EFTA01080480.pdf

FEDERAL ELECTION COMMISSION WASHINGTON, D.C. 20463 WAR 1 1 2015 Jeffrey Epstein 6100 Red Book Quarter Apt B3 St. Thomas, VI 00802 RE: MUR 6921 Dear Mr. Epstein: The Federal Election Commission received a complaint that indicates you may have violated the Federal Election Campaign Act of I 971, as amended ("the Act"). A copy of the complaint is enclosed. We have numbered this matter MUR 6921. Please refer to this number in all future correspondence. Under the Act you have the opportunity to demonstrate in writing that no action should be taken against you in this matter. Please submit any factual or legal materials that you believe arc relevant to the Commission's analysis of this matter. Where appropriate, statements should be submitted under oath. Your response, which should be addressed to the General Counsel's Office, must be submitted within 15 days of receipt of this letter. If no response is received within 15 days, the Commission may take further action based on the available information. This matter will remain confidential in accordance with 52 U.S.C. § 30109(a)(4)(B) and § 30109(a)(12)(A) unless you notify the Commission in writing that you wish the matter to be made public. If you intend to be represented by counsel in this matter, please advise the Commission by completing the enclosed form stating the name, address and telephone number of such counsel, and authorizing such counsel to receive any notifications and other communications from the Commission. Please note that you have a legal obligation to present all documents, records and materials relating to the subject matter of the complaint until such time as you are notified that the Commission has closed its file in this matter. See 18 U.S.C. § 1519. EFTA01080480  Any correspondence sent to the Commission, such as a response, must be addressed to one of the following (note, if submitting via email this Office will provide an electronic receipt by email): Mail Federal Election Commission Office of Complaints Examination and Legal Administration Attn: Kim Collins, Paralegal 999 E Street, NW Washington, DC 20436 If ou have any questions, please contact Kim Collins at or toll free at 1- For your information, we have enclosed a brief description of the Commission's procedures for handling complaints. Sincerely, Jeff S. Jor Assistant General Counsel Complaints Examination & Legal Administration Enclosures: 1. Complaint 2. Procedures 3. Designation of Counsel Statement EFTA01080481  FEDERAL ELECTION COMNSSION Office of General Counsel Federal Election Commission 999 E Street NW 2015 MAR —2 PM 2: 35 Washington DC 20463 OFFICE OF GE! .c.;•;Al. To whom it may concern: COONSFL I write to alert you to a potential violation of the Federal Election Campaign Act and Commission regulations. In the 2014 Election Cycle, contributions to candidates by persons other than multicandidate political committees were limited to $2,600 per election. 11CFR §110.1. Political committees are considered affiliated and share a single contribution limit where the committees are "established, financed, maintained or controlled by ... the same person or group of persons." 11CFR 0.10.3(a)(2). Based on information and belief, the following individuals and committees exceeded the contribution limit applicable to affiliated committees, or circumvented contribution limits in a scheme that used non- connected committees as straw donors to make aggregate contributio ess of legal limits: 1. H4VA08331), in her capacity as a candidate 2. The Committee tteEiect 030562157) ("Campaign Committee"); 3. Coalition of Inderiendrit VOices in ebrigriiit(CIVIC) (Cobs66o26)("avici, a non-connected • committee; and its treasucer,IIMBeek; 4. Eagles Party PAC C00557017 a non-connected committee' and its 5. Richard Kramer o "Krame , utor to both Campbigri tommittee and Eagles Party PAC; and' •' 6. Jeffrey Epstein of 6100 Red Hook Quarter Apt B3; St:Thomas, VI 0O802 ("EpsteinWa contributor to Campaign Committee, CIVIC, and Eagles Putt PAC. Statements of fact are supported by the reports filed by Campaign Committee, CIVIC, and Eagles Party PAC in 2014. Affiliated Committeet CIVIC and Eagles Party PAC appear to be affiliated nd an associate, Ginger Vuich, serve (or in Vuich's case, served) as agents of both committees. Bot committees are financed, in whole or in part, by Epstein. CIVIC Ginger Vuich filed a Statement of Organization for CIVIC on July 10, 2014, listing as he Commission noted that CIVIC did not complete line 6 and requeste tat the Committee amend its statement to indiCate complete line 6 to show either "none" or any connected organization, affiliated committee, joint fundraising representative or leadersal ' sponsor. Vuich filed an amended statement of organization showing "none" on line 6, again listin s ni or about October 1 2014. Vuich attempted to resign as treasurer using a Form 99 submission on November 26, 2014 lied an amended statement of organization naming herself n December 17, 2014 as, at all times, an agent of the Committee. EFTA01080482 CIVIC has received only one contribution. Epstein gave $5,000 on July 11, 2014. CIVIC has made only one contribution. It contributed $2,600 to Campaign Committee on November 5, 2014. CIVIC appears to have been established by and to be controlled bat appears to have been financed by Epstein. es Party PAC fled a statement of organization for Eagles Party PAC on February 11, 2014. The statement listed nd Ginger Vuich as assistant treasurer. As with CIVIC, the Commission requested that line 6 be completed.Mfded an amended statement on March 10, 2014 with "none" listed on line 6. Another amended statement was filed on December 17, 2014, removing Vuich as an agent. =pstein, and Kramer are the only donors to Eagles Party PAC eying contrii i 00 and Epstein and Kramer contributing $5,000 each (NB: A Form 99 submission indicates tha ontributed $1,700, but the quarterly report shows a loan repayment of $1,000). Eagles Party PAC made only one contribution. It contributed $2,600 to Campaign Committee. Eagles Party PAC appears to have been established by and to be controlled at appears to have been financed by Epstein and Kramer. CIVIC and Eagles Party PAC appear to have been established and controlled b he Committees appear to have been financed, in whole or in part, by Epstein. Vuich appears to have played some role in establishing and controlling the Committees. The Committees appear to be affiliated and, as such, should each show the other as an affiliated committee on line 6 of the statement of organization and should share a single contribution limit of $2,600—a limit exceeded when each committee independently gave $2,600 to the Campaign Committee on November 5, 2014. Nonconnected Committee Straw Donors Regardless of whether CIVIC and E PAC are affiliated, it appears that Epstein and Kramer, knowingly or unknowingly, throug anagement used the Committees to make excessive contributions to Campaign Committee. Epstein contributed $2,600 to campaign committee on April 22, 2014; $5,000 to Eagles Party PAC on April 17, 2014; and $5,000 to CIVIC on July 11, 2014. Kramer contributed $5,000 to Eagles Party PAC on February 7, 2014 and $2,500 to Campaign Committee on June 17, 2014. Between direct and indirect contributions, Epstein and Kramer contributed $10,300 to Campaign Committee, well in excess of the $5,200 that would result from each contributing the $2,600 allowed by law. EFTA01080483 Had Epstein and Kramer been among several donors to CIVIC and Eagles Party PAC and those committees had made contributions to more than one candidate's campaign committee, there might be an alternative explanation for these transactions, but it strains credulity to argue that these were anything other than straw donations. In McCutcheon, et al. v. FEC, the Commission based its defense of aggregate contribution limits, in part, on the theory that they served the legitimate interest of "prevent(ing) evasion of the $1,000 contribution limitation by a person who might otherwise contribute massive amounts of money to a particular candidate through the use of unearmarked contributions to a political committee likely to contribute to that candidate..." Brief for the Appellee at 33, McCutchen, et al., v Federal Election Commission, No. 12-536 (U.S. Apr. 2, 2014) (quoting Buckley v Voleo, 424 U.S. 1, 38 (1976) (per curium)). While the Court ultimately declined to uphold the aggregate limits, no one doubts that employing the scheme described in Buckley is illegal circumvention of contribution limitations. Improper Reporting In addition to the issues surrounding contribution limitations, the reports filed by Campaign Committee and Eagles Party PAC are riddled with errors. Campaign Committee, for example, in its post-general report, showed contributions from an individual and from CIVIC and Eagles Party PAC on line 11(b) of Schedule A, which is reserved for contributions from party committees, rather than on line 11(a) and 11(c) respectively. Eagles Party PAC failed to report the source of its opening balance on its April Quarterly report. In response to the Commission's request, the Committee attempted to disclose the source using Form 99. Its explanation appears to indicate that the Committee exceeded the $1,O00 registration threshold in 2013 with $1,700 in receipts, but failed to file a statement of organization until February 2014. Thank you for considering this complaint. I look forward to learning the outcome of the complaint when the case is closed. Sincerely, gq --- ' . Christopher M. Marston City of Alexandria Commonwealth of Virginia The foregoing instrument was subscribed and sworn before me this 23 day of Feburary, 2015 by Christopher M. Marston Brenda M. Han Notary Registration Number My Commission expires: 7 31 zoo( EFTA01080484  DESCRIPTION OF PRELIMINARY PROCEDURES FOR PROCESSING COMPLAINTS FILED WITH THE FEDERAL ELECTION COMMISSION 999 E Street, NW Washington, U.C. 20463 FAX (202) 219-3923 be referred to the Complaints filed with the Federal Election Commission shall where they arc assigned a MIJR Enforcement Division of the Office of the General Counsel, Examination & Legal (Matter Under Review) number and forwarded to Complaints receipt of the complaint, the Administration ("CELA") for processing. Within five days of complaint, in writing, that the complaint Commission shall notify all respondents referenced in the of the complaint. Simultaneously, has been filed, and shall include with such notification a copy ed. The respondents shall then the complainant shall be notified that the complaint has been receiv taken against them in response to have 15 days to demonstrate, in writing, that no action should be nd to the complaint, the respondents the complaint. If additional time is needed in which to respo g and demonstrate good cause as to may request an extension of time. The request must be in writin not all requests are granted. why an extension should be granted. Please be advised that and maintained in CELA. After the response period has elapsed, cases arc prioritized ed as staff becomes available. Cases Casts warranting the use of Commission resources arc assign not warranting the use of Commission resources are dismissed. General Counsel shall report to the If a case is assigned to a staff person, the Office of the inary legal and factual analysis of the Commission, making recommendations based upon a prelim The report may recommend that the complaint and any submission made by the respondent. laint sets forth a possible violation of the Commission: (a) find reason to believe that the comp (hereinafter the "Act"); or (b) find no reason Federal Election Campaign Act of 1971, as amended, ion of the Act and, accordingly, close the to believe that the complaint sets forth a possible violat file. Commission determines that there is If, by an affirmative vote of four Commissioners, the to commit a violation of the Act, the reason to believe that a respondent has committed or is about n into the matter. During the Office of the General Counsel shall open an investigatio documents, to subpoena individuals to investigation, the Commission has the power to subpoena interrogatories. A respondent may be appear for deposition, and to order written answers to phase. contacted more than once by the Commission during this tes a desire to enter into If during this period of investigation, a respondent indica mend that the Commission enter into conciliation, the Office of the General Counsel may recom e that a violation has been committed. conciliation prior to a finding of probable cause to believ of the Act by informal methods of Conciliation is an attempt to correct or prevent a violation liation is an agreement signed by the conference and persuasion. Most often, the result of conci ment must be adopted by four votes of Commission and the respondent. The Conciliation Agree EFTA01080485  the Commission in order to become final After signature by the Commission and the respondent, the Conciliation Agreement is made public within 30 days of closing of the entire If the investigation warrants, and no conciliation agree ment has been entered into prior to a probable cause to believe finding, the General Couns el must notify the respondent of his/her intent -toTecornmemtthattlic- Commissicin proceed to' vete'c m probable tatisc tolielittretharatislatibc of the Act has been committed or is about to be committed. The General Counsel shall send the respondent a brief setting forth his/her position on the legal and factual issues of the case. A response brief slating respondent's position on the issues may be submitted within IS days of receipt of the General Counsel's Brief. Both briefs are then filed with the Commission Secretary and considered by the Commission. Thereafter, if the Commission determines, by an affirmative vote of four Commissioners, that there is proba ble cause to believe that a violation of the Act has been committed or is about to be committed, the Commission must conciliate with the respondent for a period of at least 30 days, but not more than 90 days. If the Commission is unable to correct or prevent any violation through conciliation, the Office of the General Counsel may recommend that the Commission file a civil suit to enforce the Act against the respondent. Therefore, the Commission may, upon the affirmative vote of four Comm issioners, institute civil action for relief in the United States District Court. See 52 U.S.C. § 30109 and 11 C.F.R. Part 11 1. September 2014 2 EFTA01080486  FEDERAL ELECTION COMMISSION 999 E Street, NW Washington, DC 20463 STATEMENT OF DESIGNATION OF COUNSEL Provide one kartfor each Resnndent/Witness FAX 202-219-3923 MUR 11 Name of Counsel: Firm: Address: Telephone: Fax: E-mail: The above-named individual and/or firm is hereby designated as my counsel and is authorized to receive any notifications and other communications from the Commission and to act on my behalf before the Commission. Date Signature (Respondent/Agent) Title RESPONDENT: (Committee Name Company Namefindividual Named in Notification Letter) Mailing Address: (Please Print) Telephone (11): E-mail: the confidentiality provisions of 52 U.S.C. §30I09(a)(12XA). This form relates to a Federal Election Commission matter that is subject to or investigation conducted by the Federal Election Commission without the express This section prohibits making public any notification written consent of the person under investigation. Rev. 2014 EFTA01080487