Complaint filed by Progressive Dane regarding Campaign Finance violations

Progressive Dane
P.O. Box 1222
Madison, WI 53703

August 24, 2000

Mr. Brian Brophy
Dane County District Attorney
210 Martin Luther King, Jr. Boulevard, Room 523
Madison, WI 53703

Dear Mr. Brophy:

We are writing on behalf of Progressive Dane regarding campaign finance reporting violations stemming from elections held in April of this year. Please consider this letter a formal complaint and a request for enforcement action by your office.

Most of these violations have to do with inadequate reporting of contributions from conduits. Others have to do with a failure to report certain contributions or a failure to report at all.

We understand that you gave candidates who failed to file on time an extra month to do so. We are distressed that you would fail to enforce the requirements for timely filing of campaign finance reports. Your inaction on this matter indicates that you have made enforcement of campaign finance laws a low priority for your staff. Apparently you disagree with the public policy embodied in state campaign finance laws – that the public has the right to know who is financing campaigns.

Nonetheless, we request that you take action on the additional violations outlined in this letter. The violations of state law outlined in this letter are so serious in nature that they render meaningless the public’s right to know. As a consequence, reliable information about candidates is not known and informed choice by voters is impossible. Fundamentally, our democracy is being eroded and yet your office continues to do nothing.

Section 11.06(11) of the state statutes requires that conduits report the contributions they receive and pass on to candidates in both the file of the conduit and in the file of the candidate receiving the contributions. Contributions passed through conduits are considered to come from individuals (§§ 11.06(11)(c) and 11.26(12m), stats.) and must be recorded as such on the reports of the candidates receiving such contributions.

In practice, a conduit collects a number of checks from individuals. Those checks are made out to a particular campaign, not to the conduit. The conduit passes all of the checks to the campaign. Along with the checks, the conduit is supposed to send a transmittal letter indicating which individuals are passing checks through the conduit. This letter goes in both the file of the conduit and in the file of each campaign receiving money from the conduit. On its campaign finance report, each campaign records each check as coming from an individual and also checks a box indicating the check came via a conduit.

In addition to outlining the violations of state law that we believe have occurred, we have attached pages from the relevant campaign finance reports so that you can clearly see what problems we are highlighting

Missing conduit letters

The following campaigns indicated that they received conduit contributions, but the files for these campaigns do not contain transmittal letters from the conduit(s). In addition, none of the registered conduits have reports indicating that they are the source of these contributions. Therefore, it is impossible to know which conduits were involved in gathering this money.

We request that you determine the source of these funds, require them to file accurate reports, and penalize them for completely ignoring the requirements of state law.

Based on the information contained in one of the reports, we believe that many of these contributions came through the conduit of the Madison Area Apartment Association. However, since this conduit has not filed its own report, this fact cannot be verified.

As you know, this is at least the second time that area landlords have failed to comply with state campaign finance laws. Their actions are so egregious that they are one of the few groups to have actually been prosecuted by your predecessor. Due to their past violations, the Madison Area Apartment Association (now known as the Apartment Association of South Central Wisconsin) knows full well the need to file timely and accurate reports, yet has repeatedly failed to do so. Because it is a repeat offender, we ask that you seek stiff penalties against the landlords’ group.

Scott Kowalski, District 1

On his pre-election report, Kowalski marked two contributions as coming through conduits, but we could not find the corresponding letter(s) from the conduit(s). (James Bourne and Wayne Glowac, received 2/2/00).

Duane Steinhauer, District 13

On his July continuing report, Steinhauer marked four contributions as coming through conduits, but we could not find the corresponding letter(s) from the conduit(s). Steinhauer indicated in the "employer" section of the report that these contributions came through the Madison Area Apartment Association conduit. (Nelson Balke, Brende Hofer, Tom Lerdahl, and Don Sinykin, received 3/29/00)

Kyle Schwarm, District 16

On his pre-election report, Schwarm marked four contributions as coming through conduits, but we could not find the corresponding letter(s) from the conduit(s). (Bruce Baseman, James Bell, Robert Stephenson, Roland Stephenson, received 2/24/00)

On his July continuing report, Schwarm marked four contributions as coming through conduits, but we could not find the corresponding letters from the conduit(s). (Jim Boullion, received 3/23/00, Gilbert Docken, Fred Rouse and Ken Runlee received 3/29/00)

Brett Davis, District 17

On his July continuing report, Davis marked two contributions as coming through conduits, but we could not find the corresponding letter(s) from the conduit(s). (Gib Docken and Ken Runlee, received 3/23/00)

Dennis O’Loughlin, District 22

On his July continuing report, O’Loughlin marked six contributions as coming through conduits, but we could not find the corresponding letter(s) from the conduit(s). (Anthony Varda, received 3/23/00; Gordy Meicher, received 3/24/00; Ken Runlee, received 3/29/00; Peter Jensen, and Winona Maria Paup, received 3/30/00; David Simon, received 3/31/00)

Jim Campbell, District 23

On his July continuing report, Campbell marked a contribution as coming through a conduit, but we could not find the corresponding letter from the conduit. (Ken Runlee, received 3/29/00)

Randy Littel, District 24

On his July continuing report, Littel marked two contributions as coming through a conduit, but we could not find the corresponding letter(s) from the conduit(s). (Fred Rouse and Ken Runlee, received 3/29/00)

Eileen Bruskewitz, District 25

On her pre-election report, Bruskewitz marked five contributions as coming through conduits, but we could not find the corresponding letters from the conduit(s). (Don Karls, John McKenzie, David Simon, Paul Keuhn, and John Staley, received 2/8/00)

Bill Hitzemann, District 30

On his July continuing report, Hitzemann marked three contributions as coming through conduits, but we could not find the corresponding letter(s) from the conduit(s). (Paul Marunich, Earl Milbauer, and Ken Runlee, received 4/3/00)

Don Heiliger, District 35

On his July continuing report, Heiliger marked four contributions as coming through conduits, but we could not find the corresponding letter(s) from the conduit(s). (Mike Theisen, Verna Willett, Charles Heath, and Mary Suku received 5/30)

Candidates failing, repeatedly and consistently, to identify contributions that came through a conduit or failed to report contributions

A number of candidates repeatedly and consistently failed to identify conduit contributions on their reports. We know these are conduit contributions because of transmittal letters from the conduits. These are not mere mistakes in filling out campaign finance reports, these are complete failures to identify conduit contributions. Moreover, these "errors" were largely made by experienced candidates who, frankly, should know better.

In addition, some candidates failed to report contributions they received from conduits, even though the conduits recorded the contributions in their own reports. The failure to report these contributions leads us to wonder if other information has also been omitted from the reports of these candidates.

All of these candidates should be required to file amended reports and, because of the extent of their failure to comply with state law, should face a substantial financial penalty.

David Blaska, District 7

On his pre-election report Blaska failed to identify two contributions as coming from conduits. (Glenn Hovde, received 1/27/00 [Realtors]; David Keller, received 2/12/00 [Realtors])

On his July continuing report, Blaska failed to identify sixteen contributions as coming from conduits (Sara Anderson, Thomas Bunbury, Norman Flynn, John Fox, Randy Hess, Larry Jacobson, Dennis Midthun, Jeffrey Rosenberg, Florene Roth, Jan Thiel, and Lisabeth Weirich, received 3/27/00 [Realtors]; Rob Crothers, Pat Hauden, Joe Krantz, and Sue Scholl, received 3/29/00 [Builders]; Nancy Caldwell, received 4/6/00 [Builders])

Dave Schneider, District 15

On his July continuing report Schneider failed to report two contributions. We are aware that he received the contributions because of a conduit report. (Nancy Caldwell and Terry Kurth, received 4/5/00 [Builders])

Eileen Bruskewitz, District 25

On her July continuing report Bruskewitz failed to report at least $910 worth of contributions that had been reported as sent from a conduit. (Wisconsin Realtors Direct Givers Program conduit letter dated 3/27/00)

Mike Blaska, District 38

On his July continuing report Blaska failed to report a contribution that had been reported as sent from a conduit. (Lois Johnson, received 4/5/00 [Builders])

A large number of candidates correctly identified some contributions as coming through conduits, but failed to identify other contributions in this manner. These candidates should be required to file amended reports with accurate information and warned that future violations like this will be treated more harshly.

Scott Kowalski, District 1

On his July continuing report Kowalski failed to identify four contributions as coming from conduits (Peter Stebbins, received 3/24/00 [Builders]; Chuck Elliot and Sue Scholl, received 3/25/00 [Builders]; John McKenzie, received 4/6/00 [Builders])

Gail Rutkowski, District 14

On her pre-election report Rutkowski improperly identified a contribution as coming from the Wisconsin Realtors Direct Givers Program (a conduit), when in fact it was an individual contribution passed through that conduit. (John Pinto, received 2/9/00)

Dave Schneider, District 15

On his pre-election report, Schneider failed to identify a contribution as coming from a conduit. (E. Joe Murray, received 3/6/00 [Realtors]).

Brett Davis, District 17

On his July continuing report, Davis failed to identify eight contributions as coming from conduits. (Steven Crosby, received 3/23/00 [Builders]; Rob Crothers, Chuck Elliot, Pat Hauden, Sue Scholl, and Peter Stebbins, received 3/27/00 [Builders]; Terry Kurth, received 4/5/00 [Builders]; Randy Hess, received 3/23/00 [Realtors])

Dennis O’Loughlin, District 22

On his July continuing report, O’Loughlin failed to identify a contribution as coming from a conduit. (Norman Flynn, received 3/27/00 [Realtors])

Randy Littel, District 24

On his July continuing report, Littel failed to identify twelve contributions as coming from conduits. (Lisabeth Weirich, received 3/28/00 [Realtor]; Richard Freye, Larry Gleasman, Glenn Hovde, Pearl Kau, Dave Mays, Jerome Blaska, Robert Bowman, Kathy Crow, Thomas Hanley, Ken Leudtke, and Dale Nordeen, all received on 3/31/00 [Dane County Club])

Eileen Bruskewitz, District 25

On her pre-primary report, Bruskewitz failed to identify a contribution as coming from a conduit. (Art Leutdke, received 1/24/00 [Realtors])

Bill Hitzemann, District 30

On his July continuing report Hitzemann improperly identified a contribution as coming from the Builders Direct Fund (a conduit), when in fact it was an individual contribution passed through the conduit. (Lois Johnson, received 4/3/00)

Phil Salkin, District 32

On his July continuing report, Salkin failed to identify three contributions as coming through conduits. (Fred Lubtke and Laurie Tobe, received 3/28/00 [Builders]; Terry Monson, received 4/3/00 [Builders])

Bob Salov, District 37

On his July continuing report, Salov failed to identify three contributions as coming through conduits. (Terry Temple, Laurie Tobe, and Dick Wasserberger, received 4/5/00 [Builders])

Mike Blaska, District 38

On his July continuing report Blaska improperly identified four contributions as coming from the Builders Direct Fund (a conduit), when in fact they were individual contributions passed through the conduit. (Pat Hauden, Sue Scholl, Fred Lubcke, and Rob Crothers, received 3/29/00)

Two candidates failed to file timely reports.

Michelle Staude (District 8) did not file her July continuing report until August 18, 2000. Ms. Staude should be fined for her failure to file a timely report.

As of August 23, 2000, Gail Rutkowski, has still not filed her July continuing report. She did file a statement saying she had no activity during the reporting period and put on it a "post-it" note with her initials indicating that she would file a complete report later on.

The statement that she had no campaign activity is an outright lie given that two different conduits passed money to her on three different occasions. (Wisconsin Builders Association letter dated 3/22/00; Wisconsin Builders Association letter dated 3/24/00; Wisconsin Realtors Association letter dated 3/23/00).

Moreover, Rutkowski is quoted in the Capital Times of August 23, 2000 as saying she "just hasn’t had time to get [the report] done." This is an admission of a knowing violation of state law.

Rutkowski should be compelled to file her report and should be fined severely for her deliberate failure to file a timely report.

Conclusion

We cannot emphasize enough how important it is for your office to take action on these matters. There should be no excuses for late or misfiled reports. Candidates who arrive at the county clerk’s office one minute after the deadline for filing nomination papers face an extreme sanction – they do not get on the ballot. Why should the filing of campaign finance reports, an essential part of the public’s right to know and the basis for informed voting, be treated any differently?

Thank you for your attention to these matters. We hope you take seriously your obligation to enforce the state campaign finance laws and that you will work vigorously to correct the violations outlined above.

If you have any questions about these matters, please feel free to contact the chair of Progressive Dane’s Clean Government Task Force, Michael Jacob. Mr. Jacob can be reached at 245-0894.

Sincerely,

Brenda K. Konkel 

Beth Harper

Co-Chairs

Copy: County Clerk Joe Parisi

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