CREW FILES FEC COMPLAINT AGAINST MZM, INC.

21 Jun 2005 // Washington, DC – Earlier today, Citizens for Responsibility and Ethics in Washington (CREW) filed a complaint with the Federal Election Commission (FEC) alleging serious violations of the Federal Election Campaign Act (FECA) by MZM, Inc. and its president, Mitchell Wade. CREW filed its complaint in response to a San Diego Union-Tribune article in which three former employees of MZM, Inc. alleged that Wade forced the employees to make contributions to MZM’s political action committee and to specific candidates or risk losing their jobs.

Specifically, CREW’s complaint alleges that MZM and Wade violated the FECA by 1) forcing them to contribute to MZM’s PAC and to specific candidates; 2) by making illegal corporate conduit contributions to the PAC and to candidates.

CREW also asked the FEC to refer the matter to the Department of Justice for possible criminal prosecution. The penalties for making conduit contributions are particularly high: anyone convicted of making conduit contributions totaling more than $25,000 is subject to five years in jail and financial penalties of not less than 300% nor more than 1000% of the total amount of money involved in the violation.

CREW’s executive director Melanie Sloan said “if what MZM’s former employees have alleged is true, Mitchell Wade may well find himself in jail. This information, combined with the allegations that Wade paid Rep. Randy “Duke” Cunningham approximately $700,000 more than Cunningham’s house was worth to buy the property suggests that Wade has developed a pattern of violating the law. Both the FEC and the Department of Justice should immediately open investigations into Wade’s actions.”

***

CREW drafted the complaint against Tom DeLay, filed by former Congressman Chris Bell, for which DeLay was admonished last year.

For more information, please visit www.citizensforethics.org or contact Naomi Seligman at 202.588.5565/press@citizensforethics.org.

Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit, progressive legal watchdog group dedicated to holding public officials accountable for their actions.