FEDERAL ELECTION COMMISSION 

Washington, DC 20463 

MEMORANDUM 

TO: Commissioners 

Acting General Counsel Lerner 

Staff Director Pehrkon 

FROM: Office of the Commission Secretary 

DATE: June 19,2001 

SUBJECT: . Statement of Reasons for MUR 5033 

Attached is a copy of the Statement of Reasons for MUR 5033 signed by 

Chairman Danny L. McDonald, Vice Chairman David Mason, 

Commissioner Karl J. Sandstrom, Commissioner Bradley A. Smith, 

Commissioner Scott E. Thomas and Commissioner Darryl R. Wold. 

This was received in the Commission Secretary’s Office on 

June 19,’2001 at 953’a.m. 

cc: Vincent J. Convery, Jr. 

Press Office 

Public Information 

Public Records 

Attachments 
. 

FEDERAL ELECTION COMMISSION 

WASHINGTON. D.C. 20463 

.. 

BEFORE THE FEDERAL ELECTION COMMISSION 

In the matter of 

Allison M. Thomas 

Alexander Audit Fund, Inc. and ) MUR 5033 

Todd Eardensohn, as treasurer ) 

Alexander for President 1996 and ) 

Todd Eardensohn, as treasurer ) 

) 

1 

)- 

Princeton’s Restaurant 1 

STATEMENT OF REASONS 

This matter arose fkom a filing by Allison M. Thomas on June 19,2000, alleging that in 

1995 he and other employees of Princeton’s Restaurant were reimbursed for contributions made 

to Alexander for President 1996, Lamar Alexander’s 1996 presidential primary committee. The 

Office of the General Counsel had recommended finding reason to believe certain persons 

violated the law, but taking no hrther action beyond sending admonishment letters. This 

Statement of Reasons explains the Commission’s 6-0 vote on March 13,2001, simply to take no 

further action as to Allison M. Thomas, Princeton’s Restaurant, Alexander Audit Fund, Inc. and 

Todd Eardensohn, as treasurer, and Alexander for President 1996 and Todd Eardensohn, as 

treasurer, and close the file in MUR 5033. 

The Commission determined to take no hrther action as to these respondents and close 

the file for procedural and substantive reasons. As of the date of Allison M. Thomas’ filing with 

the Commission, more than five years had passed since the alleged violations. Accordingly, the 

statute of limitations at 28 U.S.C. 0 2462 expired and thus, the Commission would have been 

precluded from securing a court-ordered civil penalty in this matter. See FEC v. Williams, 

104 F.3d 237 (Sth Cir. 1996), cert. denied, 522 U.S. 101 5 (1 997). Furthermore, the Commission 

would not seek disgorgement now because Alexander Audit Fund, Inc. was named as a 

respondent in this matter in error and Alexander for President 1996 was administratively 

terminated by the Commission on May 7, 1999. Even without statute of limitations problems, 

the age of the activity in this matter weighs heavily in its detennination to take no hrther action. 
MUR 5033 

Statement of Reasons 

Page 2 

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e 

‘I . 

The Commission already has concluded a settlement agreement with an additional 

respondent, Dr. Daniel R. Hightower, President of Princeton’s Restaurant.’ That agreement 

includes a requirement that Princeton’s Restaurant adopt and distribute a corporate policy 

prohibiting corporate contributions to federal elections and, thus, already effectuates remediation 

with regard to the corporation. 

Substantively, the facts of this complaint do not justify a reason to believe finding against 

the recipient committee. The fact that an authorized committee receives contributions fiom 

individuals employed by the same company, for the same amount, and on the same date, without 

other factors, is not sufficient to find reason to believe that a violation has occurred. See MUR 

4850 (Fosella). The facts alleged in this complaint do not suggest a breach by the recipient 

committee’s treasurer of the duties required by the Federal Election Campaign Act of 1971, as 

amended, and Commission regulations. See 2 U.S.C. 4 432(h)(l); 11 C.F.R. $9 103.3 and 

104.14. 

Finally, little purpose would be served by making findings with respect to the 

complainant who has acknowledged regret for his actions and sought redress by filing this 

complaint. 

Based on the above, the Commission determined by a 6-0 vote to take no further action 

against Allison M. Thomas, Princeton’s Restaurant, Alexander Audit Fund, Inc. and Todd 

Eardensohn, as treasurer, and Alexander for President 1996 and Todd Eardensoh, as treasurer, 

and closed the file in this matter. 

June 13,2001 

- L 

David M. Mason, Vice Chairman 

~. ,’ 

cott E. Thomas, Commissioner Dkyl R. &old, Commissioher 

The Commission accepted the Alternative Dispute Resolution Ofice’s recommended settlement in ADR-00 10 1 

providing for a $1,200 civil penalty.