October 14, 2010

FINCHER FILES FALSE FORM -AGAIN

New FEC Filing: Fincher Still Says $250K Contribution Came From ‘Personal Funds'

Bank says it gave Fincher the money, but there's no due date, no interest, no collateral

‘That's an illegal quarter million dollar campaign contribution,' Campaign Law Expert Notifies FEC of Deliberate Violation by Fincher

DRESDEN, Tenn. - Congressional candidate Stephen Fincher filed Tuesday another false form with the Federal Election Commission attempting to cover up an illegal $250,000 campaign contribution.  A federal election law expert and attorney today notified the FEC of the deliberate violation of the law shown by Fincher's new false report.

It's perfectly legal for candidates to loan their campaigns money from personal funds or to take out a secured loan from a bank. Campaign finance law requires both instances must be reported to the FEC.

Fincher, however, reported having no liquid assets on 2009 and 2010 candidate financial disclosures to the U.S. House and said publicly he received the campaign loan from Gates Banking and Trust, where his father sits on the board of directors.

But on his Oct. 14 filing with the FEC, Fincher again reports the loan is from "personal funds" with no due date, no interest rate, no collateral - and no mention of Gates Banking and Trust.

A federal election law expert and attorney today told the FEC that the new false filing by Fincher shows the violation of law was deliberate.

In the filing, Joe Sandler, an election law attorney retained by the Herron campaign, stated, "Mr. Fincher and his campaign have been on notice for many weeks now that the failure to disclose the campaign's loan from the Gates Bank, and to report the terms on Schedule C, is unlawful.  Yet Mr. Fincher and his campaign have continued flagrantly to ignore and refuse to comply with the clear requirements of the law and now have done so again even after being put on notice."

"Stephen Fincher has broken the law-again. There's nothing more willful than filing fraudulent documents to the federal government over and over again," said Brandon Puttbrese, Herron's campaign spokesman. "Stephen Fincher has hidden the details of the bank loan from the FEC twice. That's an illegal quarter million campaign contribution.

 "No one is above the law," Puttbrese said.

New FEC Filing: Steve Fincher for Congress Reports $250,000 Loan Came From Personal Funds. Fincher listed no liquid assets on his candidate disclosure to the U.S. House and has told reporters and citizens the loan came from a bank. The FEC requires candidates to disclose the source of their campaign funding. Fincher lists his loan as "personal funds." [Steve Fincher for Congress FEC Filing, 10/14/10]

The Jackson Sun Reports Bank Chairman Claimed to Be Source of Loan. Gates Banking and Trust chairman Warren Nunn has said his bank lent Fincher, a longtime customer, the $250,000. Nunn has declined to say what kind of collateral, if any, Fincher put up for the loan. The Fincher campaign has said the loan was made based on his past relationship with the bank. [The Jackson Sun, 10/1/10]

Election Law Attorney Joseph Sandler Files Complaint Against Fincher.  Sandler filed a complaint Sept. 30 against Fincher's congressional campaign with the Federal Election Commission on behalf of Roy Herron's campaign. Fincher's campaign has violated FEC rules by failing to report a bank loan and disclose it as required by law. [The Commercial Appeal, 9/30/10]

Fincher Could Be Guilty of a Federal Felony. For failing to report the loan, Fincher and his campaign could face civil penalties up to $500,000. Further, if the violation is "knowing and willful," Fincher and his campaign could be guilty of a federal felony. Here, Fincher has clearly been put on notice of the violation, but has still refused to make the required disclosure to the FEC. "All (Federal Election Campaign Act) violations that aggregate $25,000 or more in a calendar year are felonies subject to imprisonment for five years,... [US Dept of Justice, FEDERAL PROSECUTION OF ELECTION OFFENSES, p. 182 (7th ed. 2007)]

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