FEC Fines Swift Boat Vets $300K By Paul Kiel - December 13, 2006, 11:52 AM Is the era of the millionaire-backed attack group coming to an end? The Federal Election Commission hit the Swift Boat Veterans for Truth with a $299,500 fine today for playing too fast with election rules. The Swift Boat Vets were a "527" organization, which has no limits on contributions, but were acting like federal political committees, the FEC charged. 527s are allowed to work for or against certain candidates, but if they have no other "major purpose," according to FEC spokesman Bob Biersack, then they should register as a committee. That's a huge difference. Committees can only accept $5,000 in contributions per person per year. The Swift Boat Vets, by comparison, accepted $4.4 million from GOP money man Bob Perry in 2004. Perry played the same trick in this year's election, throwing $9 million at three different 527 attack groups, which used it to target dozens of Democratic congressional candidates all over the country. Democrats have also taken advantage of 527s, and two liberal groups were fined today: MoveOn and the League of Conservation Voters. If the FEC were to really crack down on this sort of thing (the 527 loophole has been an open secret for a number of years), as they've idly been threatening to do, then 2008 would be a remarkably different election than the past two cycles.
FEC COLLECTS $630,000 IN CIVIL PENALTIES FROM THREE 527 ORGANIZATIONS For Immediate Release December 13, 2006 WASHINGTON – The Federal Election Commission announced today that it has reached settlements with three 527 organizations accused of violating the federal campaign finance laws during the 2004 presidential election. The League of Conservation Voters 527 and 527II, MoveOn.org Voter Fund, and Swiftboat Veterans and POWs for Truth have collectively paid almost $630,000 to settle charges that they failed to register and file disclosure reports as federal political committees, and accepted contributions in violation of federal limits and source prohibitions. The Commission approved all three conciliation agreements by a vote of 6-0. “These unanimous decisions provide important guidance as to when organizations must register and report as political committees,” said Commission Chairman Michael Toner. “The findings and six-figure penalties we are announcing today send a strong message that the Commission takes these kinds of cases very seriously, and that when an organization fails to file as a political committee, it carries serious legal consequences,” he added. “The bipartisan and unanimous nature of the Commission’s action today leaves little doubt that this agency is willing to regulate election activity more aggressively than it has in the past” said Vice Chairman Robert Lenhard. “These settlements resulted from thorough investigations of all aspects of these groups’ activities, full and fair consideration of the complex legal issues, and tough, constructive negotiations,” added Lawrence H. Norton, the Commission’s General Counsel. If an organization receives contributions or make expenditures in excess of $1,000, and its major purpose is involvement in campaign activity, it must register with the Commission and abide by the contribution restrictions and reporting requirements of the Federal Election Campaign Act. Each of these entities registered with the Internal Revenue Service as “Section 527” organizations – tax exempt groups whose function is to influence the selection, nomination, election, or appointment of any individual to Federal, State, or local public office or office in a political organization, or the election of Presidential electors. Through their public statements, solicitations for contributions, and various communications to the public, these organizations clearly established that they were political committees during the 2004 campaign. Their failure to register with the Commission, abide by contribution limits and prohibitions, and file disclosure reports resulted in the organizations agreeing to pay the following civil penalties: * League of Conservation Voters 527 and 527II -- $180,000 * MoveOn.org Voter Fund -- $ 150,000 * Swiftboat Veterans and POWs for Truth -- $ 299,500 The organizations also agreed to cease and desist from violating applicable laws and regulations and to file reports with the Commission for the relevant periods containing all of the information that must be disclosed by federal political committees. Among other spending in the 2004 election, the League of Conservation Voters 527 groups funded door-to-door and phone canvassing activities that expressly advocated the election of Senator Kerry and the defeat of President Bush. MoveOn.org Voter Fund produced television advertisements targeted to Presidential battleground states aimed at defeating George W. Bush, and its solicitations for funds clearly indicated that the funds received would be used to defeat President Bush in the 2004 general election. Swiftboat Veterans and POWs for Truth produced advertisements and sent out direct mail that attacked John Kerry and expressly advocated his defeat.
It will be interesting to see how much national press coverage this gets. Ya know that whole Liberal Press and all.
