CREW Files Complaint Against Martinez for Senate and the U.S.-Cuba Democracy PAC

26 Apr 2004 // Washington, DC, April 26, 2004 -- Earlier today, Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the Federal Election Commission (FEC) alleging that Martinez for Senate and the U.S.-Cuba Democracy PAC committed several serious violations of federal campaign laws. The Cuban exile PAC failed to report that on December 22, 2003 it held a luncheon attended by Florida Governor Jeb Bush to support Florida Senate Candidate and former Secretary of Housing and Urban Development Mel Martinez before Martinez had formally declared his candidacy.

CREW's complaint alleges that in its April 15 Quarterly Report, the U.S.-Cuba Democracy PAC paid $5,106.79 to the Biltmore Hotel for a luncheon apparently held for Martinez, and attended by him, but failed to disclose that the contribution was made to Martinez for Senate. The cost of the luncheon exceeded the $5,000 campaign contribution limit by $106.79. In addition, the PAC later made an additional illegal $2,000 contribution to Martinez for Senate.

Martinez for Senate violated FEC law by failing to disclose the receipt of the $5,106.79 in-kind contribution and it may have inaccurately reported contributions received at the luncheon.

CREW's Executive Director Melanie Sloan questioned why both the U.S.-Cuba Democracy PAC and Martinez for Senate failed to report the in-kind contribution. Sloan noted that the Martinez for Senate's failure to report suggested that, contrary to the campaign's claims that Mr. Martinez began actively fundraising only in February 2004, Mr. Martinez actually began raising money as early as December, and perhaps earlier.

Sloan noted that in a March 31, 2004 press release, the Martinez campaign claimed to have set a fundraising record by raising $1.7 million in less than 2 months of active fundraising. Sloan stated that candidates have a great incentive to raise money early and quickly. "A candidate who has been able to quickly raise a large amount of money early in a campaign uses this fact to suggest that his or her candidacy has a momentum that the other candidates lack. This suggestion can then become a self-fulfilling prophecy, diminishing other candidates' ability to raise money. The question is whether Martinez for Senate inaccurately reported contributions to deliberately suggest a momentum that the campaign did not have."

For a copy of the complaint or for more information please contact Melanie Sloan at 202.588-5565 or look on the web at www.citizensforethics.org