CREW citizens for responsibility 

and ethics in washing^ElVED 

FFX MAIL CEUTtR 

2I1ISN0V 18 PH S"®' 

November 18,2015 

Federal Election Commission 

Office of Complaints Examination ^ | ^ ^ 

and Legal Administration _ ' ^ 

Attn: Frankie Hampton; Paralegal ^ 

999 E Street, N.W. S ? 

Washington, D.C. 20463 Q 

1 Re: 'MUR 6872/Amended Complaint 

jrt S '* ^ 

^ Dear Mr. Hampton: ^ ^ ^ 

1 N 

& Please.End under cover of this letter an amended complaint in MUR 6872. We file this ^ ^ 

amended complaint to supplement the complainants provided in CREW's original complaint, ^ | 

filed on September 18,2014. In the time during which CREW'S complaint has been pending, | 

CREW has experienced staff changes necessitating an Update to the parties to the complaint. ^ t| 

CREW submits this amended complaint to substitute me, CREW's current executive director, as ^ ^ 

a complainant for CREW's previous executive director, Melanie Sloan; Accordingly, the ^ ^ 

amended complaint includes new allegations specific to me (see Am. Corapl. 1,6,7, and fs 

conclusion), and removes allegations specific to Ms. Sloan. The exhibits to the amended 

complaint are identical to the exhibits to the original complaint and are incorporated therein, but, 

in the interest of not duplicating copies in the administrative record, CREW does not resubmit 

the exhibits. 

Please further note that our address has changed. Please direct all future correspondence 

to the address below. 

Sincerely, 

End. 

Noah Bookbinder 

Executive Director 

Citizens for Responsibility and Ethics 

in Washington 

455 Massachusetts Ave., N.W. 

Sixth Floor 

Washington, D.C. 20001 

(202) 408-5565 (phone) 

(202) 588-5020 (fax) 

nbookbinder@citizensforethics.org 

455 Massachusetts Avenue, N.W., 6th Floor, Washington, D.C. 20001 I 202.408.5565 phone | 202.588.5020 fax | www.citizensforethics.org 
FEDERAL ELECTION COMMISSION 

In the matter of>. 2015 NOV 18 PH 2« 02 

New Models MURNo.6872 

AMENDED COMPLAINT 

1. Citizens for Responsibility and Ethics in Washington ("CREW") and Noah 

Bookbinder bring this complaint before the Federal Election Commission ("FEC or 

"Commission") seeking an immediate investigation and enforcement action against New Models 

4 4 for direct and serious violations of the Federal Election Campaign Act ("FECA"). 

Complainants 

2. Complainant CREW is a non-profit corporation, organized under section 

501(c)(3) of the Internal Revenue Code. CREW is committed to protecting the right of citizens 

to be informed about the activities of government officials and to ensuring the integrity of 

government officials. CREW is dedicated to empowering voters to have an influential voice in 

.. government decisions and in the governmental decision-making process. CREW uses a 

» 

combination of research, litigation, and advocacy to advance its mission. 

3. In furtherance of its mission, CREW seeks to expose unethical and illegal conduct 

of those involved in government. One way CREW does this is by educating citizens regai'ding 

the integrity of the electoral process and our system of government. Toward this end, CREW 

monitors the campaign finance activities of those who run for federal office and publicizes those 

who violate federal campaign finance laws through its website, press releases, and other methods 

of distribution. CREW also files complaints with the FEC when it discovers violations of the 

FECA. Publicizing campaign finance violators and filing complaints with the FEC serve 
CREW'S mission of keeping the public informed about individuals and entities that violate 

campaign finance laws anc 

regulated entity is complyi 

contained in receipts and c 

deterring future violations, of campaign finance law. 

4. In order to assess whether an individual, candidate, political committee, or other 

ng with federal campaign finance law, CREW needs the information 

isbursements reports political committees must file pursuant to the 

FECA, 52 U.S.C. § 30l04ja) (formerly 2 U.S.C. § 434(a)); 11 C.F.R. § 104.1. CREW is 

hindered in its programmatic activity when an individual, candidate, political committee, or other 

! 

regulated entity fails to dis dose campaign finance infpmiation in reports of receipts and 

I 

disbursements required by |the FECA. 

5. CREW relies on the FEC's proper administration of the FECA's reporting 

requirements because the IjECA-mandated disclosure reports are the only source of information 

CREW can use to determine if an individual, candidate, political committee, or other regulated 

entity is complying with the FECA. The proper administration of the FECA's reporting 

requirements includes manjdating that all disclosure reports required by the FECA ai'e properly 

and timely filed with the FEC. CREW is hindered in its programmatic activity when the FEC 

fails to properly administer 

6. Complainar 

the FECA's reporting requirements. 

: t Noah Bookbinder is the executive director of Citizens for 

Responsibility and Ethics i i Washington. At all times relevant to the complaint, he has been and 

remains a citizen of the United States and a registered voter and resident of Maryland. As a 

I registered voter, Mr. Bookbinder is entitled to receive information contained in disclosure reports 

i . . 

required by the FECA, 52 U.S.c! § 30104(a) (formerly 2 U.S.C. §434(a)); 11 C-F-R- § 104.1. 

Mr. Bookbinder is harmed in exercising his right to vote when an individual, candidate, political 
Qommittee, or other regulated entity fails to report campaign finance activity as required by the 

FECA. See FEC v. Akins^Sl^ U.S. 11, 19 (1998), quoting Buckley v. Valeo, 424 U.S. 1,66-67 

(1976) (political committees must disclose contributors and disbursements to help voters 

understand who provides which candidates with financial support). Mr. Bookbinder is further 

harmed when the FEC fails to properly administer the FECA's reporting requirements, limiting 

his ability to review campaign finance information. 

7. Mr. Bookbinder also is harmed in his ability to communicate to the public and 

other voters information about the source of funds used for political activities. 

Respondent 

t 

8. New Models is a tax-exempt organization established in 2001, organized under 

! 

section 501(c)(4) of the Internal Revenue Code, and based in McLean, Virginia. 

9. As of September 16,2014, New Models was not a registered political committee. 

Factual allegations^ 

10. According tb New Models' 2012 Form 990 tax return, filed under penalty of 

perjury, the organization spent a total of $4,506,176 in 2012. New Models 2012 Form 990, Part 

I, Line 1 (attached as Exhibit A). 

11. New Models further reported contributing $2,798,000 to independent-expenditure 

only political action committees, also known as super PACs, registered with the FEC. Id, 

I 

Schedule C, Pai11-C, Line 5. Specifically, New Models reported contributing $2,171,000 to the 

Now or Never PAC and $627,000 to the Government Integrity Fund Action Network 

("GIFAN"). Id.; Now or Never PAC, Statement of Qreanization. February 21,2012; GIFAN, 
Statemeni of Of aariization. July 11,2011.' Both of the super PACs reported receiving New 

Models' funds as "contributions" - gifts or other transfers of money made "for the purpose of 

influencing any election for Federal office," 52 U.S.C. § 30101 (8)(A)(i) (formerly 2 U.S.C. § 

431(8)(A)(i)) - confirming their political nature. Now or Never PAC, EEC Fohn 3X. 2012 PbstEleciion Report. December 12,2012 (excepts attached as Exhibit C); GIFAN, EEC Form 3X. 

2012 Pre-Election Report. Amended. Dec. 3,2012. 

12. New Models also asserted on its 2012 tax return it made a S292,000 grant to 

Citizens for a Working America for the purpose of "issue advocacy." New Models 2012 Form 

990, Schedule I, Part II. Despite New Models' characterization, this also appears to be a political 

contribution. Citizens for a Working America PAC, a super PAC registered with the EEC, 

reported receiving the $292,000 contribution from New Models in April 2012. Citizens for a 

Working America PAC. Statement of Qreanizaiion. September 10,2010; Citizens for a Working 

America PAC, FEC Forth 3X. 2012 April QuaHerlv Report. April 13, 2012 (excerpts attached as 

Exhibit D). 

13. All of the super PACs that received contributions from New Models engaged in 

extensive political activity influencing federal elections in 2012. Now or Never PAC spent more 

than $7.7 million in independent expenditures opposing Democrats and supporting Republicans 

' New Models named the "Government Integrity Fund" as the recipient of its contribution. New 

Models 2012 Form 990, Schedule C, Part I-C, Line 5. The Government Integrity Fund is a 

separate section 501(c)(4) organization, but the New Models contribution clearly went to 

GIFAN, its associated super PAC. The employer identification number listed on New Models' 

Schedule C is that of GIFAN, and GIFAN reported the New Models contribution to the FEC. 

GIFAN. EEC Foim 3X. 2012 Pie-Election Report..Ainended. December 3, 2012 (excerpts 

attached as Exhibit B). 
running for Congress. Open Secrets, Now or Never PAG, Independent Expenditures, 2012, 

available at httpS:y/www:opensecrets.orB/pac.s/indexpend.php?cvcle=20 l'2 

&:erntfc=^005] i432. GIFAN similarly spent nearly $2.4 million in federal elections, and 

Citizens for Working America PAC spent $855,575. Open Secrets, Government Integrity Fund 

Action Network, Independent Expenditures, 2012, available at htip://www.bpensecreis.org/ 

pacs/indexpend.php?cvcle^2()12&cmte=C00498832: Open Secrets, Citizens for a Working 

America PAC, Independent Expenditures, 2012, available at hitps://www;opensecrets.orc/ 

4 nacs/index pend .phpi?cvc1e^20' 12(&cmt e?C00488767. 

^ 14. Including the Citizens for a Working America PAC contribution, New Models 

0 conp-ibuted $3,090,000 to federal super PACs in 2012 - more than 68.5 percent of its total 

4 spending. Even excluding that contribution. New Models' contributions to federal super PACs 

totaled more than 62 percent of its 2012 spending.^ 1 

•Count I I 

i 

i 

15. New Models was a political committee between in 2012, but failed to register as 

« m 

i 

one with the FEC. | 

16. The FECA and FEC regulations define a "political committee" as "any 

committee, club, association, or other group of persons which receives contributions aggregating 

in excess of $1,000 during a calendar year or which makes expenditures aggiegating in excess of 

$1,000 during a calendar year." 52 U.S.C. § 30101(4)(A) (foimerly 2 U.S.C. § 431(4)(A)); 11 

^ New Models' political contributions constituted more than half of its spending even considering 

the entire 2012 political cycle. New Models' combined spending in 201) and 2012 was 

$5,986,241, making its $3,090,000 in political contributions 51.6 percent of its total 

expenditures. New Models 2011 Form 990, Part 1, Line 18 (excerpts attached as Exhibit E). 
C.F.R. § 100.5(a). An "expenditure" includes "any ... payment... made by any person for the 

purpose of influencing any election for Federal office." 52 U.S.C. § 30101(9)(A)(i) (formerly 2 

U.S.C. §431 (9)(A)(i)); 11.C.F.R. § 100.111(a). 

17. New Models made expenditures aggregating in excess of $1,000 during 2012. A 

"contribution" includes "any gift, subscription, loan, advance, or deposit of money or anything of 

value made by any person for the purpose of influencing any election for Federal office." 52 

1 U.S.C. § 30101(8)(A)(i) (formerly 2 U.S.C. § 431 (8)(A)(i)); 11 C.F.R. § 100.52(a). As federal 

^ super PACs, Now or Never PAC, GIF AN, and Citizens for a Working America PAC only make ; 

4 independent expenditures in federal races. v. F£C, 599 F.3d 686,694 (D.C. Cir. 

2010); see also, e.g., AO 2010-11 (Commonsense Ten) (authorizing organization that "intends to i 

i 

make only independent expenditures"). Contributions to these super PAC are transfers made for 

the purpose of influencing an election for federal office, and therefore are expenditures. New 

i 

i 

Models contributed $3,090,000 to these super PACs. 1 

! 

18. In addition,.only organizations whose "major purpose" is the nomination or 

election of federal candidates can be "political committees." Buckley v. Valeo, 424 U.S. 1, 79 

(1976). The FEC conducts a fact-intensive case-by-case analysis of an organization to determine 

if its major purpose is the nomination or election of federal candidates. Federal Election 

Commission, Political Committee Status, Supplemental Explanation and Justification, 72 Fed. 

Reg. 5595, 5601 (Feb. 7, 2007) ("Supplemental E&J"). An organization can satisfy the major 

purpose doctrine through sufficiently extensive spending on federal campaign activity. See FEC 

V. Massachusetts Citizens for Life. Inc., 479 U.S. 238, 262 (1986); Supplemental E&J, 72 Fed. 

Reg. at 5601. 
19. New Models' contributions to Now or Never PAC, GIF AN, and Citizens for a 

Working America PAC - super PACs that only engage in independent expenditures in federal 

races - were made for the purpose of influencing federal elections. These contributions 

accounted for 68.5 percent of New Models' total spending in 2012. Accordingly, New Models' 

major purpose in 2012 was the nomination or election of federal candidates. 

20. FECA and FEC regulations require all political committees to register with the 

FEC within 10 days of becoming a political committee. 52 U.S.C. § 30103(a) (formerly 2 U.S.C. 

§ 433(a)); 11 C.F.R.§ 102:1(d). 

> 

21. New Models is not, and has never been, a registered political committee with the 

FEC. 

22. By failing to register as a political committee. New Models violated 52 U.S.C. § 

30103(a) (formerly 2 U.S.C. § 433(a)) and 11 C.F.R. § 102.1(d). 

Count II 

23. As a political committee. New Models was required to file periodic reports with 

the FEC that, among other things: (1) identified all individuals who contributed an aggregate of 

more than $200 in a year to New Models, the amount each individual contributed, and the date of 

the contribution; (2) identified all political committees that made a contribution to New Models, 

the amount each committee contributed, and the date of the contribution; (3) detailed New 

Models' outstanding debts and obligations; and (4) listed all of New Models' expenditures. 52 

U.S.C. § 30104(a)(4) (formerly 2 U.S.C. § 434(a)(4)); 52 U.S.C. § 30104(b) (formerly 2 U.S.C. § 

434(b)); 11 C.F.R. §§ 104.1(a), 104.8. 

24. New Models failed to file any of these reports with the FEC. 

5 

: 
25. By failing to file these reports, New Models violated 52 U.S.C. § 30104(a)(4) 

(formerly 2 U.S.C. § 434(a)(4)), 52 U.S.C. § 30104(b) (formerly 2 U.S.C. § 434(b)), and 11 

C.F,R. §§ 104.1(a), 104.8. 

WHEREFORE, Citizens for Responsibility and Ethics in Washington and Noah. 

/ 

Bookbinder request that the FEC conduct an investigation into these allegations, declare the 

respondent to have violated the FECA and applicable FEC regulations, and order New Models to 

correct these violations by filing the disclosure reports required of political committees that, 

among other things, identify and make public each person who made contributions aggregating 

more than $200. In addition, the complainants request that the FEC impose sanctions appropriate 

to these violations, and take such further action as may be appropriate, including referring this 

matter to the Department of Justice for criminal prosecution. 

ON.B;|HAUFOF COMPLAINANTS 

Noah Bookbinder 

Executive Director 

Citizens for Responsibility and Ethics in 

Washington 

455 Massachusetts Ave. N.W., Sixth Floor 

Washington, D.C. 20001 

(202) 408-5565 (phone) 

(202) 588-5020 (fax) 

•: i 

I 

I i • 

i 
Verification 

Citizens for Responsibility and Ethics in Washington and Noah Bookbinder hereby verity 

that the statements made in the attached Complaint are, upon information and belief, true. Sworn 

pursuant to 18 U.S.C. § 1001. 

Noah Bookbinder 

[f .-a 

'15 \ 10-31-20 / 

subscribed before me this [^th (1.1 day of November, 2015 

Notary Public