Politics, Professional Responsibility & Prison · 10/22/2015 · The Legal Intelligencer....

Politics, Professional Responsibility& PrisonHow Lawyers Can Counsel Their Corporate Clients To Influence Government Officials AndParticipate Safely In The Political Process

Jonathan W. Hugg

Ted Planzos

James E. Tyrrell, III

Philadelphia, October 22, 2015

The Legal Intelligencer

800-949-3120 | clarkhill.com

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CORPORATIONS HAVE RIGHTS

A corporation is a “person” protected by the Equal Protection and DueProcess Clauses of the Fourteenth Amendment (which incorporatesthe Bill of Rights)

Santa Clara County v. Southern Pacific R. Co., 118 U.S. 394 (1886); Smyth v. Ames, 169 U.S. 466 (1898);Minneapolis & St. Louis R.R. Co. v. Beckwith, 129 U.S. 26 (1889)


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SOME CONSTITUTIONAL RIGHTS OF CORPORATIONS

Fourth Amendment protection against unreasonable search and seizure

(However, not the Fifth Amendment privilege against self-incrimination)

Fifth Amendment protection against the government taking property without justcompensation

Fifth Amendment protection against double jeopardy

Standing to sue for civil rights violations

Standing to challenge state and local regulations that violate the CommerceClause

Protection by the Contracts Clause


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CORPORATIONS HAVE FIRST AMENDMENT RIGHTS

• First Amendment protection extends to corporations

First Nat'l Bank of Boston v. Bellotti, 435 U.S. 765 (1978)

• First Amendment protects political speech by corporations

NAACP v. Button, 371 U.S. 415 (1963) and

Grosjean v. American Press Co., 297 U.S. 233 (1936)


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CITIZENS UNITED v. FEC, 130 S.CT. 876 (2010)

• Corporations (and unions) have the same free speech rights as individuals

• “No sufficient governmental interest justified limits on the political speechof non-profit or for-profit corporations.”

• Unconstitutional to restrict “independent expenditures”

• However, disclaimer and disclosure requirements are constitutional


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CONFLICTS BETWEEN ETHICS, LAW, AND POLITICS?

• Lawyers Have a Professional Obligation to Be Truthful and Fair

• Public figures suing for defamation must prove actual malice

New York Times Co. v. Sullivan, 376 U.S. 254 (1964)

• “Problems” of Politics: Dishonesty, Inconsistency, Money


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RULE OF PROFESSIONAL CONDUCT 4.1

Rule 4.1. Truthfulness in Statements to Others.

In the course of representing a client a lawyer shall not knowingly:

(a) make a false statement of material fact or law to a third person;

…

Comment:

Misrepresentation

(1)A lawyer is required to be truthful when dealing with others on a client’s behalf, but generally has no affirmative duty toinform an opposing party of relevant facts. A misrepresentation can occur if the lawyer incorporates or affirms a statement ofanother person that the lawyer knows is false. Misrepresentations can also occur by partially true but misleading statements oromissions that are the equivalent of affirmative false statements. For dishonest conduct that does not amount to a false statementor for misrepresentations by a lawyer other than in the course of representing a client, see Rule 8.4.

Statements of Fact

(2) This Rule refers to statements of fact. Whether a particular statement should be regarded as one of fact can depend onthe circumstances...


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Rule 4.3. Dealing with Unrepresented Person.

(a) In dealing on behalf of a client with a person who is not represented by

counsel, a lawyer shall not state or imply that the lawyer is disinterested.

(b) During the course of a lawyer’s representation of a client, a lawyer shall not

give advice to a person who is not represented by a lawyer, other than the advice to

secure counsel, if the lawyer knows or reasonably should know the interests of such

person are or have a reasonable possibility of being in conflict with the interests of

the lawyer’s client.

(c) When the lawyer knows or reasonably should know that the unrepresented

person misunderstands the lawyer’s role in the matter, the lawyer should make

reasonable efforts to correct the misunderstanding.


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Rule 4.4. Respect for Rights of Third Persons.

(a) In representing a client, a lawyer shall not use means that have nosubstantial purpose other than to embarrass, delay, or burden a third person, or usemethods of obtaining evidence that violate the legal rights of such a person.

…

Comment:

(1) Responsibility to a client requires a lawyer to subordinate the interests of others to those of the client, but thatresponsibility does not imply that a lawyer may disregard the rights of third persons. It is impractical to catalogue all such rights, butthey include legal restrictions on methods of obtaining evidence from third persons. and unwarranted intrusions into privilegedrelationships, such as the client-lawyer relationship.


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Rule 8.4. Misconduct.

It is professional misconduct for a lawyer to:

...

(c) engage in conduct involving dishonesty, fraud, deceit or misrepresentation;

(d) engage in conduct that is prejudicial to the administration of justice;

(e) state or imply an ability to influence improperly a government agency or

official or to achieve results by means that violate the Rules of Professional Conduct

or other law; or

(f) knowingly assist a judge or judicial officer in conduct that is a violation of

applicable rules of judicial conduct or other law.


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LAWYERS MAY BE DISCIPLINED FORNON-LEGAL ACTIVITIES, INCLUDING POLITICS

• ABA Formal Opinion 336 (1974): “A lawyer, whether acting in his professional capacity orotherwise, is bound by applicable disciplinary rules of the Code of ProfessionalResponsibility...lawyers are subject to discipline for improper conduct in connection withbusiness activities, individual or personal activities, and activities as a judicial, governmentalor public official….”

• State v. Russell, 610 P.2d 1122 (Kan. 1980) (citing Chernoff’s Case, 26 A.2d 335 (Pa.1942): “An attorney may be disciplined for criticism in the heat of a political contest if suchcriticism is carried beyond the limits of truth and fairness…”

• In re Nixon, 385 N.Y.S.2d 305 (N.Y. App. Div. 1st Dep’t 1976): “We note that while Mr.Nixon was holding public office he was not acting in his capacity as an attorney.However, the power of the court to discipline an attorney extends to misconduct other thanprofessional malfeasance when such conduct reflects adversely upon the legal professionand is not in accordance with the high standards imposed upon members of the Bar.”

CORPORATE POLITICALACTIVITIES


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Pay to Play

Corporate PACs

Ethics and Gift Rules


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PAY-TO-PLAY LAWS

Pay-to-Play Definition

• Practice of an individual or business entity making campaigncontributions to a public official with the hope of gaining a lucrativegovernment contract

• Usually does not take the form of outright bribery, more ofteninvolves an individual or business entity buying access forconsideration

Pay-to-Play Laws

• In general, restrict individuals and entities with current or potentialfuture government contracts from making certain types of politicalcontributions


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STATE PAY TO PLAY LAWS

Pennsylvania

• Reporting Statute

• Municipal Pension Statute

New Jersey


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PA REPORTING STATUTE - OVERVIEW

State contractors awarded non-bid contracts must report all political contributionsmade by its officers, directors, associates, partners, limited partners, owners,employees, or members of their immediate family that individually or in theaggregate exceed $1,000 during the preceding year. The Secretary of theCommonwealth will publish the itemized list of contributions and the list shall bepublic record.


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PA REPORTING STATUTE –WHO IS COVERED?

Recipients – all recipients of political contributions are covered for the disclosurerequirement.

Contributors – any officer, director, associate, partner, limited partner, individualowner or his spouse and any unemancipated child; any employee and his spouseand any unemancipated child.


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PA REPORTING STATUTE – PENALTIES

The Attorney General shall have prosecutorial jurisdiction. Violators shall be guilty ofa misdemeanor, and upon conviction , shall be sentenced to pay a fine notexceeding one thousand ($1,000) dollars, or to undergo an imprisonment of notmore than one (1) year, or both, in the discretion of the court.


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PA REPORTING STATUTE –DOES IT APPLY TO PACS?

The business entity is required to report all political contributions, but contributionsfrom affiliated PACs fall outside the language of the statute.


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PA MUNICIPAL PENSION STATUTE - OVERVIEW

Persons or affiliated entities may not enter into a contract for professionalservices with a municipal pension system if that person or an affiliated entityhas made a contribution within the last two years to a municipal official orcandidate for an office that controls the municipal pension system.

Service contracts with a municipal pension system also require disclosureof all contributions over the last 5 years to any candidate or committee inthe state that amounts in the aggregate to at least $500.


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PA MUNICIPAL PENSION STATUTE –WHO IS COVERED?

Recipients – Municipal officials and candidates for office who control the municipalpension system.

Contributors – Successful or prospective municipal pension system servicecontractors, and any affiliated entity, which means any subsidiary or holdingcompany of a lobbying firm or other business entity owned in whole or in part by alobbying firm; a 501(c) organization established by a lobbyist or lobbying firm or an“affiliated entity” are also covered.


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PA MUNICIPAL PENSION STATUTE - PENALTIES

If the disclosure requirement is violated, the municipal pension system shall void theprofessional services contract and prohibit future contracts for up to three years.

If the disclosure requirement is violated two times within 36 months, all contractsbetween the violator and the municipal pension plan shall be void, and futurecontracts shall be prohibited for at least three years.


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PA MUNICIPAL PENSION STATUTE –DOES IT APPLY TO PACS?

It applies to affiliated 501(c) organizations, as well as 501(c) organizations affiliatedwith lobbying firms, but the language of the statute does not cover other types ofadvocacy organizations.


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NEW JERSEY PAY TO PLAY LAW - OVERVIEW

Any current or prospective non-bid contractor for a legislative contract with an actualor expected value of $17,500 is prohibited from making a reportable contributionduring the term of any current contract or in the year before any prospective contractto any party committee at the level of government at which the contract resides(State, county, municipal); any leadership committee or a presiding officer’scommittee for state agency contracts that require a presiding officer’s approval

Any current or prospective contractor for a state contract with an actual or expectedvalue of $17,500 is prohibited from making a reportable contribution to the Governor,Lt. Governor, or a state or county political party if the contract is with the state forservices or land.


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NJ PAY TO PLAY LAW – WHO IS COVERED?

Recipients for legislative contracts - political party committees, legislative leadershipcommittees, presiding officer committees, county committees, candidate committeesof office holders, municipal committees of a political party, candidate committees ofoffice holders.

Recipients for state contracts - any candidate or holder of the public office ofGovernor or of Lieutenant Governor, or any State or county political party committee.


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NJ PAY TO PLAY LAW –WHO IS COVERED?

Contributors – any natural or legal person, business corporation, professionalservices corporation, LLC, partnership, limited partnership, business trust,association or any other commercial entity; all principals who own or control morethan 10 percent of the profits or assets or 10 percent of the stock; any subsidiaries,any political organizations organized under section 527 directly or indirectlycontrolled by the business entity; if the business entity is a natural person, thatperson’s spouse or child is included.


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NJ PAY TO PLAY LAW – REMEDIES FOR VIOLATION:LEGISLATIVE CONTRACTS

If a business entity makes a contribution that would cause it to be ineligible to receivea public contract or, in the case of a contribution made during the term of a publiccontract, that would constitute a violation of this act, the business entity may request,in writing, within 60 days of the date on which the contribution was made, that therecipient thereof repay the contribution and, if repayment is received within those 60days, the business entity would again be eligible to receive a contract or would nolonger be in violation, as appropriate.


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NJ PAY TO PLAY LAW – REMEDIES FOR VIOLATION:STATE CONTRACTS

If a business entity inadvertently makes a contribution that would otherwise bar itfrom receiving a contract or makes a contribution during the term of a contract inviolation of this act, the entity may request a full reimbursement from the recipientand, if such reimbursement is received within 30 days after the date on which thecontribution was made, the business entity would again be eligible to receive acontract or would no longer be in violation, as appropriate. It shall be presumed thatcontributions made within 60 days of a gubernatorial primary or general electionwere not made inadvertently


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NJ PAY TO PLAY LAW - PENALTIES

Violations can result in a penalty up to the value of the awarded contract ordisqualification from state contracting for up to 5 years. Purposeful concealment ormisrepresentation of contributions is a fourth degree crime.


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NJ PAY TO PLAY LAW –FURTHER REQUIREMENTS

Business are required to provide a written certification that it has not made acontribution that would bar the award of the contract. and they are also required toreport all contributions made during the preceding four years to any 527 organizationthat meets the definition of a continuing political committee.


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NJ PAY TO PLAY LAW –DOES IT APPLY TO PACS?

Affiliated PACs fall within the aggregate limit for the business entity.


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ENFORCEMENT EXAMPLES

Ford-Scott and Associates: forced to forfeit an $88,000 auditing contract withAtlantic County because the firm made a $4,600 contribution to the Sheriff.Ford-Scott was barred by a Judge from obtaining future contracts for four years.

Earle Asphalt: made an impermissible party contribution, later hired counseland at the advice of counsel requested the money be returned. The money wasreturned outside of the 30 day window and therefore the company failed to fullycomply with the provision for inadvertent prohibited contributions. The companywas disqualified from a $6 million paving contract.

Birdsall Services: bundled contributions that individually fell under the reportingrequirement. The total contribution amount was over $500,000. The firm agreedto a plea deal which required a $1 million criminal fine, $2.6 million in civilpenalties, and the executives were forced to forfeit $3.95 million in insuranceproceeds.


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FEDERAL PAY TO PLAY LAWS

MSRB Rule G-37

SEC Rule 206(4)(5)


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FEDERAL PAY TO PLAY LAWS – MSRB RULE G-37

MSRB Rule G-37

• Prohibits brokers, dealers, municipal securities dealers, and their PACs fromengaging in municipal securities business with government issuers withintwo years after they contribute more than a de minimis amount to an officialemployed by the issuer


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FEDERAL PAY TO PLAY LAWS –SEC RULE 206(4)(5)

SEC Rule 206(4)(5)

• Prohibits investment advisors and their PACs from providing advisoryservices for compensation for two years if they make political contribution toofficial who is in position to influence selection of the advisor

• Prohibits advisors from paying third parties to solicit government clients ontheir behalf unless third party is a SEC-registered investment advisor subjectto P2P restrictions

• Covers pension plans, 529 plans

• Strict liability

• Penalty is two-year ban on receiving payment for advisory services


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CORPORATE POLITICAL COMPLIANCE –BEST PRACTICES

Institute pre-clearance procedures for contributions by covered contributors.

Create a system to determine who should be subject to pre-clearance procedures.

Educate covered contributors on compliance with the determined procedures.

Regularly confirm that covered contributors have complied with pre-clearanceprocedures.

Establish a monitoring practice with legal personnel.

Maintain thorough records with regards to these steps.


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CORPORATE PACS

Establishing a PAC

• Steps

• Solicitation

• State PACs: PA & NJ

What can a PAC do?


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ESTABLISHING A CORPORATE PAC

Registering a Separate Segregated Fund with FEC

• Designate necessary officers

• Name the SSF

• File Statement of Organization


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PAC SOLICITATION

A corporate PAC may only solicit a restricted class of potential contributors,and may not solicit the general public, but may accept otherwise legal,unsolicited contributions from contributors outside of the restricted class.

A corporation or its SSF may solicit its restricted class at any time. Therestricted class of a corporation consists of:

• The corporation’s executive and administrative personnel;

• The stockholders; and

• The families of the above two groups.An SSF may also solicit, at any time, the restricted class of anyparent, subsidiary, branch, division or affiliate of the connectedorganization.


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STATE PACS

New Jersey

• In New Jersey, business entities can form Continuing Political Committees(CPC). This is done by filing a registration, appointing officers, designating adepositor and receiving certification. Certain industries are barred fromcreated a CPC. There are ongoing reporting requirements.

Pennsylvania

• In Pennsylvania, business entities can form a separate segregated fund. Thesegregated fund is to be created by voluntary individual contributions,including those solicited by the corporation or unincorporated associationand to be utilized for political purposes. This segregated fund is created byregistering, appointing officers, and filing a statement of organization. Thereare ongoing reporting requirements.


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WHAT CAN A PAC DO?

Federal PACs – Contribute to federal and nonfederalcandidates; contribute to political committees; makeindependent expenditures.

State PACs – Contribute to non-federal candidates and politicalcommittees; make independentexpenditures.


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ETHICS & GIFTS –FEDERAL SUMMARY

House rules overview:

• Prohibits gifts related to official actions, solicitation from those with interestsbefore House

• Gifts less than $50 are acceptable, but buydowns are prohibited

• Gifts from lobbyists, foreign agents, and entities that employ these individualsare prohibited

Senate rules overview:

• Gifts are prohibited, unless under $50 for an individual gift or $100 for acumulative year of gifts from one source

• Gifts from lobbyists, foreign agents, and entities that employ these individualsare prohibited

• Lobbyists are further restricted (no personal hospitality or legal defensefunds)


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ETHICS & GIFTS - PENNSYLVANIA

Prohibits gifts, loans, or any other offer of monetary value to a public official, publicemployee or nominee or candidate for public office or a member of his immediatefamily or a business with which he is associated, if based on the offeror's or donor'sunderstanding that the vote, official action or judgment of the public official or publicemployee or nominee or candidate for public office would be influenced.


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ETHICS & GIFTS – NEW JERSEY

Prohibits a lobbyist or government affairs agent from giving any compensation,reward, employment, gift, honorarium or other thing of value, totaling more than $250in a calendar year. This does not apply if the lobbyist is a member of the legislator'simmediate family. This section applies to members of the legislator's household.

CAMPAIGN FINANCINGLAWS


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The objective of campaign financial laws is to regulate the influence of money onpolitics and serve to fill a gap in the coverage of federal laws addressing corruptpayments to federal officials that are disguised as campaign contributions.

Principle objective of campaign finance laws is to minimize as much as possible thecorruptive influence of money in politics by:

• Limiting size of contributions that an individual may contribute

• Prohibiting contributions from entities such as corporations, unions and banks

• Imposing rigid disclosure requirements


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CAMPAIGN FINANCING CRIMES

The Federal Election Campaign Act (FECA) regulates financing of federalcampaigns: 2 U.S.C. 431-455.

FECA limits the amounts that may be contributed to candidates and politicalcommittees and also prohibits contributions from certain sources altogether.

FECA Violations based on providing false information may also violate:

• 18 U.S.C. 371 (Conspiracy)

• 18 U.S.C. 1001 (False Statements)

• 18 U.S.C. 1505 (Obstruction of Justice)


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TYPES OF STATUTES

There are four main types of federal campaign financing laws:

• Laws that limit the amount of contributions;

• Laws that prohibit contributions and expenditures by persons and entities whoseparticipation in the federal election process has been deemed by Congress topresent a sufficient potential for corruption as to warrant outright prohibition;

• Transparency laws that place before the voting public pertinent facts concerningthe raising and spending of campaign funds; and

• Public funding laws.


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HARD MONEY / SOFT MONEY

Hard Money: Funds raised in accordance with the FECA limits and prohibitions.Hard money (sometimes referred to as “federal funds”) may be used to influencefederal elections.

Soft Money: Funds not raised in compliance with the FECA limits and prohibitions.As such, soft money (sometimes referred to “nonfederal funds”) may only be used topay for activities that do not influence federal elections, i.e., activities that FECA doesnot reach. Since 2002, national political parties and their agents are prohibited fromraising or spending soft money. 2. U.S.C. 441i.


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THE “HEARTLAND” PROVISIONS OF THE CAMPAIGN FINANCINGLAWS

According to DOJ in order to warrant criminal prosecution, a FECA violation shouldinvolve one of the FECA’s substantive or “heartland” provisions:

• 2 U.S.C. 441a(a): Limits on amount of contribution;

• 2 U.S.C. 441b: Ban on contributions and expenditures by corporations andunions;

• 2 U.S.C. 441c: Ban on contributions from federal contractors;

• 2 U.S.C. 441e: Ban on contributions from foreign nationals;

• 2 U.S.C. 441f: Ban on disguised and cash contributions;

• 2 U.S.C. 441g: Cash contributions over $100 to a federal candidates campaignare forbidden;

• 2 U.S.C. 441i: Ban on use or direction of “soft money” by political parties;

State and local party committees, must use “hard money” for “federal electionactivity”, including voter registration and get-out-the vote drives and publiccommunications that refer to and support or oppose a federal candidate.

• 2 U.S.C. 439a: Theft from candidate’s political committee.


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CAMPAIGN FINANCING CRIMES

Section 437g(d) provides that a violation of FECA is a federal crime if committed “knowingly andwillfully” and if, with two exceptions, it meets certain monetary thresholds.

If the violation involves the making, receiving, or reporting of a “contribution, donation orexpenditure" that:

• aggregates $2,000 or more in a calendar year, it is a 1 year misdemeanor 437g(d)(1)(A)(ii)

• aggregates $25,000 or more in a calendar year, the violation is a 5 year felony,437g(d)(1)(A)(i), 437g(d)1(D)i

• aggregates over $10,000 in a calendar year and involves illegal conduit contributions, it isa two year felony, 437g(d)(1)(D)(i)


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FELONY THEORIES FOR FECA CRIMES

False Statements: 18 U.S.C. 1001 / Aiding and Abetting: 18 U.S.C. 2

Willfully causing submission of false information to the Federal Election Commission violates

18 U.S.C. 1001 and 2

• A treasurer who submits information concerning contributions or expenditures to the FECknowing the information to be false violates 18 U.S.C. 1001.

• A person involved in a transaction reportable under the FECA who attempts to disguise itor misrepresents its source, purpose or amount “willfully causes” the treasurer of the recipientcommittee to furnish false information concerning the transaction to the FEC in violation of 18U.S.C. 2(b) and 1001.

Conspiracy to Defraud the United States: 18 U.S.C. 371

The “conspiracy to defraud” approach to FECA crimes is based on Hammerschmidt v. UnitedStates, 265 U.S. 182 (1924) which held that a conspiracy to defraud includes a “Conspiracy tointerfere with or obstruct one of [the federal government’s] lawful government function by deceit,craft, trickery, or at least by any means dishonest.”


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VIOLATIONS OF STATE CAMPAIGN FINANCING LAWS

All states have campaign finance laws which prohibit contributions from certainsources, in some instances they limit the amounts that can be given to state andlocal candidates, and in most instances they impose transparency requirements onstate and local candidates and political committees that are engaged in influencingstate and local elections. While federal law does not directly criminalize violations ofstate campaign finance laws, two fraud statutes (18 U.S.C. 1341 and 1346) havebeen used in recent past to reach certain violations of state campaign financing laws.


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MAIL FRAUD

• 18 U.S.C. 1341: Mail Fraud

The federal mail fraud statute prohibits the use of the mails to further a “scheme orartifice to defraud.” In McNally v. United States, 483 U.S. 350 (1987), the SupremeCourt ruled that a scheme to defraud citizens of the honest services of a publicofficial was not, in itself and in the absence of a proven pecuniary loss, a violation ofthe mail fraud statute.

• 18 U.S.C. 1346: Honest Services Fraud

In response to McNally, Congress passed 18 U.S.C. 1346, which defines a “schemeor artifice to defraud” for the purpose of mail and wire fraud statutes to include ascheme to deprive another of the “intangible right of honest services”.

United States v. Turner, 459 F.3d 775 (6th Cir. 2006): held that candidates do notowe a fiduciary duty of honest services to the public in the sense that public officeholders do, and that 1346 does not apply to schemes by candidates for public officeto violate state campaign financing laws.


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SCHEMES TO DIVERT CAMPAIGN FUNDS

Campaign fund diversion cases generally fall into three factual scenarios

A. Diversion by a candidate or campaign agent of incoming contributions to thecandidate or committee before the contributions are deposited

B. Embezzlement by a campaign agent or other person of contributions to acandidate or committee that have been deposited into a campaign’s account;and

C. Establishment of a fictitious political organization for the purpose of raising fundsto be converted to personal use.

Scenarios A and B include theft of contributions to a candidate which can beprosecuted as violations of 2 U.S.C. 439a or 18 U.S.C. 1341, 1346

Embezzlement of funds contributed to a political committee may be prosecuted asviolations of 18 U.S.C. 1341, 1346. All three scenarios can prosecuted as reportingoffenses under 2 U.S.C. 434 or as a violation of 18 U.S.C. 1001 (false statements).


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RECENT FECA PROSECUTIONS

U.S. v. Harber (EDVA): 2015: Tyler Harber, a congressional consultant, pled guilty to one countcoordinating federal election contributions and one count of making a false statement to FBI.Harber caused $325,000 in coordinated contributions by directing a PAC he created to purchasepolitical advertising opposing a rival candidate. Harber sentenced to 24 months imprisonment.This was the first prosecution for coordinating between political committees.

U.S. v Calhoun (DDC): 2013: Lee A. Calhoun, an executive for a DC based company pledguilty to a misdemeanor violation 441f, for knowingly and willfully permitting his name and thenames of his relatives to be used to disguise contributions to political action committees and thecampaign committees for

a candidate for U.S. President,

and candidates for the U.S.

Senate and House of

Representatives.


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U.S. v. Xing Wu Pan and Jia Hou 2013 (SDNY): As a result of an FBI undercover investigation,Pan and Hou were convicted after a jury trial for fraud in connection with scheme to defraudNYC by using straw donors to funnel illegal campaign contributions to a candidate’s campaignfor citywide election. One object of the scheme was to increase the amount of matchingcampaign funds from NYC. Hou was convicted of attempted wire fraud (18 U.S.C. 1343), onecount of obstruction of justice and false statements to FBI (18 U.S.C. 1512 and 1001). Pan wasconvicted of conspiracy to commit wire fraud (18 U.S.C. 1349) and attempted wire fraud.

U.S. v. Bigica: 2012 (DNJ): Joseph Bigica pled guilty to one count of conspiracy to violateFECA (18 U.S.C. 371) in connection with his use of conduit contributions of approximately100,000 made through 19 family, friends, and employees.

U.S. v. Timothy Mobley and Timothy Hohl 2012: (MD Fla): Mr. Mobley was a real estatedeveloper in Tampa and Mr. Hohl was his accountant. Both men pled guilty for their roles infunneling corporate contributions and contributions in excess of the legal limits to a state politicalparty and to the campaign of a Member of Congress using straw contributors whom Mobley andHohl reimbursed.


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U.S. v. Tigani: 2011 (DDel): Tigani pled guilty to two counts of violating 2 U.S.C. 441b(a) and441f and two counts of making materially false statement on income tax returns (26 U.S.C.7206(1). Mr. Tigani while president of N-K-S Distributors, directly and indirectly solicitednumerous NKS employees to make political contributions to federal and state candidates. Heused NKS non-payroll checks to reimburse the conduits for the contributions made on behalf ofTigani and the company. By doing this Tigani illegally bundled campaign contributions inviolation of state and federal contribution limits and in violation of federal ban on direct corporatecontributions. Total amount of illegal contributions was approximately $220,000.


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THE END – CLUB FED?

THANK YOU

Politics, Professional Responsibility & Prison · 10/22/2015 · The Legal Intelligencer....

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Transcript of Politics, Professional Responsibility & Prison · 10/22/2015 · The Legal Intelligencer....