Alleges Illegal Financial Links Between Arca Foundation And Edwards Campaign

The campaign of incumbent Rep. Al Wynn filed a formal complaint today with the Federal Election Commission (FEC) alleging that the rival campaign of activist Donna Edwards has violated federal election campaign laws.

In a letter to the FEC, Lori Sherwood, the congressman’s campaign manager, wrote, “Based on my examination of various records and documents I believe the Donna Edwards for Congress Committee has received substantial assistance by way of unreported, in-kind contributions from organizations who profess to have operated independently of the Edwards Campaign.”

In a lengthy complaint, Sherwood claimed that as executive director of the social justice organization the Arca Foundation, Edwards was “responsible for administering and overseeing grants that are awarded and distributed” by the group – grants that go to some of her campaign's biggest supporters.

“By way of example and not limitation, the Arca Foundation contributed $100,000.00 in grants to the League of Conservation Voters (LCV) from 2004-2006,” Sherwood said.

“That after having been intimately involved in the award of an Arca grant to the LCV, Donna Edwards was appointed to the Board of Directors of the League of Conservation Voters,” she continued. “After receipt of grant money from Ms. Edward's group and her appointment to the LCV Board, LCV endorsed Donna Edwards for Congress in 2006 and 2008.”

Sherwood goes on to allege that the “LCV and its principals contributed over $15,000.00 to the Edwards campaign through its board members, employees, and the LCV PAC.”

Continuing on the same theme, Sherwood claimed Arca contributed $35,000 in grants to the nonprofit environmental organization, the Friends of the Earth.

“Thereafter, Friends of the Earth endorsed Donna Edwards in 2006 and contributed over $5,000 to her campaigns through their board members, employees, and its PAC,” Sherwood wrote.

She said the situation “involving LCV and Friends of the Earth has been repeated with 37 other organizations all of whom received monies from Arca and had persons aligned with each group make campaign contributions to the Edwards Campaign.”

All combined, these organizations are said to have donated over $75,000.00 to Edwards through board members and employees.

Alleging further violations, Sherwood said the Edwards campaign had illegally coordinated communications with EMILY’s List “to promote the candidacy of Donna Edwards and to oppose Albert Wynn.”

“In support of the foregoing, I learned that on January 22, 2008 the Edwards Campaign and EMILY’s List expressly collaborated, sending campaign messages to EMILY’s List supporters,” Sherwood wrote. “The email, sent as a fundraising device was approved and expressly authorized by the Edwards Campaign.”

Continuing, Sherwood wrote, “Thus, it is clear that the fundraising apparatus and campaign efforts of EMILY’s List, together with the expenditure of funds and resources to promote the candidacy of Donna Edwards constitutes an ongoing, joint collaborative effort between the candidate's campaign and EMILY’s List. This type of coordination and collaboration could violate federal campaign finance law.”

Ellen Moran, the Executive Director of EMILY's List, released a statement responding to the charges against her organization.

"EMILY's List is proud to stand with Donna Edwards, a champion for women and families and a leader we know will bring the kind of change the voters of Maryland's 4th District so desperately want. It is a sad indication of Rep. Wynn's desparation that he resorts to launching specious attacks against non-profit community groups, environmentalists and organizations representing workers and women's rights. While Wynn launches false attacks, we know Donna Edwards will fight for the people of her district."

Beyond political organizations or nonprofits, Sherwood raised concerns about the relationship between the Edwards campaign and 527 groups.

Under federal law, 527 organizations are not allowed to directly advocate for the election or defeat of any candidate for federal elective office. Thus, they avoid regulation by the FEC.

Sherwood said the 527 group Communities Voting Together (CTV), which is located at 1024 Elysian Fields in New Orleans, was also the address for the Service Employees International Union (SEIU) Local 100, and the address of the Association of Community Organizations for Reform Now (ACORN), along with the Elysian Fields Corporation.

“Wade Rathke, President of Elysian Fields Corporation is also the chief organizer for SEIU Local 100, founder of ACORN, and a member of the Board of Directors of Tides Center and Tides Foundation,” Sherwood said while alleging that Tides, a social justice network, “received $245,000 in grant money” from the Arca Foundation from 2002-2006.

She continued, saying, “Donna Pharr is the Custodian of Record for Communities Voting Together, the Assistant Treasurer for ACORN, and Deputy Treasurer for the American Institute for Social Justice and Voting for America, Inc. Both of these organizations received a combined total of $230,000 in grants from Arca between 2003 and 2006.”

Sherwood also said members of the CTV “printed and distributed thousands of handouts attacking Congressman Wynn,” while they also attempted “to hire canvassers to assist the Edwards campaign.”

In addition, Sherwood said she also learned of a relationship between the Edwards and another not for profit, Citizens Services, Inc., a Louisiana corporation also claiming the address 1024 Elysian Fields in New Orleans.

“I learned that Citizens Services, Inc. qualified to do business in Maryland as a foreign corporation and gave a registered agent address of 11 East Chase St., in Baltimore,” Sherwood said.

“In checking to verify the address, I learned that there is no record of Citizen Services, Inc. actually having an office in Baltimore,” she added. “According to recent records from the Maryland State Department of Taxation and Assessments Citizens Services, Inc.'s ability to do business in Maryland was forfeited less than 2 months after the 2006 primary.”

Sherwood alleged that the Edwards campaign paid Citizens Services a total of $76,866.80 in three separate payments in a door to door get out the vote effort, while saying the information came directly from Edwards’ campaign reports.

Speaking with reporters this afternoon, Wynn said he would like to see the Edwards campaign “sanctioned” for their alleged campaign violations.

When questioned about the timing of the complaint, two weeks before the Feb. 12 Democratic primary, Wynn said the information had been “out for a while,” but was not picked up by the media.

Thus, he said his campaign decided to file a formal complaint.

Asked for comment, Donna Edwards' campaign released a statement on behalf of their candidate.

“This is a desperate 11th hour attempt by the Congressman to deflect from the fact that groups representing the core of the Democratic Party and the issues it stands for – worker’s rights, affordable housing, protecting women’s right to choose, the environment – have decided that they want to fire him and are supporting me because they know I stand with them and always have."