FEC COLLECTS $630,000 IN CIVIL PENALTIES FROM THREE 527 ORGANIZATIONS
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 Commissions 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 Commissions 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.
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