From: MPetrelis@aol.com
Date: Tue, 4 Feb 1997 14:37:43 -0500 (EST)
Subject: AIDS PAC / Lungren complaint

MICHAEL PETRELIS
2215-R Market Street, #413
San Francisco, CA  94114
Ph # (415) 621-6267

Daniel E. Lungren
Attorney General
Public Inquiry Unit
P.O. Box 944255
Sacramento, CA  94244-2550

February 4, 1997

RE: Complaint against AIDS PAC 

Dear Sir:
  I am writing to you because of a January 16, 1997, story that appeared in
the San Francisco Bay Area Reporter, B.A.R., a gay newspaper, which  detailed
serious fiscal problems with AIDS PAC.  According to files at the Federal
Election Commission, F.E.C., the AIDS PAC, which is headquartered in
Washington, DC, is officially known as the American AIDS Political Action
Committee and Tom Sheridan is listed as AIDS PAC's treasurer.
  The B.A.R. reported that "for the two-year election cycle 1995-96 [AIDS
PAC] shows income of $547,687. But only $41,000 of that was given to
candidates, while the rest (92.51%) went to administrative overhead." Those
figures come from the F.E.C.  
  Other news accounts show there is an established pattern of financial
misdeeds with Sheridan and AIDS PAC. According to the February 2, 1996,
Washington Blade, a gay newspaper in DC, other F.E.C. records "show that the
group spent more than $760,000 on 'operating expenditures' while giving away
only $47,000 to candidates for Congress in the 1994 election. The reports
show the PAC gave another $4,419 to independent political committees that, in
turn, contributed to candidates."
  Prior to the 1994 election, according to Elinor Burkett's 1995 AIDS history
book, The Gravest Show on Earth, page 159, "the [AIDS] PAC reported receipts
of $659,195.39. Sheridan received about $65,000 to run the group. Its total
donations, to four congressional candidates, were only $3,000." Once again,
the figures come from the F.E.C., and show a horrible history of fiscal
mismanagement. 
  If you add up the amounts of money raised, it comes to $1,956,882. When you
total the donations, that figure is $35,413. Which means $1,931,463 did not
make it into candidates coffers.
  This written complaint is directed to your office because I think many
Californians were duped, deceived and defrauded by Sheridan's AIDS PAC and
his telemarketing firm, known as GSI, and since it is based in El Segundo,
California, you have jurisdiction in the matter. 
  It is more than reasonable to assume that many California voters and donors
concerned about AIDS were unfairly targeted by the AIDS PAC's telemarketing
company. The address for GSI is 550 N. Continental Blvd., #180, El Segundo,
CA 90245. The F.E.C. records do not explain what the GSI letters stand for. 
  One California Congressional race in particular was of interest to AIDS
PAC; the contest between Rep. Bob Dornan, a Republican, and his victorious
Democratic challenger, Loretta Sanchez. As of October 29, 1996, according to
F.E.C. records, the Sanchez for Congress committee received $3,500 from AIDS
PAC. Of all the candidates that accepted money from AIDS PAC, Sanchez
received the highest amount.  
  AIDS PAC wasn't interested just in the Dornan versus Sanchez contest, but
other Congressional races in the state as well. Recent F.E.C. records show at
least three other California campaigns received donations from AIDS PAC,
including the committees to elect the following candidates;  Michele Alioto,
Vic Fazio and Rick Zbur.
  I believe many contributors to  AIDS PAC are residents of California who
were defrauded by Sheridan and his GSI telemarketers into thinking their
contributions were going directly to congressional candidates, when it
strongly appears the money went into very high overhead costs and salaries.
  I want your office to accept this complaint against AIDS PAC and launch an
investigation of the group's fundraising tactics in the state, and determine
why the donations to political candidates are so paltry.  I want to know what
the exact wording of the sales pitch was when the GSI telemarketers called
Californians to solicit contributions for AIDS PAC. I want all voters worried
about AIDS to know that donating to AIDS PAC may not be the best way to
influence political races. An investigation by your office will answer the
questions surrounding the low figures given by AIDS PAC to candidates in the
last election. 
Sincerely,
Michael Petrelis

enclosures: Bay Area Reporter news clip
                   Washington Blade news clip
                   The Gravest Show on Earth, excerpt
cc:               Federal Election Commission Complaint Division
                   999 E Street, NW
                   Washington, DC  20463
                    Fax: 202-219-3880