United States v. Sorenson

233 F. Supp. 3d 690, 2017 WL 194283, 2017 U.S. Dist. LEXIS 6553
CourtDistrict Court, S.D. Iowa
DecidedJanuary 18, 2017
Docket4:14-cr-00103
StatusPublished

This text of 233 F. Supp. 3d 690 (United States v. Sorenson) is published on Counsel Stack Legal Research, covering District Court, S.D. Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Sorenson, 233 F. Supp. 3d 690, 2017 WL 194283, 2017 U.S. Dist. LEXIS 6553 (S.D. Iowa 2017).

Opinion

SENTENCING MEMORANDUM

ROBERT W. PRATT, Judge U.S. DISTRICT COURT

I. INTRODUCTION

On January 17, 2017, this Court sentenced Kent Leroy Sorenson (“Defendant”) to a term of incarceration of fifteen months. This memorandum explicates the Court’s analysis and reasoning for the sentence.

On August 27, 2014, Defendant pled guilty to one count of willfully causing false reports of federal campaign expenditures in violation of 52 U.S.C. § 30109(d)(l)(A)(i),1 a class D felony; and one count of falsifying records in contemplation and relation to a federal investigation intending to obstruct justice in violation of 18 U.S.C. § 1519, a class C felony. See 18 U.S.C. § 3559. His plea was accepted on September 16, 2014, and this Court is now tasked with crafting a sentence that was “sufficient, but not greater than -necessary,” to “reflect the seriousness of the offense[s], ... promote respect for the law, ... provide just punishment for the offense[s],” and “afford adequate deterrence to criminal conduct.” 18 U.S.C. § 3553(a)(2).

II. FACTUAL BACKGROUND

Defendant first entered public service when he was elected to the Iowa House of Representatives in 2008. He was subsequently elected to the Iowa Senate in 2010. Defendant was serving as a state senator leading up to the delegate selection process for the 2012 presidential election. Defendant was working for Michele Bach-mann’s presidential campaign as its Iowa campaign chair from March through December 2011. Though Defendant’s work for the campaign was public, his compensation was intentionally hidden from view. He was first paid by MichelePAC, a political action committee (“PAC”) supporting Bachmann’s candidacy, and eventually paid by the Bachmann for President committee.

While Defendant worked for the Bach-mann campaign, his wages were insulated from scrutiny by funneling the payments through a consulting company in Colorado called C & M Strategies, then transmitting them to Grassroots Strategies, Inc., a corporation Defendant owned, and eventually being withdrawn by Defendant or his wife as individual income. In all, Grassroots Strategies received nearly $60,000 from C & M Strategies, Defendant and his wife withdrew $30,700 as personal income from Grassroots Strategies, and an additional amount totaling $10,362 was withdrawn from Grassroots Strategies in cash or on checks payable to “Cash.” None of these payments were reported to the Federal Elections Committee (“FEC”). Defendant expressly requested his wages not be reported because he was aware that his acceptance of the payments might have constituted a violation of the Iowa Senate Code of Ethics.2

In late 2011, Defendant through several surrogates began to negotiate a change in [693]*693his presidential endorsement with Ron Paul’s campaign. One of Defendant’s surrogates, Aaron Dorr, sent an email to John Tate, Paul’s national campaign manager, demanding an $8000 per month salary and a $100,000 donation to the Iowa Conservatives Fund PAC in exchange for Defendant’s allegiance. Paul’s campaign chairman, Jesse Benton, replied to the email by decrying the attempted sale of a political endorsement as unethical. Dorr attempted to guard Defendant from these accusations and responded that Dorr himself, not Defendant, had made the demands. Regardless, the Paul campaign continued to seek Defendant’s endorsement through in-person meetings with Dimitri Kesari, Paul’s deputy national campaign manager.

Defendant’s transition away from Bach-mann’s campaign and towards Paul’s accelerated in late December of 2011. On December 26, Kesari personally gave Defendant’s wife a $25,000 check, drawn on the account of a retail company owned by Kesari and his wife. The check was issued in exchange for Defendant’s public support of Paul’s candidacy and for unspecified work for the campaign. Defendant held the check but did not cash it. Around this period of time, Kesari and Defendant agreed that Defendant would receive $8000 per month from the Paul campaign and that the payments would be concealed from the public and the FEC.

On December 28, Defendant appeared at a Paul campaign event to publicly endorse Paul for the first time. By the following day, December 29, Defendant came under heavy criticism for his sudden defection and was accused of accepting secret payments in exchange for his endorsement. Defendant gave media interviews in which he flatly and repeatedly denied being offered payment from the Paul campaign or anyone associated with it. He denied that he had received any money and asserted the Paul campaign’s FEC filings would prove as much.

Throughout 2012, Defendant received the additional agreed-upon payments. Between the $25,000 check and the monthly installments, Defendant received $73,000 in total. Kesari and his surrogates transmitted the payments to a film production company in Maryland, which would then in turn remit the payments to Grassroots Strategies. By using this payment scheme, much like the scheme the Bachmann campaign had used to pay Defendant, the Paul campaign omitted Defendant’s name and payments from its FEC filings. By the end of the election cycle that year, Defendant had received $132,915.47 from the Bach-mann and Paul campaigns. None of that amount was reported to the FEC by either campaign.

The following year, on January 28, 2013, a former staff member of Bachmann’s campaign filed a complaint with the Iowa Senate Ethics Committee (“Ethics Committee”) alleging Defendant violated the Iowa Senate Code of Ethics by accepting payment from Bachmann’s committee and from MichelePAC in exchange for his services to the campaigns.3 On May 1, 2013, the Ethics Committee issued a request to the Chief Justice of the Iowa Supreme Court to appoint an independent investigator to evaluate the allegations in the complaint. The Chief Justice thereafter appointed Mark Weinhardt as independent counsel to the Ethics Committee.

Weinhardt deposed Defendant on the record on September 19, 2013. Throughout the deposition, Defendant continued to deny that he received any payment from either the Bachmann or Paul campaign for [694]*694any services or his endorsement. When confronted about the payments to Grassroots Strategies from the Maryland film production company, Defendant asserted h@ was paid .as a film location scout and expressly denied the payments were related to Paul’s campaign. After memorializing several falsehoods on .the record, Defendant invoked the Fifth Amendment and refused to answer further questions or cooperate with the investigation. After completing his investigation, Weinhardt issued a final report, which concluded there was probable 'cause for the complaint alleging Defendant was compensated by the Bach-mann campaign. The report also noted Defendant denied he received such compensation on the record, both in writing and at his deposition.

Ón August 27, 2014, the Government filed the two-count Information in this case.

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Bluebook (online)
233 F. Supp. 3d 690, 2017 WL 194283, 2017 U.S. Dist. LEXIS 6553, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-sorenson-iasd-2017.