From: WEWoodsMPH Date: Wed, 8 Apr 1998 01:08:42 EDT Subject: Hawaii CSC Investigation Started - meeting like "Kitten in cage with 4 Big Dogs" Hawaii CSC Investigation Started - meeting like "Kitten in cage with 4 Big Dogs" Aloha Folks, This afternoon the Campaign Spending Commission voted 4 out of 4 (one commissioner not present) to combine all complaints and proceed with a formal investigation by Commission staff. Wheeeeew!!!!!!!!!!!!!!!!!!!!!!!!!! ! ! !!! In the course of the Commission's meeting today I was first to present information and evidence on each complaint followed by my rebuttal of the respondent's attorneys responses to the original complaints. (See list of specific complaints and corresponding law firms representing the respondents at end of this news bulletin.) After my presentation the respondents' attorneys presented their response. Each of the responses presented requested dismissal of the complaints. In each of my presentations I recommended that the Commission move the complaint process to a formal investigation level based on the amassed information I had collected during my investigation which should have demonstrated sufficient information to raise actionable violations of law. In this regard, the Commission made a motion and passed it unanimously (of those present) that the three complaints heard today to be combined and the Commission staff be authorized and directed to begin an investigation on these issues. The Commission specifically added a caveat to the motion for the investigation citing a Commission rule which will allow the staff to add other violations to the combined complaints should they identify them during the course of the investigation. To remain timely the Commission emphasized promptness of the investigation. The Commission staff noted they would return to the Commission during the course of the investigation to notify them of changing status as a result of the investigation. As CSC Staff Attorney Brian Nakamura began his recommendations to the Commission on what actions they could take, he said in reference to me and the large number of coat and tie attorneys representing the respondents that this meeting "was like a kitten in a cage is 4 big dogs." Never been compared to a kitten before, but I did appreciate the analogy. Importantly the staff recommendation to the Commission noted that there are two basic reasons that the Commission might not continue any action on a complaint: 1. "that the issues or complaints are manini" - Manini is local word (Japanese or Hawaiian) that means small or too little to have much importance. and 2. there might be political considerations that might be objections to proceed with further action. Mr. Nakamura stated that this about the alleged violations of the complaints: "these are not manini violations." He further stated that political consideration should not be a factor in the Commission taking any action. Commission staff noted a point of fact that they had received a number of calls to their office by political contributors listed on the STM98 CSReport stating they did not know the event was a political fundraiser. Mr. Nakamura said although this was not specifically covered in complaints files thus far, it appeared to be the "most actionable." CSC staff were very clear to state for the record that this was not a true evidentiary hearing and thus not all materials are actual material facts as rules of evidence are not present. The following comments of staff on the actual complaints are as follows: 1. Excess contribution of HFT including monies from aggregate of HFT officers/principals also making contributions for same cause was an apparent abuse of law which obligates Commission to pursue; 2. On Stephen Covey and Franklin Covey complaint the staff is currently not able to verify or dispute claims; Then the recommendation was made to proceed with formal investigation - Probable cause would be premature at this time. That the complaints deserve to be verified or disputed; which may produce other violations upon investigation. Enough for now - I encourage all of you that have concerns on this and emerging issues, please take heart that the system seems to be working to identify and deal with alleged political abuse of our democratic system. do good, William E. Woods, MPH Now all complaints heard today: Today's complaints to be reviewed are: Docket # 98-02 alleged other political contributions from a foreign-based company (DFS-Hawaii) and contributions in excess of the $1,000 legal cap; Docket # 98-03 alleging Hawaii's Future Today is by definition a political action organization and should be required to file all appropriate reporting forms and be in compliance with provisions of a political organization; and Docket #98-04 which alleges that Stephen Covey contributed over $140,000 political in-kind contribution in excess of the $1,000 legal cap and alleges that the Franklin Covey Company is either a political action organization and should be required to file all appropriate reporting forms and be in compliance with provisions of a political organization or be properly reported in an amended political action committee report for Save Traditional Marriage 98 for contributions related to a political action fundraiser. Law firms already identified as representing the various parties in opposing the allegations by Woods' complaints is a very powerful group. Firms identified at this time (more are expected at day of meeting) to oppose Woods' presentation are: Cades Schutte Fleming & Wright for Hawaii's Future Today, Diane M. Kurtz, Ronald T.Y. Choo, George P. Shea, Jr., Debi Hartmann, John A. Hoag, and [Fthr.] Marc Alexander; Chun Chipchase Takayama Nagatani for Stephen R. Covey; Carlsmith Ball Wichman Case & Ichiki for Save Traditional Marriage '98, Diane M. Kurtz and Ronald T.Y. Choo.