Frist's 2000 campaign fined for violating law

Two groups borrowed it; just 1 reported it

2 Jun 2006 // Senate Majority Leader Bill Frist's 2000 campaign committee violated federal campaign law by failing to disclose a $1.44 million loan to the campaign, the Federal Election Commission has determined.

Under a conciliation agreement released Thursday between the commission and Frist 2000 Inc. and its campaign treasurer, Dawn Perkerson, the campaign agreed to pay an $11,000 fine and promised not to violate the law again.

"The loan was fully disclosed, but what the FEC ultimately suggested we believe would have resulted in double reporting of the loan," Jason Torchinsky, an attorney for the 2000 campaign, said in a prepared statement. He declined further comment.

The loan was taken out jointly by Bill Frist for Senate Inc. and Frist 2000 Inc. on Nov. 24, 2000. Frist signed the loan documents with First Union bank on behalf of both committees, according to the FEC. Bill Frist for Senate was Frist's 1994 campaign committee.

The loan was reported by his 1994 campaign committee but not on the year-end report of Frist 2000 Inc.

The FEC investigation was based on a complaint filed last July by Citizens for Responsibility and Ethics in Washington.

Melanie Sloan, executive director of the nonpartisan group, said the fine was low.

She had accused Frist of hiding the loan to make it appear he had more campaign funds, thereby scaring off challengers.

"There is no disincentive to lie," Sloan said, because the fine could be considered a small price to pay for making it easier to win a Senate seat.

But the loan was made after Election Day 2000, and Frist had already announced he would serve only two terms. He is not seeking re-election this fall.

When this was pointed out to Sloan, she said: "I'm wrong about that."