Your web browser is not supported You're using Internet Explorer, some features might not work. Please switch to another browser like Chrome, Firefox, or Edge for a better experience.


An official website of the United States government Here's how you know
 **Official websites use .gov**
            
            A **.gov** website belongs to an official government organization in the United States.
 **Secure .gov websites use HTTPS**
            
            A **lock** ( A locked padlock ) or **https://** means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.


Federal Election Commission | United States of America Calendar
           Glossary
          Search
              Search


Menu
      Home
      Campaign finance data
        All data
            Raising
            Spending
            Loans and debts
            Filings and reports
            Candidates
            Committees
            Bulk data
            Campaign finance statistics
        Find elections. Search by state or ZIP code
          Look up contributions from specific individuals
      Help for candidates and committees
        All compliance resources
            Guides
            Forms
            Dates and deadlines
            Trainings
        Learn about electronic filing
          Find and contact your committee's analyst
      Legal resources
        All legal resources
            Advisory opinions
            Enforcement
            Statutes
            Legislation
            Regulations
            Court cases
            Policy and other guidance
        Search across all legal resources
          Search guidance documents
      About
        All about the FEC
            News and announcements
            Commission meetings
            Mission and history
            Leadership and structure
            Reports about the FEC
            Careers
            Working with the FEC
            Contact
        Introduction to campaign finance and elections


- Home
- ›
        Legal resources
- ›
        Court cases
- ›
      FEC v. Novacek

FEC v. Novacek 
 Summary
          
            Documents
 Summary

  
  
    On April 14, 2010, the United States District Court for the Northern District of Texas granted the Commission’s Motion for Summary Judgment against the Defendants, Jody L. Novacek, Republican Victory Committee, Inc. (“RVC”), BPO, Inc., and BPO Advantage, LP (Defendants). The court found that Ms. Novacek and the RVC knowingly and willfully violated 2 U.S.C §441h(b)(1) by fraudulently misrepresenting themselves as acting for, or on behalf of, a political party for the purpose of soliciting contributions. The court also found that BPO, Inc., and BPO Advantage, LP, knowingly and willfully violated 2 U.S.C §441h(b)(2) by participating in Novacek and RVC’s plan, scheme or design to fraudulently misrepresent themselves as acting for, or on behalf of, a political party for the purpose of soliciting contributions. Finally, the court found that Ms. Novacek and RVC violated 2 U.S.C § 441d(a) and (c) by failing to include on their communications the required disclaimer information in the manner specified by the statute. The court ordered the Defendants to pay a civil penalty of $47,414.15.BackgroundOn June 29, 2004, the Republican National Committee filed an administrative complaint with the Commission that alleged certain solicitations made by RVC violated the Federal Election Campaign Act (the Act) because these solicitations contained misrepresentations that RVC was acting on behalf of the Republican Party.The Commission began its own investigation in 2005 and found probable cause that the Defendants had knowingly and willfully violated the Act. In October 2008, the Commission sent letters to the Defendants which proposed a conciliation agreement. The Commission was unable through informal methods to secure an acceptable conciliation agreement with the defendants.On March 6, 2009, the Commission filed a Complaint in the U.S. District Court for Northern Texas against the Defendants for violations of the Act. On November 30, 2009, the Commission filed a Motion for Summary Judgment. The Commission argued that the Defendants made fundraising solicitations by phone and in mailers that fraudulently misrepresented the source of the solicitation as the Republican National Committee and the Republican Party in what constitutes a knowing and willful violation of the Act. Ms. Novacek created and operated the RVC, as well as BPO, Inc., and BPO Advantage, LP. Through these entities, Ms. Novacek made misrepresentations to vendors and the general public stating or implying that RVC was raising money for the Republican Party and the Republican National Committee. In addition, Ms. Novacek and RVC violated the Act by failing to include on their communications some of the required disclaimer information in the manner specified by the Act.District court decisionThe court granted the Commission’s Motion for Summary Judgment against the Defendants. The court found that the Defendants had violated 2 U.S.C. §441h(b)(1) and (2). The court noted that Ms. Novacek and RVC had knowingly and willfully misrepresented themselves as acting for, or on behalf of, the Republican Party and the Republican National Committee for the purpose of soliciting contributions. The court also found that the defendants BPO, Inc., and BPO Advantage, LP, had willfully and knowingly participated in Ms. Novacek and RVC’s scheme, design or plan to fraudulently misrepresent themselves for the purpose of soliciting contributions. The court found that the Defendants failed to argue any of the material facts of the allegations and that the Defendants admitted to authoring scripts and follow-up letters to potential contributors for solicitation purposes.The court rejected the Defendants’ claim that the call transcripts obtained by the Commission may not be an accurate sample of the calls made by call centers on behalf of the Defendants. The court also denied the Defendants’ request for additional discovery regarding further evidence from the call centers.The court rejected the Defendants’ claim that Ms. Novacek did not commit any “knowing and intentional” fraud and misrepresentation because the “RNC does not own the term ‘Republican Party.’” FEC v. Novacek, No. 09-00444 (N.D. Tex. April 14, 2010). The court found the Defendants’ position unsupportable in light of the script’s clear implication that donations were solicited for the Republican Party and/or the Republican National Committee.Finally, the court found that Defendants violated 2 U.S.C. § 441d(a) and (c) by failing to include a disclaimer in their communications. The Defendants failed to include RVC’s permanent address, phone number or website address, or state that the solicitation was not authorized by a candidate or candidate committee. In RVC’s mailings, the written material failed to properly format that information in clearly readable type size in a printed box set apart from the content of that communication. The court dismissed the Defendants’ arguments that the violations were unintentional since intent is not an element of the offense and the Commission did not request higher civil penalties that would become available if Ms. Novacek had acted with “knowing and willful” intent for those violations.The court ordered the Defendants to pay a civil penalty in the amount of $47,414.15. The court also ordered that any funds raised by these solicitations and held by a non-party, the call center Apex CoVantage, L.L.C., shall be turned over to the Commission for return to the contributors.Source:   FEC Record — May 2010
 Documents

  
  
    Appeals Court (5th Circuit) (10-10516)Court decisions:Order (09/16/2010)Related documents:Appellee Federal Election Commission's Response to Appellant 's Motion to Represent Corporate Entities (09/03/2010)Appellant's Response to Appellee 's Motion for Summary Affirmance (08/23/2010)Appellee Federal Election Commission's Motion for Summary Affirmance (07/12/2010)District Court (Northern District of TX)Court decisions:Final Judgment (04/14/2010)Memorandum Opinion and Order (04/14/2010)Related documents:Notice of Appeal (05/15/2010)Plaintiff Federal Election Commission's Reply in Support of its Motion for Summary Judgment Submitted in Response to Defendant's Amended Response (02/12/2010)Unopposed Motion to Dismiss Counterclaim Without Prejudice Pursuant to Federal Rule of Civil Procedure 41(a)(2) (01/28/2010)Plaintiff Federal Election Commission's Reply in Support of its Motion for Summary Judgment (01/07/2010)Plaintiff Federal Election Commission's Motion to Dismiss Defendant's Counterclaims (11/30/2009)Plaintiff Federal Election Commission's Motion for Summary Judgment (11/30/2009)Response to Complaint for Declaratory, Injunctive and Other Appropriate Relief (07/02/2009)Complaint for Declaratory, Injunctive and other Appropriate Relief (03/09/2009)The following were filed by the Federal Election Commission on 03/06/2009:Complaint for Declaratory, Injunctive and other Appropriate Relief;Plaintiff Federal Election Commission's Ex Parte Motion for Waiver of the Local Counsel Requirement and Waiver of the Pro Hac Vice Admission Fee and Memorandum in Support Thereof (with Appendix);Application and Order for Admission Pro Hac Vice (application for each Commission Attorney, Thomasenia P. Duncan, David Kolker, Kevin Deeley and Greg J. Mueller;Proposed Order Regarding Motion for Waiver of the Local Counsel Requirement and Waiver of the Pro Hac Vice Admission Fee; andCertificate of Interested Persons


This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.


About
          Careers
          Press
          Contact
   Privacy and security policy
          Plain language
          No FEAR Act
          Strategy, budget and performance
 Open government
          Protected Voices
          USA.gov
          Inspector General
          FOIA
 OpenFEC API
          GitHub repository
          Release notes
          FEC.gov status


Federal Election Commission
 The FEC's Twitter page
            The FEC's YouTube page Sign up for FECMail


Hide glossary Glossary Search terms