FEDERAL ELECTION COMMISSION

WASHINGTON, D.C. 20463

STATEMENT OF REASONS OF COMMISSIONER ELLEN L. WEINTRAUB

Federal candidates are prohibited from converting campaign funds to personal use. The ban 

on personal use “reduces corruption and promotes public confidence in the campaign finance and 

political system.”1 Donors seeking to exercise their First Amendment rights to political expression 

should not have to worry that their contributions are going to end up lining someone’s pocket. I have 

long advocated for robust enforcement of this particularly important prohibition,

2

and the 

Commission has pursued such violations even when the amount at issue was relatively small.

3

In this matter, the former treasurer for Dave Hughes for Congress, the authorized committee 

for Dave Hughes, a candidate for Congress in the 7th District of Minnesota, filed a complaint alleging 

personal use violations along with several concerning reporting lapses. Specifically, regarding the 

personal use allegations, it appears that Hughes failed to keep accurate records related to the purpose

of his disbursements made with Committee funds and the record demonstrates that he appears to have 

converted thousands of dollars into personal use.4 When given the opportunity to respond to the 

personal use allegations in the Complaint, Hughes did not comment on these transactions.5 These

include two unexplained checks made payable to Hughes for $4,500 and $1,000.6 While my 

colleagues believe it is “conceivable”7that Hughes used the funds permissibly, that is not the standard 

at the reason to believe stage. Instead, the Commission has stated that it will find reason to believe 

1 Fed. Election Comm’n v. O’Donnell, 209 F. Supp. 3d 727, 740 (D. Del. 2016).

2 See, e.g., Statement of Reasons of Vice Chair Ellen L. Weintraub in MUR 7100 (Trump, et. al.), dated June 15, 2018; 

Statement of Reasons of Commissioner Ellen L. Weintraub in MUR 6511 (Andrews, et al.), dated 

June 23, 2014; Certification in MUR 6498 (Lynch for Congress, et al.), dated Dec. 14, 2015; Certification in MUR 

5895 (Meeks for Congress, et al.), dated Jan. 10, 2007.

3 See, e.g., , 

, 7292 (Clifford “Cliff” B. Stearns, et al.) (converting $12,239 to personal use).

4 First Gen. Counsel’s Report at 8. 

5

Id. at 5 (citing Resp. (Sept. 11, 2018)).

6

Id. at 9.

7 Statement of Reasons of Vice Chair Allen Dickerson and Commissioners Sean J. Cooksey and James E. “Trey” 

Trainor, III in MUR 7383 (Hughes for Congress and Dave Hughes), dated Sept. 21, 2021.

BEFORE THE FEDERAL ELECTION COMMISSION

In the Matter of

Hughes for Congress, et al.

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 MUR 7383

 

 

MUR738300153
MUR 7383 (Hughes for Congress, et al.)

Statement of Commissioner Ellen L. Weintraub

Page 2 of 2

“in cases where the available evidence in the matter is at least sufficient to warrant conducting an 

investigation.”

8 We should determine what is true, not imagine what may be “conceivable.”

The Complaint also identified several additional reporting violations, including misreporting 

certain disbursements, misreporting the Committee’s cash on hand, and improperly disclosing a 

commercial loan as a personal loan from the candidate. The available information demonstrated 

reason to believe that the law had been violated, and I voted accordingly.9

Consider, for example, the improperly reported commercial loan. A candidate’s campaign 

committee must report all loans derived from an advance on the candidate’s brokerage account, credit 

card, home equity line of credit, or other line of credit available to the candidate.10 As the Commission 

has noted, committees are required to provide the details of commercial loans to ensure that the 

financing is “done in accordance with applicable law, under commercially reasonable terms, and . . . 

in the normal course of business.”

11 These regulations ensure that the public knows to whom 

candidates are indebted and that they are not receiving in-kind contributions in the form of belowmarket-rate loans. The record indicates that Hughes used funds borrowed from a credit union to make 

loans totaling $40,000 to his campaign, but inaccurately reported the loans as being made with his 

“personal funds.” Simply reporting a “loan” on the Committee’s reports fails to accurately disclose 

the nature of the loan and fails to comply with the Commission’s regulations. 

I voted to move forward in this matter to ensure that there was no impermissible intermingling 

of campaign and personal funds and to ensure that the Committee’s reports provide the required 

degree of accuracy and transparency.12 Particularly with respect to personal use violations, the 

Commission should hold candidates to the highest standards to ensure compliance with the law and 

deter future misconduct.

 September 22, 2021 __________________________

Date Ellen L. Weintraub

 Commissioner

8 See Statement of Policy Regarding Commission Action in Matters at the Initial Stage in the Enforcement Process, 72 

Fed. Reg. 12545, 12545 (Mar. 16, 2007) (emphasis added).

9 Chair Broussard, Commissioner Walther, and I voted to find reason to believe that the committee violated 52 

U.S.C. § 30104(b) and 11 C.F.R. § 104.3(d)(4); Vice Chair Dickerson, Commissioners Cooksey and Trainor dissented. 

Amend. Certification, MUR 7383 (Hughes for Congress, et. al), dated Aug. 19, 2021.

10 11 C.F.R. § 100.83(e).

11 Explanation and Justification of Regulations on Brokerage Loans and Lines of Credit, 67 Fed. Reg. 38353, 38353 

(June 4, 2002). 

12 Amend. Certification, MUR 7383 (Hughes for Congress, et. al), dated Aug. 19, 2021.

MUR738300154