Lieberman Campaign Caught Breaking Slush Fund Laws

A cornerstone of the modern campaign finance system is disclosure.  Everyone agrees on disclosure, from conservative Republicans to liberal Democrats.  Old industrial political machines used to simply pay cash for votes, and this kind of corruption weakened democracy and allowed evil government activities to flourish.  Joe knows this, he was the Attorney General of Connecticut.  So the low simmering scandal - Joe Lieberman's failure to disclose $387,000 funneled through the petty cash account in campaign spending during the primary - is odd.  That's almost a tenth of what he spent in the primary, and he's been hanging his hat onto the fact that the petty cash journal can be kept private.

Until today, it looked like he was going to keep the matter seedy but quiet.  Thanks to some good reporting, though, it looks like Lieberman's $387,000 slush fund is both illegal and that he's been lying about where the money went.  Mary E. O'Leary in the New Haven Register has the story.  What happened on the Lieberman campaign is both illegal and weirdly incompetent.  

Political committees may make expenditures of not more than $100 to any person or for a transaction out of the petty cash fund and are required to keep a written journal documenting the payments.

The campaign has said it is under no legal obligation to release the journal and has no plans to do so. Lieberman also said their attorney has assured him that they have done nothing illegal.

"To me, this is just a political trick," Lieberman said of the complaint filed by the Lamont campaign.

But interviews with some of the people who were brought in to help get out the vote for the campaign in the two weeks before the hotly contested Aug. 8 primary described situations that appear to be at odds with some campaign finance requirements.

At least one man who was hired as a consultant, Tomas Reyes of Oxford, said he has yet to be asked by the campaign to turn over material for the journal, which would justify expenditures of $8,250.

The FEC requires the treasurer of the political committee to keep a written journal of all disbursements out of petty cash, including names, addresses, dates and purposes.

The campaign failed to make campaign manager Sherry Brown available for an interview on the campaign report and the status of the journal. Treasurer Lynn Fusco also failed to return phone calls seeking comment.

Also, Reyes and another man, Daryl Brooks of New Haven, who ran a consultant service, said they each got one check from the campaign for their services, but they are listed in the third quarter campaign finance report as getting two checks, for a total of twice what the men said they received.

The report lists Reyes as getting two checks for $8,250, one on Aug. 4 and one on Aug. 15. Brooks received $12,200 on Aug. 11 and another check for the same amount on Aug. 15, according to the Lieberman report. Both men said this was inaccurate.

Several young men, who were paid $60 a day out of petty cash to canvass in Bridgeport, said they were paid in cash for aggregate earnings over $200.

Rob Dhanda, 18, or Stratford, said he earned $480 in cash over several weeks, while Walter Ruilova, 18, also of Stratford, said his total was an estimated $360 in cash. Ruilova estimated there were about 30 teenagers working out of the Bridgeport office, each earning $60 a day in cash, over a few weeks.

Michelle Ryan, a spokeswoman for the FEC, would not comment on specifics of the Lamont complaint, but said "in terms of itemization, it is required once the aggregate total to a recipient is in excess of $200."

This isn't just unethical.  It's illegal.  And what's Joe's response?

Lieberman answered an inquiry about releasing the journal, by pointing to his history of compliance with campaign rules.

"I have an unblemished record of compliance with election laws. I always tell my staff at the beginning, whatever you do, just totally follow the law. I've never received anything approaching even a fine," the senator said in a recent interview.

Until the end, the last honest man in politics breaks the law, lies about it, and piously calls out his own scandal as the result of his opponent's dirty tricks.

Amazing.



Display:


For Those of Us Down Here (none / 0)

How big a story is this?  It sounds great to us, but what is the local feel.


BlueNC - Progressive NC Politics
by Robert P on Thu Nov 02, 2006 at 11:24:54 AM EST

Re: For Those of Us Down Here (none / 0)

Lieberman is a national figure.  It should be a national story.  If he's exploding campaign finance law, thats a national story.


by Rowena on Thu Nov 02, 2006 at 11:50:25 AM EST
[ Parent ]

Re: For Those of Us Down Here (3.00 / 2)

It's clearly already a national story, else those of us not in Connecticut wouldn't be talking about it. But I think that what the OP is getting at is that the national story doesn't matter. Lieberman is a national figure, but his ability to remain a national figure depends solely on the local voters in Connecticut. If it breaks as a national story then a bunch of people all over America who read blogs will get all worked up about it, but unless it catches on as a local story read by the local Connecticut voters there will be zero consequences for Lieberman.

(I mean, maybe the FEC will do something, but that sounds like too much to hope for.)

So the question stands, what is the local feel on this story among CT voters?


by mcc on Thu Nov 02, 2006 at 12:23:39 PM EST
[ Parent ]

Re: Lieberman Campaign Caught Breaking Slush Fund (none / 0)

Repeat after me: "Joe Cheaterman."


by Splash on Thu Nov 02, 2006 at 11:38:34 AM EST

Lamont campaign should go to court... (3.00 / 1)

...rto seek an emergency injunction to prevent the expenditure of those funds.

The Republicans in Michigan are doing that, as we speak, regarding campaign transfer limits in state senate races.

http://www.freep.com/apps/pbcs.dll/artic le?AID=/20061102/NEWS06/611020311/1008/N EWS


by Hesiod Theogeny on Thu Nov 02, 2006 at 11:38:58 AM EST

Is this enough for other reporters to smell blood? (none / 0)

It seems when one reporter gets a scoop, the piling on begins.

How much attention is this story receiving in CT?


by magster on Thu Nov 02, 2006 at 11:47:17 AM EST

Atrios just picked this up (none / 0)

It will go national, media or no media.


by Phoenix Woman on Thu Nov 02, 2006 at 12:14:50 PM EST
[ Parent ]

Re: Lieberman Campaign Caught Breaking Slush Fund (3.00 / 1)

Well, if failing to pay social security for illegal nannies is enough to torpedo cabinet nominees, shouldn't failing to properly pay taxes for people who are essentially campaign employees disqualify somebody from serving in the Senate?  Petty cash is supposed to be for "petty" expenditures, not payroll, right?  At least that's my reading of this.

Where is Senator Sanctimony now?


by RickD on Thu Nov 02, 2006 at 12:09:12 PM EST

Re: Cheaterman (3.00 / 3)

To me, the real damning part is this:

Also, Reyes and another man, Daryl Brooks of New Haven, who ran a consultant service, said they each got one check from the campaign for their services, but they are listed in the third quarter campaign finance report as getting two checks, for a total of twice what the men said they received.

The report lists Reyes as getting two checks for $8,250, one on Aug. 4 and one on Aug. 15. Brooks received $12,200 on Aug. 11 and another check for the same amount on Aug. 15, according to the Lieberman report. Both men said this was inaccurate.

Unless I'm wrong, we're beyond the issue of not explaining Petty Cash disbusements, and into pure fabrication of itemized expenditures.

That is, if I'm reading this right, there could be hundreds of thousands of fictional expenditures among the itemized payments.  Maybe we're not talking about $400,000 in cash being secretly thrown around by Lieberman -- maybe it's $750,000 or $1 million.  


Vote No to the Spending Cap in California (Prop 1A) - Don't Make the Budget Madness Worse
by PeterB on Thu Nov 02, 2006 at 12:29:49 PM EST

Re: Cheaterman (none / 0)

I agree.  The accounts of the others can mostly be pooh-poohed by Joey Two Times' apologists as sloppy oversight or something that's not likely to resonate  with voters as being plainly crooked.  Cooking up false expenditures and steering cash elsewhere is a whole other ballgame.

Hope the press picks up on this, and quickly--another day or two, and it'll be too late to be a factor on Tuesday.


by dr bloor on Thu Nov 02, 2006 at 01:02:53 PM EST
[ Parent ]

Tip of Iceberg (3.00 / 1)

Surely the New Haven Register has just scratched the surface on this, and they've already come up with $20,450 in faked expenses on Aug 15.  

How many more fake checks are out there?

Where the heck did this money go?

Is this money being funneled to gate-keepers and influencers in this race?


Vote No to the Spending Cap in California (Prop 1A) - Don't Make the Budget Madness Worse
by PeterB on Thu Nov 02, 2006 at 12:35:20 PM EST

Lieberman (none / 0)

WHY IS THIS MAN WINNING?
What is wrong with the democrats in Connecticut?
by tbone on Thu Nov 02, 2006 at 12:57:48 PM EST

Who Cares? It's Holy Joe After All (3.00 / 1)

Why Is Joe Spending So Much Under The Table?

October 29, 2006

This was an opinion piece in the Hartford Courant a while back:

http://www.courant.com/news/opinion/comm entary/hc-commentaryjoeno1029.artoct29,0 ,3482907.story?coll=hc-headlines-comment ary

The blogs may be jumping but the media seems mainly interested in trashing combat veteran John Kerry for being stupid like all we veterans are.

Best,  Terry


by terryhallinan on Thu Nov 02, 2006 at 01:01:18 PM EST

joe is teh suck (3.00 / 1)

I've said it once before: if Joe is elected, he'll probably have to resign over the campaign finance mess, which will result in the (presumed) Publican governor of CT appointing a Publican Senator.

We lose no matter what if Joe should take the CT-Sen seat from Democrat Ned Lamont. The question is to what degree we would lose:

- would joe continue to pretend to be a democrat, nominally giving Dems control but stabbing them in the back at every opportunity?

  • would he actually jump ship to the Publicans, handing control of the Senate back to the pedophiles?
  • would he be forced to resign to spend time with his laywers over this campaign finance thing?
  • what kind of Publican would Rell appoint to replace him, (or would she bow to public opinion and appoint a Dem? unlikely, I'd think)?

That all said, I think Lamont is going to pull it out. He has real people and real grassroots behind him. Joe only has paid robots and Cheney. The people will ultimately prove the deciding factor.


by lightyearsfromhome on Thu Nov 02, 2006 at 01:10:53 PM EST

Re: Lieberman Campaign Caught Breaking Slush Fund (none / 0)

So, what can the FEC do? This isn't a rhetorical question. Can a candidate be excluded for this kind of slushfundery?

We know that if Joe wins and is sworn in, then he can't be removed except by action from the Senate itself.


by etagloh on Fri Nov 03, 2006 at 03:02:50 AM EST


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