Judge to mull whether Eyman is in contempt of court

Published 1:30 am Friday, August 12, 2016

EVERETT — Stepped up efforts to cooperate with a state investigation into alleged campaign fraud appear to have spared initiative promoter Tim Eyman from being found in contempt of court, at least for now.

A Snohomish County judge on Friday said she’d wait until later to decide whether Eyman, of Mukilteo, intentionally violated her order that he swiftly provide state Attorney General Bob Ferguson with financial and tax records.

State attorneys filed a motion July 27 noting Eyman missed a July 13 deadline set by Superior Court Judge Ellen Fair to turn over documents necessary to their investigation. They asked the judge to find Eyman in contempt and to fine him up to $2,000 a day.

Fair said it was clear to her that the state’s contempt motion had “spurred more activity” from Eyman to meet the state’s demands, but added that she lacked sufficient information to determine whether delays had been deliberate.

She signed an order finding that Eyman had failed to meet her deadline, but also said she’d explore the contempt question more later, as well as consider a request from the state to make Eyman pay attorneys fees associated with bringing the motion.

The order also memorializes an offer from an Eyman-connected political committee to give state attorneys permission to access relevant bank accounts and other records.

Ferguson is investigating allegations Eyman illegally shifted money among two initiative campaigns in 2012 and concealed payments he received in the process.

Among other things, investigators are pursuing evidence that Eyman used $170,000 raised for the political campaigns to pay for his personal living expenses.

Ferguson wants all tax records and bank receipts from Eyman as well as records for a limited liability corporation he set up named Tim Eyman Watchdog for Taxpayers.

Ferguson also sought records and correspondence from two political committees Eyman leads, Voters Want More Choices and Help Us Help Taxpayers.

Chad Standifer, an assistant attorney general working the case, told Fair that he believed Eyman and others are deliberately thwarting access.

Attorney Mark Lamb, of Bothell, who represents Eyman, said it was more complicated. For example, Eyman had no control of banking records for the political committees, he said. There also had been confusion about whether those organizations were required to file tax returns. (They have submitted records required of nonprofits.)

Asking that Eyman be held in contempt was “an untenable request made for untenable reasons,” Lamb said.

Standifer countered that history spoke for itself.

While Lamb has demonstrated a willingness to provide access to information necessary to complete the investigation, after nine months “we don’t have a lot of faith in his clients or their level of cooperation,” Standifer said.

Eyman’s legal troubles stem from an inquiry that began in April 2012 with a complaint to the state Public Disclosure Commission. He was accused of shifting money raised in support of Initiative 1185 to pay professionals gathering signatures for Initiative 517.

State investigators used emails, bank records and interviews to demonstrate how Eyman not only moved money between the campaigns, but also allegedly concealed up to $308,000 in kickbacks.

Commissioners for the election watchdog agency in September asked Ferguson to take up the case, in part because he can seek greater civil penalties.

The case wound up in front of Fair when Eyman objected to state investigators seeking his personal tax records. He worried that information would automatically become public.

The judge rejected that argument, pointing out that the state’s Public Records Act contains provisions that protect sensitive personal information, or at least give parties the chance to petition the court to rule the materials off limits prior to release. She ordered him to comply with subpoenas and supply the records.

In pleadings filed before Friday’s hearing, Standifer said the records needed to complete the state’s investigation are under the control of Eyman and his associates.

“Each day that goes by without compliance, the state’s investigation is hindered,” he wrote.

Scott North: 425-339-3431; north@heraldnet.com. Twitter: @snorthnews.