July 27, 2015

ADLF FILES COMPLAINT FOLLOWING POSSIBLE DONALD TRUMP VIOLATION

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The American Democracy Legal Fund has filed a complaint with the Federal Election Commission against Donald Trump for violating the Federal Election Campaign Act of 1971.

According to public news reports, Mr. Trump hired actors to fill out the audience at an event announcing his candidacy for president on June 16, 2015. To help with these efforts, Mr. Trump and his campaign committee hired Gotham Government Relations & Communications LLC, a public relations firm.  Gotham asked Extra Mile Inc., a corporate casting agency, to recruit actors to attend the event.

Although it has been reported that Donald J. Trump for President, Inc. paid actors to attend Mr. Trump’s June 16, 2015 campaign launch, the committee’s July quarterly report, which covers the period from April 2, 2015 to June 30, 2015, does not include a disbursement to either of the identified actors who were photographed attending the event (Domenico Del Giacco and Courtney Klotz) nor to the casting agency, Extra Mile, that was hired to recruit actors. The report also did not disclose any in-kind contributions from Gotham.

Because Mr. Trump did not disclose any disbursements to paid actors that attended the June 16 campaign launch event, or to the entities recruiting and paying the actors, he and his campaign committee violated the Act.

The complaint is available in full below and here. The American Democracy Legal Fund holds candidates for office accountable for possible ethics and/or legal violations. It was established by David Brock and is run by Brad Woodhouse.

 

BEFORE THE
FEDERAL ELECTION COMMISSION

American Democracy Legal Fund

455 Massachusetts Avenue NW

Washington, DC 20001

 

Complainant,

v.

Donald J. Trump

725 Fifth Avenue

New York, NY 10022

 

Donald J. Trump for President, Inc. and Timothy Jost, Treasurer

725 Fifth Avenue

New York, NY 10022

 

Gotham Government Relations & Communications LLC

2 Wall Street

Suite 302

New York, NY 10005

 

Extra Mile Inc.

1130 Bedford Avenue

#52

Brooklyn, NY 11216

Respondents.

 

COMPLAINT

Complainant files this complaint under 52 U.S.C. § 30109(a)(1) against Donald J. Trump; Donald J. Trump for President, Inc. and its treasurer, Timothy Jost, in his official capacity; Gotham Government Relations & Communications LLC; and Extra Mile Inc. (collectively, “Respondents”) for violating the Federal Election Campaign Act of 1971, as amended (“the Act”) and Federal Election Commission regulations, as described below.

  1. FACTS

            Donald Trump announced his candidacy for President of the United States on June 16, 2015.  He held an announcement event at Trump Towers in New York City.  According to public news reports, Mr. Trump hired actors to fill out the audience at the announcement event.   To help with these efforts, Mr. Trump and his campaign committee hired Gotham Government Relations & Communications LLC (“Gotham”), a public relations firm.  Gotham is a domestic limited liability company registered with the New York Department of State since January 16, 2008.  Gotham asked Extra Mile Inc., a corporate casting agency, to recruit actors to attend the event.  Extra Mile is a domestic business corporation registered with the New York Department of State since November 19, 2002.  Extra Mile sent an email to its client list of background actors offering $50 to attend Mr. Trump’s June 16 event and “wear t-shirts and carry signs and help cheer [Mr. Trump] in support of his announcement.”  Mr. Trump’s campaign spokesperson has denied paying actors to attend the event; however, at least two professional actors were photographed attending Mr. Trump’s campaign launch event.  Specifically, Domenico Del Giacco, an actor, posted a photo to his Instagram account of himself with Courtney Klotz, a member of the Screen Actors’ Guild, wearing Trump t-shirts and holding pro-Trump campaign signs.  Public reports also indicate that at least Mr. Del Giacco was paid for his attendance.

On July 15, 2015, Mr. Trump’s campaign committee filed its first quarterly report disclosing all of its receipts and disbursements since he announced his candidacy.  However, the report did not disclose any expenditures to Gotham or Extra Mile for their services nor did it disclose paying Mr. Del Giacco or Ms. Klotz directly for their services.  The report also did not disclose any in-kind contributions from Gotham.

  1. LEGAL ARGUMENT
  2. Mr. Trump failed to report his campaign’s disbursements to Extra Mile or the paid actors as required under 52 U.S.C. § 30104(b)(4).

            Under 52 U.S.C. § 30104(b)(4), an authorized campaign committee, like Mr. Trump’s, must file a quarterly report with the Commission that includes all of the committee’s disbursements during the reporting period.  Although it has been reported that Donald J. Trump for President, Inc. paid actors to attend Mr. Trump’s June 16, 2015 campaign launch, the committee’s July quarterly report, which covers the period from April 2, 2015 to June 30, 2015, does not include a disbursement to either of the identified actors who were photographed attending the event (Mr. Del Giacco and Ms. Klotz) nor to the casting agency, Extra Mile, that was hired to recruit actors.  Because Mr. Trump did not disclose any disbursements to paid actors that attended the June 16 campaign launch event, or to the entities recruiting and paying the actors, he and his campaign committee violated the Act.

  1. Extra Mile made an impermissible in-kind corporate contribution to Donald Trump.

Corporations such as Extra Mile are prohibited from making contributions in connection with any federal election.   Likewise, a candidate for federal office is prohibited from accepting a prohibited corporate contribution.  A contribution is defined to include “any direct or indirect payment, distribution, loan, advance, deposit, or gift of money, or any services, or anything of value” to a political committee in connection with any federal election.  Anything of value includes in-kind contributions, such as goods or services provided without charge or at a charge that is less than the usual and normal charge for such goods or services.  In-kind contributions are treated as if the committee expended funds to purchase the goods or services.

Because Mr. Trump’s authorized committee did not report paying Extra Mile for its services in recruiting actors to attend the June 16, 2015 event, Mr. Trump accepted and Extra Mile made an impermissible corporate contribution.  Additionally, if Extra Mile compensated actors for attending the June 16 campaign launch and was not reimbursed for those payments, then its payments were also impermissible in-kind contributions to Mr. Trump’s campaign.  Because making and accepting corporate contributions are violations of 52 U.S.C. § 30118(a), Mr. Trump, his campaign committee, and Extra Mile violated the Act.

  1. Gotham may have made an impermissible in-kind corporate contribution to Donald Trump or exceeded its permissible contribution limits to Mr. Trump.

Like a corporation, a limited liability company  is prohibited from making campaign contributions if it elects to be treated as a corporation by the Internal Revenue Service (IRS).  If a limited liability company elects to be treated as a partnership by the IRS, it may contribute up to $2,700 per election to a federal candidate.  Under 52 U.S.C. § 30104(b)(3), an authorized campaign committee must itemize all of its contributions in excess of $200 (including in-kind contributions) in its quarterly reports.

Mr. Trump’s authorized committee did not report an in-kind contribution from Gotham on its second quarter report.  Mr. Trump’s authorized committee also did not report paying Gotham for its services in hiring and supervising Extra Mile or reimbursing Gotham for compensating actors.  Thus, the FEC should investigate whether Gotham made an impermissible in-kind corporate contribution to Mr. Trump’s campaign.  As discussed above, making and accepting corporate contributions are violations of 52 U.S.C. § 30118(a), and therefore Gotham, Mr. Trump, and his campaign committee, may have violated the Act.  If Gotham has elected to be treated as a partnership by the IRS and is permitted to make contributions of up to $2,700 per election to Mr. Trump’s campaign, the FEC should investigate whether Gotham’s in-kind contributions exceeded the $2,700 limit and therefore violated 52 U.S.C. § 30116(a)(1).  Finally, the FEC should investigate whether Gotham made a permissible in-kind contribution that Mr. Trump failed to properly report as required by 52 U.S.C. § 30104(b)(3).

  1. REQUESTED ACTION

As shown, Mr. Trump, Donald J. Trump for President, Inc., and Timothy Jost have violated the Act and Commission regulations by expending funds without reporting these expenditures as such.  Respondent Extra Mile has violated the Act and Commission regulations by making an illegal in-kind corporate contribution to Mr. Trump’s campaign by providing recruiting services and/or payments to actors without being reimbursed by Mr. Trump’s campaign committee.  Respondent Gotham may have violated the Act and Commission regulations by making an illegal in-kind corporate contribution to Mr. Trump’s campaign or by exceeding contribution limits.  Additionally, Mr. Trump, Donald J. Trump for President, Inc., and Timothy Jost may have accepted an illegal corporate contribution from Extra Mile and/or Gotham for these services. Finally, Mr. Trump, Donald J. Trump for President, Inc., and Timothy Jost may have failed to report an in-kind contribution from Gotham.  We respectfully request that the Commission investigate these violations and that Respondents be enjoined from further violations and fined the maximum amount permitted by law.