Complaint - CREW: FEC: Regarding US-Cuba Democracy PAC

8/6/2019 Complaint - CREW: FEC: Regarding US-Cuba Democracy PAC

1/55

In the matter of : 1

FEDERAL ELECTION COMMISSION

U.S.-Cuba Democracy Political Action CommitteeGus Machado, Individually and as TreasurerMauricio Claver-Carone

Fausto Diaz, Jr.Anolan Ponce

MURNo.: 5 110

COMPLAINT

1. Citizens for Responsibility and Ethics in Washington hereby brings this

complaint before the Federal Election Commission seeking an immediate FEC investigation and

enforcement action against the U. S.-Cuba Democracy Political Action Committee, Gus

Machado, Mauricio Claver-Carone, Fausto Diaz, Jr. and Anolan Ponce for direct and serious

violations of federal campaign finance law.

Complainant

2. Citizens for Responsibility and Ethics in Washington is a non-profit, non-partisan

organization dedicated to ensuring accountability in public officials.

Respondents

3. The U.S.-Cuba Democracy Political Action Committee is a political committee

registered under the Federal Election Campaign Act. 2 U.S.C. 6 433. Gus Machado is the

treasurer and Mauricio Claver-Carone is the executive director of the U.S.-Cuba Democracy

Political Action Committee.

4.

Democracy PAC.

Fausto Diaz, Jr. and Anolan Ponce are individual members of the U.S.-Cuba

Factual Allegations

5 . On information and belief, the U.S.-Cuba Democracy Political Action Committee

,


2/55

held a hdraising luncheon in Miami, Florida for Senator Jim Bunning (R-KY) on May 27,

2004.

6 . On information and belief, Gus Machado and/or Mauricio Claver-Carone

solicited members of the U.S.-Cuba Democracy Political Action Committee to make

contributions to Senator Bunnings campaign committee, Citizens for Bunning. Those

solicitations resulted in the following contributions to Citizens for Bunning from members of the

U.S.-Cuba Democracy Political Action Committee:

Ricardo Alvarez

Carlos de Cespedes

Remedios Diaz Oliver

Robert Diener

Feliciano Foyo

Horacio Garcia

A h a Garrido

Albert0 Hernandez

Jonathan Kislak

Carlyn F. Mayer

Elpidio Nunez

Eduardo Perez

Barry Silverman

George Steinbrenner

$500

$500

$1,000

$1,000

$500

$500

$500

$500

$1,000

$1,000

$500

$500

$1,000

$1,000

FEC Form 3. Report of Receipts and Disbursements, filed by Citizens for Bunning, July 12,

2004 (attached as Exhibit A).

2


3/55

i I e .7. On information and belief, Gus Machado and/or Mauricio Claver-Carone also

solicited and received contributions for Citizens for Bunning from the Tew Cardenas PAC, the

Democracy Believers PAC and the Bacardi-Martini USA PAC. See Exhibit A. In addition, Gus

Machado and /or Mauricio Claver-Carone presented Senator Bunning at the May 27,2004

luncheon with a contribution check from the U.S.-Cuba Democracy Political Action Committee

in the amount of $5,000 and designated that contribution as applying toward the 2004 General

Election. See Exhibit A; FEC Form 3X. Report of Receipts and Disbursements, filed by U.S.-

Cuba Democracy Political Action Committee, October 1 , 2004 (attached as Exhibit B).

b

8. On information and belief, Gus Machado and Mauricio Claver-Carone, in order to

be able to present Senator Bunning with the maximum $5,000 contribution for his 2004 general

election, asked Fausto Diaz, Jr. to pay the $2,200 cost of the fbndraising event for Citizens for

Bunning. The U.S.-Cuba Democracy Political Action Committee reported Mr. Diazs payment

for the Citizens for Bunning fundraiser as an in-kind contribution to the U.S.-Cuba Democracy

Committee on its July 15,2004 Quarterly Report. See Exhibit B. Mr. Diazs payment for the

Citizens for Bunning fundraiser was not reported as an in-kind contribution by Mi. Diaz to

Citizens for Burning.

9. During calendar year 2005, Anolan Ponce made seven separate contributions to

the U.S.-Cuba Democracy Political Action Committee, both in-kind and by check, totaling

$12,7 15, as follows:

April 6,2005 $1,034.50 (in-kind)

April 9,2005 $1,300.00 (check)

April 25,2005 $1,585.00 (in-kind)

April 27,2005 $1,026.00 (in-kind)

3


4/55

1 1

May 25,2005 $25.00 (check)

December 8,2005 $5,244.50 (in-kind)

December 27,2005 $2,500.00 (check)

FEC Form 3X. Report of Receipts and Disbursements, filed by U.S.-Cuba Democracy

Political Action Committee, June 30,2005 (attached as Exhibit C); FEC Form 3X. Report of

Receipts and Disbursements, filed by U.S.-Cuba Democracy Political Action Committee,

January 30,2006 (attached as Exhibit D). Curiously, while the U.S.-Cuba Democracy Political

Action Committee reported Mrs. Ponces December 8,2005 contribution of $5,244.50 as an in-

kind contribution, when the Committee reported disbursing the same amount to Mrs. Ponce the

Committee characterized the disbursement as a reimbursement rather than what it actually was

- a refund of an excessive contribution. The Committee made no such distinction when it

returned Mrs. Ponces December 27,2005 contribution

COUNT I

10. The Federal Election Campaign Act (FECA) and Federal Election Commission

(FEC) regulations establish limitations on the amount of money that individuals can contribute

to candidates and nonconnected political committees like the U. S -Cuba Democracy Political

Action Committee and on the amount of money that such political committees can contribute to

candidates for federal office. During the 2003-2004 election cycle, the maximum legal

contribution from an individual to a federal candidate was $2,000. 2 U.S.C. 441a(a)( l)(A); 11

C.F.R. 6110.1 b). The maximum aggregate annual legal contribution fiom an ndividual to a

political committee like the U.S.-Cuba Democracy Political Action Committee is, and at all

times relevant to this complaint was, $5,000. 2 U.S.C. 8 441a(a)( )(C); 1 1 C.F.R. 0110.4(d).

Similarly, the maximum legal contribution fiom a nonconnected political committee like the

4


5/55

? I

U.S.-Cuba Democracy Political Action Committee to a federal candidate is, and at all times

relevant to this complaint was, $5,000 per election. 2 U.S.C. 441a(a)(2)(A); 11 C.F.R.

8110.2(b). An ndividual may make a conduit contribution to a federal candidate through a

nonconnected political committee, but if that committee exercises direction or control over the

individuals choice of the recipient candidate, the full amount of the contribution counts against

the limits of both the individual and the conduit committee. Federal Election Commission

Advisory Opinions 1986-4, 198 1-57 and 1980-46.

11. Because Gus Machado andor Mauricio Claver-Carone directed Fausto Diaz to

pay the cost of the May 27,2004 Citizens for Bunning fimdraising event, the U.S.-Cuba

Democracy Political Action Committee exercised direction and control over Fausto Diaz s

$2,200 in-kind contribution to Citizens for Bunning, and the full amount of the $2,200

contribution should be counted against the contribution limits of both Fausto Diaz and the U.S.-

Cuba Democracy Political Action Committee. Accordingly, Fausto Diaz violated 2 U. S C.

544 la(a)( 1)(A) and 1 1 C.F.R. 6 1 10.1 b) by making an in-kind contribution to Citizens for

Bunning that was $200 in excess of the legal limit.

12. Similarly, the U.S.-Cuba Democracy Political Action Committee violated 2

U.S.C. 441a(a)(2)(A) and 11 C.F.R. 5 110.2(b) by making a $2,200 in-kind contribution to

Citizens for Bunning for the 2004 General Election when it had already given the maximum

legal contribution to Citizens for Bunning for that election by giving the campaign a check for

$5,000.

COUNT I1

13. Anolan Ponce committed two separate violations of 2 U.S.C. 8 441a(a)(l)(C) and

11 C.F.R. 0 110.1 d) by making two separate illegal excessive contributions to the U.S.-Cuba

5


6/55

Political Action Committee: first by making a $5,244.50 in-kind contribution to the Committee

on December 2,2005, and a second time by making a $2,500 contribution by check to the

Committee on December 27,2005. Both contributions exceeded the aggregate annual limit of

$5,000 that Mrs. Ponce could contribute to the U.S.-Cuba Democracy Political Action

Committee.

WHEREFORE, Citizens for Responsibility and Ethics in Washington requests that the

Federal Election Commission conduct an investigation into these allegations, declare the

respondents to have violated the federal campaign finance laws, impose sanctions appropriate to

these violations and take such fbrther action, including but not limited to an audit of the U.S.-

Cuba Democracy Political Action Committee, as may be appropriate.

Executive DirectorCitizens for Responsibility and Ethics inWashington11 Dupont Circle, N.W., 2nd FloorWashington, D.C. 20036(202) 588-5565

6


7/55

1 I

Verification

Citizens for Responsibility and Ethics in Washington, acting through Melanie Sloan,hereby verifies that the statements made in the attached Complaint are, upon information andbelief, true.

Melanie Sloan

Sworn to and subscribed before me this 1st day of March, 2006.

\Notary Public

Blanca M.ClaytonNotaryPublic, District OfCOlUmbla~ I V)mmlsslon Expires04-30-2007


8/55

EXHIBIT A


9/55

Page 1 of 1

I24020421236

r

lilrJuly 16 m s d y eport (02)

http ://query nic tusa. codshowimgl 17732.gi f 02/23/2006


10/55


11/55

Page 1 of 1

24820421238

orAeceirh 1

12 TRPINGFERS F W MOTHEFIAUTHORIZEDCOWITFEES . . -.. . -

L I

http://images.nictusa.com/showimg/ 05 3.gif 02/2 3/2006


12/55

24020421239

COLUMN Almls perlad

I. CIPSBURSEIAEUTS

_.

Page 1 of

COLUMN B

Ebetlm CyW&*DWpe

1ETAILEDSUMMARYPAGEd Dlshurwmmts

FEE F m 3 (RwuiedQ2n008) paw 4

r

L I

http:llimages.nictusa.com/showimgl18 5 .gif 02/23/2006


13/55

I I

Page 1 of 1

24020421 241

Nsmeof Employer

ctbMiami

9talE zlp codeFL 33181

http://images.nictusa.com/showimg/ 8260.gif 02/23/2006


14/55

'n - *

.C- . Page 1 of 1

8 . I 'ullMme h t , Mldde M e l )

lues. Gene

I

http:llimages.nictusa.com/showimg/ 8944.gif 02/23/2006


15/55

..A 0Page 1 of 1

SCHEDULEA [FEC Form 3)ITEMIZED RCCQPIG

24026421244

13050 MarStlS h k 21p CdleFL 331 58

Nams d Employer

cwUtlca

http://images.nictusa.com/showimg/19028.gif 02/23/2006


16/55

I ..1

$4020421 245

Page 1 of 1

B l J 2

Ualllrrg Addre-

101 23 Mstrmome Or.GINHouston

http :/hmages.nictusa. odshowimgll9 156 .gi f 02/23/2006


17/55

I

Page 1 of 1

24&421247

NAMEOFCOMMlllEE E

Full)Citinene for EunrlingI) COO1971 52

MelllngAdaees25 S. Shaw Lana

s m Zlp codeKY 41075

I

. Full N m EsT, First, Middle Onlllal]

C. Welibrock, JernmeMelllngAddme

16 W . SoulhemA*.$Me Zlp C WKY 4101 5

http:llimages.nictusa.com/showimgll9283 .gif 02/23/2006


18/55

I L t

Page 1 of 1

artyCoral Gables

mt0 ap d eFL 33146

http ://images nictusa.com/showimg/ 973 6. gi f 02/23/2006


19/55

Page 1 of 1

I

I

NI I Name U r t Flral. Mlddle nltlall I8,

http:llimages .nictusa.com/showimg/2048 .gi f 02/23/2006


20/55

Page 1 of

-C.

http://images.nictusa.com/showimg/209 3 gif 02/23/2006


21/55

. ,

- - -

24020421 283

Page 1 of 1

http ://images.nictusa. om/showimg/2 1 109 gi 0212 3/2006


22/55

Page 1 of 1

24020421295

http ://images nictusa.com/showimg/2205 .gif 02/23/2006


23/55

- . * - -.A ..

2402042131 I

Page 1 of 1

IC.

FEC IO nwrlber d a n M i n gkdeml pdlrlasl arnmllaea

http ://images. ictusa. om/showimg/22 895.gi f 0212 3/2006


24/55

Page 1 of 1

KFull Name Fire!, Middle I n l q

3689 Sherwuob Dnue

http://images.nictusa.com/showimg/23 62.gif 02/23/2006


25/55

, - . ,

Page 1 of 1?

SCHEDULEA [FEC C m )ITEMIZED RECEIPTS

Lugan cuunty Board atI



26/55

- 24026421388

Page 1 of 1

NAME OF W M W E E in Full)Citkns tor Eunnirlg rn19?152 I

81 b S, BoulevardCltvTamm

SklSFL



27/55

Page 1 of 1

-0.

http:llimages .nictusa.comlshowimgl2448 .gif 02/23/2006


28/55

0Page 1 of 1

6 W U zip cddeFL 33137

.Full Nem0 llasf FlrrU. Mlddle Inrtlel)

C. Humana PAC,

http://images.nictusa.com/showimg/2508 .gif 02/23/2006


29/55

. : r. , . I

0Page 1 of 1

http:Nimages.nictusa.com/showimg/25 67.gif 0212 3/2 006


30/55

EXHIBIT B


31/55

Page 1 of 1I

a museOrty

REPORT OF RECEIPTSAND DISBURSEMENTS

EC

For Oth0r Than An Author ia CommithaORM3X

PEG FORM9X(Rw PMOOS]

l a0 0 W m gth SrmtADDREBBounbcr Md- I I I I I I I I 1 1 1 1 I I

1

2 FEC IDENTlFleATKlNNUMBER T CITY& STATE & ZIPCODE A

cme7720 1 ISTHIS NEW x AMENDEDREPURT (NI -OR (4

Elaetian un

ELecflon OR

R u n d 30R)

in lb

slated

inlheStrrb ol

http://images.nictusa.co1n/showimg/2 72 .gif 02/17/2006


32/55

0

SUMMARY PAQEOF RECBFTS AN 0 W B U RSEMENTS

0Page 1 of 1

Wnbe or Typo Cammltr# ElerneU S C u b Democracy Palltiael Acbcrn Camrnittm

[b) Cash an Hend etEeglnlfq ol ReportingPerlod

(el Tutal Roeapt6 Cfmm Lne 19)

7 Tdr l ReturserncrCr (fmm Lnc 31)

COLUMN A COLUMN BT k orkd Calendar Yev-tu-Dam

31821 i 08

25167 59

344364 87

50543 52

257017 97

175718 56

432738 63

136695 38

8 hh n Hand Bt Close dRcporbnD Pcnmdp m m e l Une 7 nom Une 6[dJ] . 283641 15 293841 15

0 ao

15282 50

For further information contact,

http:llimages.nictusa.com/showimgl2 1887.gif 0211 7/2006


33/55

Page 1 of 1

DETAILEDSUMMARYPAGEOF REeElPTl

FEC FnrmlX ( R e u 0212Q03)

lRltttc ar m6 a m m l l t nName

U S -Cuba Democracy Palnierrl Achon CommiPee

COLUMNA COLUMN ETuhl This Period I Calendar YearbDate

24467 59

700 00

25167 59

I] 00

a aa

[II] Untsrnlwd[iiil TOTALLedd

l~ncfi 1taMl and til) 175718 56

0 DO

a uu

251 67 59 175713 56

0 00

o on

0 00

o ao

D on

0 O

13 A Lwns Recewd .

0 00 0 00

0 00

0 DO

o oo

000

Om

0 00

0 OD

0 00

0 OD

0 0

19 Total Renelpm raw unes 1 fd),12.13. 14, 15,16, 17, mnd 1Otcb 25167 59 175718 56

25167 50 17q718 56I

http llimages.nictusa. com/showimg/2 1927.gif 02/17/2006


34/55

Page 1 of 1

II. DIBEURSEMENTS COLUMNATold 'chk Perlnd

COLUMNECalendar YW4-E

Loan Repymanh Made .. ..... ....

0 00

0 00

6893 52

6893 2

D 00

4350D 00

a a0

0 000 00

I3 00

150 00

0 00

D 00

150 00

0 00

0 00

0 OD

0 0

000

50543 52

50543 52

0 OQ

o oa

30045 38

30045 38

0 n

108500 00

uUO

0 00o ao

0 I I

350 00

0 00

o ao

350 cIa

0 00

am

no

om

o oa

1-30

13809538

http://images.nictusa.com/showimg/22 108 gif 02/17/2006


35/55

Page 1 of 1

DETAILEDSUMMARYPAQE

33

34

36

36

37

3I

25167 9

1 9 30

25017 59

8893 52

0 0 0

6693 52

http://images.nictusa.com/showimgD 75 .gif 02/17/2006


36/55

Page 1 of 1

I) S Cuba Dernacmcy klrtiml Acbcrn Garnrnittw

Name wf Ernukyeraelr-EnplUyad

Receipt Fa r

Pnrnery OenerSl19~mw 1100 00

C

FEC ID rurnber of wnhbrtiqMerd pdibcel conmrl$e C

ChLeaf Rececptr( n n * * * r0 5 2 7 2 0 4 4

TramecUm o' SA1 1A I 511 8Arnwnt af Bch Receip this Penod

2an n

In-knd - Lunchwn Gpens-e5

http:llimages.nictusa.com/showimg/19867.gif 02/ 7/2006


37/55

Page 1 of 1

c.

Pmridcnt

6 h t DistrictI



38/55


39/55

e

EXHIBIT C


40/55


41/55

- -

Page 1 of 1

SUMMARYPAQEOF RECOP73 hNU #36U RSEMENTS

FE C F ~ r m 3 X Rev Q2mD3)

Wnk or Type C m m d t b t HernoU S -Cuba Dernacrucy Palitical Acbon Chmmittm

COLUMN A COLUMN BTlds PI#bd Calmndar Yeirr-tu-bas

270101 54

Cash an Hend ut270101 54

219942.44 219942 44Tdul Rseupt6 m m h e 9) ..

4~0043 6

2235B6 92

490043 OB

223688 927

8

Tdrl Rckrserncnt~ fmm h e 11...Cwh m Hand d luss dRcpurbnu Penad[swreel Una 7 nom Unlr 61cIJ) 266455 08 2664% I16

9

10

0 00

15262 50

For furlher inkrrnation ~ ~ n f a ~ t ,

http ://images.nictusa. om/showimg/8 5 36 gi f 02/17/2006


42/55

Page 1 of 1

DETAILEDSUMMARYPAGEOF RECEIPT8

FEC Fntm3X (Rw Wm031

l ~ i ~ t e r me mrnlltee NBme

U S -Cuba Democracy Pollttcrrl Acbon Carnmiuae

I RQbelptSCSLUMN A COLUMN E

Total This krimd I Calendar Y m r b D a t e

I 603 fl4

24338 50

21 9942 44

noo

0 00

1 94

24338 5D

219842 44

0 00

0 DO

21 9942 44 2 1 a 2 44

nDO

L]no

0 00

0 u

0 0

0 0

13 Al h s ecewd ...................

D 00 0 on

a OD

o on

0 O

000

a 00

am

0 0 0

000

0 DO

0 00

19 T&sI R e I x I p edd Unes 1 1 d).

12,13, C15.16,17, nd 18Lcl1219942 44 219942 44

#I Tdel Fedml A a m p t 5islhtlad Lnc 1Mc)fmm Line151 219542 44 219942 44



43/55

Page 1 of 1

II. DIBBURSEMENTS COLUMNA CaLUMNEIold Thk Pmlod CdRndar Y m q D b d R

Loen Rapyrnenh Me& ..

0 00

0 00

43506 a2

43588 92

[3 nn

1BOODO00

Daa

D00

0 00

a.nn

O 00

0 a0

Don

0 00

0 00

om

non

0 0

0 00

, 223586Q2

223588 92

om

a nn

D00

o ao

223688 32

223588 92

http:llimages.nictusa.com/showimg/9 53 gif 0211 712006


44/55

Page 1 of 1

21OB42 44

o no

2 1 a 2 44

43588 92

0 00

4368892

219842 44

O O I )

218942 44

43568 92

D 00

435BB 92

http :hnages.nictusa. com/showimg/9272. gif 02/ 17/2006


45/55

. - .

Name d rnpkver

Page 1 of 1

OarslbmHomemaker

Nerne 07 EmMGR Rasl&W

accrpellpnRedtar

1M 4 5D

FEC ID m m b a of wnhblriqfderd pdibcel camnrl lw C 1wo I10

2334 50



46/55

Page 1 of 1

Named mMER Rwl

NAMEOF COMMITTEELln FJI)U S Cube Dernocrmcy POlItiml A c b m Cammitiemi

FUI NWWI iest, AM , Mime nmal)

MailinnAddress 188 l5la O m d R DnveA M n Annlan P w c

City Stat0 ZIP-

&ral Gable6 FL 33143

Tederal pdllcel e m l l t e e CEC ID Fumbep ol mnMbUlrrg

Qawlbmkarltm

Remipt Fa r

Pnrnery t h l e r S lPP=Wl v

I

FlllName (Lest. Fid, MIME nlab8. Mm A n n l a n P a r s

MailinuAddrcso 188 Y e Domde Dnve

C

C

In-kind - Theetre Saundand Deeoratim

In-kind - Theutre EventAdverbsement



47/55

EXHIBIT D


48/55

Page 1 of 1

off eeUseorb

REPORT OF RECEIPTSAND DISBURSEMENTS

EC

For Qthsr Than An Authoriad CommitteeORM3X

FEC FORM9X(Rw m M S ]

u 3 -cum nernoemcy mItlcat m t o n c m n mI l l 1 I I I I I I I I I l l I l l I I I l l I I I I I I l l

CheckIf dtkrent I 1 1 1 1 1 1 1

he n prnnwsly Hiakehreported (ACCJ

I I I I I I I I 1 1 1 1 I I

I I l l I I I I I I rn B uCheckIf dtkrent I 1 1 1 1 1 1 1

he n prnnwsly Hiakehreported (ACCJ

I I I I I I I I 1 1 1 1 I I

I I l l I I I I I I rn B u2 FE C IDENTlFlCAmNNUMBER 7 CITY A GTATEA ZIPCODE A

COO387120 3 ISTHIS x NEW AMENDEDREPORT LNI OR (A1

inIhaSlak dleeeian unI

0 7 0 1 2 0 P 5 1 2 3 1

I certtfythmt I hsve emrnlnd tns ~ q w tnd tn the best Mmyhauneclge errd M I# L Is true c m t t snd complete

T m r Print Name crf Trcawum Mr Gus Maehado

http ://images.nictusa.com/showimg/ 446.gi 02/17/2006


49/55

Page 1 of 1

SUMMARY PAGEaF RECOPTS AN U W B U RSEMEMTS

Wnbc or Typo Cornmitee HrrncU S - C u h Derncxnacy Fblttteal Acbon Cammittem

6 [a) CashanHendJmnwry 1 T201js'

(b) Cash on' Hend stEeglnlngd RcporHng Perlod

(e) TDtalRecutxs Cfmm bnc 19)

7 Tdrl Rcburrerne~s from bnc 31) .. .8 h h m Hand d Clnw d

Rcpurbng Penod[awnel uns 7 nom ne 61dJ;I

9

10

COLUMN A COLUMN ETNs M d Calmdar Yemu-Date

266455 06

221979 52

468434 58

120246 19

368188 39

D.00

21730 28

270101 54

441921 96

?I2023 50

343035 1

For further infwmation contact,

http://images.nictusa.com/showimg/lO5 3.gif

Documents

Complaint - CREW: FEC: Regarding US-Cuba Democracy PAC