May 21, 2001

 

BY CERTIFIED MAIL & FACSIMILE

 

Office of the General Counsel

Federal Election Commission

999 E Street, N.W.

Washington, D.C. 20463

 

 

Chief

Public Integrity Section

Criminal Division

U. S. Department of Justice

10th Street & Constitution Avenue, NW

Washington, D.C.  20530 

 

 

Re:  Complaint Against The National Republican Senatorial Committee

and Senator Bill Frist (R) of the State of Tennessee, Chairman,

Senator Sam Brownback (R) of Kansas, “Inner Circle” Chairman,

Senator Wayne Allard (R) of Colorado, Member,

Senator Christopher Bond (R) of Missouri, Member,

Senator James M. Inhofe (R) of Oklahoma, Member,

Senator Jeff Sessions (R) of Alabama, Member,

Senator Gordon H. Smith (R) of Oregon, Member.

 

 

Dear Sir/Madam:

 

I. INTRODUCTION.

 


Judicial Watch, Inc., (hereinafter “Judicial Watch”) is a non-profit, public interest law firm that investigates and prosecutes government abuse and corruption.  Judicial Watch, in the public interest, hereby submits this complaint to the Federal Election Commission and the Department of Justice against the National Republican Senatorial Committee (hereinafter “NRSC”), 425 Second Street, NE, Washington, DC 20002, and NRSC Chairman, Senator Bill Frist of the State of Tennessee, as well as Senator Sam Brownback (R) of Kansas, “Inner Circle” Chairman, Senator Wayne Allard (R) of Colorado, Member, Senator Christopher Bond (R) of Missouri, Member, Senator James M. Inhofe (R) of Oklahoma, Member, Senator Jeff Sessions (R) of Alabama, Member, Senator Gordon H. Smith (R) of Oregon, Member.   Specifically, Senator Frist, the member senators of the NRSC and its staff appear to be in violation of:

 

1.                  2 U.S.C. § 431, et seq. (Definitions).

2.                  2 U.S.C. § 434(b) (Reporting requirements).

3.                  18 U.S.C. § 201 (Bribery of Public Officials and Witnesses).

4.                  18 U.S.C. § 600 (Promise of employment or other benefit for political activity).

5.                  11 C.F.R. § 104.3 (Contents of reports).

 

II.  FACTS.

 

A.  Press Reports Concerning Apparent Illegal Political Fundraising.

 

1.  On April 28, 2001, Larry Bivins of the Gannet News Service reported in a story entitled, “White House Briefings, Dinners To Be Used To Raise Campaign Money,” that:

 

“Campaign finance reform advocates Friday evoked

memories of scandals past, lashing out at Republicans for

sponsoring an upcoming event for big donors that features

briefings with Cabinet secretaries and dinner with diplomats

and dignitaries at a foreign embassy.

 

For $ 10,000 each, or $ 15,000 per couple, GOP faithful can become

life members of the Republican Senatorial Inner Circle, an adjunct

of the National Republican Senatorial Committee, and spend three

days rubbing shoulders with senators, Cabinet officials and diplomats

May 22‑24 at the Capital Hilton Hotel.

 

A tentative agenda includes briefings with Commerce Secretary

Don Evans, Education Secretary Rod Paige, Energy Secretary Spencer

Abraham and Secretary of Health Tommy Thompson.


On May 22, guests "Will have the exclusive opportunity to

dine with diplomats and embassy officials and discuss international

affairs at one of Washington's famous embassies," the agenda reads.

 

The package also includes a cruise down the Potomac and a complimentary

ticket to the $ 2,500‑per‑person President's Dinner June 27.

 

While reform advocates long have decried access to political and

policy leaders granted to big‑money contributors, they say involving

foreigners raises fresh concerns.

 

‘Asking a foreign government to provide hospitality to the

National Republican Senatorial Committee's 'Inner Circle' of elite

donors is opening a Pandora's box of potential problems,’

said Scott Harshbarger, president of Common Cause.

 

‘After all of the Washington fund‑raising scandals caused

by foreign donors, it is simply incredible for the NRSC to partner

with a foreign government in providing perks to big money donors,’

Harshbarger said.

 

*      *      *

 

Larry Noble, executive director of the Center for Responsive Politics,

which monitors campaign spending and fund‑raising, noted that

Republicans were among the more strident critics of Democrats

and Bill Clinton during the party's 1996 fund‑raising excesses

that involved foreign donors.

 

GOP leaders also railed about donors being rewarded with White

House sleepovers and coffee klatches.

 

‘Republicans complained, and rightly so, about the selling

of the Lincoln Bedroom, and now they're selling access to administration

officials and foreign embassies,’ Noble said. ‘Quite frankly, it's outrageous.’

 

Exhibit 1.

 

2.  On May 2, 2001, The Boston Herald published a story by Andrew Miga entitled, “Dems Cry Foul As GOP Plans Donor‑Access Events,” that stated:

 

“Republicans who railed at Bill Clinton's fund‑raising abuses

during the 2000 campaign will reward top GOP donors with

special access to Cabinet secretaries and a foreign embassy party

later this month.

 

Campaign finance reform advocates yesterday blasted the

Republican money tactics as heavyhanded, hypocritical and

unethical ‑ a sign of business as usual in the nation's capital despite


GOP pledges of money reform.

 

‘It's an egregious breach of ethics,’ said U.S. Rep. Martin Meehan

(D‑Lowell), co‑sponsor of a major bill to curb money abuses.

‘It's also hugely hypocritical given how they hit Clinton for these

same tactics.’

 

Meehan complained that Republicans ‑ now that they have captured

the White House for the first time in eight years ‑ are relying on some

 of the very same aggressive money tactics they ripped Clinton and the

Democrats for using.

 

‘They are selling access here,’ said Meehan. ‘They may call it something

else, but that's really the bottom line here.’

 

Campaign finance reform advocates said while Democrats have used

Cabinet secretaries to help raise money, the party has never held

events at foreign embassies, a new GOP wrinkle.

 

Common Cause, the public interest watchdog group, blasted the National

Republican Senatorial Committee's Inner Circle Spring Briefing for its

major money backers as a cynical political maneuver. Only $ 10,000 GOP

donors will be invited to the embassy dinner.

 

‘After all of the Washington fund‑raising scandals caused by foreign

donors, it is simply incredible for (the GOP) to partner with a foreign

government in providing perks to big money donors,’ said Common Cause

head Scott Harshbarger, the former attorney general of Massachusetts.

 

NRSC officials could not be reached for comment yesterday. GOP officials

have said they will rent the embassy, which has yet to be decided upon,

for their event.

 

Harshbarger compared the GOP's donor briefings with Cabinet secretaries

to Clinton's rewarding of wealthy Democratic donors with overnight stays

in the famed Lincoln Bedroom. ‘There's not a lot of difference between renting out a Cabinet secretary to a political donor and renting out the Lincoln Bedroom to a political donor ‑ it's just as crude, almost as unseemly,’ said Harshbarger.

 

Invitations to the NRSC's Inner Circle trumpet a May 24 embassy dinner

where attendees ‘will have the exclusive opportunity to dine with diplomats

and embassy officials and discuss international affairs at one of Washington's

famous embassies.’

 

Donors will also be treated to private briefings with such Cabinet

secretaries as Health and Human Services Secretary Tommy Thompson,

Energy Secretary Spencer Abraham and Education Secretary Roderick R. Paige.”

 

Exhibit 2

 

 


B.  The NRSC’s Inner Circle Spring Briefing Solicitation Agenda.

 

Senator Sam Brownback of Kansas serves as the Chairman of the NRSC’s “Republican Senatorial Inner Circle” The NRSC’s solicitation for Inner Circle members included a Spring Briefing agenda that detailed the meetings with senior Bush Administration officials that their cash contributions were buying.  A remarkable twist to this event included the involvement of the embassy of a foreign government.  In this instance, the NRSC elected to involve the diplomatic establishment of a foreign power and its resident staff as yet another tool or vehicle to generate money.  The NRSC Inner Circle agenda read as follows:

 

“Tuesday May 22, 2001

 

10:00 am - 5:00 pm       Life Member Registration

Life Members avoid the crowds at registration

by coming to Washington, D.C. a day early to participate

in their exclusive Life Members only events.

 

6:00 pm - 8:00 pm            Life Members Embassy Dinner

Life Members will have the exclusive opportunity

to dine with diplomats and embassy officials and

discuss international affairs at one of Washington’s

famous Embassies.

 

8:00 pm - 10:00 pm            Life Member Cruise

After dinner, Life Members will enjoy a cruise up

the Potomac River.  If you’ve never seen Washington’s pristine monuments set against the moonlit sky, don’t

miss this cruise.

 

Wednesday, May 23, 2001

 

8:00 am - 9:30 am        Life Members Breakfast and Induction Ceremony

NRSC Chairman Senator Bill Frist, M.D. will personally present all new Life Members with their official Life Member Certificate.

 

9:30 am - 6:00 pm            Life Member Free Time

Enjoy a day at the Smithsonian, touring the U.S. Capitol, visiting your congressman, shopping, or just relaxing as life members have the day free.

 

6:00 pm - 7:00 pm       Life Members Cocktail Reception and Photo-Op

With Medal of Freedom Recipient

Only the Inner Circle’s Life Members will be invited to this private reception and have a photo opportunity with the year’s Senatorial Medal of Freedom Recipient, The Honorable Don Evans.

 


            ~~Events from this point forward are open to all Inner Circle attendees~~

 

7:00 pm - 9:00 pm            Inner Circle Medal of Freedom Dinner

Medal of FreedomRecipient – The Honorable Don Evans Life Members will enjoy priority seating at this gala event.

 

Thursday, May 24, 2001

 

8:30 am - 10:00 am            Chairman’s Breakfast - Chairman’s Report:

A Look Ahead

Invited Speakers:

  Senator Bill Frist, M.D., NRSC Chairman

  Senator Sam Brownback, Inner Circle   

 

  Chairman Mitch Bainwol, NRSC Executive Director

 

INNER CIRCLE WHITE HOUSE BRIEFING SERIES

Featuring Administration Officials to brief us on the bold new direction of the Bush Administration.

 

10:00 am - 11:00 am            Healthcare: State of Healthcare in America”

Invited Speakers:

  The Honorable Tommy Thompson

  Senator Bill Frist, M.D., TN

  Senator Mike Enzi, WY

  Senator Pat Roberts, NE [sic]

  Senator Susan Collins, ME

  Senator Christopher Bond, MO

  Senator Jeff Sessions, AL

 

11:00 am - 12:00 pm            Commerce: “Ways to Promote U.S. Competitiveness in the

Global Marketplace”

Invited Speakers:

  Senator Ted Stevens, AK

  Senator Kay Bailey Hutchison, TX

  Senator John Ensign, NV

  Senator George Allen, VA

 

12:00 pm - 12:30 pm            Break

 

12:30 pm - 2:00 pm            Inner Circle Lunch:

A New Movement in the Media”

Invited Guest:

  Sean Hannity, Fox News Channel’s “Hannity & Colmes”

 

WHITE HOUSE BRIEFING SERIES

(Continued from the morning session.)

 


2:00 pm - 3:00 pm            Education: “Improving the Quality of Education”

Invited Speakers:

  The Honorable Rod Parge

  Senator Judd Gregg, NH

  Senator James Jeffords, VT

  Senator Tim Hutchinson, AR

 

3:00 pm - 4:00 pm            Energy: “Planning for the Future, While Meeting the Needs of Today”

Invited Speakers:

  The Honorable Spencer Abraham

  Senator Frank Murkowski, AK

  Senator Pete Domenici, NM

  Senator Larry Craig, ID

 

8:00 pm - 12:00 am            INNER CIRCLE GALA

Senator Bill Frist, M.D., NRSC Chairman

Senator Sam Brownback, Inner Circle Chairman

Featuring:

  “The Midnight Movers”

 

*Planned agenda as of 3/30/01.  Please note that you will receive an updated agenda at registration on May 22, 2001.  Dress for daytime meetings is business attire, Business or cocktail attire is appropriate for all evening activities.

 

Exhibit 3

 

C. Judicial Watch’s May 2, 2001 Letter to Senator Frist.

 

 

On May 2, 2001 , Judicial Watch Chairman and General Counsel Larry Klayman wrote to Senator Frist concerning the activities of the NRSC, which he chairs, and citing earlier Judicial Watch legal actions concerning similar illegal fundraising by Representative Tom DeLay and the National Republican Congressional Committee.  The letter stated:

 

Re: Illegal Fundraising By The National Republican Senatorial Committee.Dear Senator Frist:


As you know, Judicial Watch is a public interest law firm that investigates and prosecutes government abuse and corruption. While Judicial Watch is conservative, it is also non-partisan. During the Clinton-Gore Administration, Judicial Watch sparked the campaign finance/Chinagate scandal when it uncovered notorious Chinese agent John Huang at the Commerce Department. Mr. Huang not only was involved in the illegal sale of trade mission seats for campaign contributions, but he also received over 150 national security briefings from the Central Intelligence Agency, which briefings it is believed he shared with his “handlers” of the Lippo Group and Chinese Intelligence Services. Judicial Watch is continuing to prosecute this and other Chinagate lawsuits to a just conclusion, and Mr. Huang has thus far been held in contempt over 140 times. Recently, Judicial Watch has had to bring legal actions concerning illegal fundraising by Republican House Majority Whip Tom DeLay and the National Republican Congressional Committee (“NRCC”) (see “Klayman Trains Sights on DeLay,” Roll Call, by Damon Chappie, April 9, 2001; and “Hastert Upset at NRCC Over Klayman Dispute,” Roll Call, by John Bresnahan, April 30, 2001, enclosed). Last week it was reported by the Wall Street Journal that the National Republican Senatorial Committee (“NRSC”) is also involved in illegal fundraising, selling not only meetings with high Bush Administration officials, but also using a foreign embassy as “bait” to lure political contributions. As set forth in the complaint against Mr. DeLay and the NRCC (copy enclosed), the sale of official government office for political campaign contributions is illegal and, at a minimum, it violates U.S.C. § 431-455 and U.S.C. § 600. Judicial Watch demands that the NRSC immediately cease and desist from these illegal activities. If we do not get confirmation that you have ceased and desisted by noon on Monday, May 7, 2001, we will be forced to take appropriate legal action against you. Judicial Watch trusts, however, that you will recognize, such as occurred recently with House Speaker Denny Hastert, that these activities are illegal, and that you will take appropriate steps to stop them now before legal action proves necessary. Please govern yourselves accordingly.”

 

Exhibit 4.

 

D.  The NRSC’s Response Through Counsel.

 

Alex Vogel, the NRSC General Counsel responded to Judicial Watch’s request on May 8, 2001.  He wrote:

 

“I have received your letter dated May 2, 2001, in which you outlined concerns regarding the fundraising activities of the committee.  We are reviewing your letter.

 


Thank you for bringing your views to our attention.”

Exhibit 5.

 

Mr. Vogel, by failing to address the substance of our request to Senator Frist and the NRSC, confirmed the press reports, constituting an admission that illegal political fundraising practices are, indeed, taking place.  To date, almost two weeks later, Judicial Watch heard nothing further from the NRSC.

 

E.  Speaker Hastert and Senator Fitzgerald Repudiate Republican Fundraising                      Tactics.

 

Fortunately, two Republican leaders in Congress recognize the illegality of the Republican Party fundraising tactics and have chosen to remove themselves from participation in the illegal schemes to sell meetings with senior Bush Administration officials.  On May 9, 2001, Dori Meinert of the Copley News Service reported in a story entitled, “Fitzgerald, Hastert Distance Themselves From GOP Fundraising Tactics,” that:

 

“Sen. Peter Fitzgerald has quit his post with a Republican campaign fundraising committee after critics accused the group of selling access to high‑level Bush administration officials and diplomats.

 

Fitzgerald was the second Illinois lawmaker in recent weeks to distance himself from Republican fundraising methods.

 

House Speaker Dennis Hastert last week decided to skip a tax‑reform briefing for GOP contributors where he had been billed as the headliner.

 

Their actions came after two groups that are usually on opposing sides Judicial Watch and Common Cause alleged the National Republican Senatorial Committee (NRSC) and the National Republican Congressional Committee (NRCC) of auctioning off access to top policymakers.


 

‘I applaud the action of the senator. He's doing the right thing, much like Denny Hastert,’ said Larry Klayman, chairman of Judicial Watch, the conservative government watchdog group that repeatedly sued former President Bill Clinton.

 

Judicial Watch has sued the NRCC, which maintains its fundraising is legal, and has threatened to do the same with the NRSC, which says it is evaluating the allegations.

 

Fitzgerald stepped down after just three months as chairman of the NRSC's Republican Senatorial Trust, a group of donors who contribute $10,000 or more a year. Fitzgerald, who is independently wealthy, was supposed to expand the number of big‑money donors.

 

He met with contributors in Las Vegas earlier this year and again last week in Washington, where Labor Secretary Elaine Chao and House and Urban Development Secretary Mel R. Martinez appeared.

 

However, Fitzgerald said he was uncomfortable with letters being sent out under his name before he had had a chance to review them.

 

'I wanted to see and approve any material or information put out by the committee on behalf of the senatorial trust,' Fitzgerald said. 'It was clear that they were not comfortable with that approach and I was somewhat uncomfortable having my name connected to the trust without the ability to vet what the trust was doing.'

 

He would not say whether the recent criticisms of GOP fundraising methods motivated him as well. Judicial Watch last week threatened legal action against the NRSC after the Wall Street Journal reported that it had invited big donors to meetings with Cabinet members and diplomats. Fitzgerald raised his concerns with the committee's staff the same week.

 

His resignation was reported first by the Capitol Hill newspaper, The Hill.

 


NRSC spokesman Dan Allen insists there are no hard feelings.

 

'His stepping down was an amicable arrangement,' Allen said.  'He's still going to be there to help us out.'

 

No successor has been named.

 

Meanwhile, Hastert is re‑evaluating his participation in the direct‑mail fundraising efforts of the NRCC after the controversy developed over the invitation to the tax‑reform briefing sent to donors in his name.”

Exhibit 6

 

Senator Fitzgerald and Speaker Hastert’s actions speak volumes concerning the fundraising tactics and practices of Republican fundraising committees.  While these two officials have gone to great lengths to publically remove themselves from the GOP’s illegal fundraising schemes, the campaign committees and their staffs continue their efforts unchecked.

 

F.  The Republican Party Cancels A Fundraiser At The Mexico Embassy

 

With increased government “watchdog” and press scrutiny of their illegal fundraising activities, the NRSC decided to cancel its Mexican Embassy fundraiser.  George Lardner of the Washington Post reported on May 17, 2001 under the headline, “GOP Cancels Fundraiser at Mexico Embassy,” that:

 

“An embassy dinner that Senate Republicans were planning for their biggest contributors next week has been canceled.

The National Republican Senatorial Committee (NRSC) had advertised an exclusive get-together ‘at one of Washington's famous Embassies’ as the opening feature of a controversial set of fundraising activities set to begin here Tuesday.


A committee official said the Republicans had their eye on the Mexican Cultural Institute, described by Mexican officials as one of the most spectacular mansions on 16th Street NW, and ‘were about to sign a contract’ to rent the elegant building when the Mexicans said no.

The rules of the institute prevent it from renting rooms or facilities ‘for political fundraising activities,’ Mexican Embassy spokesman Miguel Monterrubio explained yesterday. A center of Mexican art and culture adorned with spectacular murals and a tiled courtyard, the 91-year-old building has been the setting for art shows, concerts, ‘gastronomic events’ and fundraisers for the institute's activities, but not for political purposes.

NRSC spokesman Dan Allen it was too late to rent another embassy. He said the dinner, reserved for lifetime members of the Inner Circle Club ($10,000 a person or $15,000 a couple), will be held at a different location. A Potomac cruise will follow.

Although some Democrats have called use of an embassy to entertain donors a new and cynical twist in the fundraising game, Allen said the Senate campaign committee has done it without raising alarms for the last three years, renting out the the British and Finnish embassies and the Taiwanese mission.

‘We rent the venue so it is not the embassy holding an event for the NRSC,’ Allen said. ‘It is the NRSC renting the embassy to hold the event. As a courtesy, we invite the ambassador and close staff.’

The NRSC's proposed agenda said the embassy dinner would offer life contributors ‘the exclusive opportunity to dine with diplomats and embassy officials and discuss international affairs at one of Washington's famous Embassies.’

What the NRSC calls its Inner Circle Spring Briefing has drawn more fire for its plans to have high-ranking Bush Cabinet officers address the group at meetings Wednesday and Thursday. As many as 500 Inner Circle members, whose dues are $1,000 a year, are expected to attend.

Common Cause has denounced the proposed agenda as an ‘auctioning of access’ to high-ranking administration officials and Judicial Watch contends it would be illegal because it amounts to ‘selling meetings with Bush administration officials for political campaign contributions.’


Allen said ‘everything is perfectly kosher’ because the briefings by Cabinet secretaries will take place at the Capital Hilton, not on government property. But it remains unclear whether all the invited Cabinet officers -- Commerce Secretary Donald L. Evans, Health and Human Services Secretary Tommy G. Thompson, Education Secretary Roderick R. Paige and Energy Secretary Spencer Abraham -- will show up.

An NRSC source said Thompson and Abraham are unlikely to attend. Allen would say only that at this point ‘we're not sure of the lineup.’”

 

Exhibit 7

 

 

It appears the Mexican government has a more defined ethical standard than fundraisers within the NRSC.  Mr. Allen’s continued assertions that “everything is perfectly kosher” belies the defections of Senator Fitzgerald and Speaker Hastert, as well as the cancellation of the Mexican embassy event.  When Mr. Allen says he is “not sure of the lineup,” he communicates an culpability greater in scope than the accuracy of a simple guest list.  The culpability is symptomatic of, apparently, a greater re-examination of the illegal fundraising practices of the NRSC.  The identification and complaints against the flagrant abuse of selling meetings with high government officials to “fat cat” donors seems to giving some influential Republicans pause.  Judicial Watch insists that the FEC and the Justice Department are obligated by law to investigate these matters; as the recent series of events documented in this complaint point to a pattern and practice of illegal behavior that harms our Constitutional Republic.

 

 

III.  THE LAW.

 

A.  Senator Frist’s And The NRSC’s Actions Fall Within The Anti-Bribery Law.

 


The NRSC’s solicitations of political campaign cash for meetings with Bush Administration officials, as well as Senator Frist’s trading on his status as a powerful United States Senator to financial contributors, are graphic examples of gross violations of both the letter and spirit of 18 U.S.C. § 201 (Bribery of Public Officials and Witnesses), and 18 U.S.C. § 600 (Promise of employment or other benefit for political activity).  Despite the press reports and Judicial Watch’s warning, Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, Smith and the NRSC unabashedly continue to barter for official government favors and influence for citizens’ cash.

 

Specifically, 18 U.S.C. § 201 (Bribery of Public Officials and Witnesses) provides in pertinent part:

(a) For the purpose of this section - (1) the term ''public official''

means Member of Congress . . .2). . . being a public official or person

selected to be a public official. . ., (b)(1) directly or indirectly, corruptly

demands, seeks, receives, accepts, or agrees to receive or accept

anything of value personally or for any other person or entity,

in return for: . . .(2)(C) being induced to do or omit to do any act in

violation of the official duty of such official or person.

 

In U.S. v. Biaggi, 853 F.2d 89 (2nd Cir. 1988), the U.S. Court of Appeals for the Second Circuit addressed the issue of a congressman’s “official acts” with regard to 18 U. S. C. § 201.  The term “official act,” as used in 18 U. S. C. § 201(a)(3), prohibiting any congressman from accepting anything of value for or because of official acts, was not limited solely to acts related to the legislative process, but was broad enough to include all acts normally thought to constitute legitimate use of a congressman’s office.  In Biaggi, the Court ruled that the congressman engaged in “official acts,” within the meaning of the anti-gratuity provisions of federal bribery statutes, when he wrote letters on behalf of persons who had paid for his vacations using congressional stationery, to urge federal and New York City officials to take actions favorable to the party that paid for the vacations.

 

The Second Circuit clearly addressed the issue of “official acts,” ruling:

 

“Defendants contend that the acts performed by Biaggi on behalf

of Coastal were not “official act[s]” within the meaning of § 201

because they were not legislative acts and because they were directed

 principally toward municipal, not federal agencies.  In addition,

defendants contend there was insufficient evidence to show that the

vacations were offered or accepted “for or because of” Biaggi’s acts.

We reject both contentions.

 

1.  Official Acts

[5] Biaggi’s suggestion that a congressman’s only “official act[s]

within the meaning of § 201 are acts in the legislative process itself

is untenable.  The language of the section does not mention legislative

acts, and courts have read the section and its predecessors sufficiently

broadly to encompass all of the acts normally thought to constitute a

 congressman’s legitimate use of his office.”

 


Biaggi, 853 F.2d at 97; see generally, U.S. v. Myers 635 F. 2d 932 (2d Cir. 1980).  The Court found that the jury could have rationally inferred Biaggi’s guilt from “the nature and sequence of events, certain explicit statements, and suggestions of cover-up.” Biaggi, 853 F. 2d at 99.  Like in Biaggi, the nature and sequence of events and certain explicit statements here demonstrate illegal activity under 18 U.S.C. § 201.  Similar to Congressman Biaggi, Senator Frist and the NRSC have promised to arrange meetings for political contributors with top government officials in exchange for cash.  Whether for political campaigns or vacations is of no significance because both reasons are indefensible and illegal.

 

Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, and Smith, in their official capacity as United States Senators, with the cooperation and assistance of the NRSC, are trading upon their official office, position, status and government access, in order to sell meetings with Bush Administration officials in exchange for political contributions under the “Inner Circle” fundraising program.  This is a flagrant abuse of the public’s trust and Senators Frist’s Brownback’s, Allard’s, Bond’s, Inhofe’s, Sessions’, and Smith’s official government office, that is, using Senator Frist’s Brownback’s, Allard’s, Bond’s, Inhofe’s, Sessions’, and Smith’s official government office as a fundraising tool.  The quid pro quo is clear, and the exchange rests upon the leverage of each of the aforementioned senator’s official office.

 

In order for the crime of bribery to have been committed, it is not necessary that a public official actually have the power to perform the act that he promises in return for money.  What is necessary is that the public official solicit or receive money on representation that the money is for the purpose of influencing the performance of some official act.  See U.S. v. Arroyo, 581 F. 2d 649 (7th Cir. 1978).

 


Again, Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, and Smith have placed their official government office – their Washington, D.C. influence – as the fulcrum of the illegal fundraising scheme.  Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, and Smith and the NRSC’s solicitations for cash included a promise of meetings with Bush Administration officials concerning official U.S. government policy matters.  The contributions solicited by Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, and Smith, and the NRSC are specifically for the official acts of Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, and Smith and officials of the Bush Administration in their posts as government officeholders.

 

Further, 18 U.S.C. § 600 (Promise of employment or other benefit for political activity) provides in pertinent part:

 

“Whoever, directly or indirectly, promises any employment, position,

compensation, contract, appointment, or other benefit, provided for

or made possible in whole or in part by any Act of Congress, or

any special consideration in obtaining any such benefit, to any person

as consideration, favor, or reward for any political activity or for the

support of or opposition to any candidate or any political party in

connection with any general or special election to any political office,

or in connection with any primary election or political convention or

caucus held to select candidates for any political office, shall be fined

under this title or imprisoned not more than one year, or both.”

 

In De Vera v. Blaz, 851 F.2d 294 (1988), the U.S. Court of Appeals for the Ninth Circuit addressed the breach of an alleged agreement of employment between a political campaign worker and a candidate for the office of delegate for Guam to the United States Congress, in exchange for the campaign worker’s vote, support and work for the candidate.  The Ninth Circuit found, “The alleged promise clearly violates express provisions of both federal and territorial election laws.”  See DeVera, 851 F.2d at 296.

 

Clearly, Senators Frist’s, Brownback’s, Allard’s, Bond’s, Inhofe’s, Sessions’, Smith’s and the NRSC’s solicitations and actions fall within the letter and spirit of these provisions of the U.S. Code, among others. 

 

B.  “Offset Contributions” and FEC Reporting.

 

 

Given the NRSC’s non-response to the substance of the press reports showing that they are selling meetings with Bush Administration officials for up to $15,000 in political campaign contributions, a strong evidentiary inference arises that neither is adhering to the FEC’s reporting requirements.

 


The FEC is charged by law with obtaining reports from political committees about the source of their funding and their expenditures, then making this information available to the public (see, e.g., Buckley v. Valeo, 424 U.S. 1, 109 (1976)).  Specifically, the Federal Election Campaign Act (hereinafter “FECA”), 2 U.S.C. § 431-455, et seq., requires disclosure of the following:

 

(b)            Contents of reports.  Each report under this section shall disclose . . .

(4)            for the reporting period and the calendar year, the total amount of all disbursements, and all disbursements in the following categories . . . (F) contribution refunds and other offsets to contributions . . .

 

(5)           the name and address of each . . . (E) person who receives a contribution refund or other offset to contributions from the reporting committee where such contribution was reported under paragraph 3(A) of this subsection, together with the date and amount of such disbursement; 

 

(6)(A)           for an authorized committee, the name and address of each person who has received any disbursement not disclosed under paragraph (5) in an aggregate amount or value in excess of $20 within the calendar year, together with the date and amount of any such disbursement;

2 U.S.C. § 434(b) (emphasis added). 

 

The FEC’s own regulations are even more specific, requiring that the following information be reported: 

 

(b)           Reporting of Disbursements.  Except for reports file in accordance with 11 CFR 104.17, each report filed under 11 CFR 104.1 shall disclose the total amount of all disbursements for the reporting period and for the calendar year and shall disclose the information set forth at 11 CFR 104.3(b)(1) through (4) . . .

 


(1)           Categories of disbursements for political committees other than authorized committees.  All political committees other than authorized committees shall report the total amount of disbursements made during the reporting period, and, except for itemized and unitemized breakdowns, during the calendar year in each of the following categories:  (iv) Offsets; (A) Itemized offsets to contribution (including contribution refunds); (B) Unitemized offsets to contributions (including contribution refunds); (C) Total offsets to contributions.

 

(2)           Categories of disbursements for authorized committees.  An authorized committee of a candidate for Federal office shall report the total amount of disbursements made during the reporting period and, except for itemized and unitemized breakdowns, during the calendar year in each of the following categories: (v) Offsets; (A) Itemized offsets to contributions (including contribution refunds); (B) Unitemized offsets to contributions (including contribution refunds);  (C) Total offsets to contributions;

 

(3)           Itemization of disbursements by political communities other than authorized committees.  Each political committee, other than an authorized committee, shall report the full name and address of each person in each of the following categories, as well as the information required by each category . . . (iv) Each person who receives a contribution refund or other offset to contributions from the reporting committee where such contribution refund was reported under 11 CFR 104.3(b)(1)(iv), together with the date and amount of such refund or offset; (ix) Each person who has received any disbursement within the reporting period not otherwise disclosed in accordance with 11 CFR 104.3(b)(3) to whom the aggregate amount or value of disbursements made by the reporting committee exceed $200 within the calendar year, together with the date, amount and purpose of any such disbursement.

 


(4)           Itemization of disbursement by authorized committees.  Each authorized committee shall report the full name and address of each person in each of the following categories, as well as the information required by each category . . . (v) Each person who receives a contribution refund or other offset to contributions form the reporting committee where such contribution was reported under 11 CFR 104.3(b)(2)(v) together with the date and amount of such refund or offset; (vi) Each person who has received any disbursement(s) not otherwise disclosed under 11 CFR 104.3(b)(4) to whom the aggregate amount or value of such disbursements exceeds $200 within the calendar year, together with the date, amount and purpose of any such disbursement.

 

(c)           Summary of contribution and operating expenses.  Each report filed pursuant to 11 CFR 104.1 shall disclose for both the reporting period and the calendar year:

 

(1) (i) The total contributions to the reporting committee; (ii) The total offsets to contributions; (iii) The net contributions (subtract total offsets from total contributions).

 

11 C.F.R. § 104.3 (emphasis added).

 

In the Senatorial/NRSC fundraising scheme, a meeting with Bush Administration officials,  sold to a contributor, is a contribution “offset.”  It is the “refund” or benefit derived from the cash political contribution itself.  Under the provisions of 2 U.S.C. § 434 (b), the name and address of each person receiving a meeting with a Bush Administration official (whose salary and position is sanctioned at the tax payer expense) in exchange for a political contribution must, therefore, be reported, together with the date of the meeting.  The strict FEC regulations governing categories of disbursements and itemization thereof require a detailed itemization for all offsets (or contribution refunds) as “disbursements” by calendar year.  Under 11 C.F.R. 104.3(b)(3), the reporting of any person, not otherwise disclosed in other disbursement categories, to whom the aggregate amount or value of the offset exceeds $200, within a calendar year, is required – together with the date amount and purpose.

 

The Senatorial/NRSC fundraising campaign scheme is predicated on selling meetings with Bush Administration officials for up to $15,000 – nearly one hundred times the minimum reporting requirement.  The meetings, and their costs, are offsets of the contribution and must be reported, in detail, as described above.  By regulation, the FEC would then accept the report of these contribution offsets from the NRSC as an official “Report of Disbursement.”

 


1)  The FEC’s Obligation.

 

The FEC is charged by law with being the “principal repository” of reports and other campaign-related statements that political committees are required to file, and “serve[s] as a national clearing house for information in respect to the administration of elections.”  See generally, Buckley, 424 U.S. 1, 109 (1976); 2 U.S.C. §§ 434(b), 437d and 438.  Judicial Watch, in its public interest role, maintains that the American voter deserves a clear, unambiguous response to its questions that it posed to Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, and Smith.  The FEC must investigate the matters presented in this complaint so that the public can have confidence in the accuracy of information reported by politicians and political parties to the FEC and the voting public at large.

 

It is the law that “affected” voters and citizens have standing to sue the FEC for failure to obtain information that the FEC is required to gather:

 

“ . . . we do not think it can be denied that this sort of information that Congress required disclosed aids voters, if and when they vote.  If a party is denied information that will help it in making a transaction -- and a vote can be thought of as a kind of transaction -- that party is obviously injured in fact. . . . A voter deprived of useful information at the time he or she votes suffers a particularized injury in some respects unique to him or herself just as a government contractor wrongfully deprived of information to be made available at the time bids are due, would suffer a particularized injury even if all other bidders suffered an injury.”

 

See Federal Election Commission v. Akins, 101 F.3d 731, 737 (DC Cir. 1996).

 

Surely, information about unlawful campaign fundraising activities, such as the sale of meetings with Bush Administration officials in exchange for contributions to the NRSC, is important and useful to voters electing candidates for federal office.

 

 

 


2)  Reporting Is Not “Rocket Science.”

 

Judicial Watch, and other public interest organizations, collect and disseminate information concerning unlawful government activities to the public.  Judicial Watch’s ability to disseminate and use FEC-reported information has been substantially harmed.  Judicial Watch, unfortunately, has substantial experience concerning the requirements of FEC reporting relating to the illegal sale of Commerce Department trade mission seats during the Clinton Administration.  Judicial Watch has shown before that it has “informational standing.” See Judicial Watch v. FEC, C.A. No. 98-0386 (Memorandum Opinion, July 6, 1998).  Exhibit 8.  Judicial Watch demonstrated that the Democratic National Committee (DNC) and the 1996 Clinton/Gore reelection campaign were required under FECA to report  “offsets to contributions,” “contribution refunds” and other “disbursements” to the FEC, which the FEC in turn was obligated to make public. Id.  The sale of seats to donors on Department of Commerce trade missions, by the DNC and the 1996 Clinton/Gore reelection campaigns, in exchange for campaign contributions, were “offsets to contributions,” “contribution refunds” or “other disbursements” that had to be reported under Federal Election Campaign Act (FECA), 2 U.S.C. § 434(b), et seq.

 

In this instance, Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, Smith and the NRSC are replicating the abuse of the DNC and the Clinton/Gore Presidential campaigns with regard to the sale of seats on trade missions and other government benefits and perks.  While using another “clever” vehicle, Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, Smith and the NRSC are selling meetings with senior Bush Administration officials.  The modus operandi and the illegality are identical.

 

It does not take a “rocket scientist” to conclude that the quid pro quo of a political campaign contribution in exchange for a seat on a taxpayer-financed trade mission, or a meeting with Bush Administration officials, is an “offset” to a contribution under the FECA and should be reported as such.

 


 

IV.  CONCLUSION.

 

The NRSC is a powerful and influential arm of the Republican Party, and Senator Frist is a popular and influential member of the “world’s greatest deliberative body.”  The nation entrusts a large measure of responsibility to them.  The old adage reminds us, “To whom much is given, much is required.”  In this matter, Senator Frist, and the NRSC are violating public’s trust by selling our government officials in the Bush Administration to the highest bidder.

 

When this was done in the universally corrupt Clinton Administration, Judicial Watch took legal action.  It cannot look the other way for the Republican Congress and Bush Administration.  The Bush Administration and the Republican Party have both repeatedly said they want to “move on,” and not prosecute the on-going crimes of the Clinton era.  However, their willingness to look the other way and let the Clinton Administration off-the-hook is not license to commit the same or similar illegalities.  The American people will not stand for it, and neither must the FEC and the Department of Justice.

 

Judicial Watch, in the public interest, respectfully requests that the FEC and the Justice Department promptly investigate Senators Frist, Brownback, Allard, Bond, Inhofe, Sessions, Smith and the NRSC concerning the matters presented herein.  When Senator Frist and the NRSC were told to cease and desist, they refused to do so.  The FEC and the Justice Department must now take swift remedial action.

 

Thank you for your prompt attention in this important matter.

 

 

 

 


 

Sincerely,

JUDICIAL WATCH, INC.

 

 

 

Thomas J. Fitton

President

 

 

 

WASHINGTON, DISTRICT OF COLUMBIA

 

Subscribed and sworn to before me this _____ day of May, 2001 by Thomas J. Fitton.

 

 

________________________________________

Christopher J. Farrell

Notary Public, District of Columbia

My Commission expires November 14, 2004