ALASKANS FOR DON YOUNG, INC

2504 Fairbanks Street
Anchorage, AK 99503

201 Old Steese Highway Suite 5
Fairbanks, AK 99701

For Release: August 22, 2008
Contact: Michael Anderson 907-382-9177

FEC Complaint Filed Against Club for Growth PAC for TV Ad Promoting Sean Parnell's Candidacy

Anchorage, Alaska – A complaint was filed today against the Club for Growth PAC - a political action committee that has a history of federal campaign violations - for running "issue advocacy" television ads that specifically endorse Lt. Gov. Sean Parnell. It is a violation of Federal Election Commission law for a political action committee to pay for ads in excess of $5,000 that specifically support a federal candidate for office. (To view the TV ad go to: http://www.youtube.com/watch?v=fjjHZ_B27NU. A copy of the complaint is attached.)

The Club for Growth PAC ad specifically states that Gov. Sara Palin is supporting Parnell in the Congressional race, which is a clear violation of FEC "issue advocacy" laws. The FEC complaint states: "The ad specifically advocates the election of Sean Parnell for Congress which makes the ad an 'in kind' contribution in excess of $5,000."

"The Club for Growth has spent hundreds of thousands of dollars attacking Congressman Young for fighting for funding for Alaska's veterans, senior citizens, and Alaska Native education programs," said campaign spokesman Mike Anderson. "They have relentlessly attacked him for funding Alaskan transportation and infrastructure programs that have created thousands of new jobs and boosted Alaska's economy. But running a new ad that clearly advocates the election of Sean Parnell is over the line - even for an organization with a questionable track record like the Club for Growth."

Club for Growth Has Already Paid Largest FEC Fine In History

In 2007, the Club for Growth paid a civil penalty of $350,000 for failing to register with the FEC as a political committee and report its contributions and expenditures. The violations occurred during Congressional campaigns in 2000, 2002 and 2004. (See FEC press release below)

This was the largest civil penalty the FEC has ever obtained after an enforcement case has moved to litigation.

Parnell's Campaign Is Largely Financed By Club for Growth Contributions

The Club for Growth has bundled more than $330,000 in campaign contributions for Parnell's campaign. The money bundled by the Club for Growth for Parnell amounts to over 70 percent of all his campaign contributions. In addition, the Club for Growth is spending an estimated $500,000 of its own money running negative attack ads against Congressman Young.

Previous FEC Action Against Club for Growth

http://www.fec.gov/press/press2007/20070905cfg.shtml
For Immediate Release
Contact: Bob Biersack
George Smaragdis
Michelle Ryan

September 5, 2007

Club for Growth Agrees to Pay $350,000 Penalty for Failing to Register as a Political Committee

WASHINGTON - The Federal Election Commission (FEC/Commission) announced today that it has reached an agreement with Citizens Club for Growth, Inc. (formerly known as Club for Growth, Inc.) that, if approved by the Court, would end a lawsuit pending before the U.S. District Court for the District of Columbia. The agreement asks the Court to enter a consent judgment requiring Club for Growth to pay a civil penalty of $350,000 for failing to register with the FEC as a political committee and report its contributions and expenditures. If approved, the civil penalty would be the largest the Commission has ever obtained after an enforcement case has moved to litigation.

The Federal Election Campaign Act (the Act) states that organizations that make expenditures or receive contributions in excess of $1,000 must register with the Commission and file periodic financial disclosure reports. The Act also prohibits these organizations from receiving contributions from corporations or labor organizations and limits contributions from individuals to no more than $5,000 per year.

Following the investigation of a complaint filed with the FEC in 2003, the Commission determined that the Club spent at least $1.28 million between 2000 and 2004 expressly advocating the election or defeat of clearly identified federal candidates. In addition, the Club mailed at least five fundraising solicitations during that period that clearly indicated that funds received would be targeted to the election or defeat of specific federal candidates. The Club received well in excess of $1,000 in contributions in response to these solicitations. Because the Club made both more than $1,000 in expenditures and received over $1,000 in contributions, it met the statutory definition of a political committee and was required to register and report with the Commission, provided that its major purpose was to influence federal elections.

The FEC found that the Club's major purpose was influencing federal elections. According to numerous fundraising solicitations from 2000 to 2004, the Club's goals at the time were to "elect more pro-growth leaders to Congress," "help Republicans keep control of the House and take back the Senate," "elect pro-growth congressmen who will fight to cut taxes and limit government," "help Republicans retain control of the House and Senate in the upcoming elections," "help Republicans keep control of Congress," and "defeat status quo incumbents."

Further, supporting the FEC's findings as to the Club's major purpose, the FEC found the vast majority of the Club's disbursements, which totaled about $15.1 million between August of 2000 and the end of 2004, were made in connection with federal elections. The Club's spending focused on candidate research, polling, and advertisements and other public communications referencing clearly identified federal candidates. In 2004, the Club spent approximately 88% of its disbursements on advertising supporting or criticizing clearly identified federal candidates.

From 2000 through the end of 2006, the Club accepted approximately $10.78 million in contributions from individuals that exceeded the $5,000 contribution limit. Between 2000 and 2004 the Club also accepted more than $93,000 in corporate contributions.

The consent judgment proposed by the parties includes a permanent injunction against future violations by the defendant and its successors, officers, and employees and requires that the Club file disclosure reports with the FEC and pay to the U.S. Treasury any funds over $5,000 remaining in its bank account after payment of legal expenses, up to the amount of excessive and prohibited contributions the Club originally accepted.

Today's District Court filing is available on the FEC website, along with the proposed consent judgment.

The Federal Election Commission (FEC) is an independent regulatory agency that administers and enforces federal campaign finance laws. The FEC has jurisdiction over the financing of campaigns for the U.S. House, the U.S. Senate, the Presidency and the Vice Presidency. Established in 1975, the FEC is composed of six Commissioners who are nominated by the President and confirmed by the U.S. Senate.