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Ohio ethics panel says charter school group tied to Brennan illegally transferred funds
By John Higgins
and Stephanie Warsmith
Beacon Journal staff writers
Published on Friday, Apr 04, 2008
The Ohio Elections Commission slammed a pro-charter school political action committee with a record $5.2 million in fines for illegally funneling money to Republican candidates in 2006.
The commission on Thursday fined the All Children Matter Ohio political action committee and the All Children Matter Virginia PAC $2.6 million each, said Philip Richter, the commission's executive director.
Akron entrepreneur David Brennan, whose White Hat Management is one of the nation's largest for-profit operators of charter schools, has contributed money to the Virginia PAC.
The commission ruled that the Virginia PAC, which was not registered in Ohio, illegally transferred money to the Ohio PAC.
Richter said the commission found that the PACs violated laws on campaign finance limits and filing requirements.
The attorney representing All Children Matter, William Todd, said the decision was expected and will be appealed in Franklin County Common Pleas Court.
However, Todd said he was shocked by the fine, which he said he believed to be far steeper than any punishment levied anywhere in the country for a similar offense.
''This decision is totally out of proportion to anything that has ever been done anywhere,'' Todd said. ''What that tells me is that there is a level of antipathy behind this that is hard to understand.''
The national organization, through local state affiliates, backs candidates who support vouchers and charter schools.
Todd said that Brennan gave $50,000 to the Virginia PAC in 2006.
''(All Children Matter) had raised in excess of $5 million that year,'' Todd said. ''(Brennan) is really not a very significant person in connection with that group at all.''
Brennan could not be reached for comment.
Ohio Secretary of State Jennifer Brunner filed the complaint with the commission against the Ohio branch of All Children Matter for receiving $870,000 in 2006 from its Virginia-based affiliate, which was not registered in Ohio.
''Those who participate in Ohio political campaigns must follow the state's laws and play fairly,'' Brunner said in a written press release. ''We are pleased the Ohio Elections Commission has made such a strong statement in favor of fairness and accountability.''
Todd said he expected to lose this round because the elections commission said that it would not consider constitutional free speech issues.
All Children Matter had previously asked the Ohio Elections Commission if it could transfer money from the Virginia PAC to the Ohio PAC.
The commission issued an opinion in May 2006 that said an out-of-state PAC that isn't registered in Ohio can give only the $10,670 limit to PACs in the state. Todd said the commission's decision on Thursday was that no money could be legally transferred.
''Today they said none, so they've contradicted themselves,'' Todd said
The Ohio branch of All Children Matter used the Virginia money to contribute $91,000 directly to 29 Republican candidates for office in 2006.
These contributions included $5,000 to Mary Taylor, who was elected state auditor; $4,000 to state Sen. Kevin Coughlin of Cuyahoga Falls; $2,000 to Tom Cousineau, who lost to state Rep. Brian Williams, D-Akron, in the 41st District race; and $2,000 to Deborah Owens Fink, who was unseated from the state board of education by Tom Sawyer.
The Ohio PAC also spent about $675,000 on independent expenditures, primarily direct mailings and radio advertisements, including $93,668 for Coughlin and $15,370 for Cousineau. J. Kenneth Blackwell, the Republican nominee for governor, Senate President Bill Harris of Ashland and House Speaker Jon Husted of Kettering also received contributions from the PAC.
Catherine Turcer, director of the Money and Politics Project for Ohio Citizen Action, was pleased and surprised by the commission's decision. She said the commission normally is ''toothless,'' giving only slaps on the wrist for election law violations.
''This firmly says: 'Our campaign finance laws matter. Our limits are there for a reason and you can't just go to another state to circumvent the law,' '' Turcer said.
John Higgins can be reached at 330-996-3792 or jhiggins@thebeaconjournal.com. Stephanie Warsmith can be reached at 330-996-3705 or swarsmith@thebeaconjournal.com.
The Ohio Elections Commission slammed a pro-charter school political action committee with a record $5.2 million in fines for illegally funneling money to Republican candidates in 2006.
Get the full article here.
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