The American Democracy Legal Fund has filed a complaint with the Federal Election Commission against Representative Paul Ryan, Congressional Leadership Fund, and Caleb Crosby, its treasurer for violating the Federal Election Campaign Act of 1971.
Rep. Ryan, a federal officeholder and candidate, is controlling an independent expenditure-only committee by hand-selecting and personally offering Mason Fink a leadership role with Congressional Leadership Fund, in direct violation of federal law. At the same time, Congressional Leadership Fund, an independent expenditure-only committee, has violated the Act by soliciting, receiving, and spending soft money.
The complaint is available below and in full with exhibits here. The American Democracy Legal Fund holds candidates for office accountable for possible ethics and/or legal violations. It was established by David Brock and is run by Brad Woodhouse.
BEFORE THE
FEDERAL ELECTION COMMISSION
American Democracy Legal Fund
455 Massachusetts Avenue, N.W.
Washington, DC 20001
Complainant,
v.
Representative Paul Ryan
P.O. Box 771
Janesville, WI 53547
Congressional Leadership Fund and Caleb Crosby, Treasurer
1747 Pennsylvania Avenue NW, 5th Floor
Washington, DC 20006
Respondents.
COMPLAINT
Complainant files this complaint under 52 U.S.C. § 30109(a)(1) against Representative Paul Ryan (“Mr. Ryan”), Congressional Leadership Fund, an independent expenditure-only committee and Caleb Crosby, its treasurer (collectively, “Respondents”) for violating the Federal Election Campaign Act of 1971, as amended (“the Act”), as described below.
A recent news report indicates that Mr. Ryan, a federal officeholder and candidate, is controlling an independent expenditure-only committee by hand-selecting and personally offering Mr. Mason Fink a leadership role with Congressional Leadership Fund, in direct violation of federal law. At the same time, Congressional Leadership Fund, an independent expenditure-only committee, has violated the Act as an entity controlled by a federal officeholder and candidate that is soliciting and receiving funds in connection with a federal election outside of the limitations, prohibitions, and reporting requirements of the Act (hereinafter “soft money”).
We urge the Commission to promptly investigate this violations. Without action, Mr. Ryan and Congressional Leadership Fund will set harmful precedent that would allow federal officeholders and candidates to direct and control a soft money entity.
1. FACTS
Mr. Ryan currently serves as an elected United States Representative and Speaker of the United States House of Representatives. He is also a candidate for federal office, seeking re-election to his House of Representatives seat in 2016. Congressional Leadership Fund is an independent expenditure-only committee formed on October 21, 2011 with the purpose of “protecting and strengthening the Republican Majority in the House of Representatives.” The fund makes independent expenditures in support of Republican congressional candidates such as Mr. Ryan.
A news reports from April 27, 2016 indicates that, while serving as a federal officeholder and candidate, Mr. Ryan “personally approached” Mr. Mason Fink, a Republican advisor and personal friend of Mr. Ryan, to ask him to “take the job” of director of fundraising for Congressional Leadership Fund, an independent expenditure-only committee. The report alleges that Mr. Fink and Mr. Ryan “forged a friendship during the 2012 campaign, when Ryan served as Romney’s vice presidential nominee” and that “Speaker Ryan got to know Mason very well during the 2012 campaign and thinks highly of him.”
2. LEGAL ARGUMENT
The Act prohibits federal officeholders and candidates from establishing, directing, controlling, or soliciting money for an entity that raises or spends soft money, such as an independent expenditure-only committee. Conversely, federal law prohibits an entity established, directed, or controlled by a federal candidate or his agents from receiving and spending soft money. When the Commission considers whether an officeholder or candidate “controls” an independent expenditure-only committee, it looks at “the overall relationship between the sponsor [candidate] and the entity.” To evaluate the overall relationship, the Commission considers factors such as whether an officeholder or candidate “has the authority or ability to hire, appoint, demote, or otherwise control the officers, or other decision-making employees or members of the entity.”
A recent news report unmistakably exposes Mr. Ryan exercising control over Congressional Leadership Fund in violation of 52 U.S.C. § 30125(e)(1). Commission regulations are explicit that the fact that an officeholder or candidate has the “authority to hire, appoint, demote, or otherwise control the officers or decision-makers” of an independent expenditure-only committee weighs in favor of a finding that the candidate “controls” the committee. Here, not only does Mr. Ryan have the apparent “authority” to hire employees of Congressional Leadership Fund, but he also exercised that authority by formally offering a fundraising position with the independent expenditure-only committee to Mr. Mason Fink. As a current federal officeholder and declared candidate for federal office, Mr. Ryan is prohibited from controlling an independent expenditure-only committee through activity such as hiring its employees. Mr. Ryan violated this clear proscription when he hand-selected and subsequently hired a Congressional Leadership Fund employee.
Similarly, Congressional Leadership Fund has violated 52 U.S.C. § 30125(e)(1) by soliciting, receiving, or spending soft money while controlled by a federal officeholder and candidate. Congressional Leadership Fund supports Republican candidates for federal congressional office, such as Mr. Ryan, and Mr. Ryan is controlling the Fund by personally selecting and hiring one of its officers. Consequently, the Fund is barred from engaging in its primary activity and stated purpose; soliciting, receiving, or spending soft money.
These facts clearly demonstrate that Mr. Ryan has directly violated 52 U.S.C. § 30125(e)(1) by controlling an independent expenditure-only committee while serving as a federal officeholder and candidate. Further, the facts show that Congressional Leadership Fund, an independent expenditure-only committee controlled by a federal candidate, violated 52 U.S.C. § 30125(e)(1) by soliciting, receiving, and spending soft money.
3. REQUESTED ACTION
As we have shown, Mr. Ryan and Respondents have violated the Act by controlling an independent expenditure-only committee and soliciting, receiving, and spending soft money. We respectfully request that the Commission investigate these violations, and that Respondents be enjoined from further violations and be fined the maximum amount permitted by law.