Posted on 03/25/2002 3:12:54 PM PST by PJeffQ
3/25/02
SC GOP under FEC investigation, documents subpoenaed...
Copyright 2002, Palmetto Journal
Larry Richter, candidate for attorney general, launched a salvo Monday afternoon against SC GOP Chairman Henry McMaster, who is expected to enter the AG's race. Palmetto Journal obtained, before anyone else in the media, a copy of a 4-page private memo Richter faxed to Republican candidates and members of the State Executive Committee.
In that document, Richter points out that he had been tipped off last week to contact the Federal Election Commission over alleged mismanagement of SC GOP finances.
Richter points out that he discovered that the SC GOP has been under an FEC Audit since August 21, 2001. Richter points out that he learned that "party leaders have misstated financial activity and failed to report debts as required by law," as well as the fact that further action is pending. Richter also points out that subpoenas were issued after written and verbal requests for documents to the state GOP delivered no results.
Richter says that he called members of the Executive Committee and County Chairmen over the weekend, who supposedly knew nothing of the audit or sanctions imposed in February.
Richter says that he is angry about the investigation being hidden and the impact that it might have upon the 2002 elections. Richter then mentions that he will be holding a meeting Tuesday (3/26) at 5:00 p.m. in the Palm Room of the Clarion Town House. This is just before the SC GOP's outreach dinner in the same hotel.
Richter says he will provide copies of the 23-page audit report to those in attendance.
According to the documents, the SC GOP split contributions designated for federal accounts into deposits made into both federal and non-federal accounts, as well as the fact that, over five reporting periods, the party neglected to reported that it owed over $276,000 to three separate vendors.
Also in the documents, it is stated the party misstated its financial activity for 1998 based upon a reconciliation of reported activity to bank records. It was also indicated that the SC GOP used non-federal accounts to fund federal campaign activities, in violation of the law.
Sources close to the SC GOP tell us that the audit is ongoing - hence the fact that nothing has been released. One source tells us that it shows the "desperation" of the Richter campaign and shows that Richter "may indeed be a Democratic mole."
Another GOP source tells us that, "Richter is the Democratic dream candidate in that he is bloodying up the rest of the Republican field, and violating Ronald Reagan's Eleventh Commandment."
Other Republican sources point out that Richter's document relies heavily on the use of cut-and-paste as well as ellipses (...).
The truth may lie somewhere in between. Regardless, tomorrow night should be an interesting evening. Look for sparks to fly....
Stay tuned for more on this breaking story....
Please ignore the rampant larceny which is the party of the RAT.
The following is sent to you by SC GOP Treasurer John Camp in response to Larry Richter's attacks on our Party. If you have any questions, please contact Mr. Camp or the state headquarters.
March 25, 2002
Mr. Larry Richter 622 Johnnie Dodds Blvd Mount Pleasant, SC 29464
Dear Mr. Richter:
As Treasurer for the SC Republican Party, I have been provided a copy of your memo of March 25, 2002, in which you manipulate forms and correspondence the Party has received from the Federal Election Commission.
Frankly, I am amazed at your actions. You have altered and doctored federal documents. In cutting and pasting together selective paragraphs from a federal report, you deliberately deleted the following sentence:
"Unless specifically discussed below, no material non-compliance with statutory or regulatory requirements was detected."
You made that key deletion purely for the purpose of creating a false impression. It is shocking that a candidate for attorney general would engage in such tactics.
To correctly inform those to whom you have mailed copies of your dishonest packet of materials and to prevent them from being misled,here are the facts:
* The Federal Election Commission is conducting an audit of the SC Republican Party's federal disclosures, as they routinely do with parties and candidates all across the country. This is not an unusual procedure. Often it results in the discovery of errors. The staff and the officers of our Party are working with the auditors and providing them with the information they have requested. There is no suggestion of impropriety by anyone at the SC Republican Party, staff and officers included.
* The period under review is the 1998 election when the entire Republican ticket was under siege by attacks from the video poker industry, with millions of dollars in unregulated, unreported funds flooding the state. Under those circumstances, frankly, I am pleased that the audit discovered only four clerical issues to address.
Mr. Richter, I realize you and Democratic Party Chairman Dick Harpootlian have a close relationship, and I know you supported him when he ran for attorney general. Perhaps some of your venom comes from that source. Still, it disturbs me that a candidate who claims to be a Republican would be willing, for his own purposes, to unfairly malign fellow Republicans, office holders and volunteers who were working night and day, doing the best they could, for what amounts to clerical errors.
It is especially distressing to see that you are willing to alter federal documents to give drama and support to your manufactured allegations.
Had your concern been sincere, as you claim, you would have handled this matter differently. The fact that you sent your package of doctored materials to the news media exposes your true motives. Obviously, the truth means nothing to you.
It is my sincere hope that our Republican leaders will see through your scurrilous and misguided attack and recognize your political motives for what they are.
You owe the Republican Party an apology.
Sincerely,
John Camp, CPA Treasurer, SC Republican Party
CC: SC Republican State Executive Committee and County Chairmen Statewide Republican Candidates
Shocking to whom?
Exclusive: Inside the Richter Meeting
Copyright 2002, Palmetto Journal
After we ran a story yesterday detailing allegations made by candidate for Attorney General Larry Richter, in a four-page memo, relating to an FEC Audit of the SC GOP, we watched Tuesday's events closely to see what would happen in the next round of this controversy. Richter, in his memo, referred to a Republican "at odds" with McMaster who made him aware of the situation. Based on past statements and information we've received from more than one Lowcountry source, this person may turn out to be the 1st Congressional District GOP Chairman.
Early this morning, the SC GOP blast-faxed and emailed a letter from their Treasurer John Camp (that was sent to Richter) to numerous party activists and officials as well as to all of the state's media (no exclusives on this letter were granted - despite claims to the contrary by another news site.)
Camp accuses Richter altering and doctoring federal documents via cutting and pasting. In fact, Camp states in the letter that Richter "deliberately" left out a statement from the original report which says "Unless specifically discussed below, no material non-compliance with statutory or regulatory requirements was detected."
Camp states that the audit is routine and that the party is working with the auditors to provide information required and that "[t]here is no suggestion of impropriety" by anyone at the SC GOP.
Camp also points out that the audit period covered was the 1998 election cycle and that he is satisfied with the fact that only four clerical errors were discovered during what he describes as the "siege" on the GOP by video poker's millions of unregulated funds.
Camp goes on to point out Richter's "close relationship" with SC Democratic Party Chairman Dick Harpootlian and suggests that the source of Richter's "venom" comes from Harpootlian. If you will recall, an item found in Palmetto Journal's You Saw Who? column in May of 1999 indicated that Harpootlian and Richter were seen having lunch together in Lavecchia's in Columbia. We also heard that Harpootlian was talking up Richter's memo to numerous members of the press Monday afternoon.
Click here to see John Camp's actual letter to Richter.
These events set the stage for the Richter meeting to discuss these allegations at the Town House Hotel on Tuesday afternoon. We talked to more than one attendee at the meeting to provide a summary of events.
Notwithstanding the irony of any political meeting that is held at the same hotel where the Lost Trust Sting went down, it is even more ironic that a Richter meeting was held there. According to news reports, Bart Daniel - the U.S. Attorney who handled the Lost Trust prosecutions - also handled the Operation Jackpot anti-drug investigations during the 1980s. There were some accusations, during Richter's judicial screening hearings, that Judge Richter was not cooperative with Daniel's investigation into Operation Jackpot. These allegations revolved around a real estate transaction (and how the finances of that deal were handled) between Richter and a man who was later convicted of international drug smuggling as a result of Operation Jackpot.
Signs throughout the Town House on Tuesday indicated that the Palm Room had been reserved for a Richter Campaign Meeting from 5:00 - 7:00 p.m.
Approximately fifteen people were in attendance - including Richter and his wife. Also in attendance were Richter's campaign manager Duke Hipp, brother of former congressional candidate Van Hipp, and a female sources identified to us as a member of the GOP Chairman's campaign staff of Katon Dawson.
Republican candidates present included Sen. Andre Bauer (candidate for Lt. Governor), Lois Eargle (candidate for Sec. of State.), and Stan Jackson (3rd District Congressional candidate.) One source in attendance pointed out that these candidates were all clients of Rod Shealy, who also happens to be consultant for the Richter campaign.
In addition to other individuals present, David Haller, an employee of Richter's law firm, was there. You may remember Haller from an item that ran in this column back in 2000. Haller ran against Rep. John Graham Altman in the GOP Primary in 2000. However, Haller also worked as Chairman of the SC Young Democrats and as a Youth Coordinator for Clinton/Gore '92.
Richter called the meeting to order, and after introductions of attendees took place, stated that he was concerned about the situation and then offered copies of the 23-page audit report. (We here at Palmetto Journal have obtained a copy and passed it on to someone with an accounting background - since the document itself is very technical and complex unless you're a CPA.)
Richter later admonished those attending for not taking more copies of the report. Sources tell us that the meeting then broke up as a handful of people remained for coffee. Some minor points of contention arose after Richter declared the meeting over, but nothing earth-shattering occurred at this meeting.
We later learned from one of our sources inside the meeting that not a single one of the attendees was a member of the GOP State Executive Committee or a County Chairman (the other groups invited in the memo in addition to candidates.)
One source who attended told us that this stratagem by Richter was "boneheaded" and a desperate attempt to dissuade Henry McMaster from filing for the Attorney General's race (filing closes Saturday at noon.)
Another attendee told us that these tactics, including the meeting seem to indicate that Rod Shealy is "slipping" and that this may be the biggest blunder he's ever committed.
We later learned that more than one of those in attendance (including a candidate or two) was dismayed at the tone of the meeting and with the events that occurred.
Some of those attending the Minority Outreach Dinner were discussing Richter's financial allegations. In fact, one of our sources overheard one of them say that Richter "doesn't have a lot of room to be throwing rocks as it relates to the mismanagement of large sums of money."
Stay tuned for more on this breaking story....
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