August 1, 2016 Payment

August 1, 2016 Payment

June 18, 2018 Richard Thornton Director of Campaign Finance Rhode Island Board of Elections 50 Branch Avenue Providence, RI 02903 Dear Mr. Thornton: Common Cause Rhode Island files the following complaint against Allan W. Fung, 1581 Phenix Ave., Cranston, RI 02921 (herein “Fung”) and Carpionato Properties,1414 Atwood Ave., #5 Johnston, RI 02919 (herein “Carpionato”). Facts In 2014 Allan W. Fung was a candidate for the Republican nomination for Governor of Rhode Island, and then the Republican nominee for Governor of Rhode Island. In 2016 Fung was a candidate for reelection as Mayor of Cranston, Rhode Island. In 2018 Fung is again a candidate for the Republican nomination for Governor of Rhode Island. In 2014 the Fung committee made four payments, totaling $4500, to Carpionato Properties for “Rent and Utilities” (Exhibit A—2014 Rent and Utilities Payments). In 2016 the Fung committee reported one of those payments, for $1000, as “refunded” (Exhibit B—2016 refund of Rent and Utilities Payment). In 2016 the Fung committee made three payments, totaling $1500, to Carpionato Properties for “Rent and Utilities” (Exhibit C—2016 Rent and Utilities Payments). The Fung committee was headquartered at the retail shopping center Chapel View from at least July 2016 to November 2016 (Exhibit D—July 2016 Facebook post). The headquarters appears to have been in Building 1000, Unit 138, 1,369 sq. ft. (Exhibit E—Village Side Available Retail Space). The Fung committee reported those three payments, totaling $1500, as “refunded” (Exhibit F— 2017 refund of Rent and Utilities Payment). With a three-month lease cost before the refund was approximately $0.37 sq. ft. On October 24, 2017 Fung kicked off his campaign for the Republican nomination at Chapel View (Exhibit G—WPRI.com article by Ted Nesi on October 24, 2017). On April 30, 2018 the Fung committee amended its On-Going 2017 4th Quarterly report to show $3100 in “Rent and Utilities” to the Carpionato Group as accounts payable (Exhibit H—2017 amended Rent and Utilities Payment). An invitation to a “Women for Fung” event posted on Facebook lists the address of the Fung headquarters as Building 1000, Suite 144 (Exhibit I—2018 Facebook event). Carpionato markets the space as 1372 sq. ft. (Exhibit E—Village Side Available Retail Space). WPRI.com reported a “balloon payment” is due May 1, 2018 (Exhibit J—WPRI.com 1 article by Tim White and Ted Nesi on June 13, 2018). A lease beginning October 1, 2017 to May 1, 2018 is approximately $516/mo. with a cost per square foot of approximately $.38. Count I—Unreported in-kind contributions § 17-25-11, as defined in § 17-25-3(8) The 2016 refund of $1000 in “rent and utilities” to the Fung committee by Carpionato Properties for the 2014 is an unreported in-kind contribution, in violation of § 17-25-11. The 2016 rent and utilities payments, totaling $1500, by the Fung committee, which were refunded in 2016 are an unreported in-kind contribution, in violation of § 17-25-11. Count II—Corporate contributions § 17-25-10.1(h)(1) The 2016 refund of $1000 in “rent and utilities” to the Fung Committee by Carpionato Properties for the 2014 is an illegal corporate contribution, in violation of § 17-25-11. The 2016 rent and utilities payments, totaling $1500, by the Fung Committee, which were refunded in 2016 are an illegal corporate contribution, in violation of § 17-25-11. Count III—Contributions in excess of the limits § 7-25-10.1(a)(1) The 2016 rent and utilities payments, totaling $1500, by the Fung Committee, which were refunded in 2016 are a contribution in excess of the $1000 limit, violating § 7-25-10.1(a)(1). Rent and utilities totaling $1500 in 2016, and $3100 (to date) in 2017-2018 are below market rate for retail rentals, violating § 7-25-10.1(a)(1). Common Cause Rhode Island requests that the Board of Elections find Allan W. Fung and Carpionato Properties in violation of the campaign finance requirements under § 17-25-11, § 17-25-13 and § 17-25-16 and such relief the board may deem appropriate. Upon information and belief, the statements in this complaint are true. Signed John Marion Executive Director Common Cause Rhode Island 2 Exhibit A—2014 Rent and Utilities Payments Exhibit B—2014 refund of Rent and Utilities Payments Exhibit C—2016 Rent and Utilities Payments Exhibit D—July 2016 Facebook post Exhibit E—Village Side Available Retail Space Village Side Available Retail Space Route 2 (New London Avenue) 154 144 225 132 142 140 132 138 136 134 VILLAGE SIDE 116 128 112 108 NO. TENANT AVAIL. SQ FT F 220 S STARBUCKS Building 1000 2,2201 100 1 104 IZZA F S 100 Johnny Rockets LAZE,527 P 250 B 2 C/ V R S E R L E K IN R WAT 2 2 SP Building 1000 240 104 Available 581 4 108 1800 Flowers 5 Building 2000 6 112 GameStop 116 Omaha Steak C 200 h 128 Carpionato Regional a p Management Office e l V 132 Available 975 8 ie 134 Cold Stone Creamery w 3000 136 Gents I-30 Chapel View-South B o 138 Available 1,369 u l e 140 Cosmo Nails v a 142 GNC r d 144 Available 1,372 154 Massage Envy 10 Building 4000 Building 2000 200 Available (still under lease) 6,276 300 350 220 Bling Eyewear 18 225 Ideal Image 22 240 Alex and Ani Offices 250 Alex and Ani Retail 3000 Chapel Grille Building 4000 Sockanosset Cross Road 300 Staples 350 Available 5,091 I-30 Chapel View-South 1 Starbucks 2 Blaze Pizza 4 OrangeTheory Fitness Phase II Garden City 5 Games Workshop 6 Great Clips Center 8 Shaw’s Supermarket 10 Petco 18 TJ Maxx 22 REI Leased Available Exhibit F—2017 refund of Rent and Utilities Payments Exhibit G— WPRI.com article by Ted Nesi on October 24, 2017 Fung slams Raimondo, debuts new TV ad to kick off second gov campaign wpri.com/news/eyewitness-news-investigates/fung-slams-raimondo-debuts-new-tv-ad-to-kick-off-second-gov- campaign/1082428509 Eyewitness News Investigates By: Ted Nesi Posted: Oct 24, 2017 07:04 PM EDT Updated: Oct 24, 2017 07:04 PM EDT Patricia Morgan first to formally announce 2018 run for RI governor CRANSTON, R.I. (WPRI) - Cranston Mayor Allan Fung launched his second campaign for Rhode Island governor on Tuesday, slamming incumbent Democrat Gina Raimondo for "dumb mistakes" and putting big money behind a new TV ad now hitting the airwaves. "We see it in the news every single day: the complete incompetence, wasteful mismanagement, and shady behavior from our governor and many others sitting in that marble dome in Providence," Fung, a four-term Republican mayor, declared in his kickoff speech. He added: "Our governor has failed miserably, and it's time to lead our state in a better direction." Fung suffered a narrow loss to Raimondo in the 2014 gubernatorial race, taking 36% of the vote to her 41%. (A third candidate, the late Robert Healey, received 21% as the Moderate Party nominee.) He was re-elected to a new four-year term as mayor last November, but was always expected to run for governor again. "I told you I'd be back again, didn't I?" he laughed on arriving at the podium Tuesday. “I told you I’d be back,” Allan Fung tells the sizable crowd as he launches his second run for governor pic.twitter.com/YxsIEAPu2F — Steph Machado (@StephMachado) October 24, 2017 Fung, a 47-year-old son of Chinese immigrants, delivered his address to a few hundred supporters gathered in a vacant building at Chapel View, the former reform school that the Carpianato Group development company has turned into a major shopping center. He suggested it represents the type of economic development that would happen statewide if he's elected. "We know we have what it takes to make that happen because we have done it right here in Cranston," he said. 1/3 Fung - who refused to answer questions from reporters after the event - also on Tuesday began running a new biographical TV ad reintroducing himself to voters. His campaign has bought about $82,000 of local broadcast time to air the commercial through Nov. 2. Fung is the second Republican to jump into the gubernatorial race, joining the fray one day after House Minority Leader Patricia Morgan announced her own bid for the GOP nomination. In a statement welcoming Fung to the race, Morgan said, "I am a new face with fresh solutions to lead Rhode Island to a better and brighter future." More candidates could follow. Two other Republicans, former state Rep. Joe Trillo and businessman Giovanni Feroce, both said this week they are also leaning toward running - raising the possibility of a crowded party primary. (No Democrats have launched primary campaigns against Raimondo at this point, but former Gov. Lincoln Chafee has been publicly flirting with the idea.) New: Businessman Feroce leaning toward run for RI governor Offering a message likely to appeal to many local Republicans, Fung used his speech to assail Raimondo on a long list of issues: the Cooler & Warmer tourism debacle, her hiring of former Rep. Don Lally despite a revolving-door rule, her support for business tax breaks, and the state's ever-growing $9-billion budget. "Our fellow Rhode Islanders have become frustrated, disenchanted, and beaten down," Fung said. "They see a government that's held hostage by the rich and powerful, a select few who serve themselves instead of taking care of us." Fung also made the critique personal, describing how his elderly father's application for public assistance to defray the cost of long-term care at a nursing home was held up for seven months because of the state's problem-plagued new computer system for benefits, UHIP.

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