions of the same advertisement, all of which have been made through Jamestown Associates or its affiliates. See http://images.nictusa.com/cgi-bin/fecimg/?C90011701 Magnolia Media, the entity receiving the $327,566 expenditure from Revere America for the version of the advertisement targeting Congresswoman Shea-Porter, is an inactive limited liability company in the State of Louisiana. See Exhibit F . In its corporate filings, Magnolia Media lists Laura B. Lancaster as its sole officer and President. Id . Ms. Lancaster, in her public professional profile, indicates that she concurrently holds the position of Media Director of Jamestown Associates and President of Magnolia Media. Exhibit G . On information and belief, the listed address in Baton Rouge of the offices of Magnolia Media with the Louisiana Secretary of State, from satellite imaging, appears to be nothing more than a vacant lot. II. Relevant Law A public communication is “a communication by means of any broadcast, cable or satellite communication . to the general public, or any other form of general public political advertising.” 11 C.F.R. § 100.26. When an organization pays for a public communication that is coordinated with a candidate, as opposed to an independent expenditure, the communication is considered an in-kind contribution to that candidate and is subject to the Act’s contribution limits, prohibitions and reporting requirements. See 2 U.S.C. § 441a(a)(7)(B)(i); 11 C.F.R. § 109.22. Therefore, only permissible sources may make coordinated communications. 11 C.F.R. § 109.22. Communications are “coordinated” if “made in cooperation, consultation or concert with . a candidate’s authorized committee” 11 C.F.R. § 109.20; see 2 U.S.C. § 441a(a)(7)(B)(i). Individuals who are not otherwise prohibited from making contributions may contribute up to—but not more than—$2,400 per election. 2 U.S.C. § 441a(a)(1)(A); 11 C.F.R. §§ 110(a), 110(b)(1). Contributions include in-kind contributions of “anything of value,” and the provision of goods or services for less “the usual and normal charge for such goods and services” results in a contribution and, in the case of a corporation, a prohibited contribution. 2 U.S.C. §§ 431(8)(A)(i), 441b(b)(2); 11 C.F.R. §§ 100.52(a), 100.52(d), 114.2(b)(1). Expenditures for coordinated communications are contributions subject to the Act’s reporting requirements and must be reported by a political committee. See 2 U.S.C. § 441 a(a)(7)(B)(i), 434; 11 C.F.R. § 109.20, 104.2. Knowing acceptance of an impermissible contribution by a political committee, or by an “officer or employee of a political committee,” is a violation of the Act. 2 U.S.C. § 441a(f). III. Legal Analysis The advertisements purchased and run by Revere America constitute impermissible coordinated communications. Because Jamestown Associates effectively served as media consultant and buyer to both the Guinta campaign and Revere America, Jamestown Associates was in a unique position to be able to coordinate the Revere America advertisements with the Guinta campaign’s own media strategy. Jamestown Associates used Magnolia Media, the inactive shell entity whose President and sole officer is the Media Buyer for Jamestown Associates, only to make the relationship between Revere America and Jamestown Associates appear further attenuated than it actually is. Further, Revere America by publicizing in advance that it would target specific congressional races involving incumbent candidates who had previously supported the Patient Protection and Affordable Care Act, offering an estimate as to the total amount of its media buys, and even offering a public preview of a generic form of the advertisement to be broadcast, allowed the Guinta campaign, and presumably other similarly situated campaigns, an opportunity to coordinate the campaign’s activities with its own. As such, the advertisements constituted behavior between Revere America, Guinta, and the Guinta Committee that, under the Act, amounted to coordinated communications. As a consequence, the expenditures by Revere America constituted impermissible in-kind contributions to Guinta and the Friends of Guinta Committee. In turn, by accepting those contributions, Guinta and the Friends of Guinta Committee, accepted and benefited from campaign contributions that are prohibited by the Act and the Commission’s regulations. IV. Conclusion Accordingly, we respectfully request that the Commission immediately issue an appropriate cease and desist order, pursue injunctive relief, and initiate an investigation into the foregoing federal campaign contribution violations and impose the maximum penalty allowable under the law. The foregoing is correct and accurate to the best of my knowledge, information and belief. Respectfully submitted, Michael Brunelle, Sworn to and subscribed to me this ____ day of _____________, 2010 ______________________________ Notary Public My Commission Expires: Attachment Index Exhibit A Guinta Committee, FEC Form 3 Exhibit B Revere America, Delaware corporate Filing Exhibit C Revere America, FEC Form 3 Exhibit D Jamestown Associates, New Jersey corporate filing Exhibit E Jamestown Associates, Louisiana corporate filing Exhibit F Magnolia Media, Louisiana corporate filing Exhibit G Laura B. Lancaster, Linkedin page .
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