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November 22, 2017

FEC probes discrepancies

FEC probes discrepancies at former Zinke PAC

By BEN LEFEBVRE

The Federal Election Commission is asking a leadership PAC previously affiliated with Interior Secretary Ryan Zinke to provide more details about its direct mail spending and to account for a $200,000 discrepancy in its account, among other issues in its most recent campaign finance report.

SEAL PAC, which Zinke launched after winning his first congressional race in 2014, has until Dec. 26 to address the issues identified by the FEC, according to a request sent Monday. The FEC also asks about incomplete information related to some donors, excess contributions and potentially misclassified spending, some of which occurred after Zinke's affiliation with the leadership PAC ended when he joined President Donald Trump's Cabinet in March.

When Zinke was in Congress, SEAL PAC raised most of its money from small-dollar donors and funneled it back to a handful of political operatives who have drawn criticism from other GOP candidates. That approach made it unusual among leadership PACs, which typically rely on large contributions and lawmakers use to spread donations among allied politicians.

In Monday's letter, the FEC asked SEAL PAC to further explain the money it spent on direct mail and related activities, which are responsible for the vast majority of the PAC's $1 million in operating expenses so far this year. Most of the money was spent after Zinke left, but the committee relied on the same consultants it used in previous years.

The FEC also wants SEAL PAC to explain how its bank account nearly doubled in size on New Year's Day.

According to SEAL PAC's report covering the first six months of this year, it had $408,882 in the bank on Jan. 1. But it reported having just $215,633 cash on hand a day earlier, on Dec. 31, 2016, in its previous year-end report.

Vincent DeVito, who now works at Interior advising Zinke on energy policy, was SEAL PAC’s treasurer until Zinke appointed him to his new position in May. DeVito signed the 2016 campaign finance report, which was updated several times, most recently on April 27.

SEAL PAC’s current treasurer Barbara Lazaris did not respond to a call for comment. Interior spokeswoman Heather Swift said the department could not answer campaign-related questions.

The FEC also asked SEAL PAC to provide more information on contributions from two individuals who gave more than the $5,000 contribution limit per election cycle. Most of those donations came in after Zinke had left.

The PAC also reported giving $10,000 each to congressional campaigns run by GOP Reps. Jim Banks of Indiana and Scott Taylor of Virginia, double the legal limit. Both contributions were reported June 29. "Although the Commission may take further legal action regarding the excessive contribution(s), your prompt action in obtaining a refund and/or redesignating the contribution(s) will be taken into consideration," the FEC wrote.

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