THE LONG ARM OF THE LAW IS CATCHING UP WITH MATT ENTENZA
House DFL fined $45,000
The Federal Elections Commission (FEC) has found that Minnesota House DFLers illegally transferred money from a state account to a federal account intended for congressional campaigns and failed to file nearly a year's worth of campaign finance reports.
The House DFL Caucus was ordered by the FEC to pay a penalty of $45,000 for violating the Federal Election Campaign Act, a sum that FEC spokesman Ian Stirton called "a relatively substantial amount."
Since 1980, Stirton said, the FEC has levied penalties of $50,000 or more in 100 cases. Of the thousands of cases settled by the agency, he said, "the vast majority of cases are settled for well under $50,000. Forty-five thousand is a pretty good sum."
Tuesday's announcement of the fine coincides with recent Republican criticism of a $300,000 contribution this year by House Minority Leader Matt Entenza, DFL-St. Paul, to a national group that, in turn, spent money in Minnesota on voter registration and field workers for DFL House candidates.
Entenza and the so-called 527 group, named for its chapter in federal tax code - the 21st Century Democrats - have said that his contribution was legal and was spent only on voter turnout and that the group used other funds to pay for field workers. The precise amount spent by the group in Minnesota is not known.
Entenza, who leads the House DFL caucus, could not be reached for comment Tuesday. But John Van Hecke, the caucus' campaign manager, noted that the FEC penalty was levied for problems in the 2002 election cycle, before Entenza became minority leader in 2003. Van Hecke blamed the problems primarily on a caucus finance official who has since been fired. "We own up to our responsibilities for this," he said. "We take the responsibility of a previous leadership and previous staff." He said the official "literally was getting letters from the FEC and throwing them in the drawer." In its ruling, the FEC noted that the caucus failed to file most of its required reports for 2002, despite repeated requests.
Minnesota Republican Party Executive Director Corey Miltmore said in a news release Tuesday that the FEC ruling "exposes a DFL House caucus that is more than willing to break the law and bend the rules to try to win an election."
Miltmore said the caucus has "never adequately explained why it needs a federal account in the first place," and said no other state legislative caucus in the country has such an account. Miltmore said it is "impossible" not to draw parallels between the FEC ruling and Entenza's contribution. "In both cases, the DFL House caucus played a shell game to try to hide where it gets its money and how it is spent," Miltmore said. Entenza, he said, should be "more upfront" about his contribution to the 21st Century Democrats.
2002 transfer
Van Hecke said the 21st Century contribution is a separate matter that has nothing to do with the FEC ruling. "Republicans are desperate to divert attention from their own electoral losses this year in Minnesota," Van Hecke said.
The FEC case started in February 2003, when the state Republican Party filed a complaint with the agency over what it said was an illegal transfer of $261,000 from the House DFL caucus account to federal accounts in 2002.
In August 2003, the FEC ordered the DFL to return the full amount. At that time, DFL state party spokesman Bill Amberg said party officials were working with the commission to audit the books and predicted that the discrepancy would be closer to $60,000 than $261,000.
In its ruling, the FEC found that nearly $200,000 of the transfers were allowable, but that $69,200 had been illegally transferred from the caucus' nonfederal account to its federal account. That transfer violated the law, the ruling said, "because this transaction may have led to the use of corporate or union funds in a federal election." Those funds have since been repaid to the caucus' state account.
The FEC also found that contributions by two donors -- Vance Opperman and Gerald K. Seck -- exceeded limits for the House DFL caucus by $5,000 and for the state DFL Party by $750. Because the amount to the state party was so small, the FEC said in its ruling, the commission would simply "admonish" the party and the donors but take no further action. The excessive contributions, the FEC said, have not yet been refunded. Source: Star Tribune, November 24, 2004
FEC fines DFL caucus $45,000
The Federal Elections Commission has fined the Minnesota House Democratic-Farmer-Labor Caucus $45,000 for campaign finance violations.
The FEC ruled the House DFL caucus illegally transferred $69,200 between its state and federal campaign accounts between January and October 2002. Federal law requires party organizations that finance political activities to set up separate state and federal accounts, and it bars transfers from state to federal accounts.
The Republican Party of Minnesota, which filed a complaint about the House DFL caucus last year, released the FEC ruling Tuesday.
The FEC fined the caucus $4,500 last year for failing to file campaign finance reports on time.
"We freely acknowledge our responsibility in this matter," said House DFL Caucus campaign manager John Van Hecke. After caucus leaders discovered the failure to file the reports, they ordered an internal audit that revealed the illegal fund transfers.
"The caucus brought it to the FEC's attention," Van Hecke said. "We have been working with the FEC for over a year and a half." A bookkeeper who failed to file the required reports also made the illegal fund transfers, he said. She has since been fired.
The violations occurred before current House Minority Leader Matt Entenza, DFL-St. Paul, was elected caucus leader last year.
"The DFL House Caucus' habitual disregard for obeying campaign finance laws has finally caught up to it," state Republican Party Executive Director Corey Miltimore said in a news release. "Today's FEC ruling exposes a DFL House Caucus that is more than willing to break the law and bend the rules to try to win an election."
The House DFL caucus reported raising and spending more than $420,000 on federal campaigns in 2001-02. Source: Pioneer Press, November 24, 2004
The Federal Elections Commission (FEC) has found that Minnesota House DFLers illegally transferred money from a state account to a federal account intended for congressional campaigns and failed to file nearly a year's worth of campaign finance reports.
The House DFL Caucus was ordered by the FEC to pay a penalty of $45,000 for violating the Federal Election Campaign Act, a sum that FEC spokesman Ian Stirton called "a relatively substantial amount."
Since 1980, Stirton said, the FEC has levied penalties of $50,000 or more in 100 cases. Of the thousands of cases settled by the agency, he said, "the vast majority of cases are settled for well under $50,000. Forty-five thousand is a pretty good sum."
Tuesday's announcement of the fine coincides with recent Republican criticism of a $300,000 contribution this year by House Minority Leader Matt Entenza, DFL-St. Paul, to a national group that, in turn, spent money in Minnesota on voter registration and field workers for DFL House candidates.
Entenza and the so-called 527 group, named for its chapter in federal tax code - the 21st Century Democrats - have said that his contribution was legal and was spent only on voter turnout and that the group used other funds to pay for field workers. The precise amount spent by the group in Minnesota is not known.
Entenza, who leads the House DFL caucus, could not be reached for comment Tuesday. But John Van Hecke, the caucus' campaign manager, noted that the FEC penalty was levied for problems in the 2002 election cycle, before Entenza became minority leader in 2003. Van Hecke blamed the problems primarily on a caucus finance official who has since been fired. "We own up to our responsibilities for this," he said. "We take the responsibility of a previous leadership and previous staff." He said the official "literally was getting letters from the FEC and throwing them in the drawer." In its ruling, the FEC noted that the caucus failed to file most of its required reports for 2002, despite repeated requests.
Minnesota Republican Party Executive Director Corey Miltmore said in a news release Tuesday that the FEC ruling "exposes a DFL House caucus that is more than willing to break the law and bend the rules to try to win an election."
Miltmore said the caucus has "never adequately explained why it needs a federal account in the first place," and said no other state legislative caucus in the country has such an account. Miltmore said it is "impossible" not to draw parallels between the FEC ruling and Entenza's contribution. "In both cases, the DFL House caucus played a shell game to try to hide where it gets its money and how it is spent," Miltmore said. Entenza, he said, should be "more upfront" about his contribution to the 21st Century Democrats.
2002 transfer
Van Hecke said the 21st Century contribution is a separate matter that has nothing to do with the FEC ruling. "Republicans are desperate to divert attention from their own electoral losses this year in Minnesota," Van Hecke said.
The FEC case started in February 2003, when the state Republican Party filed a complaint with the agency over what it said was an illegal transfer of $261,000 from the House DFL caucus account to federal accounts in 2002.
In August 2003, the FEC ordered the DFL to return the full amount. At that time, DFL state party spokesman Bill Amberg said party officials were working with the commission to audit the books and predicted that the discrepancy would be closer to $60,000 than $261,000.
In its ruling, the FEC found that nearly $200,000 of the transfers were allowable, but that $69,200 had been illegally transferred from the caucus' nonfederal account to its federal account. That transfer violated the law, the ruling said, "because this transaction may have led to the use of corporate or union funds in a federal election." Those funds have since been repaid to the caucus' state account.
The FEC also found that contributions by two donors -- Vance Opperman and Gerald K. Seck -- exceeded limits for the House DFL caucus by $5,000 and for the state DFL Party by $750. Because the amount to the state party was so small, the FEC said in its ruling, the commission would simply "admonish" the party and the donors but take no further action. The excessive contributions, the FEC said, have not yet been refunded. Source: Star Tribune, November 24, 2004
FEC fines DFL caucus $45,000
The Federal Elections Commission has fined the Minnesota House Democratic-Farmer-Labor Caucus $45,000 for campaign finance violations.
The FEC ruled the House DFL caucus illegally transferred $69,200 between its state and federal campaign accounts between January and October 2002. Federal law requires party organizations that finance political activities to set up separate state and federal accounts, and it bars transfers from state to federal accounts.
The Republican Party of Minnesota, which filed a complaint about the House DFL caucus last year, released the FEC ruling Tuesday.
The FEC fined the caucus $4,500 last year for failing to file campaign finance reports on time.
"We freely acknowledge our responsibility in this matter," said House DFL Caucus campaign manager John Van Hecke. After caucus leaders discovered the failure to file the reports, they ordered an internal audit that revealed the illegal fund transfers.
"The caucus brought it to the FEC's attention," Van Hecke said. "We have been working with the FEC for over a year and a half." A bookkeeper who failed to file the required reports also made the illegal fund transfers, he said. She has since been fired.
The violations occurred before current House Minority Leader Matt Entenza, DFL-St. Paul, was elected caucus leader last year.
"The DFL House Caucus' habitual disregard for obeying campaign finance laws has finally caught up to it," state Republican Party Executive Director Corey Miltimore said in a news release. "Today's FEC ruling exposes a DFL House Caucus that is more than willing to break the law and bend the rules to try to win an election."
The House DFL caucus reported raising and spending more than $420,000 on federal campaigns in 2001-02. Source: Pioneer Press, November 24, 2004
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