Socas Pays Civil Penaltyfor Violations of Millionaire's Amendment

For Immediate Release
March 16, 2006

Contact:

Kelly Huff
Bob Biersack
Ian Stirton
George Smaragdis

SOCAS PAYS CIVIL PENALTY FOR VIOLATIONS OF MILLIONAIRE'S AMENDMENT

Washington -- The Federal Election Commission (FEC) has entered into a conciliation agreement with James R. Socas, a candidate in the 2004 general election in Virginia’s 10th district, the Socas for Congress Committee, and its treasurer Andrew T. O’Dell. They have agreed to pay a civil penalty $68,250 for violating the reporting requirements of the Millionaire’s Amendment passed as part of the Bipartisan Campaign Reform Act of 2002 (BCRA) and other reporting requirements found in the Act (pre-BCRA).

Respondents failed to timely file a notification when the candidate made a $150,000 loan to the Committee causing his expenditures of personal funds with respoce to the general election to $497,000, which exceeds the $350,000 reporting threshold for the Millionaire’s Amendment. The Respondents subsequently failed to file a notification regarding an additional expenditure of personal funds of $24,752.

The law requires candidates for the House of Representatives to notify the FEC and opponents within 24 hours of making expenditures from personal funds that exceed the $350,000 threshold which may allow possible increases in contribution limits for opponents. Specifically, these provisions require candidates and committees to file notifications within 24 hours of any expenditures from personal funds by the candidate, which in the aggregate exceeded the $350,000 threshold or which exceed $10,000 if the candidate has previously passed the $350,000 threshold.

The Respondents also failed to file Schedule Cs for two loans, an October 25, 2004 loan for $150,000 and a November 17, 2004 loan for $24,752 made by Mr. Socas to the Committee, which triggered the reporting obligations under the Millionaire’s Amendment. Furthermore, the Respondents failed to report the source of another loan for $43,000.

MUR 5607

RESPONDENTS:

(a) James R. Socas

(b) Socas for Congress, Andrew T. O’Dell, treasurer

COMPLAINANT:

Frank Wolf

FEC Initiated (RAD)

SUBJECT:

Failure to timely file Form 10s (Notification of Expenditures from Personal Funds); failure to file a Schedule C (two loans); and failure to accurately report source of loans

DISPOSITION:

(a-b)Conciliation Agreement: $68,250 civil penalty*

DOCUMENTS ON PUBLIC RECORD:

Documents from this matter are available from the Commission’s web site at http://www.fec.gov by entering 5607 under case number in the Enforcement Query System. They are also available in the FEC’s Public Records Office at 999 E St. NW in Washington.

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

1. Receipt of proper complaint	3. “Probable cause” stage
2. “Reason to believe” stage	4. Conciliation stage

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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