April 10, 1998
VIA UPS OVERNIGHT
Gene Moriarty
April 10, 1998
Page 1
Gene Moriarty
c/o Ron Carey Campaign
Post Office Box 77067
Washington, DC 20013
Hoffa Slate
c/o Patrick J. Szymanski, Esq.
Baptiste & Wilder
1150 Connecticut Avenue, NW
Suite 500
Washington, DC 20036
James Potter
1819 Peters Road
Suite 6
Irving, TX 75061
Jim Santangelo
8556 Moorcroft Avenue
West Hills, CA 91304
Robert E. Whitton
Teamsters Local Union 214
2825 Trumbull Avenue
Detroit, MI 48216
Richard Brook, Esq.
Cohen, Weiss and Simon
330 West 42nd Street
New York, NY 10036
James L. Hicks, Jr., Esq.
2777 North Stemmons Freeway
Suite 1100
Dallas, TX 75207
Gene Moriarty
April 10, 1998
Page 1
Re: Election Office Case No. PR-066-JHS-EOH
Gentlemen:
Gene Moriarty, a member of IBT Local Union 677, filed a pre-election protest pursuant to Article XIV, Section 2(b) of the Rules for the IBT International Union Delegate and Officer Election (“Rules”) against the Hoffa Slate, James D. Potter and Jim Santangelo. Mr. Moriarty alleged multiple violations of the Rules based on filings of the Campaign Contribution and Expenditure Reports (“CCERs”). Each allegation will be addressed separately below.
This protest was investigated by Director of Campaign Finance Leslie Deak.
I. ALLEGATIONS AGAINST THE HOFFA SLATE
The protester alleged that the Hoffa Slate accepted an improper campaign contribution from Robert E. Whitton, an employer. The protester asserts that because Mr. Whitton is an employer, he could not host a fundraiser for the Hoffa Slate’s legal and accounting fund.
Gene Moriarty
April 10, 1998
Page 1
Employers are prohibited from making campaign contributions. Rules, Article XII, Section 1b(1). Disinterested employers are allowed to contribute to legal and accounting funds established by candidates as long as the legal and accounting funds are segregated from the general election campaign funds. Rules, Article XII, Section 1b(2). Solicitations for contributions to the legal and accounting fund must be financed by money from the general campaign funds, not money from the legal and accounting funds. Advisory on Campaign Contributions and Disclosure (“Advisory”), revised November 1997, at 18. Therefore, contributions from employers cannot be used to solicit donations for candidates’ legal and accounting funds.
The Hoffa Slate reported an in-kind donation from Mr. Whitton of $1,093.50 for a January 15, 1998, fundraiser for their legal and accounting fund. As an employer, contributions from Mr. Whitton could not be used to solicit donations for the Hoffa Slate’s legal and accounting fund. On April 9, 1998, the Hoffa Slate has reimbursed Mr. Whitton for the amount of his contribution by issuing a check from the campaign’s general funds.
The protester requests that the Election Officer impose a punitive fine on the Hoffa Slate due to the serious nature of the violation. In these circumstances, the Election Officer sees no reason in this case to depart from the usual remedy of reimbursement of the impermissible contribution.
Accordingly, this portion of the protest is hereby RESOLVED.
II. ALLEGATIONS AGAINST JAMES D. POTTER
The protester alleged that James D. Potter, a candidate for International vice-president, made numerous violations on his CCERs. Specifically, the protester alleges the following: 1) Mr. Potter’s CCER No. 2 and CCER No. 3 contain multiple discrepancies; 2) Mr. Potter failed to file Supplemental Form No. 1 with his CCERs; and 3) Mr. Potter has contributed more than the $5,000 limit for candidates by loaning his campaign $215.01 in the third reporting period.
A. Discrepancies in Mr. Potter’s CCERs:
The protester lists four discrepancies in the accounting reported on Mr. Potter’s CCERs. As stated in Moriarty, PR-058-JHS-EOH (April 8, 1998), the Election Officer has investigated Mr. Potter’s CCERs. It appears that the discrepancies in Mr. Potter’s CCERs are the result of accounting mistakes, rather than deliberate Rules violations. The Election Officer intends to perform a complete audit on Mr. Potter’s campaign finances. If violations are discovered during the audit, a supplemental decision will be issued.
Accordingly, this portion of the protest is hereby DENIED.
Gene Moriarty
April 10, 1998
Page 1
B. Failure to File Supplemental Form No. 1
The protester alleges that Mr. Potter failed to file the Supplemental Form No. 1 with his CCER No. 3.
Pursuant to the Advisory, a candidate must file a CCER and Supplement No. 1 even if the candidate did not receive any contributions during the filing period. Advisory, at 22. Mr. Potter has now filed his Supplement No. 1 for CCER Nos. 2, 3, and 4 with the Election Office.
Accordingly, this portion of the protest is hereby RESOLVED.
C. Violation of Campaign Contribution Limit
The protester alleges that Mr. Potter loaned his campaign $215.01 in the third reporting period, raising the total of his contributions over the $5,000 limit.
The Election Officer found in Moriarty that Mr. Potter exceeded the contribution limit with a previous loan of $3,503.51 to his campaign. In accordance with that decision, the Election Officer finds that Mr. Potter further exceeded his contribution limit with the subsequent loan of $215.01.
This portion of the protest is hereby GRANTED. The J.D. Potter campaign is ordered to repay $215.01 to Mr. Potter within five (5) days of this decision. Within one (1) day of making this payment, Mr. Potter shall file an affidavit of compliance, along with a copy of the check.
III. ALLEGATIONS AGAINST JIM SANTANGELO
The protester alleges that Jim Santangelo, candidate for International vice-president, violated the Rules by failing to identify the local union affiliation or employer information for two contributors who made contributions to his legal and accounting fund as required by the Advisory and by failing to properly solicit contributions for the Hoffa ‘96 West legal and accounting fund.
Mr. Santangelo’s CCER No. 3 failed to identify the local union affiliation or employer for two contributors to his legal and accounting fund. Through the investigation, Mr. Santangelo has now identified the two contributors in question. One contributor is a member of IBT Local Union 692 and the other contributor is an employer in the insurance business, but does not employ any Teamster members. Because neither contributor is an interested employer as defined in the Advisory, their contributions are permissible under the Rules. See Advisory, at 17.
Gene Moriarty
April 10, 1998
Page 1
Pursuant to the Advisory, contributions for the legal and accounting funds either must be specifically solicited for the legal and accounting fund or specifically designated for the legal and accounting fund by the contributor. Advisory, at 18. Mr. Santangelo had attached to Addendum 1 of CCER No. 3 a flyer from the fundraiser which was held on January 11, 1998, at the Guadalajara Grill. That flyer gave no indication that the contributions were solicited for Mr. Santangelo’s legal and accounting fund.
The investigation disclosed, however, that Mr. Santangelo informed the participants that contributions were being solicited for his legal and accounting fund. Handbills were placed around the event room stating that all proceeds were going to the legal and accounting fund. Additionally, the participants at the fundraiser were told at the entrance and again during the event that the evening’s contributions would go to the legal and accounting fund. Mr. Santangelo’s efforts provided sufficient notice of the purpose of the contributions.
Accordingly, this portion of the protest is hereby DENIED.
An order of the Election Officer, unless otherwise stayed, takes immediate effect against a party found to be in violation of the Rules. In Re: Lopez, 96 - Elec. App. - 73 (KC) (February 13, 1996).
Any interested party not satisfied with this determination may request a hearing before the Election Appeals Master within one (1) day of receipt of this letter. The parties are reminded that, absent extraordinary circumstances, no party may rely upon evidence that was not presented to the Office of the Election Officer in any such appeal. Requests for a hearing shall be made in writing and shall be served on:
Kenneth Conboy, Esq.
Latham & Watkins
885 Third Avenue, Suite 1000
New York, NY 10022
Fax: (212) 751-4864
Copies of the request for hearing must be served on the parties listed above as well as upon the Election Officer, 400 North Capitol Street, NW, Suite 855, Washington, DC 20001, Facsimile (202) 624-3525. A copy of the protest must accompany the request for a hearing.
Sincerely,
Michael G. Cherkasky
Election Officer
MGC:chh
cc: Kenneth Conboy, Election Appeals Master