EVERETT — A court hearing has been postponed on whether initiative promoter Tim Eyman, of Mukilteo, must surrender tax records as part of a state investigation of alleged campaign fraud.
The hearing originally set for Tuesday in Snohomish County Superior Court is now expected to take place next week.
Attorney General Bob Ferguson wants the court to enforce a subpoena obtained in November as part of a probe into allegations Eyman illegally shifted money among two initiative campaigns in 2012 and concealed payments he received in the process.
In the subpoena, Ferguson is seeking personal tax records and bank receipts from Eyman and a limited liability corporation he set up named Tim Eyman Watchdog for Taxpayers. In addition, he wants records and correspondence from two political committees Eyman leads, Voters Want More Choices and Help Us Help Taxpayers.
The attorney general filed a similar petition in Thurston County Superior Court to obtain records from Citizen Solutions, the signature-gathering firm employed for both ballot measures under scrutiny in the investigation. A hearing on that petition is slated for Friday.
Attorney Mark Lamb, who represents Eyman, said earlier his client opposes turning over private tax records because they could then be made public with other investigation documents.
Lamb, of Bothell, has said, however, he would allow state investigators to come to his office to view the tax documents.
“The Attorney General refused this proposal and instead has chosen to go to Superior Court,” Lamb said in a statement June 9. “On this principle of personal privacy, I feel it necessary to litigate this matter. The AG has the right to review Mr. Eyman’s tax returns but I do not believe his returns should be made public documents available to everyone.”
The court hearing will be the latest maneuvering in an inquiry begun in April 2012 with a complaint to the state Public Disclosure Commission alleging money raised in support of Initiative 1185 was improperly shifted and used to pay professionals gathering signatures for Initiative 517.
I-1185, which required any tax increase be passed by a two-thirds majority in both the House and Senate, was approved by voters in November 2012. It has since been struck down by the state Supreme Court.
I-517, which proposed sweeping changes to the state’s initiative and referendum process, also made it to the ballot. Voters turned it down in November 2013.
PDC investigators used emails, bank records and interviews to diagram how Eyman allegedly moved money illicitly between the two campaigns and concealed a $308,000 kick back he got from Citizen Solutions.
Commissioners referred the case to Ferguson in September 2015 in hopes it would result in tougher penalties for Eyman than the commission could impose.
Jerry Cornfield: 360-352-8623; jcornfield@heraldnet.com.
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