Monday, July 16, 2007

Frederick of Hollywood Uses Loophole to Avoid Reporting Fundraising

From ABC News:

Former Sen. Fred Thompson, R-Tenn., has avoided revealing his fundraising figures by exploiting a legal loophole whereby he says he is simply "testing the waters" for a campaign — even as his supporters build an infrastructure for his all-but-official run.

But supporters of campaign finance reform, as well as Thompson's opponents, say that he is violating at least the spirit of the law, despite his past support for openness in government and the McCain-Feingold campaign finance reform law.

With the help of a former FEC chairman on Thompson's payroll, the ex-Tennessee senator is evading, at least for now, the requirements of the campaign finance system that he helped reform. In the words of an attorney associated with another campaign, Thompson is "playing footsie" with the campaign rules.

Federal election law allows prospective clients to raise limited funds to test the waters and determine whether they will be viable candidates without declaring their candidacy or being required to disclose their contributors and expenditures.

However, the statute provides that a candidate is no longer "testing the waters" if he raises funds in excess of amounts reasonably required for exploratory activity, or amasses funds to be used after candidacy is established.

1 comment:

airJackie said...

Well here we have another Bush. Looks like Fred will continue the corruption activity if he steals the election. We have a GOP official who is just as corrupt as the current Administration. Fred isn't even in the campaign yet and he's already doing crimes. At lease we now see what Fred would have been like if he ever did steal the election.