Minority Leader's Fund-Raisers Fined
Tuesday, February 10, 2004
WASHINGTON — A fund-raising committee run by House Minority Leader Nancy Pelosi (search) was fined $21,000 for improperly accepting donations over federal limits, according to records and interviews.
The political action committee, Team Majority, was one of two PACs Pelosi used to support candidates during the 2002 campaign. She stopped raising and donating money through the committee more than a year ago, after complaints that she was using the multiple PACs improperly to exceed limits.
The fine, paid in October, was reported in Team Majority's year-end campaign finance records, released recently. The case is still open, and the Federal Election Commission (search) would not comment.
Pelosi spokesman Brendan Daly said the fine involved donations made to more than two dozen candidates from both of Pelosi's leadership PACs, Team Majority and PAC to the Future, that together exceeded federal limits.
"We checked with the FEC; we thought this was OK. When we found out it wasn't, we did everything aboveboard, and we've been complying with them," Daly said.
Daly said Pelosi would dissolve Team Majority after the FEC ends its case. Two Democrats — Maryland Rep. Chris Van Hollen (search) and Julie Thomas (search), who ran unsuccessfully for Congress in Iowa — have been fined $2,500 each in connection with donations received from the committee. A Democratic source said the agency was negotiating with a third congressional committee before closing the case.
Federal law dictates that if a person should control multiple PACs, they are considered affiliated and must adhere to limits as if they were one. Federal law limits PAC contributions to candidates to $5,000 per election. Donors to PACs can give $5,000 annually.
In the 2002 election cycle, Pelosi gave more than two dozen candidates the $5,000 maximum contribution from Team Majority as well as PAC to the Future, which is her main leadership PAC — thereby exceeding contribution limits.
Team Majority gave back more than $100,000 that was collected above limits, records show. It also collected more than $140,000 that Daly said was within the proper limits. That money was spent last year to support Pelosi's fund-raising activities, including money for salaries, legal fees and phone services, and $2,176 to entertain donors at a box at the Simon and Garfunkel Concert at the MCI Center in December, records show.
The fine was first reported Monday by Roll Call, the Capitol Hill newspaper.
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