Complaints against the Madison Area Apartment Association

from Progressive Dane
from Helen Marks Dicks

The complaint from Progressive Dane

The Madison Area Apartment Association, acting through Citizens for Reasonable Government, engaged in a number of illegal actions.

First, the committee accepted donations from corporations. Unlike issue ads, which do not expressly advocate the election or defeat of a given candidate, independent expenditures are designed to influence the outcome of an election. Wisconsin law expressly prohibits corporations from giving money to political committees for the purpose of electing or defeating a candidate. Wis. Stats. 11.38(1)(a)1. The corporations listed as donors in the July continuing report of Citizens for Reasonable Government are therefore in violation of the law.

Corporate donations to elections must be taken seriously. The amount of money available to corporations far exceeds that of individuals and it is because corporations may have an undue influence that they are prohibited from participating in elections. The Wisconsin Statutes are clear about the severity of corporate participation in the election process. Section 11.60(3) provides that a civil forfeiture of three times the amount illegally donated may be assessed against the offending party. Section 11.38(4) provides that penalties against corporations may be doubled.

We therefore request that each corporation listed as a contributor to Citizens for Reasonable Government be assessed a forfeiture equal to six times the amount contributed to the committee.

Second, Wisconsin law prohibits political committees like the one set up by the Apartment Association from accepting corporate donations. Wis. Stats. 11.38(1)(b).

To rectify this illegality, Citizens for Reasonable Government should be forced to return the illegal contributions or donate an equal amount to the school fund or charity. Wis. Stats. 11.38(6). In addition, the committee should be subject to a civil forfeiture of $500 for each corporate contribution it accepted. Wis. Stats. 11.60(1).

Third, donations to political committees for local races are limited to $250 per candidate supported or opposed by the committee. Wis. Stats. 11.26(1)(d). When Citizens for Reasonable Government registered as an independent committee it was required to list the candidates it would support and oppose. Attachment to EB-6, Oath for Committees and Individuals Making Independent Disbursements. The committee listed 18 candidates. Donations to the committee are therefore limited to 18 times $250 or $4500.

However, Horizon Investment Management gave $5000 to the committee. Horizon's contribution and the committee's receipt of the excess $500 are each violations of the law.

Fourth, the July continuing report for the committee violates Wis. Stats. 11.055(1)(g). This provision requires each campaign finance report to contain a clear statement of the specific purpose for which each disbursement was made. The continuing report of the committee does not indicate for what purposes disbursements were made. The report is therefore incomplete.

The failure of the Apartment Association to specify how it spent its funds is especially egregious because the group may try to claim the money was spent on unregulated "issue ads" rather than on independent expenditures. Without knowing how the money was spent it may be impossible to know whether this claim is accurate.

The failure to report the purpose of the expenditures is a violation of campaign finance laws and should be prosecuted as such. Should the Apartment Association argue that no reporting was necessary because it was only engaged in issue work, and not directly advocating the election or defeat of certain candidates, Progressive Dane is prepared to provide documentary evidence and witnesses attesting to campaign tactics directed at candidates, not issues.

Fifth, the July continuing report for the committee violates Wis. Stats. 11.055(1)(j). This provision requires that for each disbursement made independently of a candidate, the committee must file a separate schedule listing the names of the candidates who were supported and/or opposed by the disbursement. The failure of the Apartment Association to indicate which candidates were supported and opposed by each expenditure is a violation of the law.

Each disbursement should be treated as a separate violation of the law and a civil penalty assessed in accordance with Wis. Stats. 11.60(1).

These violations of state election law, especially those involving corporate influence in local elections, must be treated seriously. These violations make democracy impossible. Continued violations will further undermine public confidence in the political process. We therefore request that the violations outlined in this letter be prosecuted vigorously and those responsible for these illegalities be proscribed from committing them again in the future.

Please keep me informed as to what actions you take in regard to the illegal activities of the Apartment Association.

The complaint from Helen Marks Dicks

HELEN MARKS DICKS
2035 Ellen Avenue, Madison, WI 53716
Phone (608) 222-3843 or (608) 221-0079

August 31, 1999

Madison City Clerk
210 Martin Luther King Blvd.
Madison, WI 53703

Dear City Clerk,

After reviewing the campaign finance reports for the spring election for City Council, I would like to file the following complaints:

1) The 16th aldermanic district

All mailings for the Judy Compton campaign used a bulk mailing permit number #1173 which is registered to First Weber Group Inc, a corporation. Her campaign expense reports do not reflect any reimbursement for the use of the permit and it appears therefore to be a corporate contribution in violation of 11.38 Wis Statutes. Also, in Ms. Compton publications she gives an E-mail address of comptonj@firstweber.com - this is a business-based E-mail address. Again, in her financial reports she does not list any reimbursement to First Weber for its use. She also listed the business phone without reimbursement but I presume that there was no charge for incoming calls to First Weber.

2) Madison Area Apartment Association/Citizen for a Responsible Government/Citizens for a Reasonable Government.

Mailings were sent out by a group identified on the mailing as 'Citizens for a Responsible Government', Earl Mihlbauer-Treasurer. These mailings had no return address. The bulk rate permit number on the mailing was not issued by a Madison area post office. However, based on newspaper reports I believe that the group that sent this mailing is the 'Citizen for Reasonable Government', Earl Mihlbauer, listed as Treasurer.

It is difficult to ascertain because they did not list the purposes for their expenditures on their report in violation of the statutes.

In addition, I believe that the 'Citizens for a Reasonable Government' is an alter-ego organization of the 'Madison Area Apartment Association' set up solely to funnel corporate campaign contributions into those Council Districts where the M.A.A.A. was sending conduit money to a candidate. Within those Districts, mailings were sent and the phone calls made which were against Progressive Dane candidates regardless of whether there was a Progressive Dane-endorsed candidate in the race. In addition Anti-Progressive Dane phone calls were made regardless of whether there was a Progressive Dane candidate. When asked 'who is funding the phone call," the answer was the 'Wisconsin Apartment Association', witness is available. I believe that the M.A.A.A. and the 'Citizens for a Reasonable Government" are one and the same because,

A. The organization, 'Citizens for a Reasonable Government" did not exist prior to the campaigns or since the campaigns. It seemed to exist only for the purpose of electioneering

B. The Treasurers of the two organizations are the same

C. The address of the two organizations is the same.

D. Both the 'Citizens for a Reasonable Government" and the M.A.A.A.. submitted handwritten reports which appear to be written by the same person.

E. The reports were filed at the same time apparently by the same person.

F. "Citizens for a Reasonable Government" did callings and mailings in all of the Districts where the M.A.A.A. was sending conduit money regardless of whether there was a Progressive Dane candidate or not. Both Helen Marks Dicks and Randy Glysch were targeted because the M.A.A.A. was supporting Compton and Rosas.

G. The organizations that contributed to the Citizens group appear to either be members of the M.A.A.A. or have some affiliations to the group.

H. Documents registering 'The Citizens for a Reasonable Government" were notarized by Noah Fiedler, Executor Director of the M. A. A. A.

It is a violation of WIS Statues 11.38 to accept contributions from corporations who are registered with the Department of Financial Institutions. It is also in violation for those corporations to give contributions, which are large and I am unsure of how such contributions are regulated but appear to be of such magnitude that they may have exceeded the limits if given by individuals.

I have reviewed the records at D.F.I, and the following corporate contributors are registered,

• 'Apartment Management and Maintenance Corporation',
• 'Caroline Apartments',
• 'Limited Partnership',
• 'Country Meadows Investors LLC',
• 'Normandy Apartments LLC',
• 'The Normandy Apartments of Madison, a domestic LLC',
• 'The Monticello Apartments LLP'.

  The 'Wisconsin Apartment Associations' is also at the same address as listed for 'Madison Area Apartment Association', which is not registered at D.F.I. The listing at the D.F.I, included nonprofit organizations. It may be that the M.A.A.A. is a sub chapter of the 'Wisconsin Apartment Association'.

  I have enclosed sample copies of the Compton literature and the mailing by 'Citizen for a Responsible Government'. I have not enclosed copies of the Campaign Reports which I used to obtain the information about donors and addresses except for the cover page to show the sameness of address, treasurers and handwriting, as well as the received stamp for the city clerks office.

  This matter should be investigated and that violations should be handled as set forth in the statutes.

  If you should need additional information from me, do not hesitate to call me. I will cooperate in any way necessary.

  Sincerely,
  
  [signed]
  
  Helen Marks Dicks
  2035 Ellen Avenue
  Madison, WI 53716
  (608) 222-3843
  
  CC: Diane Nicks, District Attorney
  
  [End of document. Enclosures omitted.]
  
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