By J. Lyn Carl, GalleryWatch.com
Austin, TX –
Although individuals were not named, a total of five grand jury indictments were announced by Travis County District Attorney Ronnie Earle today against the Texas Association of Business (TAB) and Texans for a Republican Majority Political Action Committee (TRMPAC).
At a noon press conference, Earle announced four indictments against TAB and one against TRMPAC for violating state law by using corporation donations to help fund campaigns of numerous Texas legislative candidates during the 2002 election cycle.
The district attorney said the investigation "unmasked" the corporate donors, not all of which were located in Texas, and called the use of the millions of dollars of "secret money" channeled into Texas political races "improper, illegal and unprecedented."
"These indictments allege violations of the Texas Election Code in connection with the 2002 Texas state elections," said Earle. He added that two indictments that were returned two weeks ago and sealed are among those made public today.
Earle said all of the indictments involve the misuse of corporate money to influence Texas elections in 2002. "They contain allegations that TAB and TRMPAC worked together in a complicated scheme to circumvent the Election Code by funneling massive amounts of secret corporate wealth into elections," said the district attorney.
While TAB is accused of spending corporate money on political campaigns, TRMPAC is accused of accepting corporate donations. Texas law prohibits corporate donations for political campaigns.
In September 2004, a Travis County grand jury returned indictments against three persons associated with TRMPCA. The indictments, against John Dominick Colyandro, executive director of TRMPAC; Warren M. RoBold, a Washington, D.C., fundraiser; and James W. Ellis, an aide to U.S. House Majority Leader Tom DeLay of Texas, and eight corporate donors, ranged from unlawful acceptance of a corporate political contribution to money laundering.
Those indictments were among some three dozen returned that culminated a two-year investigation into allegations of unlawful collection and distribution of campaign contributions from corporations to help fund political campaigns of Republican candidates in the Texas House elections.
Some of today's indictments detail how TAB "worked in combination with various people and political committees to use corporate funds in support of specific candidates for elective office," said Earle.
TAB is charged in four of the indictments with the following felony offenses, said Earle:
- 83 counts of illegally funneling large amounts of corporate money into the 2002 elections through a series of mailers and television ads. TAB is also charged with coordinating such efforts with other groups, political action committees and entities.
- 28 counts of fraudulently soliciting money from corporations for use in 2002 political races. The indictment charges that a group of corporations, mostly insurance companies, were solicited by TAB President and CEO Bill Hammond to contribute corporate money to a political campaign. This was one of the previously sealed indictments.
- 14 counts of illegal corporate contributions and allegations that Hammond and Jack Campbell, TAB's government affairs manager, were paid with TAB's corporate money while doing work for various PACs, which is prohibited by the State Election Code. This was another of the previously sealed indictments.
- Three counts of illegal expenditures by TAB as a corporation, for paying more than $1.1 million in corporate money for political advertisements and campaign communications.
- TRMPAC is charged with illegally soliciting and accepting corporate political contributions from AT&T and the Alliance for Quality Nursing Home Care, conduct which is prohibited in Texas.
Earle said all of these offenses are third degree felonies, which can carry a fine of up to $20,000 for each count.
Earle said the more than two-year investigation in this case was partly the result of "TAB's prolonged efforts to stymie the investigation and hide the details of its use of corporate money from the grand jury as well as from the public." He said TAB officials both fought the investigation in court and appealed decisions against them.
Earle said the U.S. Supreme Court has recognized that "concentrated wealth can unfairly influence elections," adding that said Texas law has prohibited political contributions from corporations and labor unions for more than 100 years.
"Such use of money to buy the power that comes from illegally influencing elections endangers democracy and imperils the public," he said.
The district attorney said as these indictments were handed down that Texas citizens should question why these corporations wanted their contributions to remain undisclosed, why corporations that do not conduct business in Texas contribute large amounts of money to influence Texas elections, what they are buying with their contributions and what effect these contributions have had on "Texas government, Texas law and on the people of Texas."