Office of Campaign Finance Complaint about Committee to Re-Elect Kwame Brown to theBoard of Elections and EthicsJune 10, 2011

District of Columbia Office of Campaign Finance 2000 14^th
Street, NW Suite 420 Washington D.C. 20009, Complainant

v.

The Committee to Re-Elect Kwame Brown, Dawn Cromer, Treasurer 3330
Denver Street, SE Washington, D.C. 20020, Respondent

DOCKET NO.: BOEE _____

COMPLAINT

COMES NOW the District of Columbia Office of Campaign Finance and
submits a complaint against The Committee to Re-Elect Kwame Brown
(hereinafter respondent committee) for which Dawn Cromer serves as
treasurer and alleges the following:

Jurisdiction over this matter is vested in the District of Columbia
Board of Elections and Ethics (Board) pursuant to District of Columbia
Official Code §11103.02(c) (2001 Edition);

The District of Columbia Office of Campaign Finance (hereinafter
complainant) at all times relevant to this complaint, was vested with the
authority to enforce the District of Columbia Campaign Finance Reform and
Conflict of Interest Act of 1974 (Act), as amended by District of Columbia
Official Code §§ 11101.01 et seq;

Respondent Committee was designated as the Principal Campaign Committee
(PCC) for candidate Kwame R. Brown pursuant to District of Columbia
Official Code § 1-1102.06, and for purposes of filing required Report.

Respondent Committee registered as a Principal Campaign Committee with
the Office of Campaign Finance on April 24, 2007;

Respondent Committee supported the 2008 re-election campaign of
candidate Kwame R. Brown for the office of At-Large Member of the Council
of the District of Columbia;

At all times relevant to this complaint, the Respondent Committee was a
registered Principal Campaign Committee (PCC) with the Office of Campaign
Finance, which was obligated to file Reports of Receipts and Expenditures
in accordance with District of Columbia Official Code § 1-1102.06;

On April 4, 2011, the Reports Analysis and Audit Division (RAAD) of the
Office of Campaign Finance issued a Final Audit Report which determined
that the Respondent Committee was not in substantial compliance with the
Act;

Pursuant to the Final Audit Report, Complainant commenced an
investigation into alleged violations of the Act and concluded that the
Respondent Committee did in fact commit the violations which are the basis
for this complaint;

Complainant alleges that the Respondent Committee violated District of
Columbia Official Code § 1-1102.04(c), by failing to timely amend its
Statement of Organization to include bank account #1189735 which was
established at the Industrial Bank of Washington on August 20, 2008, and
in which $60,000.00 in campaign funds were deposited;

District of Columbia Official Code § 1-1102.04(c) provides in
pertinent part that, "Any change in information previously
submitted in a statement of organization shall be reported to the
Director within the 10 day period following the change."

Complainant alleges that the Respondent Committee violated District of
Columbia Official Code § 1-1102.04(c) by failing to timely amend its
Statement of Organization to include Che Brown as an officer of the
committee with signatory authority on bank accounts. Specifically, account
# 1189735 established at the Industrial Bank of Washington and identified
as respondent committee’s "Side Account" listed Che Brown as a
signatory;

District of Columbia Official Code § 1-1102.04(c)
provides in pertinent part that, "Any change in information
previously submitted in a statement of organization shall be reported to
the Director within the 10 day period following the change."

Complainant alleges that the Respondent Committee violated District of
Columbia Official Code § 1-1102.06 (b)(2) by failing to timely report 210
contributions totaling $102,763.00 which were received by the Committee;

District of Columbia Official Code § 1-1102.06 (b)(2) provides in
pertinent part that each report shall disclose, "The full name and
mailing address (including the occupation and the principal place of
business; if any) of each person who has made 1 or more contributions to
or for such committee or candidate (including the purchase of tickets
for events such as dinners, luncheons, rallies, and similar fundraising
events) within the calendar year in an aggregate amount or value in
excess of $50 or more , together with the amount and date of such
contributions."

Complainant alleges that the Respondent Committee violated District of
Columbia Official Code § 1-1102.06 (b)(8) by failing to timely report 210
contributions totaling $102,763.00 in the total sum of all receipts which
were received by the committee;

District of Columbia Official Code § 1-1102.06 (b)(8) provides in
pertinent part that each report shall disclose, "The total sum of
all receipts by or for such committee or candidate during the reporting
period."

Complainant alleges that the Respondent Committee violated District of
Columbia Official Code § 1-1102.06 (b)(9) by failing to timely report 53
expenditures totaling $169,431.49 that were made by the Committee;

District of Columbia Official Code § 1-1102.06 (b)(9) provides in
pertinent part that each report shall disclose, "The full name and
mailing address (including the occupation and the principal place of
business; if any) of each person to whom expenditures have been made by
such committee or on behalf of such committee or candidate within the
calendar year in an aggregate amount or value of $10 or more, the
amount, date, and purpose of each such expenditure."

Complainant alleges that the Respondent Committee violated District of
Columbia Official Code § 1-1102.06 (b)(10) by failing to timely report 53
expenditures totaling $169,431.49 in the total sum of all expenditures
that were made by the Committee;

District of Columbia Official Code § 1-1102.06 (b)(10) provides in
pertinent part that each report shall disclose, "The total sum of
expenditures made by such committee or candidate during the calendar
year."

Complainant alleges that the Respondent Committee violated District of
Columbia Official Code § 1-1102.01 (c)(3) by failing to produce detailed
records of expenditures made to prime consultant, Banner Consulting and
subcontractor, Partners in Learning;

District of Columbia Official Code § 1-1102.01 (c)(3) provides in
pertinent part that, "Except for account of expenditures made out
of the petty cash fund provided for under § 1-1102.03(b), the treasurer
of a political committee and each candidate, shall keep a detailed and
exact account of … All expenditures made by or on behalf of such
committee or candidate."

Complainant alleges that the Respondent Committee violated Title 3 of
the District of Columbia Municipal Regulations (3 DCMR) § 3400.2 by
failing to maintain proper records of receipts and expenditures;

3 DCMR § 3400.2 provides in pertinent part that, "Each required
filer, under § 3400.1 shall obtain and preserve, from the date of
registration, detailed records of all contributors and expenditures
disclosed in reports and statements filed with the Director, including the
following:

(A) Check stubs;

(B) Bank statements;

(C) Cancelled checks;

(D) Contributor cards and copies of donor checks;

(E) Deposit slips;

(F) Invoices;

(G) Receipts;

(H) Contracts;

(I) Payroll records;

(J) Tax records;

(K) Lease agreements; 

(L) Petty cash journals;

(M) Ledgers;

(N) Vouchers; and

(O) Loan documents;

Complainant alleges that the Respondent Committee failed at all times
relevant herein to fulfill its obligation to comply with the applicable
registration and reporting provisions of the Act;

Notwithstanding said obligation, and in breach of said obligation,
Respondent Committee failed to comply with several requests from
complainant for production of documents required to substantiate that all
expenditures of campaign funds were campaign related;

That as a result of the Respondent Committee’s failure to comply with
Complainant’s requests that it provide specific and detailed information
in connection with expenditures, Complainant remains unable to verify the
accuracy of the Reports of Receipts and Expenditures submitted by the
Respondent Committee;

That Respondent Committee’s non-compliance with Complainant’s requests
for the production of documents renders $174,785.57 in expenditures to
prime consultant Banner Consulting and sub-contractor Partners in Learning
unverifiable;

That Respondent Committee’s non-compliance with Complainant’s requests
for the production of documents renders the services provided in 54
invoices submitted by prime consultant Banner Consulting and
sub-contractor Partners in Learning unverifiable;

WHEREFORE, these premises considered, Complainant respectfully requests
that the Board:

Order the Respondent Committee to provide the bank records and
statements related to the financial transactions between Banner Consulting
and Partners in Learning;

Disallow all expenditures the Respondent Committee made to Banner
Consulting and Partners in Learning that are not supported by proper
documentation;

Order the Respondent Committee to seek reimbursement of the total
amount disallowed which upon receipt will be disposed of in accordance
with the provisions governing surplus campaign funds as prescribed by DC
Official Code § 1-1107.02; and

Any further relief the Board deems appropriate, including the
imposition of fines for the violations enumerated herein, or the referral
of this matter to the United States Attorney for the District of Columbia,
in accordance with the provisions of DC Official Code § 1-1103.01(c).

Respectfully submitted

William O. SanFord

General Counsel

Office of Campaign Finance

Date: June 10, 2011

Cecily E. Collier-Montgomery

Director

Office of Campaign Finance

CERTIFICATE OF SERVICE

I  HEREBY CERTIFY that a true and correct copy of the foregoing
Complaint was served via e-mail, and hand delivery, on this 10 day of
June, 2011,

to:

Frederick D. Cooke, Esq.

Rubin, Winston, Diercks, Harris & Cooke, LLP

Counsel for The Committee To Re-Elect Kwame R. Brown 1201 Connecticut
Avenue, NW Suite 200

Washington, DC 20036

William 0. SanFord