FEC ANNOUNCES FINAL ACTION IN TWO COMPLIANCE CASES
US Fed News 02-21-2006
WASHINGTON, Feb. 21 -- The Federal Election Commission issued the following news release:
The Federal Election Commission has recently made public its final action on two matters previously under review (MURs). This release contains only disposition information.
1. MUR 5421
RESPONDENTS:
(a) John Kerry for President. Inc., Robert Farmer, treasurer
(b) Teresa Heinz Kerry
(c) Mellon Trust of New England, N.A.
COMPLAINANT:
Thomas J. Fitton, Judicial Watch, Inc.
SUBJECT:
National bank contribution/bank loan made outside the ordinary course of business and on the basis that assures repayment; excessive contribution (in the form of guaranteed loan); failure to accurately report loan
DISPOSITION:
(a) Reason to believe, but took no further action*
(b) No reason to believe*
(c) Reason to believe, but took no further action*
The complaint alleged that the Committee may have accepted, and the Senator's spouse Teresa Heinz Kerry may have made an unreported and excessive contribution " to the extent (Mrs. Kerry's ) property rights in the Kerry family home or any other jointly-held property were pledged as collateral for any or all of the secured loans received by the Committee. Publicly available information raised several questions as to whether the Mellon Trust loan constituted an excessive or prohibited contribution and whether the loan was accurately reported. In order to obtain the information necessary to resolve these questions, the Commission found reason to believe that the Committee and Mellon Trust Bank may have violated the law. Information obtained from the Respondents established that Senator Kerry did not borrow in excess of his share of the collateral property; that the Mellon Trust loan was a standard loan product offered to a number of other customers during the relevant time period and the Committee's reporting of the loan in most respects accurately reflected the flow of funds from the bank to Senator Kerry and from Senator Kerry to the Committee. The Commission decided to take no further action against the Committee and Mellon Trust and find no reason to believe Teresa Heinz Kerry violated the law and close the file.
DOCUMENTS ON PUBLIC RECORD:
Documents from this matter are available from the Commission's web site at http://www.fec.gov by entering 5421 under case number in the Enforcement Query System.They are also available in the FEC's Public Records Office at 999 E St. NW in Washington.
*THERE ARE FOUR ADMINISTRATIVE STAGES TO THE FEC ENFORCEMENT PROCESS:
1.Receipt of proper complaint
2."Reason to believe" stage
3."Probable cause" stage
4.Conciliation stage
It requires the votes of at least four of the six Commissioners to take any action. The FEC can close a case at any point after reviewing a complaint. If a violation is found and conciliation cannot be reached, then the FEC can institute a civil court action against a respondent.