Did Ed create a “shadow organization” to skirt campaign finance regulations?

Tuesday, April 1, 2008

Des Moines, IA, 34/2/08, 1:30 PM - In an effort to move beyond the politics of deception and get back to an issues-based campaign, the Fallon campaign called the Federal Election Commission (FEC) to confirm their research and put to rest any suspicions aroused by Congressman Boswell’s latest round of personal attacks. Campaign manager, Lynn Heuss, spoke with the information services department of the FEC. They confirmed that Ed Fallon has done nothing illegal or unethical.

Fallon says, “Leonard Boswell alleges that I’M for Iowa is some kind of shadowy enterprise that allows me to skirt campaign finance regulations. He tries to make the case that sending 2 email messages to the investors and customers of my business is illegal and unethical.”

Fallon says, “This is ridiculous. I’M for Iowa is a business, specifically, a general partnership, I formed which allows me to earn a living and do what I do best – consult, organize and work on issues I care about. Issues like campaign finance reform, hog confinements, eminent domain, climate change, and advising progressive candidates. This is not a non-profit. This is how I earn a modest living.

Fallon notes, “It’s like this: Say you’re good at fixing cars. You open a garage. Eventually, maybe, you earn a living at it. Let’s say that some day you decide to run for office. So, you put a campaign sign in your window. You have brochures by the cash register. You talk with customers about why you’re running and what you hope to accomplish. This is perfectly legal and perfectly ethical and no different than me sending 2 emails to my investors and customers.”

Fallon summed it up, “Boswell’s campaign is trying to sow suspicion and doubt, to discredit me personally and politically. It’s what Republicans did to John Kerry in 2004. George Bush’s draft dodging was an embarrassment, a political weakness. John Kerry was a war hero. So what does Bush do? He attacks Kerry on Kerry’s strength, diverting attention away from his own weakness.”

“Running campaigns free of PAC and lobbyist money is one of my strengths. It's one of Boswell's weaknesses. In 2007, 74% of his donations came from PACs, most of them corporate PACs. People are increasingly aware of the problem of money in politics. So, instead of engaging me in a fact-based discussion of campaign finance reform, Boswell impugns that I am acting unethically.”

Fallon campaign manager, Lynn Heuss, provided the rules the campaign reviewed with the FEC Information Officer: From the FEC Candidate Guide, Chapter 4, Section 10, “Partnerships are permitted to make contributions according to special rules. 110.1(e) and (k)(1). For further details, see Appendix B.”

In addition, Chapter 4, Section 12 of the FEC Candidate’s Guide says, “When candidates use their personal funds for campaign purposes, they are making contributions to their campaigns. Unlike other contributions, these candidate contributions are not subject to any limits. 110.10; AOs 1991-9, 1990-9, 1985-33 and 1985-60. They must, however, be reported (as discussed below).” And a little further down under “Definition of a Candidate’s “Personal Funds” it says, “The personal funds of a candidate include: Assets which the candidate has a legal right of access to or control over, and which he or she has legal title to or an equitable interest in, at the time of candidacy; income from employment; ….”

Heuss clarified the only contribution the business has made is sending out two email messages, which constitute an in-kind donation, and is not in violation of FEC regulation.

Heuss notes that the FEC says it will not issue a formal statement or ruling unless a complaint has been filed.