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Saturday, July 22, 2006

Gerlach FEC Reports Part II

This was the second of three articles. This was originally posted at DailyKos.com on November 30, 2005.

Pennsylvania 06 Candidate Lois Murphy filed a formal Complaint to the Federal Elections Commission against Congressman Jim Gerlach for repeated, flagrant violations of Federal Campaign Finance Law, citing numerous violations and potential violations.

FEC reports exist so we, the public, can see who has contributed to the campaigns of our elected officials. They serve to shine the light on conflicts of interests, special interest influence, and prevent overt quid pro quos from being concealed.

The fact Jim Gerlach's FEC reports are woefully incomplete, inadequate, and in violation of the law raise serious questions about his fitness for office.

The document's conclusion sums it up:


Gerlach's reports are inaccurate, misleading, and filled with errors. The first,
second, third, and fourth report amendments contain significant changes from
each other and the original report that was required to be accurately filed in
the first place. Some amendments, filed up to eight months after the original
report due date, are still inaccurate. Gerlach is not meeting its obligation to
properly and accurately disclose the committee's contributions and expenditures
to the public in a timely manner in violation of the Act and FEC
regulations.


The Murphy campaign has analyzed Gerlach's FEC reports and found numerous violations including:

Gerlach failed to disclose the names of contributors who made donations through a joint fundraising committee in violation of 2 U.S.C. §434(b)(3).

Gerlach failed to accurately disclose the total amount of contributions received during the 2005-2006 election cycle in violation of 2 U.S.C. §434(b)(2) by reporting receipts of $3.3 million when it appears that only $1.1 million was actually raised.

Gerlach failed to maintain an accurate account of small contributions and failed to accurately disclose the total amount of contributions received from donors in violation of 2 U.S.C. §§434(b) and (c).

Gerlach apparently fails to accurately disclose the total amount of contributions received during the Third Quarter of 2005 in violation of 2 U.S.C. §434(b)(2).

Gerlach fails to accurately report the cash on hand amount in violation of 2 U.S.C. §434(b).

Gerlach failed to disclose all or some contributions made by individuals in violation of 2 U.S.C. §434(b)(3).

Gerlach accepted contributions from persons in excess of $2,100 per election in violation of 2 U.S.C. §441a(a)(1)(A).

Gerlach apparently accepted a prohibited contribution from a corporation in violation of 2 U.S.C. §441b.

Gerlach fails to accurately state the purpose of disbursements resulting in confusing and inaccurate reports in violation of 11 C.F.R. §104.3(b)(3)(i).

Gerlach discloses limited payments for administrative expenses such as state employment taxes may result in violations of Federal and state tax law.

On the first item in the Complaint, and one which is very serious, Murphy accuses Jim Gerlach of failing to itemize contributors from a donation of $8,832.21 to his Committee from the 2004 Joint Candidate Committee II.

The Joint Committee raised funds for numerous 2004 Republican candidates, including Gerlach. In a letter dated December 20, 2004 (my birthday, whoo whoo) they clearly instructed the Gerlach campaign that the funds had to be included in their FEC year end report, along with an itemization of the individual donors to the Joint Committee.

Interestingly, this Joint Committee claimed to have raised $4 million from just 200 donors. This is an average of $20,000 apiece. FEC law requires the itemization of any donor over $200 in any reporting period in an election cycle. Therefore, it seems that Gerlach was required to report the individual donors for these funds. This Committee provided a total of $99,421.21 to his campaign of which this $8,832 was the final disbursement.

To date the Gerlach campaign has failed to report the contributors. They filed an amended report on February 7, 2005 which again failed to itemize these contributors. On April 8, 2005 the FEC notified them of this failure and advised them of the legal requirements.

On April 14, 2005 Gerlach filed another Amended Report and again failed to provide the information. On May 4, 2005 Gerlach's Treasuer, Alan Randzin responded by asking what information the FEC needed. All he needed to do was read the original letter from the Joint Commiteee from December 20, 2004 or the FEC letter of April 8, 2005 both of which specified the reporting requirements.

Additional Amended Reports filed on July 13, 2005 and September 13, 2005 again refused to comply with Federal Law. To date we have no idea who contributed these funds to Jim Gerlach's campaign.

Who are these mysterious contributors? Why won't Jim Gerlach tell us who gave him these funds? What is he trying to hide? Tell Jim Gerlach you want these answers. You can telephone his campaign office at 610.458.7374.