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

10^th 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.’