UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF DELAWARE

FEDERAL ELECTION COMMISSION,

999 E Street, N.W.

Washington, DC 20463, 

)

)

)

)

Plaintiff, )

)

 

v. )

)

No. _____________

 

CHRISTINE O’DONNELL,

29 Red Leaf Road

Moorestown, NJ 08057, 

FRIENDS OF CHRISTINE O’DONNELL, 

P.O. Box 3987 

Wilmington, DE 19807,

)

)

)

)

)

)

)

COMPLAINT FOR CIVIL PENALTY, 

DECLARATORY, INJUNCTIVE, AND 

OTHER APPROPRIATE RELIEF

and

MATTHEW MORAN, 

in his official capacity as Treasurer of 

Friends of Christine O’Donnell, 

c/o Friends of Christine O’Donnell 

P.O. Box 3987 

Wilmington, DE 19807, 

)

)

)

)

)

)

)

)

)

)

Defendants. )

PLAINTIFF FEDERAL ELECTION COMMISSION’S 

COMPLAINT FOR CIVIL PENALTY, DECLARATORY, 

INJUNCTIVE, AND OTHER APPROPRIATE RELIEF

1. In 2010 and 2011, defendants converted at least $20,000 in campaign 

contributions given to Friends of Christine O’Donnell, the authorized committee of Christine 

O’Donnell in her 2010 campaign for United States Senate from Delaware, to the personal use of 

Christine O’Donnell. Friends of Christine O’Donnell paid rent and utilities for a Greenville, 

Delaware townhouse that the Committee leased from January 2010 to March 2011 and used as 

its headquarters. Christine O’Donnell resided on the floors above the campaign office. 

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 1 of 9 PageID #: 1
2

O’Donnell allegedly reimbursed Friends of Christine O’Donnell for a small portion of the costs 

for the townhouse, but the use of campaign funds for rent or utility payments for any part of a 

federal candidate’s personal residence constitutes unlawful personal use. The Federal 

Election Commission seeks a declaration that this conversion of funds violated 52 U.S.C. 

§ 30114(b), a permanent injunction against future similar violations by defendants, an order 

requiring Christine O’Donnell to disgorge the converted funds, and the assessment of appropriate 

civil penalties against defendants. 

JURISDICTION AND VENUE

 2. This action seeks declaratory, injunctive, and other appropriate relief pursuant to 

the express authority granted by Congress to the Federal Election Commission in the Federal 

Election Campaign Act of 1971, as amended (“Act” or “FECA”), codified at 52 U.S.C. 

§§ 30101-146 [former 2 U.S.C. §§ 431-57].1

 3. This Court has jurisdiction over this suit pursuant to 28 U.S.C. § 1345 as an action 

brought by an agency of the United States expressly authorized to sue by an act of Congress. 

52 U.S.C. §§ 30107(a)(6), 30109(a)(6)(A).

 4. A substantial part of the acts or omissions giving rise to this suit occurred in this 

district and venue is properly found in the United States District Court for the District of 

Delaware pursuant to 28 U.S.C. § 1391(b) and 52 U.S.C. § 30109(a)(6)(A).

 

1

 Until recently, FECA’s provisions were found in Title 2 of the United States Code. 

Those provisions have now been moved to new Title 52. The alleged violations and many of the 

administrative actions in this matter occurred prior to this change. A full transfer table is 

available at http://uscode.house.gov/editorialreclassification/t52/Reclassifications_Title_52.html.

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 2 of 9 PageID #: 2
3

THE PARTIES

 5. Plaintiff Federal Election Commission (“Commission” or “FEC”) is the 

independent agency of the United States government with exclusive jurisdiction over the 

administration, interpretation, and civil enforcement of FECA. See 52 U.S.C. §§ 30106(b)(1), 

30107(a), 30109. The Commission is authorized to institute investigations of possible violations 

of the Act, 52 U.S.C. § 30109(a)(1)-(2), and to initiate civil actions in the United States district 

courts to obtain judicial enforcement of the Act, 52 U.S.C. §§ 30107(e), 30109(a)(6).

6. Defendant Christine O’Donnell was a candidate, within the meaning of 52 U.S.C. 

§ 30101(2), for the United States Senate from Delaware in 2010.

7. Defendant Friends of Christine O’Donnell (“O’Donnell Committee” or 

“Committee”) was and is a political committee of Christine O’Donnell within the meaning of 

52 U.S.C. § 30101(4). Ms. O’Donnell designated Friends of Christine O’Donnell as her 

authorized principal campaign committee, within the meaning of 52 U.S.C. § 30101(5)-(6), for 

the 2010 election for United States Senator representing Delaware. As such, Friends of Christine 

O’Donnell was authorized to receive contributions and make expenditures on behalf of the 

candidate, Christine O’Donnell. 52 U.S.C. § 30102(e)(1)-(2). No expenditure by or on behalf of 

the O’Donnell Committee could or can be made without the authorization of the Committee’s 

treasurer or his or her agent. See 52 U.S.C. §§ 30102(a), 30103(b)(4). 

 8. Defendant Matthew Moran is the treasurer of Friends of Christine O’Donnell. 

Moran has been the treasurer of the O’Donnell Committee since at least October 2010. Moran is 

named as a defendant in his official capacity only. 

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 3 of 9 PageID #: 3
4

RELEVANT STATUTORY AND REGULATORY PROVISIONS 

9. FECA provides that contributions accepted by a candidate may be used by the 

candidate for, inter alia, “otherwise authorized expenditures in connection with the campaign for 

Federal office of the candidate.” 52 U.S.C. § 30114(a)(1). 

10. The Act provides that contributions or donations described in 52 U.S.C. 

§ 30114(a) “shall not be converted by any person to personal use.” 52 U.S.C. § 30114(b)(1). 

11. The Act defines “personal use” as the use of a contribution or donation “to fulfill 

any commitment, obligation, or expense of a person that would exist irrespective of the 

candidate’s election campaign or individual’s duties as a holder of Federal office.” 52 U.S.C. 

§ 30114(b)(2). 

12. Personal use includes, inter alia, payments of home mortgages, rent, or utilities. 

52 U.S.C. § 30114(b)(2); 11 C.F.R. § 113.1(g)(1)(i)(E) (defining personal use to include the use 

of campaign funds for “[m]ortgage, rent or utility payments . . . [f]or any part of any personal 

residence of the candidate or a member of the candidate’s family.”). The allocation or pro rata

sharing of such expenses is prohibited: “[T]he rule draws a clear line, and avoids the need to 

allocate expenses associated with the residence between campaign and personal use.” 

Expenditures; Reports by Political Committees; Personal Use of Campaign Funds; Final Rule, 

60 Fed. Reg. 7862, 7865 (Feb. 9, 1995). The candidate “retains the option of using his or her 

personal residence in the campaign, so long as it is done at no cost to the committee.” Id. 

FACTUAL BACKGROUND

13. In early January 2010, Friends of Christine O’Donnell rented a three-bedroom 

townhouse located in Greenville Place at 1242 Presidential Drive, Greenville, Delaware, from 

Mid-Atlantic Realty Co., Inc. for a term ending on March 31, 2011. Under the rental agreement 

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 4 of 9 PageID #: 4
5

and addendum, the security deposit was $99 and the pro-rated rent for January 8, 2010 to 

January 31, 2010 was $1,316. Beginning in February 2010, the rental rate was $1,645 per month 

for fourteen months, but a portion of the monthly rent ($235) was deferred (i.e., due and payable 

only if the lessee defaulted). Thus, the net rent payable each month beginning in February 2010 

was $1,410. Payments required under the rental agreement totaled at least $21,155. 

14. The O’Donnell Committee used the Greenville townhouse as its headquarters 

during O’Donnell’s 2010 campaign for United States Senate. The Committee continued to use 

the townhouse after the November 2010 general election. 

15. Christine O’Donnell lived on the floors of the Greenville townhouse above the 

campaign office for at least ten months. 

16. Friends of Christine O’Donnell paid rent and utilities for the townhouse, including 

payments to Comcast for communications services and to Delmarva Power for electricity. 

According to the O’Donnell Committee’s reports to the FEC of receipts and disbursements, the 

Committee paid $101.20 to Mid-Atlantic Realty on January 5, 2010 and $1,318.20 to MidAtlantic Realty on January 8, 2010. There were additional payments to Mid-Atlantic Realty and 

payments to the utilities throughout 2010 and into early 2011. Those payments were in excess of 

$20,000. 

17. Christine O’Donnell allegedly reimbursed Friends of Christine O’Donnell for a 

portion of the costs for the townhouse rent and utilities. The O’Donnell Committee’s reports of 

receipts and expenditures for 2010 and 2011 list reimbursements by Christine O’Donnell to the 

O’Donnell Committee of $770 for rent and utilities on each of the following dates: 

April 14, 2010; June 28, 2010; August 4, 2010; September 27, 2010; and March 28, 2011. 

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 5 of 9 PageID #: 5
6

ADMINISTRATIVE PROCEEDINGS

18. On September 20, 2010, the Commission received an administrative complaint 

alleging that Christine O’Donnell and Friends of Christine O’Donnell had violated FECA by 

spending more than $20,362 in campaign funds to pay rent and utility payments that were the 

personal obligations of Christine O’Donnell. The complaint was designated by the Commission 

as Matter Under Review (“MUR”) 6380 for administrative purposes. See 52 U.S.C. 

§ 30109(a)(1).

19. By letter dated September 29, 2010, the Commission notified defendants that the 

complaint had been filed and provided defendants with a copy of the administrative complaint in 

MUR 6380. On December 3, 2010 and July 22, 2011, the Commission received responses from 

Christine O’Donnell and Friends of Christine O’Donnell. See 52 U.S.C. § 30109(a)(1).

20. After reviewing the then available information, on May 22, 2012 the Commission

voted 6-0 to find “reason to believe” that Christine O’Donnell, Friends of Christine O’Donnell, 

and Matt Moran (in his official capacity as treasurer of Friends of Christine O’Donnell) had 

violated former 2 U.S.C. § 439a(b) [now 52 U.S.C. § 30114(b)]. See 52 U.S.C.

§ 30109(a)(1)-(2). The Commission notified defendants of its reason-to-believe determination 

by letter dated June 1, 2012. 

21. The Commission’s General Counsel notified defendants by letter dated June 2, 

2014, that the General Counsel was prepared to recommend that the Commission find “probable 

cause” to believe that the defendants had violated former 2 U.S.C. § 439a(b) [now 52 U.S.C. 

§ 30114(b)]. See 52 U.S.C. § 30109(a)(3). The General Counsel also provided defendants with 

a brief stating the position of the General Counsel on the legal and factual issues of the matter. 

The defendants filed a response with the Commission dated July 8, 2014. 

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 6 of 9 PageID #: 6
7

22. After reviewing the information available, on November 18, 2014 the 

Commission voted 6-0 to find probable cause to believe that Christine O’Donnell, Friends of 

Christine O’Donnell, and Matthew Moran (in his official capacity as treasurer of Friends of 

Christine O’Donnell) had violated 52 U.S.C. § 30114(b). See 52 U.S.C. § 30109(a)(4)(A). 

23. The Commission notified defendants of its November 18, 2014 findings by letter 

dated November 20, 2014, and, for a period of not less than 30 days, endeavored to correct the 

violations through informal methods of conference, conciliation and persuasion. See 52 U.S.C. 

§ 30109(a)(4)(A). 

24. Unable to secure acceptable conciliation agreements with defendants, on 

January 2, 2015 the Commission voted 6-0 to authorize filing this suit against defendants. 

See 52 U.S.C. § 30109(a)(6). 

25. The Commission has satisfied all of the jurisdictional requirements in the Act that 

are prerequisites to filing this action.

FIRST CAUSE OF ACTION

26. Paragraphs 1 through 25, inclusive, are incorporated herein by reference.

27. The O’Donnell Committee’s disbursements of Committee funds for the rent and 

utilities of a townhouse in which Christine O’Donnell lived converted those funds to personal 

use, because the use of campaign funds for rent or utility payments for any part of the 

candidate’s personal residence constitutes personal use. 

28. At least $20,000 in O’Donnell Committee funds were converted to the personal 

use of Christine O’Donnell. 

31. By converting Friends of Christine O’Donnell’s funds to the personal use of the 

candidate Christine O’Donnell, defendants Christine O’Donnell, Friends of Christine O’Donnell, 

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 7 of 9 PageID #: 7
8

and Matthew Moran (in his official capacity as treasurer of Friends of Christine O’Donnell) 

violated 52 U.S.C. § 30114(b).

PRAYER FOR RELIEF

WHEREFORE, plaintiff Federal Election Commission prays that this Court:

A. Declare that defendants Christine O’Donnell, Friends of Christine O’Donnell, and 

Matthew Moran (in his official capacity as treasurer of Friends of Christine O’Donnell) violated 

52 U.S.C. § 30114(b) by converting more than $20,000 in Friends of Christine O’Donnell funds 

to the personal use of Christine O’Donnell; 

B. Order defendant Christine O’Donnell to disgorge an amount equal to the 

disbursements made by the Friends of Christine O’Donnell for the personal use of Christine 

O’Donnell; 

C. Permanently enjoin defendants Christine O’Donnell, Friends of Christine 

O’Donnell, and Matthew Moran (in his official capacity as treasurer of Friends of Christine 

O’Donnell) from converting Friends of Christine O’Donnell funds to the personal use of 

Christine O’Donnell; 

D. Assess an appropriate civil penalty against each of the defendants: for each 

violation not to exceed the greater of $7,500 or the amount of any contributions or expenditures 

involved, see 52 U.S.C. § 30109(a)(6)(B), 11 C.F.R. § 111.24(a)(1);

E. Award plaintiff Federal Election Commission its costs in this action; and

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 8 of 9 PageID #: 8
9

F. Grant plaintiff Federal Election Commission such other relief as may 

be appropriate. 

Respectfully submitted,

Lisa J. Stevenson 

Deputy General Counsel – Law

/s/ Kevin Deeley 

Kevin Deeley (kdeeley@fec.gov) 

Acting Associate General Counsel

/s/ Harry J. Summers 

Harry J. Summers (hsummers@fec.gov) 

Assistant General Counsel 

/s/ Robert W. Bonham III 

Robert W. Bonham III (rbonham@fec.gov) 

Senior Attorney 

/s/ Seth Nesin 

Seth Nesin (snesin@fec.gov) 

Attorney 

January 5, 2015 FOR THE PLAINTIFF

FEDERAL ELECTION COMMISSION

999 E Street, N.W. 

Washington, D.C. 20463 

(202) 694-1650 

Case 1:15-cv-00017-UNA Document 1 Filed 01/05/15 Page 9 of 9 PageID #: 9
Case 1:15-cv-00017-UNA Document 1-1 Filed 01/05/15 Page 1 of 2 PageID #: 10
JS 44 Reverse (Rev 12/12)

INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS 44

Authority For Civil Cover Sheet

The JS 44 civil cover sheet and the information contained herein neither replaces nor supplements the filings and service of pleading or other papers as

required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is

required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. Consequently, a civil cover sheet is submitted to the Clerk of

Court for each civil complaint filed. The attorney filing a case should complete the form as follows:

I.(a) Plaintiffs-Defendants. Enter names (last, first, middle initial) of plaintiff and defendant. If the plaintiff or defendant is a government agency, use 

only the full name or standard abbreviations. If the plaintiff or defendant is an official within a government agency, identify first the agency and 

then the official, giving both name and title.

 (b) County of Residence. For each civil case filed, except U.S. plaintiff cases, enter the name of the county where the first listed plaintiff resides at the 

time of filing. In U.S. plaintiff cases, enter the name of the county in which the first listed defendant resides at the time of filing. (NOTE: In land 

condemnation cases, the county of residence of the "defendant" is the location of the tract of land involved.)

 (c) Attorneys. Enter the firm name, address, telephone number, and attorney of record. If there are several attorneys, list them on an attachment, noting

in this section "(see attachment)".

II. Jurisdiction. The basis of jurisdiction is set forth under Rule 8(a), F.R.Cv.P., which requires that jurisdictions be shown in pleadings. Place an "X" 

in one of the boxes. If there is more than one basis of jurisdiction, precedence is given in the order shown below.

United States plaintiff. (1) Jurisdiction based on 28 U.S.C. 1345 and 1348. Suits by agencies and officers of the United States are included here.

United States defendant. (2) When the plaintiff is suing the United States, its officers or agencies, place an "X" in this box.

Federal question. (3) This refers to suits under 28 U.S.C. 1331, where jurisdiction arises under the Constitution of the United States, an amendment 

to the Constitution, an act of Congress or a treaty of the United States. In cases where the U.S. is a party, the U.S. plaintiff or defendant code takes 

precedence, and box 1 or 2 should be marked.

Diversity of citizenship. (4) This refers to suits under 28 U.S.C. 1332, where parties are citizens of different states. When Box 4 is checked, the 

citizenship of the different parties must be checked. (See Section III below; NOTE: federal question actions take precedence over diversity 

cases.)

III. Residence (citizenship) of Principal Parties. This section of the JS 44 is to be completed if diversity of citizenship was indicated above. Mark this

section for each principal party.

IV. Nature of Suit. Place an "X" in the appropriate box. If the nature of suit cannot be determined, be sure the cause of action, in Section VI below, is 

sufficient to enable the deputy clerk or the statistical clerk(s) in the Administrative Office to determine the nature of suit. If the cause fits more than 

one nature of suit, select the most definitive.

V. Origin. Place an "X" in one of the six boxes.

Original Proceedings. (1) Cases which originate in the United States district courts.

Removed from State Court. (2) Proceedings initiated in state courts may be removed to the district courts under Title 28 U.S.C., Section 1441. 

When the petition for removal is granted, check this box.

Remanded from Appellate Court. (3) Check this box for cases remanded to the district court for further action. Use the date of remand as the filing 

date.

Reinstated or Reopened. (4) Check this box for cases reinstated or reopened in the district court. Use the reopening date as the filing date.

Transferred from Another District. (5) For cases transferred under Title 28 U.S.C. Section 1404(a). Do not use this for within district transfers or 

multidistrict litigation transfers.

Multidistrict Litigation. (6) Check this box when a multidistrict case is transferred into the district under authority of Title 28 U.S.C. Section 1407. 

When this box is checked, do not check (5) above.

VI. Cause of Action. Report the civil statute directly related to the cause of action and give a brief description of the cause. Do not cite jurisdictional 

statutes unless diversity. Example: U.S. Civil Statute: 47 USC 553 Brief Description: Unauthorized reception of cable service

VII. Requested in Complaint. Class Action. Place an "X" in this box if you are filing a class action under Rule 23, F.R.Cv.P.

Demand. In this space enter the actual dollar amount being demanded or indicate other demand, such as a preliminary injunction.

Jury Demand. Check the appropriate box to indicate whether or not a jury is being demanded.

VIII. Related Cases. This section of the JS 44 is used to reference related pending cases, if any. If there are related pending cases, insert the docket 

numbers and the corresponding judge names for such cases.

Date and Attorney Signature. Date and sign the civil cover sheet.

Case 1:15-cv-00017-UNA Document 1-1 Filed 01/05/15 Page 2 of 2 PageID #: 11