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For Immediate Release
October 27, 2004		 Contact: Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis
ADR PROGRAM RESOLVES CASES

WASHINGTON -- The Federal Election Commission is making public six cases resolved in the Alternative Dispute Resolution (ADR) program. This brings to 133 the total number of cases released since the ADR program began October 2, 2000. The program's goal is to expedite resolution of some enforcement matters, reduce the cost of processing complaints, and enhance overall FEC enforcement. Closed ADR negotiated settlement summaries are available in the FEC's Press and Public Records offices.

For a case to be considered for ADR treatment, a respondent must express willingness to engage in the ADR process, agree to set aside the statute of limitations while the case is pending in the ADR Office, and agree to participate in bilateral negotiations and, if necessary, mediation.

Bilateral negotiations through ADR are oriented toward reaching an expedient resolution with a mutually agreeable settlement that is both satisfying to the respondent(s) and in compliance with the Federal Election Campaign Act (FECA). Resolutions reached through direct and, when necessary, mediated negotiations are submitted to the Commissioners for final approval. If a resolution is not reached in bilateral negotiation, the case proceeds by mutual agreement to mediation. It should be noted that cases resolved through ADR are not precedential.

1. ADR 159  
     
  RESPONDENTS: Battles for Congress, Gil Baird, treasurer
  SOURCE: FEC Initiated (Audit)
  SUBJECT: Excessive contributions; accepting contributions designated for General Election when candidate was not involved in the General Election
  NEGOTIATED SETTLEMENT:

$1,000 civil penalty* Respondents acknowledge that an inadvertent violation of the FECA occurred, but at the time of the audit had insufficient funds to refund the identified contributions. Respondents, in compliance with the recommendations of the auditors, reported the amounts required to be refunded as debts beginning on the 2003 July Quarterly Report. The 2004 July Quarterly Report disclosed that refunds were made for all excessive contributions during the reporting period. In an effort to resolve this matter the respondents have agreed to pay a civil penalty and work with Commission staff to terminate the committee.

     
2. ADR 171  
     
  RESPONDENTS:

League of Conservation Voters Action Fund, Gwendolyn Sommer, treasurer

  SOURCE: FEC Initiated (RAD)
  SUBJECT: Failure to accurately report receipts
  NEGOTIATED SETTLEMENT:

$4,500 civil penalty

Respondents acknowledged the reporting errors and explained the unreported increase in aggregate receipts as due to technical difficulties in retrieving the data from their computerized donation tracking system. Prior to being advised of problems with their reports, the Respondents worked with a consultant to improve their data retrieval system in order to facilitate the early review of data prior to completion of the monthly FEC reports. In an effort to resolve these matters and avoid similar problems in the future, Respondents agree to designate a staff member to be responsible for FEC compliance and select at least two individuals from the Leagues Action Fund to attend a FEC seminar on Federal election campaign reporting requirements within 12 months of the effective date of this agreement.
     
3. ADR 173  
     
  RESPONDENTS:

Bacardi USA, Inc. PAC, Robert Higdon, treasurer

  SOURCE: MUR 5439 : Citizens for Responsibility and Ethics
  SUBJECT: Failure to electronically file disclosure report; failure to itemize disbursements; failure to file disclosure report timely
  NEGOTIATED SETTLEMENT:

$750 civil penalty

Respondents acknowledge that violations of the FECA occurred and on learning of the necessity of filing the 2003 Year End Report in electronic format, filed the report electronically. This report included the itemization required by FECA. The Respondents filed the 2004 April Quarterly Report late. In an effort to avoid similar errors in the future, the Respondents agree to appoint a FEC compliance officer, or retain a firm specializing in FEC requirements and have a member of the Respondents' staff attend a FEC seminar within 12 months of the effective date of this agreement.
     
4. ADR 189  
     
  RESPONDENTS:

Clark for President, Inc., Dorian V. Weaver, treasurer

  SOURCE: MUR 5441 : Thay Humes, Owner, Humes McCoy Aviation
  SUBJECT: Failure to pay for campaign travel
  NEGOTIATED SETTLEMENT:

The ADR Office recommends the case be closed and the Commission agrees to close the file.

     
5. ADR 190  
     
  RESPONDENTS:

(a)   Case for Congress, James H. Case, treasurer

(b)   Phoenix Group, LLC

(c)   B & K Enterprises
  SOURCE: MUR 5456: Justin Pittullo
  SUBJECT: Corporate contributions
  NEGOTIATED SETTLEMENT:

The ADR Office recommends the case be closed and the Commission agrees to close the file.

     
6. ADR 192  
     
  RESPONDENTS:

John Kerry for President, Robert A. Farmer, treasurer

  SOURCE: MUR 5465: Marion L. Stone
  SUBJECT: Failure to return or deposit individual contribution within 10 days of treasurer's receipt
  NEGOTIATED SETTLEMENT:

The ADR Office recommends the case be closed and the Commission agrees to close the file.

     

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