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1 FLORIDA ELECTIONS COMMISSION, Petitioner, STATE OF FLORIDA FLORIDA ELECTIONS COMMISSION _... t ~ -. ~~ ' - Ll_L:.." l1i.' v. Agency Case No. FEC F.O. No.: DOSFEC WALTON ASSOCIATION OF VOTERS, Respondent ~/ CONSENT ORDER The Respondent, Walton Association of Voters (Respondent), and the Florida Elections Commission (Commission) agree that this Consent Order resolves all of the issues between the parties in this case. The parties jointly stipulate to the following facts, conclusions of law, and order: FINDINGS OF FACT 1. The Respondent is the Walton Association of Voters, Inc. (W A V), a Florida Electioneering Communication Organization. 2. On August 1, 2005, the staff drafted a Staff Recommendation recommending to the Commission that there was probable cause to believe that the Florida Election Code was violated. 3. On December 2, 2005, the Commission entered an Order of Probable Cause finding that there was probable cause to charge the Respondent with the following violations: Count 1: On or about August 14, 2004, Respondent violated Section (5), Florida Statutes, by certifying to the conectness of its 2004 F2 CTR that was inconect, false, or incomplete, when it failed to report four expenditures made by the Petermann Corporation on its behalf, failed to list the complete addresses for each person or entity from whom Respondent received contributions, and inconectly reported 11 contributions received 1

2 4 Counts of Section (1)(d), Florida Statutes, prohibiting a person or organization from making or authorizing any expenditure prohibited by Chapter 106, Florida Statutes. 4. On or about December 5, 2005, the Respondent was served by certified mail with a copy of the Order of Probable Cause through its attorney of record, James P. Judkins. 5. The Respondent requested a hearing before the Commission within 30 days of receiving the Order of Probable Cause. 6. The Respondent and the staff stipulate to the following facts: a. At the time of the 2004 campaign, several local business people in the Santa Rosa Beach area met occasionally for lunch to discuss local issues. In 2004, the group decided to organize as a more cohesive unit to address issues pertaining to the county budget and taxes. The group called itself Walton Association of Voters (W A V) b. W A V employed Steven Petermann and the Petermann Corporation (collectively Petermann) to be its media specialist and assist with its advertising. W A V paid Petermann at the end of the campaign, however during the course of the campaign, Petermann advanced W A V funds by making and paying for the following expenditures on W A V' s behalf. EXPENDITURES MADE BY THE PETERMANN CORPORATION FOR WA V Transaction Check or Transaction Payee Amount Date # Check Northwest Florida Daily News $ Check WJHG-TV $ Invoice Cox Media $ Invoice Northwest Florida Daily News $ Check Express Mail Service $ Check WZEPRadio $ Check WGTXRadio $ Check WWEO-TV $

3 Check WZEPRadio $ Credit Card Transaction The Beach Breeze $ Check I 06.3 Seabreeze $ Check25525 WGTXRadio $ c. During the 2004 pnmary election cycle, Respondent filed periodic campaign treasurer's reports (CTRs) with the Walton County Supervisor of Elections Office. Respondent certified that each report was true, correct, and complete. CTRs: d. The following table lists the problems with W A V' s 2004 F2 and 2004 F3 MISSING AND INCORRECT INFORMATION ON RESPONDENT'S CTRs Date Reporting Period Missing Information Incorrect Filed Information to Failed to report the following expenditures made on Listed 11 July 2004 F2 - Original Respondent's behalf by the Petermann Corporation for 18,2004 media airtime.. contributions Aug 8- $ to NWF Daily News totaling $8850 Aug 10-$3400 to WJHG-TV 7 that should have Aug 12-$ to Cox Media been reported on Aug 13-Expenditure to NWF Daily News by Credit its 2004 Fl CTR. Card 2 Failed to list complete addresses for one contribution.. Failed to list an occupation for three contributions over $ Respondent reported its transactions for the Fl and F2 reporting periods on a single report which it filed on August 14, 2004, the day after the close of the 2004 F2 reporting period. Respondent should have reported all its July 17 to July 23, 2004 transactions on a 2004 Fl report and filed the Fl with the filing officer by July 30, The Petermann Corporation paid for three newspaper advertisements by credit card. During a July 15, 2005 telephone interview, Mr. Petermann indicated that the NWF Daily News requires payment for political ads 3-4 days prior to the advertisement appearing in the newspaper. Mr. Petermann confirmed his agency paid for the advertisements to run, but could not recall the specific date he paid for each of the three advertisements. 3

4 to Failed to report the following expenditures made on 2004 F3 - Original Respondent's behalfby the Petermann Corporation for media airtime.. Aug 14-$5920 to Express Mail Svc. Aug 17-$805 to WZEP Radio Aug 18-$700 to WGTX Radio Aug 18-$331 to WWEO-TV Aug 18-$ to WZEP Radio Aug 23-$850 to The Beach Breeze Aug 24-$1034 to Seabreeze Aug 24-$1000 to WGTX Radio Failed to list underlying component expenses comprising August 26, 2004 $58, expenditure to Image Works and Designs, a division of the Petermann Corporation. Failed to list an occupations for five contributions over $100 CTR: e. W A V failed to report the 11 contributions listed below on its 2004 F1 Date Listed on F2 CTR Amount $ $ $ f. Respondent filed a Waiver of Report in place of its 2004 F1 CTR. Respondent should have filed a 2004 F1 CTR listing the 11 contributions rather than the Waiver of Report. Respondent incorrectly reported the 11 contributions on its 2004 F2 CTR that covered a different time period. 4

5 g. Petermann made an August 8, 2004 expenditure to the Northwest Florida Daily News for $1008, an August 10,2004 expenditure to WJHG-TV for $3400, incurred a $ expense to Cox Media, and incurred a $1200 expenditure with the Northwest Florida Daily News on August 12, 2004 on WA V's behalf. As of August 8, 2004, WA V had only $100 in its campaign account which was not enough to cover the cost of the transactions, all previously incurred but unpaid expenses and all expenditures for which checks may have been written but had not yet cleared WA V's bank. CONCLUSIONS OF LAW 7. The Commission has jurisdiction over the parties to and subject matter of this cause, pursuant to Section , Florida Statutes. 8. The facts set forth in paragraph six above constitute willful violations of Sections (5), (1)(c), and (1)(d), Florida Statutes. 3 ORDER 9. The Respondent and the staff of the Commission have entered into this Consent Order voluntarily and upon advice of counsel. 10. The Respondent and the staff of the Commission agree that this Consent Order and the terms contained herein shall not constitute an admission against interest or acknowledgment of wrongdoing before any other tribunal , Fla. Stat., provides that a person willfully violates Ch. 106, Fla. Stat.: If the person commits an act while knowing that, or showing reckless disregard for whether, the act is prohibited... or does not commit an act while knowing that, or showing reckless disregard for whether the act is required..... A person knows that an act is prohibited or required if the person is aware of the provision which prohibits or required the act, understands the meaning of that provision, and performs the act that is prohibited or fails to perform the act that is required. A person shows reckless disregard for whether an act is prohibited or required under this chapter if the person wholly disregards the law without making any reasonable effort to determine whether the act would constitute a violation. 5

6 11. The Respondent understands that before the Consent Order becomes fmal agency action, the Commission must approve it at a public meeting. After approval, the Consent Order constitutes final agency action of the Commission on the violations listed in the Order of Probable Cause. Receipt by Commission Staff of an executed stipulation and a cashier's check or attorney's trust account check for the amount of the penalty is a condition precedent to the Commission's consideration of the Consent Order. 12. The Respondent voluntarily waives the right to any further proceedings under Chapters 104, 106, and 120, Florida Statutes, and the right to appeal the Consent Order. 13. This Consent Order is enforceable under Sections and , Florida Statutes. The Respondent expressly waives any venue privileges and agrees that if enforcement of this Consent Order is necessary, venue shall be in Leon County, Florida, and Respondent shall be responsible for all fees and costs associated with enforcement. PENAI.~TY WHEREFORE, based upon the foregoing facts and conclusions of law, the Commission finds that the Respondent has violated Section (5), Florida Statutes, on two occasions by certifying its campaign treasurer's report were true, correct and complete when they were not, violated Section (1)(c), Florida Statutes, by failing to report information required by Chapter 106, and violated Section (1)(d), Florida Statutes, by making an expenditure in violation of Section (4), Florida Statutes. Respondent is fined $500 for each of the 30 counts for a total of$15, IT IS ORDERED that the Respondent shall remit to the Commission a civil penalty in the amount of $15, inclusive of fees and costs. Payment shall be made by certified funds 6

7 or by a check drawn on an attorney's trust account. The civil penalty shall be paid to the Florida Elections Commission, 107 West Gaines Street, Collins Building, Suite 224, Tallahassee, Florida, Approved by the Florida Elections Commission at its regularly scheduled meeting held on May & 19, 2006 at Tallahassee, Florida and filed with the Clerk of the Commission on ff J~, 2006, in Tallahassee, Florida Copies furnished to: Eric M. Lipman, Assistant General Counsel Walton Association of Voters, Respondent James P. Judkins, Attorney for Respondent Guy Davidson, Complainant - Chance Irvine, Chairman Florida Elections Commission 107 West Gaines Street Collins Buildings, Suite 224 Tallahassee, FL

8 STATE OF FLORIDA FLORIDA ELECTIONS COMMISSION 06 APR l 0 Prf 4: 2 6 f) FLORIDA ELECTIONS COMMISSION, Petitioner, v. WALTON ASSOCIATION OF VOTERS, Respondent.! Agency Case No. FEC F.O. No.: DOSFEC STIPULATION By and through undersigned counsel, the parties, Walton Association of Voters, Inc., and the Florida Elections Commission, stipulate to the entry of the Consent Order, attached hereto as Exhibit A, by the Florida Elections Commission. Eric M. Lipman Assistant General Counsel Florida Elections Commission 1 07 West Gaines Street Collins Building, Suite 224 Tallahassee, FL Judkins, Simpson, & High 1102 North Gadsden Street Tallahassee, FL 32303

STATE OF FLORIDA FLORIDA ELECTIONS COMMISSION.. -~, ",- <

STATE OF FLORIDA FLORIDA ELECTIONS COMMISSION.. -~, ",- < ---~-;._... /: \ 'i '~: \... v FLORIDA ELECTIONS COMMISSION, PETITIONER, v. MOTI KHEMLANI, RESPONDENT../ AGENCY CASE No.: FEC 05-215 F.O. No.: