Vincent Gentile CD#43 (2009)

1.

Exceeding the expenditure limit

$25,757

Candidates who participate in the Campaign Finance Program must abide by limits on the amount of money they can spend on their campaigns. See Admin. Code 3-703(1)(i), 3-706, 3711(2)(a); Board Rules 1-08(d), (l). The expenditure limit for candidates running for City Council in the 2009 election was $161,000. See Admin. Code 3-706. The Campaign exceeded the general election expenditure limit by $18,325.11, which is 11.3% over the limit. Pursuant to the Guidelines for Staff Recommendations for Penalty Assessments for Certain Violations for the EC 2009 (the Penalty Guidelines), the baseline penalty for this violation is 2.5 times the amount of the overage, or $45,812. The penalty for this violation reflects the fact that exceeding the expenditure limit is one of the most serious violations of the Act and Board Rules and undermines the purpose of the Campaign Finance Program, and the penalty serves to deter participating candidates from violating the limit.1 The Board assessed a penalty of $25,757 for this violation. 2. Failing to report daily pre-election expenditures exceeding $20,000 during the two weeks preceding the election

$100

During the two weeks preceding an election, campaigns are required to report to the Board expenditures made in excess of $20,000, within 24 hours after the expenditures are made, and must report the expenditures in the Campaigns next disclosure statement. See Board Rule 3-02(e). The Campaign paid New Gotham Strategies, LLC, the following amounts during the 14day pre-election period: Transaction ID Trans ID 15/F/R0002091 Trans ID 15/F/R0002093 Trans ID 15/F/R0002095 Trans ID 15/F/R0002097 Trans ID 15/F/R0002101 Trans ID 15/F/R0002099 Invoice Date 10/27/09 10/28/09 10/28/09 10/28/09 11/1/09 11/1/09 Amount $12,256.33 $1,216.79 $612.22 $12,280.45 $609.00 $1,442.59

The Campaign also spent $43,567.88 more than the 2006-2008 spending limit of $43,000. This amount was counted against the general election spending limit. See Admin. Code 3-706(2).

The payments to New Gotham exceeded $20,000 as of October 28, 2009 (with Transaction 15/F/R0002097), and thus, the Campaign was required to report this expenditure and every other payment to New Gotham thereafter. Ultimately, the six expenditures totaled $28,417.38. As the CFB informed campaigns prior to the general election, and as has been the practice of the Board in past elections, the reporting requirement under Board Rule 3-02(e) is triggered by expenditures that in the aggregate exceed $20,000. On October 19, 2009, the CFB sent an email reminder of this Rule and its application to all 2009 primary and general election candidates and treasurers. As a participating candidate in multiple elections, Mr. Gentile and the Campaign should be familiar with this Rule and the way it is interpreted and enforced by the Board. Moreover, the Campaign was specifically reminded of this rule only nine days before its aggregate expenditures first exceeded the $20,000 limit. Accordingly, pursuant to the Penalty Guidelines, the Board assessed the baseline penalty of $100 for this violation. 3. Accepting corporate contributions $625

Campaigns may not accept, either directly or indirectly, a campaign contribution, loan, guarantee or other security for such loan, from any corporation. See Admin. Code 3-703(1)(l); Board Rule 1-04(e). The Campaign accepted the following corporate contributions: 1) $200 from Brian Butler P.C. on September 27, 2007 (Trans ID 4/ABC/R0001032) 2) $250 from the Brooklyn Chamber of Commerce on June 3, 2008 (Trans ID 5/ABC/R0001423) 3) $600 from Kopperfields on September 19, 2006 (Trans ID 2/D/R0000759) The Campaign was first notified of the Butler and Chamber of Commerce contributions on April 14, 2009, with a refund due date of April 28, 2009. The contributions were refunded on July 13, 2009. The Campaign was notified of the Kopperfields contribution on August 31, 2010 in the Draft Audit Report and instructed to refund the contribution immediately; the Campaign did so on November 26, 2010. Pursuant to the Penalty Guidelines, the penalty for the contributions from Brian Butler P.C. and Brooklyn Chamber of Commerce, which were refunded after the deadline, is $250 each, and the penalty for the contribution from Kopperfields, which was considered to be refunded promptly, is $125, resulting in a total penalty of $625 for the three contributions. The Board assessed a total penalty amount of $625 for accepting three corporate contributions. 4. Accepting over-the-limit contributions $250

Campaigns may not accept contributions from a single source in excess of the applicable contribution limit for the entire election cycle. See Admin. Code 3-702(8), 3-703(1)(f); Board Rules 1-04(c)(1), 1-04(h), 1-07(c). The contribution limit for candidates running for City Council in the 2009 election was $2,750. See Admin. Code 3-703(1)(f). The Campaign

received the following amounts from Andrew Kohen: $1,000 on September 17, 2006 (Trans ID 2/ABC/R000448); $1,250 on November 19, 2007 (Trans ID Trans ID 4/ABC/R000931); and $1,500 on November 21, 2007 (Trans ID 4/ABC/R000933), resulting in a total of $3,750 received from Mr. Kohen. The Campaign returned the $1,000 over-the-limit portion of the contributions from Mr. Kohen after notification from the CFB that the contributions were in violation of the Act and Board Rules. Pursuant to the Penalty Guidelines, the Board assessed the baseline penalty of $250 for these violations. 5. Failing to attribute partnership/limited liability company contributions in excess of $2,500

$50

For a contribution from a limited liability company (LLC) exceeding $2,500 received prior to December 31, 2007, campaigns are required to report the individual amounts contributed by each partner or member of the LLC if the individual amounts exceeded $99. See Local Law No. 34 of 2007, Admin. Code 3-703(1)(d), (l); Board Rules 1-04(e), (i), 3-03(c)(8) in effect prior to December 31, 2007. The Campaign received a $2,500 contribution on October 5, 2006, and another $200 contribution on September 28, 2007, from ASG Equities LLC. Although the contributions received from this LLC exceeded $2,500, the Campaign did not report the individual amounts received from each partner or member of the LLC. The Board assessed the baseline penalty of $50 for this violation. 6. Improper post-election expenditure $100

After an election and before repaying leftover campaign funds to the Board, participating candidates may spend campaign funds only to pay campaign-related expenses incurred in the preceding election and for routine activities involving nominal cost associated with winding up a campaign and responding to the post-election audit. See Admin. Code 3-710(2)(c); Board Rules 1-03(a), 5-03(e)(2). The Campaign paid $75 to Dyker Heights Civic Association for an invoice dated December 15, 2009 that, due to the expenditures timing and purpose, is an improper post-election expenditure. The Board assessed the baseline penalty of $100. 7. Filing a disclosure statement 41 days late Violation; no penalty

Campaigns are required to file complete and timely disclosure statements on scheduled dates. See N.Y.C. Charter 1052(a)(8); Admin. Code 3-703(6), 3-708(8); Board Rules 109(a), 3-02. The due date for Disclosure Statement No. 6 was January 15, 2009, but the Campaign filed it 41 days late, on February 25, 2009. The Board did not assess a penalty for this violation because the Campaign is already being penalized for exceeding the expenditure limit, which resulted from the same error that, according to the Campaign, caused them to file this disclosure statement late.