Monroe councilman fined $20,000

Published 9:00 pm Tuesday, October 31, 2006

OLYMPIA – A veteran Monroe city councilman agreed Tuesday to pay one of the largest campaign-related fines in state history to settle allegations he concealed his identity as a contributor in city elections in 2001 and 2003.

Councilman Ken Berger will pay $20,000 in fines and fees under an agreement reached with the Public Disclosure Commission, which enforces state campaign finance laws.

The commission approved the deal in a special meeting Tuesday morning.

“These are serious violations,” Commissioner Ken Schellberg said. “Finding out who is giving the money is fundamentally important.”

Former Monroe City Councilman Mike Donow also agreed Tuesday to pay a fine for his role in making donations of $1,500 to the campaign of Bob Holman in 2001 and $150 each to the campaigns of Chad Minnick and Tom Layson in 2003.

In each instance, Donow was listed as the donor. The commission staff contends Berger gave Donow the funds knowing they would be used for the contributions.

State law prohibits any contribution to be made by one person through another person in a way that conceals the identity of the source of the funds.

Commissioners imposed a $5,000 fine on Donow but suspended $3,200 of the total. Donow received a lesser amount because he disclosed the incidents and provided documents used by commission staff in the filing of complaints against the two men.

“We wouldn’t be here without his cooperation in this matter,” said Assistant Attorney General Bruce Marvin. “He was the middle man. He was not the person supplying the money.”

Berger has served on the City Council since 1989, winning a fifth term in 2005. Donow served from 1994 to 1997.

The two once were friends and political allies. Today, Donow is among Berger’s critics.

Earlier this year he contacted the state agency about the donations. In September he apologized for his actions in a letter in the Monroe Monitor weekly newspaper.

Donow attended Tuesday’s hearing and said “It was always clear upfront that I was probably looking at a fine of some sort.”

Of Berger’s penalty, he said, “I’m sorry it is as steep as it is. Me knowing and being there and knowing some of what’s going on behind the scenes, I think this is a good thing for Monroe.”

Berger was not at the hearing. He has denied wrongdoing.

He admitted giving Donow money but contends in the agreement with the commission to have “failed to take affirmative measures to ensure that this money would not be contributed without appropriate disclosure.”

Berger issued a statement Tuesday afternoon.

“I acknowledge I should have been more diligent in ensuring that Mike Donow appropriately spent and accounted for money I gave him out of friendship during a difficult time in his life,” Berger said.

“To continue to defend myself through to an ultimate vindication could have cost as much as $100,000,” he said. “I have reluctantly agreed to accept this settlement because I want to get on with doing the people’s business.”

Berger received fines of $8,000 for the first violation, $7,500 for the second and $4,500 for the costs of the investigation. He has 90 days to pay the full $20,000.

Berger will “absolutely not” resign, said Bothell attorney, Mark Lamb.

This is the largest fine against an individual for concealing contributions since a $52,500 penalty levied against farmer P.J. Taggares of Othello. The commission found he steered money through his employees into the 1996 gubernatorial campaign of Dale Foreman.

In 2001, Don Wasson received a $10,000 penalty for hiding $50,000 in donations to candidates for Des Moines City Council. Most of the penalty was suspended and Wasson later resigned, according to commission documents.