In re Audit Campaign Finance Reports of Dawkins

98 A.3d 755, 2014 Pa. Commw. LEXIS 455
CourtCommonwealth Court of Pennsylvania
DecidedAugust 27, 2014
StatusPublished

This text of 98 A.3d 755 (In re Audit Campaign Finance Reports of Dawkins) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Audit Campaign Finance Reports of Dawkins, 98 A.3d 755, 2014 Pa. Commw. LEXIS 455 (Pa. Ct. App. 2014).

Opinion

OPINION BY

Judge COVEY.

Jason Dawkins (Dawkins) won the May 2014 Democratic primary election for state representative of the 179th Legislative District over James W. Clay, Jr. (Clay). Shakeya Gray, Tyree Campbell, Rev. James W. Clay, Sr., Phylicia Judge, Henry Watkins, Edward Webb and Thomas Neil-son (Neilson) (collectively, Petitioners) filed a Petition to Audit Campaign Finance Reports of Dawkins, “Friends of Jason Dawkins,” “Moving Frankford Forward 527” and “Moving Frankford Forward” (Petition)1 in this Court’s original jurisdiction pursuant to Section 1636 of the Pennsylvania Election Code (Election Code),2 25 P.S. § 3256. Petitioners claim that: (1) Dawkins, Thompson and Moving Frank-ford Forward willfully and fraudulently violated the Election Code by committing numerous campaign reporting violations as [756]*756“Friends of Jason Dawkins”; (2) Dawkins, Thompson and Moving Frankford Forward willfully and fraudulently violated the Election Code by committing numerous campaign reporting violations as “Moving Frankford Forward 527”; and, (3) Moving Frankford Forward’s union printing seal commonly known as the “union bug” was counterfeit and a fraudulent attempt to have voters believe the campaign paid for and used a union printing company to print Dawkins’ campaign literature.

Dawkins and Moving Frankford Forward’s treasurer Kisha Thompson (Thompson) (collectively, Respondents) answered the Petition. Respondents denied Petitioners’ allegations, although they admitted that Moving Frankford Forward originally existed as an Internal Revenue Service (IRS) tax exempt 527 organization and stated that they had no knowledge of a campaign or political action committee under the name “Friends of Jason Daw-kins.”

Pursuant to this Court’s June 80, 2014 order, Pennsylvania’s Department of State (Department) certified that Moving Frank-ford Forward filed the following campaign finance reports:

a. 2014 24-Hour Campaign Finance Report (Cert. No. 2014-125B);
b. 2014 24-Hour Campaign Finance Report (Cert. No. 2014-126B);
c. 2014 2nd Friday Pre-Primary Campaign Finance Report (Cert. No. 2014-123B);
d. 2014 30-Day Post-Primary Campaign Finance Report (Cert. No. 2014-111B); and,
e. 2013 Annual Campaign Finance Report (Cert. No. 2014-122B).

Department’s July 9, 2014 Certification (Dep’t Cert.) at 1. The Department further certified that “[n]o campaign finance reports for Jason Dawkins, ‘Friends of Jason Dawkins,’ or ‘Moving Frankford Forward [ ]527[ ]’ ha[d] been filed with the [Department]” as of July 9, 2014. Dep’t Cert, at 2.

Campaign Finance Report Audit

The Pennsylvania Supreme Court has explained:

[T]he audit is the instrument that triggers the enforcement mechanism of the Election Code. The scope of these audits is not limited to whether the candidate’s return is arithmetically correct; but extends to a determination of whether ‘any person, whether a candidate or not, has accepted contributions or incurred expense or has expended or disbursed money in contravention of this act, or has otherwise violated any of the provisions of this act.’ [Section 1611(c)] [of the Election Code], 25 P.S. [§] 3231(c)

Brunwasser v. Fields, 487 Pa. 283, 409 A.2d 352, 354 (1979). This Court has made clear:

The Election Code reporting requirements carry out the evident legislative intent that expense accounts of candidates for public office be subject to the closest scrutiny.... In Commonwealth v. Beck, 810 A.2d 736 (Pa.Cmwlth.2002), we explained:
The importance of campaign reporting requirements is obvious: by preserving public access to the manner in which campaign money is received and spent, public confidence in the election process is maintained. [Can[757]*757didate’s] willful refusal to comply with the registration and reporting requirements prevents verification of campaign receipts and expenses, thereby imperiling confidence in the election. This is the mischief the Legislature sought to avoid....

Id. at 746.

An audit is the enforcement mechanism used to carry out that intent.... If a trial court determines upon reviewing the audit that any person has accepted contributions, incurred expenses, expended or disbursed money in contravention of the Election Code or otherwise violated any provision of the Election Code, the trial court shall certify its decision to the appropriate prosecutorial officer who shall institute criminal proceedings as deemed necessary. [See Section 1636(b) of the Election Code, 25 P.S. § 3256(b).] If a candidate is found by any court of this Commonwealth in criminal proceedings to have willfully accepted contributions or made any expenditure in contravention of the Election Code, the candidate may be subject to such penalties as forfeiture of office. [See Section 1637 of the Election Code, 25 P.S. § 3257.] However, ‘[i]t can fairly be said that the legislature did not intend all violations — e.g., minor or trivial infractions — of the Election Code to be the basis for such harsh penalties as forfeiture of office or criminal prosecutions.’ Brunwasser, ... 409 A.2d at 356.

In re: Petition to Audit Campaign Fin. Reports of Cartwright, 900 A.2d 448, 453 (Pa.Cmwlth.2006) (citations and footnotes omitted).

This Court conducted a hearing on August 6, 2014 in Philadelphia at which time Petitioners’ counsel presented evidence in support of Petitioners’ claims. Petitioners first called Thompson as a witness. Thompson confirmed Petitioners’ claim that Moving Frankford Forward was originally formed in June 2013 as a “527.” Thompson testified that on June 10, 2013, she filed on Moving Frankford Forward’s behalf IRS Form 8871 (Political Organization Notice of Section 527 Status) for exemption from filing IRS Form 990 (Return of Organization Exempt from Income Tax). Petition Ex. B. Moving Frankford Forward, with IRS 527 status, filed its initial Political Committee Registration Statement with the Department on June 14, 2013. Petition Ex. C.

Thompson explained that on January 14, 2014, after she received information from the Department regarding Moving Frank-ford Forward supporting a specific candidate, she filed an amended Political Committee Registration Statement with the Department designating Moving Frank-ford Forward as candidate Dawkins’ authorized campaign committee. Moving Frankford Forward’s authorized chairperson is D’Andra Lewis. Thompson is its authorized treasurer. See Hearing Exs. R-l, R-2. Thompson stated that, thereafter, Moving Frankford Forward did not exist as a 527. She also represented that Moving Frankford Forward did not coordinate with any candidate’s campaign before it became candidate Dawkins’ authorized campaign committee in January 2014. Thompson testified that she attended campaign finance report training, and regularly contacted the Department when she had recording and reporting questions.

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Related

Commonwealth v. Beck
810 A.2d 736 (Commonwealth Court of Pennsylvania, 2002)
Stilp v. COM., GENERAL ASSEMBLY
940 A.2d 1227 (Supreme Court of Pennsylvania, 2007)
Brunwasser v. Fields
409 A.2d 352 (Supreme Court of Pennsylvania, 1979)
Commonwealth v. Serge
896 A.2d 1170 (Supreme Court of Pennsylvania, 2006)
Chatham Racquet Club v. Commonwealth
561 A.2d 354 (Commonwealth Court of Pennsylvania, 1989)
Cole v. Evanina
590 A.2d 72 (Commonwealth Court of Pennsylvania, 1991)
In re Petition to Audit Campaign Finance Reports of Cartwright
900 A.2d 448 (Commonwealth Court of Pennsylvania, 2006)

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98 A.3d 755, 2014 Pa. Commw. LEXIS 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-audit-campaign-finance-reports-of-dawkins-pacommwct-2014.