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Thursday, October 6th, 2011

Press Release: Republican Violations of Campaign Finance Laws

 

MONTGOMERY – High-ranking Republicans continue to break campaign finance laws by making illegal PAC to PAC transfers and are using two shell organizations to circumvent the newly passed law banning PAC to PAC transfers.

In a press conference today Judge Mark Kennedy, Chair of the Alabama Democrats, revealed that spokespersons for Republican State Leadership Committee PAC and Governor Riley’s Alabama 2014 PAC lied about the date an illegal $50,000 contribution was returned. “Spokespersons for both groups said that the money had already been returned and that our complaint had nothing to do with it,” said Kennedy.

“They lied. Riley’s PAC went so far as to file an amended report claiming the money was sent back on June 24th. But according to the Republican State Leadership Committee PAC’s September 30th report, the $50,000 was returned on July 28th”—six days after a press conference Kennedy held to reveal the illegal transfer.

Kennedy asserted that the Republican State Leadership Committee’s September 30th financial disclosure revealed another illegal PAC to PAC transfer. That PAC transferred $100,000 to Senate Majority Leader Jabo Waggoner’s Senate Republican Caucus PAC on February 25th. Waggoner earlier characterized the acceptance of this contribution as a “casual mistake.” Kennedy said: “I sat on the bench as a judge for 21 years. If someone robbed a bank and came before me and said it was a mistake and that they had returned the money, that wouldn’t have gotten them very far with me and that excuse shouldn’t fly with the people of Alabama either.”

Kennedy also said that an LLC and a non-profit, which are both operated by House Speaker Mike Hubbard and other Republicans, were also breaking the law by operating as PACs. “The House Republican Caucus, LLC, has contributed over $20,000 to the Alabama Republican Party since early 2009. The Republican Party reported the LLC contribution as coming from a ‘PAC...’Alabama House Republican Caucus Foundation—the non-profit—contributed $28,050 to a PAC controlled by Senator Waggoner, which the Foundation reported as a ‘donation to a similar foundation.’”

It appears that the Republicans are using the corporation and non-profit to circumvent the PAC to PAC transfer ban to funnel funds for various political purposes, which is a violation of federal and state laws. Kennedy is filing a complaint with the IRS and asking for a full investigation of The Alabama House Republican Caucus Foundation. He is also asking the Montgomery District Attorney to investigate Riley’s Alabama 2014 PAC, Waggoner’s Senate Republican Caucus PAC, the House Republican Caucus, LLC, and The Alabama House Republican Foundation.

Kennedy concluded: “I want to know why Bill Armistead, the Chairman of the Republican Party, Governor Bentley, and Attorney General Strange keep behaving as if these renegade Republican legislators are not their problem. Today, I’m challenging Bob Riley, Mike Hubbard, Jabo Waggoner, and these Republican legislators to stop hiding behind their staff lackeys for their hypocrisy and disregard for the rule of law and to simply tell the people of Alabama the truth.”

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