FEDERAI ELECTION COMMISSION 1.325 N~ SI k II N.W. WASHINGTO0N. D.C. 20463 <1 THIS IS THE EIND OF UIUR P. g6A( '1Y3 'a, Date Filmed O 7 Camera No. -- 2 - A' N.: Cameraman p. - 4b NX T FEDERAL ELECTION COMMISSION 1325 K STREET N.W WASHING rON,D.C. 20463 F47SQ January 26, 1979 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mr. Dana W. Haas 516 Cannon House Office Building Washington, D.C. 20515 RE: MUR 806 Dear Mr. Haas: On January 25 ,1979,, the Commission voted to find no reasonable cause to believe that a violation of 2 U.S.C. §4 34 (b) (5) ; 4 4la (a) (1) (A) ; or 441la has occurred and to terminate its investigation in MUR 806. A copy of the Commission' s determination and the General Counsel's Report is enclosed for your information. Accordingly, the Commission intends to close its files in this matter. William C. Oldaker _General Counsel Enclosures 1. Commission certification 2. General Counsel's Report e(Y FEDERAL ELECTION COMMISSION 1325 K STREET NW Jnay2,17 WASHINGTON,D.C. 20463 CERTIFIED MAIL RETURN RECEIPT REQUESTED Mr. Gordon Garrett Campaign Director Don Allegrucci for Congress Committee P.O. Box 1536 Pittsburg, Kansas 66762 RE: MUR 806 Dear Mr. Garrett: On January 25 ,1979, the Commission voted to find no reasonable cause to believe that a violation of 2 U.S.C. S§434(b) (5); 441a(a) (1)(A); or 441g has occurred and to terminate its investigation in MUR 806. A copy of the Commission's determination and the General Counsel's Report is enclosed for your information. Accordingly, the Commission intends to close its files in this matter. Sincerely,/ William C. Oldaker General Counsel Enclosures 1. Comimission certification 2. General Counsel'Is Report c401U)~ BEFORE THE FEDERAL ELECTION COMMISSION In the Matter of) MUR 806 Dr. Robert Whittaker, and ) The Whittaker for Congress ) Committee (Kansas)) CERTIFICATION 1I,Marjorie W. Emnmons, Secretary to the Federal Election Commission, do hereby certify that on January 25, 1979, the Commission determined by a vote of 5-0 to adopt the following recommendations, as set forth in the General Counsel's Report dated January 19, 1979, regarding the above-captioned matter: 1. Find no reasonable cause to believe a violation of 2 U.S.C. S434(b) (5); S441a(a) (1)(A); or S44lg of the Act has been committed by respondents Dr. Robert Whittaker and the Whittaker for Congress Committee. 2. Close the file. 3. Send the letters attached to the above- named report. Voting for this determination were Commissioners Springer, Aikens, Tiernan, McGarry, and Thomson. Attest: Date V Marjorie W. Emmons Secretary to the Commission Received in office of Commission Secretary: 1-22-79, 11:56 Circulated on 48 hour vote basis: 1-23-79, 9:00 Al' A 'I' 4'0 'I' >1 ' * ft 'I 6 t-'A* 4r tally b M 4 V '~ d 'H e.a 1'. i~ "4 A & -~ 49' tt '~''r A A' '44 itt A A 4'~A 3%, A 5"" 4t~$4tIt Y -~ 43' .9, ~r I ~ka~ ,., 4414 '4 49- 4 -. 4 4 '44' t ~;~;--~ - - 3' 'e~~t. 49v449.r>kt~'~ '4 4v ~ -Ut. - 4. -; '4' " ~44' -Z4 S '* 4'; it' 4< 41, '1 - - 1I~I - te '4 :4 - t~14~ '~ 'i.~ 4"'- t "4'' 'II' ,tt '*.~4#' '43' ~" 7'"' 344 t 4r'': '44 " 4 '9 1 34'4 irs BEFORE THE FEDERAL ELECTION COMMISSION In the Matter of 9 A 22 II 56 Dr. Robert Whittaker, and ) MUR 806 The Whittaker for Congress ) Committee (Kansas)) GENERAL COUNSEL' S REPORT On October 29, 1978, the Office of the General Counsel received a complaint from Gordon Garrett, Campaign Director of the Don Allegrucci for Congress Committee against Dr. Robert .0 Whittaker and the Whittaker for Congress Committee. The complaint alleged that Whittaker received payments of $1,000 per month from his optometric partnership throughout 1978 which Whittaker described, at various times, as salary, loans and installments in a buy-sell - agreement that would be applied to purchasing Whittaker's share of the partnership if his congressional campaign was successful or a C" loan if it was unsuccessful. Taking these allegations as true, there appeared to be a possible violation of the Act because neither Whittaker or the Whittaker for Congress Committee reported the receipt of these payments. Therefore, on November 28, 1978, the Commission voted to adopt the General Counsel's recommendation to find "reason to believe" a violation had occurred, and to open an investigation to determine whether the $1,000 monthly payments Dr. Whittaker received from his optometric partnership violated 2 U.S.C. S424(b) (5) for the committee's failure to report contributions; 2 U.S.C. S44la(a) (1)(A) for the candidate's receipt of contributions in excess of the con- -2- tributions in excess of the contribution limitations; and in a separate transaction, 2 U.S.C. S441g for the committee's receipt of illegal cash loans. Respondents' answers to Commission questions were received by the Commission on December 14, 1978. Anayi Respondents' answers indicate that the $1,000 monthly payments received by Dr. Whittaker from his optometric partnership were installments in an oral buy-out agreement whereby Dr. J. David Crum (Whittaker's partner) was to buy-out Dr. Whittaker's share of the partnership. The payments were to be applied toward the ultimate purchase price to be determined pursuant to the terms of the partner- ship agreement. In the event that the sale did not go through, the payments received by Dr. Whittaker would serve to reduce his share of partnership profits until such time as Dr. Whittaker, at his option, repurchased that portion of the practice as reflected by the sums paid by Dr. Crum to Dr. Whittaker. The terms of this oral agreement are verified in the affidavits of Dr. Whittaker, Dr. Crum and Joseph F. Shupe, the partnership's accountant. These affidavits also indicate that the money paid to Whittaker came out of Crum's funds despite the fact that the checks used were drawn on the joint account of Whittaker and Crum at the Prairie State Bank in Augusta, Kansas. The forml "Partnership Dissolution and Purchase Agreement" was executed by Whittaker and Crum on December 26, 1978. -3- The possible 2 U.s.c. S441g violation concerned two "cash" loans, totalling $15,000 that Whittaker made to his committee. Copies of cancelled checks received from Whittaker, however, demon- strate that these loans were made by check and therefore not in violation of 2 U.S.C. S44lg. Recommendation 1.- Find no reasonable *cause,-,tobelieve aviolation of2 U.S.C. S434 (b) (5); S44la (a)(1) (A); or S44lg of the Act has been committed by respondents Dr. Robert Whittaker and the Whittaker for Congress Committee. 2. Close the f ile. 3. Send the attached letters. Date ~William C Olae General Counsel Attachments 1. Respondents' answers to Commission questions 2. Partnership Dissolution and Purchase Agreement 3. Letters sorn WHITTAKER NIgTnic. K*NA COUNTIES ALLEN LANE.F UNN AOVSON LVOIN SUTLER MIAMI C14ASM OV~ CHAUTAUOU A MORRIS NOW~ ot ReprezentatibtoWSINT1 CI4ENOKEE CANNON HOUSE OFFICE BUILDING ,Alm% it5Bi coFFEy WSH4INGTON. D.C. 20515 COWLEY SEDOWC I&IO&M P,11 WA(202) 254311 CRAWFORD0 SUMNERII a~b(~.%j ~P4O i 11i: ,33 ELK VALSON OREENWOO HARPER January 9, 1979 Mr. Scott Rinn Federal ELection Commission 1325 K. Street N. W. Washington, D. C. 20463 In Re: MUR 806 Dear Mr. Rjnn: Here is a copy of the partnership dissolulion agreement enterred into between Congressman Whittaker and Dr. Crum. Paragraph 12' of the agreement acknowledges the receipt of $12,000 received in 1978 and adjusts the purchase price accordingly. I hope that this additional information is sufficient to resolve this matter. As we discussed on the phone, although the money was paid through a joint account, all the money in that account for 1978 was Dr. Crum's income. If there is anything else we can provide you with, please contact me and I will do all that I can to satisfy your requests. Dan Haas Attorney at Law 1 THIS STATIONERY PRINTED ON PAPER MADE WITH RECYCLED FIBERS PARTNERSHIP DISSOLUTION AND PURCHASE AGREEMENT Whittaker and Crum, Optometrists Whereas, an agreement of partnership was enterred into on the 1st day of January, 197,%-, between Dr. Robert R. Whittaker, O.D. and Dr. J. David Crum, O.D. for carrying on the business of optometry under the name of Whittaker and Crum; and Whereas, Dr. Whittaker and Dr. Crum have agreed to dissolve the partnership by mutual consent; It is agreed as follow..s: 1. Transfer of Interest. Dr. Robert Whittaker hereby assigns and transfers to Dr. J. David Crum all of his right, title, and interest as a partner in the firm of Whittaker and Crum, and in its assets, good will and firm name, and all of his rights under the partnership agree- ment for the sum and in the manner set out herein. 2. Payments. Dr. J. David Crum agrees to pay to Dr. Robert Whittaker for his share of the partnership the sum of $74,151.25; $12,000 of which sum has already been paid pursuant to an oral agree- ment between the parties and the receipt of which is hereby acknowledged by Dr. Whittaker. The remaining $62,151.25 is to be paid off in monthly installments ranging between $700 and $1,300, at Dr. Crum's option, commencing the 20th day of January, 1979, and payable on the 20th day of each succeeding month until paid in full.