BREAKING NEWS: Judge Removes Ed Rendell from Office! Is Mike Nutter next?

Guess what?

In 2002, in 2005 and in 2006, Ed Rendell received reimbursements from his campaign.

1. Edward G. Rendell
Philadelphia,&nbspPA &nbsp19129 5/15/2006 $348.89
Description: Reimbursement for Expenses
Filer/Payer: Rendell, Edward for Gov
Report: 2006 Cycle 3
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2 Expenditure Details 2
Recipient Date Amount
EDWARD G. RENDELL
PHILADELPHIA,&nbspPA &nbsp19102 1/4/2002 $1,296.12
Description: REIMBURSEMENT OF EXPENSES
Filer/Payer: RENDELL, EDWARD FOR GOVERNOR
Report: 2002 Cycle 1
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3 Expenditure Details 3
Recipient Date Amount
EDWARD G. RENDELL
HARRISBURG,&nbspPA &nbsp17120 4/26/2005 $230.74
Description: REIMBURSEMENT OF EXPENSES
Filer/Payer: RENDELL, EDWARD FOR GOV
Report: 2005 Cycle 2

Guess what else? I looked at the Governor's statement of financial interests that he filled out for 2005, when he refiled for his re-election run for Governor. And, ladies and gentleman, the Governor did not report the reimbursements as income. I know, I know, it is was a shock to me, too.

Therefore, it is my grave duty to announce that we must create a mass movement to recall the Governor from office, because Judge Tereshko's ruling has informed us that, in fact, the Governor should have been knocked off the ballot in the 2006 campaign. Someone alert Lynn Swann!

I hear Dan McCaffery will be leading the statewide movement to circulate the petitions.

Oh by the way, Mike Nutter reimbursed himself, too. After I see whether or not he listed those expenses as income, we will know whether the Mayor will join Governor Rendell as a person who should not be serving in office.

Rendell Survives!

Ah, so Rendell might survive, after all, because the limit is $1,300, and he never went above 1,296 in an individual year. Ed lives!

Does Mike Nutter? I can't find his SFI, but, his campaign reports show reimbursements, well in excess of $1,300.

Confused

Not sure if I am following you here Dan. Sure it is frustrating to see a candidate (especially one that seemed to have the election in the bag two months ago get disqualified on what may have very well been a misunderstanding. But were the financial statements of Rendell, Nutter, etc, ever challenged? If not, their examples are fairly irrelevant. If I rob a bank, but never get brought to trial, and you rob a bank, and get convicted, not much relevance my situation has on yours. If your objective was to just point out the frequency that this occurs, thus illustrate that this is not a major offense, then you were successful. If you are trying to use the examples as precedent to keep Williams on the ballot, I'm not sure that works.

We all know the DA's position was a stepping stone for statewide office for Seth anyway. He had a lot of strengths as a candidate, shame it had to end this way. He should just drop it, honestly. What is he going to do in the race after battling this for 4 or more weeks (assuming he wins the appeal and then goes to the Supreme Court and wins again)? It’s only a 7 week election. It’s over for Seth. He should just pack it in, and get ready for his next election.

At least the DA race is heating up. It has been an absolute snooze fest thus far, except for city politic junkies like those of us on this site. Who knows, maybe next they'll actually have a real debate (not the two-hand touch BS they have had so far) so people can actually start picking sides in this thing. Although, I admit, that may be too much to ask.

Glad to see someone else is covering this other then the hacks at the Inqy. Keep it up Dan.

I don't actually think

I don't actually think Nutter of Rendell should be removed nor could be removed or challenged.

But my point is that by this standard, unless Nutter, for example, reported as income the thousands in travel expenses that he reported, he could have been kicked off the ballot. In other words, the Judge is making up a standard that not only makes no sense, but has not been followed by anyone.

I understand where you are

I understand where you are comming from with that, but maybe I did not articulate my question well enough. What I meant was, I believe it is hard to pin the judge as "making up a standard" if Nutter, Rendell, or others who had made this error had not been challenged before. If others had been challenged and passed, then Teresco would be making up a standard. But if others made this error but were never challenged, than it would be on the candidates that faced them to bring it to court. Who knows, maybe other judges would have ruled the same as Teresco, we simply do not know. The real blame here then would go to McCaffery, who you address in your first post. That is who is the menace in all of this, not Teresco.

That being said, will be interesting to see how this plays out. I believe the appeal got expediated to tommorrow? Not sure though. Will be compelling.

EDIT: Scratch that, The appeal will be followed tommorrow. We will have to wait for the trial, obviously.

Keep at it

I hope the candidate appeals and that Dan U-A, or someone, posts the appellate briefs. This is an interesting case and I'd like to stay tuned. I think the appellate courts are able to rule fairly quickly on these things.

What A Short Memory you Have..

I remember when Matt McClure challenged Carol Campbell in Court for the same violations. Recall that her PAC reimbursed her phone bills, internet service and Car Lease. The case went before not 1 but 3 Common Pleas judges all of whom found that reimbursements were not income. I remember then that people were outraged that she had not disclosed these reimbursements as income. Now the shoe is on the other foot.

From what I can tell, this is the difference:

Common Pleas doesn't keep filings online. However, you can see the gist of the court's rulings in the docket (see below).

From my reading, the issue was whether Carol Campbell had received a benefit from the PAC in the form of it paying for services for her (telephone, car). If you spend money on something for yourself and the PAC pays that amount, you are receiving a benefit in the form of an expense. That is, she is getting a car and doesn't have to personally pay for it, which is worth something.

It seems that the question being fought over in the Campbell case was whether the benefit of the services that she was reimbursed for went to her personally (which would have had to be disclosed as a form of income, and seems questionably legal) or to the PAC (in which case they would have actually been valid reimbursements).

From what I can tell, what we are talking about with the McCaffery suit is basically someone putting the cost of office supplies for a campaign office on their personal credit card, and then having the campaign reimburse them. As far as I know the suit does not allege that the amounts that were repaid by Seth's campaign were anything but valid campaign expenses (though this seems to be what they want to sneakily suggest in order to make this 'gotcha' lawsuit seem like something bigger).

9-07034199 The above named candidate filed timely Nomination Petitions for the Office of City Council of the City of Philadelphia. At the time of filing Nomination Petitions, the Candidate filed a Statement of Financial Interest, as required by law. Three Petitions to strike the Nomination Petition of the Candidate were filed. Said Petitions claim that the Statement of Financial Interest contains material defects and/or omissions, requiring that the Candidate's name be stricken from the ballot. A hearing before Judges Jacqueline Allen, Pamela Dembe and Eugene Maier was held on March 16th, 2007. Following the hearing, the Judges unanimously ruled that the Candidate's name should not be stricken from the ballot of the May 2007 Democratic Primary, and the Above Candidate's name shall appear on the May 2007 Ballot. The issues and rulings presented are as follows: At the outset of the hearing, the Court granted a Protective Order to the Candidate against a demand for extensive document discovery. The Rules of Civil Procedure do not apply to Election Court matters, and the Election Code does not provide for discovery. The Court determined that this also applies to Ethics Act matters, and that the Objector was not entitled to the requested discovery. In addition, the discovery sought was burdensome and unreasonable. SERVICE A Petition filed by Alfred Sanford was stricken without a hearing because The Petition contained no verification, and no proof of service. The two remaining Petitions were subject to a single hearing, with each Objector limited to those claims specified in their individual Petitions, as proof was overlapping. LINE 9: CREDITORS The Objector withdrew this Objections upon a showing by the Candidate that an item listed a Ford Motor Credit was a vehicle lease and not a loan. LINE 10: INCOME Objector McGill claimed that an entity listed in Line 13, 'Visionary Group, LLC' should also have been listed in line 10. As the entity was indeed listed on the Financial Statement, its omission from a second listing would have been amendable. In any case, the Candidate testified that the entity lost money in 2006. This assertion was not contradicted. The objector claimed that 'Visionary' should nonetheless have been listed as a source of gross income, if not net income. The court rejected this interpretation and denied this objection. As the entity is a a Limited Liability Corporation, whose members are taxed as partners, gross and net income are not applicable. The candidate also failed to list a lease for a Lincoln automobile held by the Genesis IV PAC for her use, although the lease ran from 2003 to October of 2006. She explained that due to physical infirmity, she has been unable to use the car since late 2005. The Candidate was also questioned regarding phone lines to her residence. She testified that one of the phone lines was reserved strictly for Genesis IV business and not for personal use. She was also questioned regarding four pieces of real estate, all of which she admitted owning. She testified that one was an abandoned gas station, one was under construction, a third was an uninhabited, and the last is her personal residence, and that none of these properties generates income. LINE 13,14: BUSINESS INTERESTS The Candidate did not list herself as Chair of Genesis IV, a PAC. She testified, without contradiction, that she resigned in writing as Chair in January 2006, and was told by her attorney that an Amended political Registration Statement had been filed. She also testified without contradiction that 'Alexandra Consultants, incorporated in 1994, has been defunct since shortly after its formation. The court found that there were no fatal defects in the Financial Statement, and that the name of the Candidate shall appear on the May 2007 ballot. ...BY THE COURT: MAIER, J., DEMBE, J., ALLEN, J. 3-22-07

Could you show me where? (I

Could you show me where? (I mean that honestly.) This is what I found when looking for stuff on technical ballot challenges, (and on a search of her, and on a search of McClure).

Stier: http://youngphillypolitics.com/second_time_farce

All these challenges on the basis of the statement of financial interests are not really in keeping with our progressive ideals, are they? We are supposed to favor democracy, which means, as Jesse Brown put it at our press conference a week ago, “Let the people decide.”

The law does say that a failure to fill out the statements of financial interest properly is a reason to boot someone from the ballot. But that law is simply asinine, especially when there is so much uncertainty about what should and should not be included on the form. There is undoubtedly some good purpose in the voters knowing how we candidates make our money. That purpose can be attained by a law that requires financial disclosure and gives the Ethics Board, and other candidates, the right to temporarily suspend someone from the ballot until their statement of financial interests is filled out completely and properly. There is no reason to hang someone for an error in understanding a set of requirements that are far from clear. It is much easier to interpret a page of Hegel or Heidegger than to understand the instructions for the statement of financial interests.

Me: http://youngphillypolitics.com/holy_crap_we_need_some_concessions_bob_br...

I don't think, however, that Brady should be kicked off the ballot. That is not democracy. I do think, however, that it is time for Brady, in his role in the City party, to enact some serious reforms with how the City party uses ballot challenges as sport to keep out change.

And, I am pretty sure I was for Irvonio's post here:

http://youngphillypolitics.co/will_congressman_brady_now_help_us_end_got...

We asked all candidates to pledge not to engage in any technical ballot challenges this year in a group commitment to the democratic process and the citizens of Philadelphia. We agreed that fraud and intentional nondisclosure should be confronted, but, short of that, we asked that all those running, and the Party machinery, abandon all the usual “gotcha” nonsense.....

Can we now count on the Party chair to have his allies in Harrisburg introduce legislation to amend the state disclosure law to make clear that candidates have a right to amend their disclosures to correct unintentional errors?

Now, one of the most embarrassing things I have ever posted, was about her, and it was during election time petition time, based on emails and phone calls I got saying that she didn't even file for office by the deadline, and that she got special treatment so that she could file after the fact. But, it had nothing to do with her SFI, and with a ridiculous interpretation from a judge that creates a totally new standard for what is considered income.

It is idiotic that you can't amend these things, and it is bizarre that the judge has newly invented a definition of income.

As I said above

Thanks, Dan, for digging out what I wrote before. I stand by it: I think thjat technical violations of financial disclosure forms should be amendable. As I said in the same post Dan quotes:

"I hope that every candidate challenged on the basis of their statement of financial interests stays on the ballot, beginning with Bob Brady."

If Seth Williams took reimbursements from his campaign for personal use or without receipts, he has a serious problem. That would, in fact, count as income and should be listed in the financial disclosure form and on his tax forms.

Perhaps that is what was alleged at the hearing. And it is an issue that deserves a public hearing in the press and on the blogs and anywhere else.

But that is not what the judge said in his decision justifying the removal of Seth Williams from the ballot. The judge ignored the question of whether the reimbursements were legitimate or not. He ruled that legitimate reimbursement for campaign expenses should be listed on the disclosure form.

I don't know how many other ways we can all say this, but that is just nuts.

And it has nothing to do with who I support or don't support for DA...especially since I haven't even made up my own mind. It's about democracy with a small d.

The arguments are the same

Whether it is reimbursement for office supplies (apparently totaling in excess of $10,000) or phone lines in your house when you claim that the line is "reserved" only for PAC use or internet reimbursement in your own house when you claim it was only used for PAC business, the logic should be the same. What saved Campbell is that she had actually disclosed Visionary elsewhere on the form and the Court found that all those omissions would have been amendable. Lets not kid ourselves,the election code is technical and cuts both ways. The disclosure form is a morass of information where one fact is left off it gives rise to the kind of Gotcha lawsuits Seth and every other candidate are susceptible to. (Remember Seth filed against Turner). The surprising thing here and why I'm sure this will be overturned is that the election code itself says that judges should interpret it liberally to allow for more people, not less people to be on the ballot.

No they are not, Frank

Judging from what Jennifer posted, in both cases, there is a question of what constitutes income for the purposes of the form.

But in the Campbell case, the critical issues were whether (1) gross income from a partnership with no net income was reportable and (2) whether a phone line and car paid for by the PAC was a legitimate expenditure of the PAC, that is, goods used in carrying out the operations of the PAC or was, rather, something Ms. Campbell used for her own personal benefit.

(1) is a technical legal issue about which there might be some reasonable dispute and (2) is a factual question about how the car and phone line were used.

In the Williams case, the issue is not whether the reimbursed expenses were legitimate or not. The judge does not dispute that they were. What he claims, rather, is that even legitimate reimbursement expenses are income.

This is a legal issue about which the judge's conclusion is simply a howler. It is wrong by a mile. It is not within the realm of plausiblity. And all because, as Tim shows, it is based on (1) a ridiculous set of grammatical arguments about the meaning of a law that is about as clear as a law can be and (2) a misundestanding about the difference beween whether "expenses" received as compensation for providing a service and "expenses" as compensation for advancing funds in the performance of that service.

Other candidate's comments

From Brett Mandel's blog: "Voters should decide elections, not judges."

Jennifer's post lays the difference

Campbell did not disclose expenses the PAC paid for according the judge. Seth was paid back for expenditures he made out of personal accounts but disclosed it fully as part of his campaign finance filings. Tereshko's ruling had nothing to do with filing PAC paperwork, which Seth did corectly according the judge. Tereshko is claiming that Seth did not list getting paid back for expenses he temporarily ran up for his campaign on a personal credit card on the form where the candidate is supposed to list their income from jobs they hold or investments they own. Paying back a credit card for early legitimate campaign expenses is not a form of employment. It simply isn't. Thats why Tereshko's ruling is laughable and why if it held up would also disqualify virtually every candidate who ran for office ever, including McCaffery himself.
MrLuigi, my cat, actually only types half as badly as I do.

What are the DA candidates saying about the decision?

Has anyone other than Seth denounced the decision as absurd and unjust and explained why?

In a race with a lot of impressive candidates, a willingness to say that might become a litmus test for some of us.

McElhatton spoke out against

McElhatton spoke out against the ruling.

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