The Sad Part Is, He Spent The Money On Cats
No, actually, the sad part is that after pocketing 1.14 million dollars - to play the stock market with, actually - Mr. Frist's punishment amounts to less than a month's interest on that sum. He likely lost more when his stocks went south than he did when his malfeasance was uncovered, and of course he will retain his position - for as long as people can be persuaded to vote for him. But at least he didn't have the money in his freezer, like 'Dollar Bill' Jefferson.
Under the bus with that guy! Pay no attention to my stock portfolio! Got any cats?
Under the bus with that guy! Pay no attention to my stock portfolio! Got any cats?
posted by Management at 2:53 PM
1 Comments:
For Immediate Release
June 1, 2006
Contact: Naomi Seligman Steiner - 202-408-5565
FEC FINDS FRIST 2000 VIOLATED LAW
FEC Finds Frist Campaign Committee Violated Law by Failing to Disclose $1.44 Million Loan
Washington, DC – Earlier today, Citizens for Responsibility and Ethics in Washington (CREW) received notice from the Federal Election Commission (FEC) indicating that in response to a complaint filed by CREW, the FEC found that Senate Majority Leader Bill Frist’s 2000 Senate campaign committee, Frist 2000, Inc. violated federal campaign finance laws.
CREW’s complaint alleged -- and the FEC agreed -- that Frist 2000, Inc. failed to disclose a $1.44 million loan taken out jointly by Frist 2000, Inc. and by Frist’s 1994 campaign committee, Bill Frist for Senate, Inc. The result of the discrepancy was to make it appear that Frist 2000, Inc. had significantly more money that it actually had.
In June 2000, Senator Frist took $1 million of the money that had been contributed to his 2000 Senate campaign and invested it in the stock market, where it promptly began losing money. In November 2000, Senator Frist sought to collect $1.2 million he had lent his 1994 Senate campaign committee. As a result of the stock market losses, however, Frist 2000, Inc. did not have enough money to repay the loan. Senator Frist solved this problem by having the 1994 and the 2000 campaign committees jointly take out a $1.44 million bank loan at a cost of $10,000 a month interest. Frist 2000, Inc. did not report this debt on its FEC disclosure forms.
The Federal Election Campaign Act (FECA) requires full disclosure of any loans taken out by campaign committees. Yet only the 1994 campaign committee, which had been largely dormant, disclosed the loan.
In a conciliation agreement reached with Frist 2000, Inc. and the committee’s treasurer, the FEC stated that the campaign committee violated the law by failing to report the loan on the 2000 Year End Report and by failing to report the repayment of the loan on the 2001 Mid-Year Report. The FEC fined Frist 2000, Inc. $11,000, as required by statute.
Melanie Sloan, CREW’s executive director, said “it is gratifying to see that the FEC recognizes that Senator Frist’s campaign committee broke the law. Apparently, the FEC disagreed with Sen. Frist’s aide’s dismissal of the complaint as ‘incorrect’ and ‘politically driven.’”
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Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions.
For more information, please visit www.citizensforethics.org or contact Naomi Seligman Steiner at 202.408.5565/press@citizensforethics.org.
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