Mar 31 2017--Press release issued from the AG
Alleges personal use of campaign funds, intentional concealment
OLYMPIA — Attorney General Bob Ferguson today filed a campaign finance lawsuit against Tim Eyman, alleging improper personal use of $308,000 in contributions made to political committees, concealment of contributions totaling $490,185 and misleading reporting. The lawsuit also accuses for-profit signature gathering firm Citizen Solutions of participating in a scheme to conceal campaign money the company funneled to Eyman.
If successful, Eyman and his for-profit company, Tim Eyman Watchdog for Taxpayers, could face $1.8 million in penalties, plus $308,000 in reimbursement.
Citizen Solutions and one of its principals, William Agazarm, could face penalties up to $924,555.
Ferguson will also ask the court to bar Eyman from participating in or directing financial transactions for any political committees going forward. A 2002 agreement permanently barred Eyman from serving as treasurer for political committees. Yet, the lawsuit alleges, Eyman still managed to weave an elaborate web of financial transactions to hide campaign funds, enriching himself while keeping his contributors and the public at large in the dark.
This scheme duped contributors who thought they were donating to one initiative, but instead were supporting Eyman’s personal expenses and a completely different initiative.
“Taking kickbacks from contractors, using campaign funds for personal expenses, redirecting donations made for one initiative to a different initiative — it’s hard to imagine what more Mr. Eyman could have done to show his contempt for our campaign finance disclosure laws,” Ferguson said.
The complaint filed today in Thurston County Superior Court stems from a state Public Disclosure Commission investigation. In August 2012, the PDC received a complaint about Eyman and two of his political committees: Voters Want More Choices and Protect Your Right to Vote on Initiatives.
In September 2015, PDC staff presented the results of their investigation to the Commission, which then referred the case to the Attorney General’s Office.
On Nov. 13, 2015, the Attorney General’s Office issued civil orders to Eyman, his for-profit company, two of his political committees and Citizen Solutions.
The orders sought business and financial information, including banking and tax records, regarding Eyman initiative campaigns in Washington. While the respondents produced a smattering of records, some of which were heavily censored, they did not fully respond to the subpoenas.
In June 2016, a judge ordered Eyman to comply with the subpoenas in the Attorney General’s investigation. Even then, the defendants failed to meet the court-ordered deadline, and it took a contempt motion to obtain the records.
In September 2016, the courts ordered Eyman, his political committees and Citizen Solutions to pay the Attorney General’s Office a total of $33,000 for the costs of enforcing subpoenas in the investigation.
Read more: http://www.atg.wa.gov/news/news-releases/ferguson-files-21m-campaign-finance-lawsuit-against-tim-eyman
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