Federal Elections Commission Asked to Investigate Role of Giuliani Campaign in California Electoral College Scheme--Referral to US Department of Justice Also Requested

Californians for Equal Representation, the committee that's behind the Republican power grab effort here in California needed money in order to pay for signature gathering efforts in the state. As of last week, the 23rd of September, they had not reported receiving any contributions. That day, they reported receiving a single contribution of $175,000 from a never before heard of Missouri limited liability corporation called Take Initiative America.

Upon closer inspection of Missouri records, it became clear that this entity, Take Initiative America, had in fact been created the day before $175,000 contribution was made, leading to the inference that it is nothing more than a shell. That led to the question: Where did they get their $175,000 from--where did it come from? How could an entity that's created in one day somehow earn $175,000 in one day? It would be a good business, but it doesn't seem like a legitimate one.

So what we did was to press for answers. Californians for Equal Representation initially declined to say anything other than that the contribution had come from TIA. Eventually, as Chris noted, the donation led to mass resignations including Tom Hiltachk, the author of the measure whose firm represents the California Republican Party and Marty Wilson, their chief fundraiser.

When the New York Daily News revealed on Friday that the $175,000 contribution had in fact come from a Giuliani confidante, policy advisor, and regional finance chairs, it raised the stakes even higher because it appears that this individual, Mr. Singer, has indeed taken part in financing the effort to qualify the Republican power grab for the ballot. And as an agent of Mr. Giuliani's, he would be prohibited from soliciting or directing a contribution in excess of $2,300.

So we would very much like the FEC to look into this, to determine what Mr. Giuliani knew, when he knew it, what conversations he and Mr. Singer had about the contribution, about Take Initiative America; how Take Initiative America was created, whose idea was it? Did Mr. Hurth talk to Mr. Singer? How did it come about that $175,000 was transferred the day that the corporation was established? There had to be some coordination there and we'd like the FEC to into it.

The other thing we'd like the FEC to ask is: Where did the $175,000 come from? Did it come from Mr. Singer personally" Or did it come from a corporation that he controls?

If it came from a corporation that he controls, then that too would be impermissible because Federal candidates prohibited under Federal law from soliciting or accepting a contribution from a corporation.

We're also concerned that there may have been coordination between the Giuliani campaign and Californians for Equal Representation. In fact, Marty Wilson, the chief fundraiser for Equal Representation, who resigned just last week, was quoted in the press as saying that he had "heard" that the Giuliani people were interested in the effort in California, and that they were praying that it would commit--it obviously refers to the money.

What communications occurred between the Giuliani campaign and Californians for Equal Representation? Was Californians Equal Representation acting at the behest of the Giuliani campaign? Under Federal law, if a Federal candidate coordinates with another entity in making expenditures that may affect the outcome of the Federal election, that's considered to result in an in-kind contribution to the Federal candidate. We'd like the FEC to investigate to determine whether in fact in-kind contributions were made from Californians for Equal Representation to the Giuliani campaign in excess of the Federal limts.

Finally, we are quite concerned about the efforts that went into concealing the identity of Mr. Singer--who's name would not have been disclosed but for the efforts of reporters, including the New York Daily news. Remember, Take Initiative America, was not an existing entity on September 10. It sprung into life on September 11. It made a $175,000 contribution for Californians for Equal Representation.

Under California law, Californians for Equal Representation was required to disclose the true source of the funds. It identified Take Initiative California as the donor. But we now know from the Daily News reports that Mr. Singer intended his money to be used to support the effort here in California. So clearly take Initiative America was nothing more than a pass through. California law prohibits a person from making a contribution other than in his own legal name. And it requires that an intermediary disclose the true source of the funds.

In this case, in fact, the contribution was not made in Mr. Singer's legal name, and no intermediary was disclosed. In California, that's considered money laundering. We again, would like to know what involvement the Giuliani campaign had had in this. What conversations took place, what efforts were made to conceal the contribution and to subvert the purpose of California law? And we've asked the FEC to look into that.

Also, because it appears that some of these potential violations may have been knowing or intentional, we've asked the FEC to refer this matter to the US Department of Justice and we've copied the Public Integrity Division of the Department of Justice on this letter.

Given what appears to be a conspiracy at work here, we think it's critical that the US Department of Justice get involved as well."