FORM —

COMPLAINT FOR VIOLATION OF jD-4 THE CAMPAIGN DISCLOSURE ACT’ H

COMPLAINANT NAME, ADDRESS AND TELEPHONE NUMBER: o

—-- ~_ ~--~-

Fiends of Vi Daley -

2536 N Clark St PMB 296Chicago IL 60614312.208.9591

vs.

NAME AND ADDRESS OF RESPONDENT:Friends of Michele Smith210 WScott Unit LChicago IL 60610

SECTION 1. HAS RESPONDENT FILED A STATEMENT OF ORGANIZATION AS A POLITICAL COMMITTEE WITH THESTATE BOARD OF ELECTIONSOCOUNTY CLERK, ORCNONE. IF FILED WITH THE COUNTY CLERKIDENTiFY COUNTY;

SECTION 2. STATUTORY PROVISIONS: STATE THE PORTIONS OF THE CAMPAIGN DISCLOSURE ACT (ARTICLE 9,ELECTION CODE) THAT HAVE BEEN VIOLATED. (USE ADDITIONAL PLAIN SHEETS IF NECESSARY ANDREFER TO THIS SECTION.)519-17 ______

SECTION 3. STATE THE NATURE OF THE OFFENSE(S) OR VIOLATION(s), IF APPLICABLE. (USE ADDITIONAL PLAINSHEETS IF NECESSARY AND REFER TO THIS SECTION.)

Respondent utilized information from reports filed with the State Board of Elections to solicit contributions.

SECTION 4. ATTACH ALL STATEMENTS, SCHEDULES, OR OTHER DOCUMENTS REFERRING TO THIS COMPLAINT.

VERIFICATION

I DECLARE THAT THIS COMPLAINT (INCLUDING ANY ACCOMPANYING SCHEDULES AND STATEMENTS) HAS BEENEXAMINED BY ME AND TO THE BEST OF MY KNOWLEDGE AND BELIEF IS A TRUE AND CORRECT COMPLAINT ASREQUIRED BY ARTICLE 9 OF THE ELECTION CODE. I UNDERSTAND THAT THE PENALTY FOR WILLFULLY FILING AFALSE COMPLAINT SHALL BE A FINE NOT TO EXCEED $500 OR IMPRISONMENTAN A PENAL INSTITUTION OTHERTHANTHE PENITENTIARY NOT TO EXCEED 6 MONTHS, OR BOTH FINE AND I~APR1~JØNMENT (~

—

DATE SIGI~JATURE OF COMPLAINANT

(IF COMPLAINANT Is A CORPO~TION THEN VERIFICATIONMUST BE SIGNED BY AN AUTHORIZED OFFICER ANDArrESTED TO BY THE SECRETARY)

PROOF OF SERVICE

OF THE FOREGOING COMPLAINT UPON THE FOLLOWING:HEREBY SWEAR OR AFFIRM THAT I SERVED A COPY

a) BY PERSONALLY DELIVERING THE SAME ON THE DAY OF __~_~~_, 20__ ATO’CLOCK M.

b) BY PLACING A COPY THEREOF IN THE UNITED STATES POSTAL SERVICES, PROPER POSTAGE PREPAID,TO THE ABOVE INDICATED ADDRESSES, ON THE ~j.~L___DAY OF .~2~P±E____20J_Q ATTHE MAIL BOX OR POSTAL STATION LOCATEDAT: 2405 N Sheffield, Chicago IL 60614

SUBSCRIBEQ AND SWORN JO BEFORE METHIS 4L?Z’6A~L9F ~ 2010

NOTARY PUBLIC

INSTRUCTIONS

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‘I. THIS FORM IS USED TO FILE COMPLAINTS FOR VIOLATIONS ARISING OUT OF AN ACT TO REGULATE CAMPAIGNFINANCING (ILLINOIS REVISED STATUTES, CHAPTER 46, ART. 9-I ET SEQ.). SEE RULES AND REGULATIONS OFTHE STATE BOARD OF ELECTIONS FOR THE FILING AND HEARING OF COMPLAINTS.

2. THE FILING AND HEARING OF COMPLAINTS ARE GOVERNED BY RULES AND REGULATIONS ADOPTED BY THEBOARD. IF A COMPLAINT IS FILED WITHIN 60 DAYS PRIOR TO THE DATE OF AN ELECTION IN REFERENCE TOWHICH THE COMPLAINT IS FILED, THE COMPLAINANT MUST SERVE A COPY OF THE COMPLAINT UPON ALL~RESPONDENTS PRIOR TO THE TIME OF FILING. COPIES OF THE RULES AND REGULATIONS ARE AVAILABLEUPON REQUEST.

..~3,~.CQMPLAIJ~JS:MUST..BEF~LED.BYMAILORIN.RERSONA1ZEITHEROETHEEOLLOWING.LOCATIONS’

STATE BOARD OF ELECTIONS STATE BOARD OF ELECTIONS1020 S SPRING ST 100W RANDOLPH ST. STE 14-100SPRINGFIELD, ILLINOIS 62704-2924 CHICAGO, IL 60601-3232

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SIGNATURE áF COMPLAINANT ORAGENT

State of Illinois(.ouifty oiCook

Affidavit

[he undersigned, being first duly sworn upon oath, deposes and states that she haspersonal knowledge of the facts set forth in this affidavit, and if called as a witness at trialcantëstify&othpefehtlytheteto -

1. My name is Barbara Guttmann of 5445 West Henderson Street, Chicago Illinois60641. 1 am the Treasurer of Friends of Vi Daley.

2. 1 became aware of a solicitation for contribution from Friends of Michele Smithsent to Louise Guttmann of 5445 W Henderson Street, Chicago IL 60641received on Wednesday, September 15, 2010.

3. Louise Guttmann has only once contributed to a political campaign and is notinvolved in any activities in the Lincoln Park area. She has no association withany group and is not listed on any other financial disclosure list except for onecontribution to Friends ofVi Daley, recorded March 5, 2007.

4. Upon realizing that the only listing that Michele Smith could have used was theFriends of Vi Daley D-2, I contacted several other contributors who are unique toFriends of Vi Daley. In at least two additional incidents, contributors to Friendsof Vi Daley reported receiving contribution solicitations as well.

5. Pat Berns of 1728 N Wells, Chicago IL 60614 has not contributed to any otherpolitical candidate and is not a member of any neighborhood organization whereher address could have been retrieved.

6. David Dornovic of 3751 N Harding, Chicago IL 60618 is involved ma school inLincoln Park but his home address is only associated with his contributions toFriends of Vi Daley.

7. These three contributors to Friends ofVi Daley made their contributions becausethey have personal connections with this committee. 4

Barbar Gutttnann

Subscribed and sworn to before me Sdptember .9( . 2010~ I~: ~

>otar> Pubilt ~.~,,

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Friends ofMichele Smith2626 N. Lakeview, Unit 3802Chicago, IL 6o6q

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zL.~ SEP 20.10 PM 2 1..

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Louise &ittmann5445 W Henderson StChicago, iL 60641

.1OUARJj INVITED7 4w~i 2.

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Friends’ ofMichele Smithz6z6 N. ILakeview, Unit 3802Chkago,~IJ46O6X4e4~7os

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PRESORTEDS

CHICAGO. ILPERMIT NO. 1523

Pat Be ms1728 Morth WellsChicago, IL 60614

YOU ARE INVITED9-22-10

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VOL ARE INVITED

CampaigivKick OffFundraiserfor Michele Smith

Co-ChairsDiatte Graham-Henry and Tom Hall

Carol and Peter EnglandI ~aurà andWilliamWangerinMichael and Mary SilverHan. Marty Oberman

Special GuestsDavid 1Ioffman

Raja Krishnamoorthi

Wednesday, Scp~ember zznd • 6:oo pm — 8:oo pmAt the ~4ome of Cynthia Rnskin

649~West Arlington Place

Co-Chair $2,500 • Sponsor Si,oooFkst $500 Friend $aco

Tickets: $50

Please RSVP michclesmithforaldermafl@~1s0mOr 773-772-4414

PAhI iorbv Prirticic olMichelt S,idth. A copyofsnir cqort filed with the Stite Boaed oIElecnotm and theCounty Clerk h (or will be) jnd~l,lc (tie ptinhasc rn,a, the Starr flnt,d of Etreuctit, Springfield, llt,n,,ia, and (ei,nl

thr Citik Cotney (:Ie,k Chicago, Illinok. e’O ‘~

CAMPAIGN KICK On FuNnF~.&IsERFOR MICHELE SMITu

,_Ycs, I would like to become a Co-Chair at $z,coo_Ycs, I would like to attend as a Sponsor atS 1,000

__Ycs. I would like to attend as a Host cithe Event at $çoo_Yes. I would like to attend as a Friend of the Event at $z~o_Yes, I would like to attend and buy tickets at $~o each

No, I can’t attend but would like to send in a &._ .___ contribution

NAME: __--...-— ._--_ -

ADDRESS:

cm ST__ZIP_~

PHONE (HOME): (WORE):

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EXPDATh__———— AMOUNT $,_ - ~

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~Bledw,rh the.State jioardoIElcrttt>n-~andihc CountyCkrkit torwiulb.;anilahlt forporrhastfttitn theState Baud pl Eretton,,

Sprin8field, tlhnok, and ton the Cook County Cerk Chicagv. Illinois. “e—

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Honorable \~ari\~.i SpvropoulmHnnnrahk’ Karen ‘~arbt tiUgli

HusrsRichard Angell &tpu Arclqpudijordan and L0EUC UcH Mary koedu

<~ 0 Bill Bunn and Cherie Smith Bunn0 ~ llarbara and Edward BLLrncs Kenneib BuschDavid Cherroff2 ~ Maureen Cuihane and Don Glickm:ti4

John Davidson Jessica Diamond c:ollccn flayJordan Feiger low ucoghegan

o Josh and Leslie (lazier~‘ 9 ~ Solomon cutstejn Dnrdrc Granano~ Alec Harris Karen Harrison and \VaLter Freedman

Art and Kathy Howe Nancy and Rob Hoyt Lori LevinMarty and Fran. akirente

Rick Mclchcr Karen and Tom Phillips Alan Rost2 1 June Rosner Etnmie Rullin Rerli Ryan

C:aroi Senderowit; Errol Stone Rick StuckcyMerle Tern Cynthia Vahlkamp and Bob Kt’nyon

Josh \‘incenc Ki;n \Valz Steve \kjtissSheila and Brian \Vlwlen

Bernard Wilson Leon Woju Los Zofler

.. .~ ...

BEFORE THE STATE BOARD OF ELECTIONSSTATE OF ILLINOIS

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APPEARANCE

The undersigned enters the appearance of (check one):

Address:

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BEFORE THE STATE BOARD OF ELECTIONS

In the Matter ofFRIENDS OF VI DALEY, )

)Coinptai~a~t

)vs. ) Board File #: IOCD 074

)FRIENDS OF MICHELE SMITH, )

)Respondent )

APPEARANCE

The Undersigned enters the appearance of Friends of Vi Daley, Complainant, by itsattorney:

Michael C. DoffAdducci, Dorf Lehner, Mitchell

and Blankenship, P.C.150 N. Michigan Avenue, Suite 2130Chicago, Illinois 60601(312) 781-2800(312)781-2811 —faxmdorf@adlmb.com

Z6~_

STATE OF ILLINOISCOUNTY OF COOK

BEFORE THE STATE BOARD OF ELECTIONSOF THE STATE OF ILLINOIS

Friends of Vi Daley~Compiainantj~~~ —

)Vs. ) Board File # 10 CD 074

)Friends of Michele Smith )

Respondent

REPORT OF EXAMINER

This hearing was held as a result of a Complaint filed pursuant to “An Act to Regulate CampaignFinancing” (Illinois Compiled Statutes, 10 ILCS 5/9-I, et seq. (hereafter referred to as the Act)alleging that the Respondent violated 10 ILCS 5/9-17. Specifically, Respondent solicited contributionsfrom individuals listed on Schedule A of Friends of Vi Daley’s D-2 Semi-Annual report. Friends of ViDaley v. Friends ofMichele Smith, see attached.

STATES EXHIBITS

To be made a part of this report, a copy of the D-4, Complaint for Violation of the CampaignDisclosure Act, filed on September 23, 2010, at the Board’s Chicago office, 100W. Randolph St.. Ste.14-100, Chicago, IL 60601; Notice and Summons regarding the Complaint; Notice of the ClosedPreliminary Hearing to be conducted in the matter, Friday. October 22, 2010, at 10:30 a.m., at theIllinois State Board of Elections Office, 100W. Randolph St.. Ste 14-100. Chicago. IL, 60601.

OBJECTIONS

Mr. Means objected to any and all statements Mr. Dorf testified to, particularly his testimonyindicating statements that witnesses Louise Guttman and David Domovic would testify to if the mattershould proceed to a public hearing.

COMPLAINANTS CASE -IN-CHIEF

The Complainant was represented by Michael C. Dorf at the closed preliminary hearing. Alsoattending was Barbara Outtmann, treasurer of Friends of Vi Daley and her mother Louise Guttmann.

It is the Complainant’s belief Friends of Michele Smith used information contained in Friends of ViDaley’s D-2 to solicit campaign contributions, in violation of campaign disclosure law. Mr. Dorf statedseveral people notified Barbara Guttmann that they received an invitition to a fundraiser for MicheleSmith, a candidate for Alderman. The complainant identified three individuals, Louise Guttmann,David Domovic and Pat Berns, received invitations to attend the fundraiser for Michele Smith. TheComplainant indicated these individuals have only contributed to Vi Daley and no other

candidate because of their personal connections to the Alderman. Mr. Dorf indicated that LouiseGuttmann does not live in the ward and only made a contribution to the Friends of Vi Daley campaignbecause her daughter is employed by the alderman. Furthermore, Mr. Dorf indicated that Domovic andPat Burns would be available to testi~’ to their relationship to Friends of Vi Daley in an open hearing.Mr. Means objected to Mr. Dor? s statements about what the witnesses would say and Mr. Dorf rested,relying on information that was supplied in the affidavit regarding the other two individuals. TheComplainant believes that there is probable cause that Friends of Michele Smith used Vi Daley’sdisclosure reports to solicit campaign contributions and that this matter proceed to a public hearing. _______

RESPONDENTS CASE-IN-CHIEF

The Respondent was represented by Richard Means at the closed preliminary hearing.

Mr. Means introduced Julie Kerouac, owner and partner of Progressive Solutions Consulting. a fulltime political consulting firm. Ms. Kerouac testified that she was employed by Friends of MicheleSmith and was responsible for soliciting contributions for the campaign. Ms. Kerouac’s job wasputting together mailing labels for invitations to a fundraiser for Friends of Michele Smith. Theconsulting firm issued about 3,000 invitations. Ms. Kerouac estimated around 2,500 invitations weresent to individuals that supported Michele Smith in the past from a large database established by thecommittee. In an effort to use the remaining invitations, roughly 500 invitations went out to otherpeople in the community. Ms. Kerouac stated that she does not know where the specific names LouiseGuttmann, Pat Berns and David Domovic came from or how they were included on the invitation list.Upon receipt of the complaint and affidavit, Ms. Kerouac researched the committee’s records in anattempt to determine the source of the names. Ms. Kerouac found that Pat Berns was identified as aperson the committee contacted that had a favorable response to Miehele Smith during her lastcampaign. David Domovic was invited because the committee indicated that he was a leader ineducation in the community. Ms. Kerouac stated Louise Guttmann’s information could not be found inany lists maintained by the committee and the only source of the name that they could find was on ViDaley’s D-2. As a potential opponent in the next aldermanie election, the Respondent admitted thatthey downloaded Friends of Vi Daley’s D-2 report. Mr. Means stated that Vi Daley’s D-2’s were notmined but that Louise Guttmann’s name was included on the invitation list by accident. Ms. Kerouacand employees of the firm Progressive Solutions Consulting are knowledgeable that it is not legallypermitted to use other political committee’s D-2 in order to solicit contributions. Mr. Means stated thecommittee has taken certain precautions to the database so that this would not happen in the future andthat this is a onetime oecuffenee. Mr. Means stated the committee acknowledges it has made aviolation only in the instance of Louise Guttmann and not on Pat Berns or David Domovie. Herequests that the complaint is found to be filed on justifiable grounds but that a public hearing is notwarranted. Instead Mr. Means requests the Board issue an order or fine as they deem appropriate.

CONCLUSIONS AND RECOMMENDATIONS

The Closed Preliminary Hearing was held on October 22, 2010. The D-4 alleges that Friends ofMichele Smith used names from Friends of Vi Daley’s. D-2 Semi Annual Report to solicitcontributions.

The Respondent cannot identifS’ where any of the names, David Domovic, Pat Berns and LouiseGuttmann ultimately came from. Ms. Kerouac, an employee of the committee, does not have personal

knowledge how the names were included in the invitation list and presented an explanation based uponher review of the committee’s records. Ms. Kerouac said that she was able to find some reference forDavid Domovic and Pat Berns in the committee’s records but not Louise Guttmann. The Respondentadmitted the only place the name Louise Guttmann was found was on Friends of Vi Daley’s SemiAnnual report. Although the Respondent stated that the violation happened by accident nodocumentation to support their defense was presented and, officers of the committee were not availableto provide further examination. I do not believe it was a coincidence that the three individuals listed inthe complaint received invitations by accident, but there is reason to believe Friends of Michele Smithtatgewdthos~ ~~po’a~rsbasedupon-Friends-of’Vi-Daley’s- 1Y2.’Further investigation-to-the-extentof—----—the Respondent’s misuse of the D-2 report should be undertaken in a public setting. Therefore, Irecommend that the Board find the complaint was filed on justifiable grounds, having a basis in factand law, and that this matter proceed to a public hearing.

/4Tara Cachur — Hearing Examiner

October 22,2010

STATE OF ILLINOIS )) 55

COUNTY OF SANGAMON)

STATE BOARD OF ELECTIONSSTATE OF ILLINOIS

)Friends of Vi Daley, )

)Complainant(s), )

vs. ) 10CD074)

Friends of Michele Smith, ))

Respondent(s).

ORDER

TO: Friends of Vi Daley Friends ofMichele Smith2506 N Clark St, PMB 296 210W Scott, Unit LChicago, IL 60614 Chicago, IL 60610

This matter coming to be heard this 23” day of November, 2010, following a Closed PreliminaryHearing of a Complaint filed pursuant to “An Act to Regulate Campaign Financing” (Illinois CompiledStatutes, 10 ILCS 5/9-1 ci’ seq., herein referred to as the “Act”), alleging that the respondent(s) violated10 ILCS 5/9-17 in that the Respondent committee solicited contributions from individuals listed onanother committee’s reports; and the State Board of Elections having read the report of the HearingOfficer and hearing the recommendation of the General Counsel and now being fully advised in thepremises,

THE BOARD FINDS:1. That the complaint was filed on justifiable grounds.

IT IS HEREBY ORDERED:I. The recommendation of the Hearing Officer and the General Counsel is adopted; and2. That a Public Hearing be conducted in this matter, and3. The effective date of this Order is November 24, 2010.

DATED: 11/24/2010 6E4tstco6fri._Bry A. Schneider. Chairman

STATE OF ILLINOIS )) SS

COUNTY OF COOK

BEFORE THE STATE BOARD OF ELECTIONSOF THE STATE OF ILLINOiS

In the Matter of:

~ )

Friends of Vi Daley )Complainant(s) )

)Vs. ) Board FiIe#: 10 CD 074

)Friends of Michele Smith )

Respondent(s) ))

NOTiCE OF PUBLIC HEARING

TO: Friends of Vi Daley Friends of Michele Smith2506 N Clark St, PMB 296 210W Scott, Unit LChicago, IL 60614 Chicago, 1L60610

Please take notice that in accordance with the Order of the State Board of Elections, dated and enteredon and pursuant to the provisions of”An Act to Regulate Campaign Financing” (10 ILCS 5/9-I et seq.)and Rules and Regulations adopted pursuant thereto, and by the power vested in me, the PublicHearing to be conducted in the above captioned matter is set for December 16, 2010, at 10:00 AM. atthe State Board of Elections, 100W. Randolph, Suite 14-100, Chicago IL.

The parties have the right to be represented by legal counsel in any proceeding conducted by the StateBoard of Elections.

Any party involved in any proceeding has the right to the presence and participation of additionalpersons, in addition to, or instead of an attorney, in order to provide technical assistance andconsultation. 4flDATED: November 30, 2010 Stev n S. an voss, General Counsel