LAW OFFICES or R. GRAY SEXTON ALESIA M. ARDOIN R. GRAY SEXTON BLANE A. WILSON alesiaardoln?sextonlaw.net graysexton?sextonlaw.net blancwilson?sextonlaw.net JENNIFER L. jennyjackson@sextonlaw.net *Alao licensed in Arkansas October 12, 2020 Joseph M. Bruno Bruno Bruno 855 Baronne Street New Orleans, LA 70113 Re: Jennifer Medley Campaign Dear Mr. Bruno: You have engaged our ?rm to conduct an analysis of Jennifer Medley?s campaign ?nance disclosure reports and other documents provided to determine her compliance with the Campaign Finance Disclosure Act. Based on our review of the documents submitted, we offer the following analysis in support of our opinion that it appears that Medley and IV Capital have conspired to intentionally circumvent the Campaign Finance Disclosure Act through her receipt of loans in excess of her $5,000 contribution limit by ?ling inaccurate campaign ?nance disclosure reports erroneously indicating that the loans were made from her personal funds. I. Background Based on the information, it appears that the Committee to Elect Jennifer Medley has received loans in excess of the limits allowed under the Campaign Finance Disclosure Act. Pursuant to La. R.S. Medley?s campaign is prohibited from receiving leans in excess of $5,000 from any person except for the candidate, a ?state bank? or a federally chartered depository institution.? We have not received any information, nor have we found any during our research, indicating that IV Capital, LLC is a ?state bank? or a ?federally chartered depository institution.? On September 11, 2020, Jennifer Medley executes a $50,000,000.00 Multiple Indebtedness Multiple Indebtedness Mortgage, Collateral Assignment of Leases and Rents and Security Agreement from IV Capital LLC. This Agreement is secured only by property at 4725 Baudin Street, New Orleans, Louisiana. On that same day, Medley borrows $100,000 from IV 8680 BLUEBONNET BOULEVARD, SUITE BATON ROUGE, LOUISIANA 70810 TELEPHONE (225)767?2020 FACSIMILE (225)767?0845 Mr. Joseph Bruno October 12, 2020 Page 2 of 3 Capital, LLC using the mortgage as collateral. Then (as reported in Medley?s Campaign Finance Disclosure Report ?led on October 5, 2020) Medley loaned her campaign $85,0000 on that same day, September 11, 2020 and she then loaned her campaign the remaining $15,000 a Week later on September 17, 2020. Unless Medley is able to show that the $100,000 she loaned to her campaign was not derived from the funds she received from IV Capital, LLC or that IV Capital, LLC is a state bank or other federally chartered depository institution? it is believed that the loans disclosed constitute violations of the Campaign Finance Disclosure Act. Additionally, because the loans were disclosed as personal loans from the candidate, the entity that loaned the money, IV Capital, LLC, has made a contribution ?through or in the name of another? which is prohibited under La. R.S. II. Law and Argument Medley is a candidate for Judge, Orleans Parish Civil District Court in the November 3, 2020 election. The office of Judge Orleans Parish Civil District Court is a ?major level office? within the meaning of La. R.S. La. R.S. prohibits a major level of?ce candidate from receiving a contribution in excess of $5,000. La. R.S. de?nes ?contribution? to include a gift, conveyance, payment, or deposit of money or anything of value, or the forgiveness of a loan or a of a debt, made for the purpose of supporting, opposing or otherwise in?uencing the nomination or election of a person to public office.? In Ethics Board Docket No. 2014-1324, the Ethics Board concluded that Patrick Williams violated La. R.S. by receiving loans from Bike, LLC in excess of his $2,500 contribution limit. Here, the information provided is that on September 11, 2020, Jennifer Medley executes a $50,000,000.00 Multiple Indebtedness Multiple Indebtedness Mortgage, Collateral Assignment of Leases and Rents and Security Agreement from IV Capital LLC. This Agreement is secured only by property at 4725 Baudin Street, New Orleans, Louisiana. Also on September 11, 2020, Medley borrows $100,000 from IV Capital, LLC using the mortgage as collateral. Then (as reported in Medley?s Campaign Finance Disclosure Report ?led on October 5, 2020) Medley loaned her campaign $85,000 on that same day, September 11, 2020 and she then loaned her campaign the remaining $15,000 a week later on September 17, 2020. Further, La. R.S. provides that no person shall give, furnish, or contribute monies, materials, supplies, or make loans to or in support of a candidate or to any political committee, through or in the name of another, directly or indirectly. In Ethics Board Docket No. 2014-1324, the Ethics Board concluded that John Settle violated La. R.S. when he Mr. Joseph Bruno October 12, 2020 Page 3 of 3 made a loan to Patrick Williams in the name of Haleaux, LLC. La. R.S. provides that any person who violates any provision of Subsection of Section 1505.2 shall be assessed a penalty of not more than $5,000 or the amount of the violation, whichever is greater, except that the penalty for a knowing and willful violation shall be not more than $10,000 or 200% of the violation, Whichever is greater. Moreover, La. R.S. 18:1505.6 states that any person who ?knowingly, willfully and fraudulently fails to accurately disclose? any required information shall be subject to criminal penalties. ?Knowing and willful? means conduct which could have been avoided through the exercise of due diligence. Medley has evidenced knowledge of the campaign ?nance laws through her inaccurate disclosure of her loans as ?persona loans which are not subject to the contribution limit. Conclusion For these reasons, unless Medley is able to show that the $100,000 she loaned to her campaign was not derived from the funds she received from IV Capital, LLC or that IV Capital, LLC is a ?state ba or other ?federally chartered depository institution,? it is our opinion that the loans constitute violations of the Campaign Finance Disclosure Act.