FEDERAL ELECTION COMMISSION In the matter of: Susan B. Anthony List Inc. Candidate Fund 2800 Shirlington Road Suite 1200 Arlington. VA 22206 Robert J. Kania ll, individually and as Former Treasurer ofthe Susan B. Anthon) MUR No.: List Inc. Candidate Fund 2800 Shirlington Road Suite 1200 Arlington, VA 22206 The Lukens Company 2800 Shirlington Road Floor Arlington, VA 22206 COMPLAINT 1. Campaign for Accountability and Alice C.C. Huling bring this complaint before the Federal Election Commission (?Commission? or seeking an immediate investigation and enforcement action against the Susan B. Anthony List Inc. Candidate Fund (?Candidate Fund?), Robert J. Kania 11, both individually and as the former Treasurer of the Candidate Fund, and The Lukens Company for direct and serious violations of the Federal Election Campaign Act and Commission regulations. Complainants 2. Complainant is a Section 501(c)(3) organization dedicated to ensuring accountability of public of?cials and compliance with federal laws. Toward this end, seeks to protect and advance the right of citizens to be informed about the activities of government of?cials and to ensure the integrity of government of?cials and the government decision-making process by exposing unethical and illegal conduct of those involved in government. uses research. litigation. and communications to advance its mission. 3. In furtherance of its mission. also monitors campaign ?nance activities of those who ?nance federal elections and publicizes information regarding those ho violate federal campaign ?nance laws. In order to assess whether an indi\ idual or entity is compl} ing with federal campaign finance laws. needs the information contained in disclosure reports political committees must ?le pursuant to FECA, 52 U.S.C. 11 CPR. 104.], 104.3. is hindered in its programmatic activity when an individual or entity fails to disclose campaign ?nance information in reports required by the FECA. 4. relies on the proper administration of the ECA's reporting requirements because the FECA-mandated disclosure reports are the only source of information can use to determine if an individual or entity is complying with the ECA. The proper administration of the FECA's reporting requirements includes mandating that all disclosure reports required by the FECA are properly and timely ?led with the EC. is hindered in its programmatic activity when the FEC fails to properly administer the reporting requirements. 5. Complainant Alice C.C. Huling is counsel1 to the Campaign for Accountability, a citizen of the United States, and a registered voter and resident of the District of Columbia. As a registered voter, Ms. Huling is entitled to receive information contained in disclosure reports required by the FECA, 52 U.S.C. 30104; 11 CPR. 104.2, 104.3. Ms. Huling is harmed when an individual, candidate, political committee, or other entity fails to report campaign ?nance activity as required by the FECA. See FEC v. Akins, 524 US. 11, 19 (1998), quoting Buckley v. Valeo, 424 US. 1, 66-67 committees must disclose contributors and disbursements to help voters understand who provides which candidates with ?nancial support?). Ms. Huling is further harmed Admitted to practice in New York only. Practicing in D. C. under the supervision of a member of the D. C. Bar. when the FEC fails to properly administer the FECA's reporting requirements. limiting her ability to review campaign ?nance information. Respondents 6. Susan B. Anthony List lnc. Candidate Fund. FEC Identi?cation Number (00332296. is a separate segregated l'und. Susan B. Anthony List. Inc. a membership organization. is the connected organization of the Candidate Fund. 7. Robert J. Kania 11 is a businessman and a former member of the board of directors of the Port Authority of Allegheny County who served as the Treasurer of the Candidate Fund for more than six years from January 1, 2013 through May 7, 2019. Mr. Kania ?led dozens of reports with the Commission throughout his tenure as Candidate Fund treasurer. 8. The Lukens Company is a political consulting ?rm that provides direct mail services to Republican candidates and committees. The company?s headquarters are located in the same building as the Candidate Fund?s of?ce.2 The Lukens Company provided direct mail services to the Candidate Fund during the 2017-2018 election cycle. Factual Allegations 9. On September 20, 2018, Mr. Kania ?led the Candidate Fund's 2018 September Report with the Commission stating that the Candidate Fund had paid The Lukens Company a total of $17,326.62 for three independent expenditures in the form of mailers supporting the election of Marsha Blackburn, Kevin Cramer, and Joshua Hawley to the US. Senate.3 In fact, the 3 Susan B. Anthony List and its connected organizations have worked with The Lukens Company for over a decade. Susan B. Anthony List, 2008 IRS Form 990, Schedule G, Part 1, available at 12. In fact, The Lukens? Company owner, Walter Lukens, and the Candidate Fund?s former Treasurer and current Susan B. Anthony List consultant, Frank Cannon, worked together on Gary Bauer?s 2000 presidential campaign. 3 FEC Form 3X, Independent Expenditures, 2018 September Report, Susan B. Anthony List lnc. Candidate Fund, Sept. 20, 2018, available at Candidate Fund had not made those payments to the Lukens Company.4 The Candidate und?s false independent expenditure reports caused it to overstate its total disbursements on its 2018 September Report and for the entire 2018 calendar year. The false expenditure reports also caused the Candidate Fund to understate its cash on hand at the close of the reporting period and for the 2018 calendar :xear.q 10. On October 19. 2018, Mr. Kania ?led the Candidate Fund's 2018 October Report with the Commission stating that the Candidate Fund had paid The Lukens Company an additional $24,154.26 for four independent expenditures in the form of mailers supporting the election of Claudia Tenney, Greg Gianforte, Cathy McMorris Rodgers, and Karen Handel to the US. House of Representatives.6 Again, the Candidate Fund had not made these payments to the Lukens Company.7 These false independent expenditure reports caused the Candidate Fund to again overstate its total disbursements on its 2018 October Report and further contributed it its overstatement for the 2018 calendar year. These false expenditure reports also caused the Candidate Fund to again understate its cash on hand at the close of the reporting period and contributed further to its understatement at the end the 2018 calendar year.8 4 FEC Form 3x, Debts and Obligations, Amended 2018 September Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at 5 Compare FEC Form 3X, Summary Page, 2018 Report, Susan B. Anthony List Inc. Candidate Fund, Sept. 20, 2018, available at with FEC Form 3x, Summary Page, Amended 2018 September Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at 6 FEC Form 3X, Independent Expenditures, 2018 October Report, Susan B. Anthony List Inc. Candidate Fund, Oct. 19, 2018, available at 7 FEC Form 3X, Debts and Obligations, Amended 2018 October Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at 3 Compare FEC Form 3X, Summary Page, 2018 October Report, Susan B. Anthony List Inc. Candidate Fund, Oct. 19, 2018, available at with FEC Form 3X, Summary Page, Amended 2018 October Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at 1 1. On October 25. 2018. Mr. Kania ?led the Candidate Fund's 2018 Pre-General Report and disclosed that the Candidate Fund had received a no-interest unsecured loan of$68.988.94 from The Lukens Company on October 15. 2018." It appears that this recorded loan included the previous reported expenditures that the Candidate Fund included in its September and October reports. plus additional funds.? On Januar) 31. 2019. Mr. Kania ?led the Candidate Fund's 2018 Year-End Report and claimed that the loan from The Lukens Company had been repaid on November 29, 2018.l Mr. Kania continued to ?le multiple reports with the Commission claiming that the loan from The Lukens Company had been repaid up until he was removed as treasurer of the Candidate Fund.'2 12. On April 4, 2019, the Commission sent a letter to Mr. Kania, as Treasurer of the Candidate Fund, informing him that the $68,988.94 loan from The Lukens Company constituted an illegal corporate contribution to the Candidate Fund pursuant to 52 U.S.C. 30118(a). The Commission noted that FECA de?nes a loan as a contribution unless the loan is received from a state or federally 9 FEC Form 3X, Schedule Loans, 2018 Pre-General Report, Susan B. Anthony List Inc. Candidate Fund, Oct. 25, 2018 available at ?0 FEC Form 3X, Schedule Debts and Obligations, Amended Pre-General Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at EC Form 3X, Schedule Debts and Obligations, Amended Post-General Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at '1 FEC Form 3X, Schedule Loans, 2018 Year-End Report, Susan B. Anthony List Inc. Candidate Fund, Jan. 31, 2019 available at '3 See FEC Form 3X, Schedule Loans, 2019 February Report, Susan B. Anthony List Inc. Candidate Fund, Feb. 20, 2019, available at FEC Form 3X, Schedule Loans, 2019 March Report, Susan B. Anthony List Inc. Candidate Fund, Mar. 20, 2019, available at FEC Form 3X, Schedule Loans, 2019 April Report, Susan B. Anthony List Inc. Candidate Fund, Apr. 18, 2019, available at and FEC Form 3X, Loan Information, 2019 May Report, Susan B. Anthony List Inc. Candidate Fund, May 20, 2019, available at charted depository institution pursuant to 11 CPR. The Commission warned Mr. Kania that the illegal corporate contribution would have to be refunded.'3 13. On April 8. 2019. ?led a complaint with the Allegheny County Board of Elections and the District Attorney's Of?ce in Allegheny County, seeking an investigation into \xhether Mr. Kania violated Campaign Finance Reporting Lau by failing to register a political committee named Americans Against Socialism and tile required reports with the Secretary of the Commonwealth of The complaint also alleged that Mr. Kania violated Campaign Finance Reporting Law by consenting to the use of corporate funds to make a prohibited corporate contribution or expenditure.? 14. On April 11, 2019, in response to CfA's complaint, Governor Tom Wolf removed Mr. Kania from his position on the board of directors of the Port Authority of Allegheny County.15 15. On April 17, 2019, based on the pending investigations by the Allegheny County Board of Elections and the Allegheny County District Attorney's Of?ce, requested that the Susan B. Anthony List, Inc. remove Robert Kania II from his positions as the treasurer of the Susan B. Anthony List, Inc. and its separate segregated fund, the Susan B. Anthony List, Inc. Candidate Fund.16 16. On May 7, 2019, the Commission sent another letter to Mr. Kania, as Treasurer of the Candidate Fund, again requesting an explanation for the apparently illegal $68,988.94 loan from ?3 Letter from the Federal Election Commission to Robert J. Kania ll, Treasurer, Susan B. Anthony List 1nc. Candidate Fund, Apr. 4, 2019 available at 1? Letter from Alice Huling, Counsel at Campaign for Accountability, to Stephen A. Zappala, Jr., Allegheny County District Attorney, et al., Apr. 9, 2019, available at '5 Ed Blazina, A ?er Transit Group's Urging, Gov. Wolf Replaces Port A utlwrity Board Member, PITTSBURGH POST- GAZETTE, April 1 l, 2019, available at l/Pittsburghers- 1008 l. '6 Letter from Alice Huling, Counsel at Campaign for Accountability, to Marjorie Dannenfelser, President, Susan B. Anthony List, Inc., et al., Apr. 17, 2019 available at the Lukens ompany.l7 Later that same day. the Candidate Fund ?led an amended Statement of Organization removing Mr. Kania as the Treasurer ofthe Candidate Fund. '3 17. After removing Mr. Kania as Treasurer. the Candidate Fund ?led amended versions of multiple reports to the Commission that re-characteri/ed the 336898894 loan from Lukens Company as a debt.? COUNT I 18. FECA and FEC regulations make it illegal for a corporation to make a contribution to a political committee. Moreover, FECA and EC regulations make it illegal for a political committee to knowingly accept or receive a contribution from a corporation and for any of?cer or director of a corporation to consent to making a corporate contribution to a political committee.20 FECA and FEC regulations de?ne the term ?contribution? to include a loan made by any person for the purpose of influencing a Federal election.? A corporation in its capacity as a commercial vendor may, however, extend credit to a political committee provided that the credit is extended in the ordinary course of the corporation?s business and the terms are substantially similar to ?7 Letter from the Federal Election Commission to Robert .I. Kania II, Treasurer, Susan B. Anthony List Inc. Candidate Fund, May 7, 2019, available at '3 FEC Form 1, Amended Statement of Organization, Susan B. Anthony List Inc. Candidate Fund, May 7, 2019, available at 149644768/201905079 149644768.pdf. '9 See FEC Form 3X, Schedule Debts and Obligations, Amended September Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at FEC Form 3X, Schedule Debts and Obligations, Amended October Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available a! FEC Form 3X, Schedule Debts and Obligations, Amended Pre-General Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at FEC Form 3X, Schedule Debts and Obligations, Amended Post-General Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at FEC Form 3X, Schedule Itemized Independent Expenditures, Amended Year-End Report, Susan B. Anthony List Inc. Candidate Fund, June 10, 2019, available at 3? 52 U.S.C. 30118(a); 11 C.F.R. 3' 52 U.S.C. 30101(8)(A)(i); ll C.F.R. extensions of credit to nonpolitical debtors that are of similar risk and size.22 In determining whether a commercial vendor extended credit in the ordinary course of business. the Commission considers (1) whether the commercial vendor followed its established procedures and its past practice in approving the extension ot?credit: (2) hether the commercial vendor receix ed prompt payment in full if it previously extended credit to the same political committee: and (3) the extension of credit conformed to the usual and normal practice in the commercial \endor's trade or industry.23 19. Mr. Kania and the Candidate Fund ?led multiple reports with the Commission disclosing that the Fund had received a $68,988.94 loan from the Lukens Company. It was only after the Candidate Fund learned that Mr. Kania was under investigation in the Commonwealth of for making illegal corporate contributions in a state race that the Candidate Fund removed him as treasurer and ?led amended reports re-characterizing the $68,988.94 loan as a debt. Throughout his tenure as Candidate Fund treasurer, Mr. Kania ?led dozens of reports with the Commission. Accordingly, the Commission should investigate to determine whether the Susan B. Anthony List Inc. Candidate Fund, Robert Kania, individually and as the Treasurer of the Susan B. Anthony List Inc. Candidate Fund, and The Lukens Company may have violated 52 U.S.C. 30118(a) and 11 CPR. COUNT II 20. FECA and FEC regulations require political committees to ?le regular reports that accurately disclose, inter alia, all expenditures in excess of $200, total disbursements for each reporting period and the calendar year, and the amount of cash on hand at the beginning and end of each reporting period and for the calendar year.U.S.C. ?30104(b); 11 can. 2l. In the months leading up to the 2018 general election. Mr. Kania and the Candidate Fund ?led multiple reports that misreported tens of thousands of dollars of expenditures that were not made. thereby grossly overstating the total amount of?disbursements made by the Candidate Fund in each reporting period and for the 2018 calendar year. These reports also grossly understated the amount ol?cash the Candidate Fund had at the beginning and end ol'euch reporting period and for the 2018 calendar year. The cumulative effect of these l?alse reports was to materially misrepresent the ?nancial condition of the Candidate Fund to the Commission and the public in the run-up to the 2018 general election. Further, Mr. Kania had ?led dozens of similar reports with the Commission over the course of his six years as treasurer and was familiar with the reporting requirements. Accordingly, the Commission should investigate the Susan B. Anthony List Inc. Candidate Fund and Robert Kania, individually and as the Treasurer of the Susan B. Anthony List Inc. Candidate Fund, for multiple violations of 52 U.S.C. 30104(b) and 11 CPR. Conclusion WHEREFORE. Campaign For Accountability and Alice C.C. Huling request that the Commission investigate whether respondents have violated the FECA and Commission regulations. declare the respondents to haw \iolated the FECA and Commission regulations. impose sanctions for these iolations and take such l'urther steps as may be appropriate. including. but not limited to. conducting an audit of the Susan B. Anthony List Inc. Candidate Fund pursuant to 52 use. 30111(b) and 11 CPR. 104.16. Ms; cad/x ON BFHALF OF co Alice C. C. Huling Counsel Campaign for Accountability 611 Avenue, SE. Su?e337 Washington, DC. 20003 (202) 780?5750 (phone) Admitted to practice in New York only. Practicing in D. C. under the supervision of a member of the D. C. Bar. Veri?cation Campaign for Accountability and Alice .C. l-Iuling hereby verify that the statements made in the attached Complaint are. upon information and belief. true. Sworn to pursuant to IR USC. 100]. .\li 0 CC. lluling District of Columbia:SS gawk SUBSCRIBED AND SWORN to before me on this day of August. 2019. 8 WM g" Dwain Notarf Public WW My Commission Expires: Apostasy!" 20270:50." o: