Washington -- The Federal Election Commission (FEC) announced today that J. Edgar Broyhill II, a candidate in the 2004 primary election in North Carolina’s 5th district, the Broyhill for Congress Committee, and its treasurer Tim Nerhood have agreed to pay a $71,100 civil penalty for violating the reporting requirements of the Millionaire’s Amendment, along with other reporting requirements of federal election law. The Millionaire’s Amendment was passed as part of the Bipartisan Campaign Reform Act of 2002 (BCRA).

Under the Millionaire’s Amendment, House candidates must notify the FEC and their opponents when they exceed $350,000 in personal spending and also with each additional $10,000 in expenditures of personal funds thereafter.  The law allows opponents of these candidates to receive larger individual contributions than would otherwise be permitted.  Mr. Broyhill and Broyhill for Congress failed to file a notification within 24 hours of the candidate making a loan to the campaign that brought his spending of personal funds to more than $350,000 in the primary, and they subsequently failed to file notifications within 24 hours regarding additional expenditures of personal funds totaling $365,000.  The Respondents also failed to include $1,500 in contributions made by Mr. Broyhill on all 14 notifications filed with the Commission.

*There are four administrative stages to the FEC enforcement process:

It requires the votes of at least four of the six Commissioners to take any action. The FEC can close a case at any point after reviewing a complaint.  If a violation is found and conciliation cannot be reached, then the FEC can institute a civil court action against a respondent.                                                     

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