By David Ammons
Associated Press
OLYMPIA – Attorney General Christine Gregoire on Wednesday sued tax rebel Tim Eyman, asserting that he broke campaign laws by secretly dipping into campaign funds to pay himself a salary and expenses.
She acted swiftly to follow the unanimous recommendation of the Public Disclosure Commission. The watchdog panel on Tuesday found Eyman in apparent violation of disclosure laws by concealing the salary scheme, failing to properly report finances, and mingling campaign and personal work expenses.
The commission wanted Gregoire to pursue the case in court – or in settlement talks – so a stiffer penalty could be assessed than the $2,500 limit the commission can impose.
The attorney general can seek fines of $30,000 per violation if the infraction was intentional – or as much as $150,000 for the five violations cited by the PDC. That number could balloon if each inaccurate or misleading disclosure is counted as a separate violation. Gregoire won a $400,000 fine against the Washington Education Association for campaign violations.
Gregoire’s office filed the civil suit in Thurston County Superior Court after reviewing the commission investigators’ report on Eyman. The lawsuit says Eyman and his former business partner and treasurer, Suzanne Karr, broke the law by moving donations from the Permanent Offense campaign fund into a for-profit business, concealing their intent to pay Eyman a salary.
The suit says the for-profit business billed the campaign treasury for campaign consulting services and turned around and paid Eyman without disclosing it to the public, as required by law.
The suit also alleges:
The lawsuit asserts that the actions were intentional or negligent and that any penalties should be triple the normal $10,000 fine.
The suit also asks that Eyman, Karr and the campaign pay the costs of the investigation and enforcement.
On Tuesday, Eyman’s lawyer, William Glueck of Seattle, flatly denied that the Mukilteo small business owner violated campaign laws and said Eyman will vigorously defend himself if the case ends up in court. He didn’t rule out a settlement.
“You never know,” he said in an interview.
He added that he didn’t know how long it will take to resolve the case.
Eyman properly reported that some campaign funds went for consulting fees, he said.
“So Tim Eyman was compensated for his time, effectiveness and hard work,” Glueck said in a statement e-mailed to reporters later. “This is perfectly legal.”
On Feb. 3, Eyman confessed to The Associated Press that he had created a for-profit corporation solely to hide that he was taking campaign contributions for personal use. But he said he broke no laws.
He said he had shifted more than $200,000 to a salary fund, including the $45,000 he took in 2000. The commission said he actually took more than $54,000, as well as numerous questionable or undocumented expenses, such as car repairs, business expenses, a contribution to the Republican National Committee, and even cashews and a kid’s toy.
The disclosure panel adopted its investigators’ stance that Eyman’s handling of campaign contributions apparently violated at least five disclosure laws.
Christian Sinderman, the campaign consultant who first blew the whistle on Eyman, was pleased with the commission’s action.
“The Public Disclosure Commission clearly did a thorough review and found a mountain of evidence, mostly from Eyman’s own mouth and e-mails, that prove he violated the law,” he said.
“Our hope is that the attorney general levies a fine that fits the extreme nature of these violations.”
On the Net:
PDC: http://www.pdc.wa.gov
Copyright ©2002 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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