Source: https://www.scribd.com/document/65203658/Most-Corrupt-Rep-Frank-Guinta-R-NH
Timestamp: 2016-10-22 03:18:16
Document Index: 743903570

Matched Legal Cases: ['§ 1001', '§ 1001', '§ 104', '§ 1001', '§ 1001', '§ 110', '§ 434', '§ 100', '§ 441', '§ 110', '§ 437', '§ 441', '§ 441', '§ 437', '§ 434', '§ 104', '§ 437', 'art1', 'arty 3', 'arty 2016']

Most Corrupt: Rep. Frank Guinta (R-NH) BrowseBrowseInterestsBiography & MemoirBusiness & LeadershipFiction & LiteraturePolitics & EconomyHealth & WellnessSociety & CultureHappiness & Self-HelpMystery, Thriller & CrimeHistoryYoung AdultBrowse byBooksAudiobooksComicsSheet MusicBrowse allUploadSign inJoinBooksAudiobooksComicsSheet MusicMOST CORRUPT: REPRESENTATIVE FRANK GUINTA Representative Frank Guinta (R-NH) is a first-term member of Congress, representing New Hampshire’s1st congressional district. Rep. Guinta’s ethics issues stem from his failure to accurately disclose assets on his personal financial disclosure forms and possibly accepting improper gifts or loans. Failure to Disclose Bank Account On June 30, 2009, Rep. Guinta’s campaign committee, Friends of Frank Guinta, reported receiving a $20,000 loan from Rep. Guinta, then a candidate for Congress. 1 The committee told the Federal Election Commission (FEC) that the loan was from Rep. Guinta’s personal funds, carried no interest or collateral, and repayment was due September 7, 2010. 2 The campaign committee reported a second loan from Rep. Guinta on March 28, 2010, this time for $100,000, and a third loan on June 27, 2010, for $125,000. 3 All three loans – together totaling $245,000 – carried nearly identical terms, with slight differences in the due dates. 4 On May 15, 2010, Rep. Guinta filed a required personal financial disclosure statement with the House Ethics Committee covering his finances for calendar year 2009. 5 He reported the $72,000-a-year salary he earned as mayor of Manchester, N.H., and an undisclosed amount his wife earned from the University of New Hampshire and Catholic Medical Center. 6 He listed several stocks and bonds worth between $89,012 and $335,000, as well as two properties owned with his wife in Manchester. 7 One of those properties had a mortgage of between $250,001 and $500,000. 8 Rep. Guinta also reported having three bank accounts collectively worth between $17,003 and $80,000. 9 One of those was a Bank of America account with a reported value of $15,001 to $50,000. 10 He did not report liquidating any assets.
Friends of Frank Guinta, FEC Form 3, July Quarterly Report 2009, July 15, 2009. Id. 3 Friends of Frank Guinta, FEC Form 3, April Quarterly Report 2010, April 15, 2010; Friends of Frank Guinta, FEC Form 3, July Quarterly Report 2010, July 15, 2010. 4 Friends of Frank Guinta, FEC Form 3, July Quarterly Report 2009, July 15, 2009; Friends of Frank Guinta, FEC Form 3, April Quarterly Report 2010, April 15, 2010; Friends of Frank Guinta, FEC Form 3, July Quarterly Report 2010, July 15, 2010. 5 Rep. Frank Guinta, Personal Financial Disclosure Statement for Calendar Year 2009, filed May 15, 2010. 6 Id. 7 Id. 8 Id. 9 Rep. Frank Guinta, Personal Financial Disclosure Statement for Calendar Year 2009, filed May 15, 2010. 10 Id.
In July 2010, the Nashua Telegraph ran a story questioning how Rep. Guinta, given his disclosed assets, had been able to loan such large sums of money to his campaign. 11 Rep. Guinta’s campaign manager, Michael Biundo, said Rep. Guinta had liquidated his stock market and mutual fund assets to amass the cash and those transactions would be detailed on a future disclosure report. 12 On July 23, 2010, however, Rep. Guinta filed an amended personal financial disclosure form, reporting for the first time a second Bank of America account valued at between $250,001 and $500,000. 13 The Republican primary was crowded – seven candidates eventually competed for the nomination – and other candidates and their supporters quickly raised questions about how Rep. Guinta could have neglected to disclose such a significant amount of cash, and where it had come from. 14 “How you forget something like that is just pretty hard to explain. The average person wouldn’t forget,” former Rep. Jeb Bradley (R-NH) said, adding, “if you were Warren Buffett, possibly.” 15 In August 2010, Republican Christopher Wolfe, who supported one of Rep. Guinta’s primary opponents, filed a complaint with the FEC, seeking an investigation. 16 Mr. Wolfe argued Rep. Guinta’s disclosed income and assets made it unlikely he could have saved so much money and he must have received the cash from someone else and failed to properly disclose the source. 17 Others called on Rep. Guinta to provide detailed bank statements and document the source of the money, but Rep. Guinta refused to do so. 18 Rep. Guinta said he had saved the money by living frugally and saving proceeds from successful investing and real estate transactions. 19 He described forgetting to list the account on his financial disclosure forms as “an inadvertent oversight.” 20 Asked to explain Mr. Biundo’s earlier assertion – that the money had come from liquidated assets – Rep. Guinta said Mr. Biundo had been mistaken, and Rep. Guinta himself had been out of town on vacation at the time and unavailable to provide the correct explanation. 21 He also said he had chosen to keep the money in a bank account rather than investing it or paying down mortgage debt because he was more comfortable holding it as cash. 22 His campaign said in a statement that the money for the loans “came from a series of accounts Guinta has had since March of 1996. Amending disclosure forms is a common occurrence.” 23
Kevin Landrigan, Hopeful’s Support of Gun Ownership is Targeted, Nashua Telegraph, July 11, 2010. Id. 13 Rep. Frank Guinta, Amended Personal Financial Disclosure Statement for Calendar Year 2009, filed July 23, 2010. 14 Marc Fortier, Republican Guinta Wins 1st District Congressional Primary, The Eagle-Tribune (North Andover, Mass.), September 15, 2010; Kasie Hunt, Bradley: Guinta Should Drop Out, Politico, August 13, 2010. 15 Id. 16 Fergus Cullen, Commentary: Questions Raised About Guinta’s Financial Disclosure, The Union Leader (Manchester, N.H.), August 13, 2010. 17 Id. 18 Kevin Landrigan, Do As He Says, Not As He Does, Nashua Telegraph, August 24, 2010. 19 Id.; Cullen, The Union Leader (Manchester, N.H.), Aug. 13, 2010. 20 Hunt, Politico, Aug. 13, 2010. 21 Landrigan, Nashua Telegraph, Aug. 24, 2010. 22 Cullen, The Union Leader (Manchester, N.H.), Aug. 13, 2010. 23 Hunt, Politico, Aug. 13, 2010.
Rep. Guinta loaned his campaign another $60,000 on September 3, 2010 and $50,000 on September 10, 2010, bringing the total loan amount to $355,000. 24 Despite the outstanding questions about the loans, Rep. Guinta won the Republican primary in September 2010. 25 Later that month, the New Hampshire Democratic Party (NHDP) filed complaints with the FEC and the Clerk of the U.S. House of Representatives requesting investigations into Rep. Guinta’s finances. 26 On October 28, 2010, the NHDP wrote to the U.S. Attorney’s office in New Hampshire, requesting a criminal investigation into the matter. 27 Rep. Guinta’s general election opponent, then-Rep. Carol Shea-Porter (D-NH), also pressed him to reveal the source of the loan money. 28 On October 12, 2010, a detailed analysis of Rep. Guinta’s finances by New Hampshire Public Radio found the Guintas’ real estate transactions would likely have yielded roughly $95,000, and his prior jobs in the insurance industry did not seem likely to have produced enough income to allow him to save hundreds of thousands of dollars. 29 The report noted Rep. Guinta’s parents had sold a second home on the New Jersey shore for $820,000 before he announced his candidacy. 30 Rep. Guinta initially refused to address whether his parents were the source of the money, but later that week said they were not. 31 “My wife and I have been in the workforce for nearly 20 years,” he said. 32 “I have been in the private sector. I’ve been fortunate to make money also in the markets. Over years of time, we have been able to put this money together.” 33 Rep. Guinta won the general election on November 2, 2010. 34 Rep. Guinta’s campaign committee has so far paid back $19,500 of the outstanding $335,500 in loans. 35 Status of Investigation In December 2010, the FEC informed NHDP director Michael Brunelle that it had assigned a case number to the party’s complaint against Rep. Guinta. 36 The current status of the case is unknown. In December 2010, the House Ethics Committee informed Rep. Guinta that the committee had reviewed his candidate financial disclosure reports and amendments and
Friends of Frank Guinta, FEC Form 3, October Quarterly Report 2010, October 15, 2010. Fortier, The Eagle-Tribune (North Andover, Mass.), Sept. 15, 2010. 26 James Pindell, Dems File FEC, Congressional Complaints Against Guinta, WMUR-TV, September 30, 2010; John DiStaso, Democrats Seek Probe of Guinta’s Finances, The Union Leader (Manchester, N.H.), October 6, 2010; Letter from NHDP Executive Director Michael Brunelle to FEC Acting General Counsel Christopher Hughey, September 30, 2010; Letter from NHDP Executive Director Michael Brunelle to Clerk of the House of Representatives Lorraine C. Miller, September 30, 2010. 27 Holly Ramer, Criminal Probe Into Guinta’s Money Sought, Associated Press, October 29, 2010. 28 John DiStaso, Questions About Money Continue, The Union Leader (Manchester, N.H.), October 20, 2010. 29 http://www.nhpr.org/assessing-frank-guintas-finances. 30 Id.; Richard and Virginia Guinta, Deed Transfer, Clerk of Ocean County, New Jersey, filed December 5, 2010. 31 http://www.nhpr.org/assessing-frank-guintas-finances; John DiStaso, Guinta Denies He Got Big Money From His Parents, The Union Leader (Manchester, N.H.), Oct. 14, 2010. 32 Id. 33 Id. 34 Doug Ireland, Guinta Beats Shea-Porter Handily, The Eagle-Tribune (North Andover, Mass.), November 3, 2010. 35 Friends of Frank Guinta, FEC Form 3, July Quarterly Report 2011, July 15, 2011. 36 Holly Ramer, FEC Takes First Step in NH Rep.-Elect’s Case, Associated Press, December 16, 2010.
“determined that they are in substantial compliance.” 37 The email Rep. Guinta received, however, was not in response to the NHDP’s complaint, but was the result of a standard review the committee does of all members. 38 In May 2011, Rep. Guinta told attendees of a town hall meeting that the ethics committee “cleared it up, they reviewed my reports and gave them a clear bill of health.” 39 The U.S. Attorney’s office has not commented on any investigation into Rep. Guinta. Legal Fees Rep. Guinta’s campaign committee reported paying $6,722.62 to Foley & Lardner LLP for “legal consulting.” 40 Potential Violations False Statements on Personal Financial Disclosure Forms The Ethics in Government Act of 1967 requires all members of Congress and candidates for Congress to file financial disclosure reports. 41 Under the statute, the attorney general may seek a civil penalty of up to $11,000 against any individual who knowingly and willfully falsifies or fails to file or report any information required by the Act. 42 Federal law further prohibits anyone from making “any materially false, fictitious, or fraudulent statement or representation” 43 on “a document required by law, rule, or regulation to be submitted to the Congress or any office or officer within the legislative branch.” 44 By submitting a financial disclosure form that failed to disclose the second Bank of America account, Rep. Guinta appears to have violated the Ethics in Government Act and 18 U.S.C. § 1001. Similarly, if Rep. Guinta had any other assets from which he was able to derive $355,000 to loan his campaign, the failure to include these assets on his financial disclosure forms violates these provisions. Finally, if Rep. Guinta accepted as gifts money he later loaned to his campaign, the failure to include such gifts on his financial disclosure forms would violate the Ethics in Government Act and 18 U.S.C. § 1001. Conduit Contributions The Federal Election Campaign Act (FECA) and FEC regulations allow candidates for Congress to spend an unlimited amount of personal funds on their campaigns, including funds
John DiStaso, GRANITE STATUS: Guinta Financial Disclosure Issue Resurfaces, The Union Leader (Manchester, N.H.), December 16, 2010. 38 Id. 39 Daymond Steer, Entitlements and War Are Top Concerns at Guinta Town Hall Meeting, Conway Daily Sun (Conway, N.H.), May 23, 2011. 40 Friends of Frank Guinta, FEC Form 3, Amended July Quarterly Report 2011, July 15, 2011. 41 Pub. L. No. 95-521, 92 Stat. 1824 (Oct. 26, 1978). 42 5 U.S.C. app. 4, § 104. 43 18 U.S.C. § 1001(a)(2). 44 18 U.S.C. § 1001(c)(1).
received as gifts during the election cycle that had been customarily received by the candidate prior to the beginning of the election cycle. 45 A contribution is defined to include any gift given for the purpose of influencing a federal election, 46 and the law prohibits making a contribution in the name of a person other than the true source of the contribution. 47 If Rep. Guinta received a contribution or gift intended to aid his campaign – from his parents or anyone else – then used those funds to loan money to his campaign, he may have violated campaign finance law. Further, if Rep. Guinta knowingly and willfully accepted a conduit contribution, he likely violated criminal law. 48 Excessive Contribution The FECA limits the amount of contributions a candidate can accept from an individual. 49 The contribution limits in 2010 were $2,400 per election. 50 Any contribution over that limit is an illegal excessive contribution. 51 If someone or several people gave Rep. Guinta sums greater than that so that he could loan those funds to his campaign, he violated campaign finance law by receiving an excessive campaign contribution. A knowing and willful violation would be subject to criminal penalties. 52 Campaign Finance Disclosures The FECA and FEC regulations also require congressional candidates to disclose all campaign contributions they receive. 53 If Rep. Guinta received a gift or gifts intended to aid his campaign, but did not disclose such gifts as campaign contributions, he violated campaign finance law. Further, a knowing and willful failure to disclose such contributions is a criminal offense. 54
11 C.F.R. § 110.10. 2 U.S.C. § 434(8)(A)(i); 11 C.F.R. § 100.52(a). 47 2 U.S.C. § 441f; 11 C.F.R. § 110.4(b)(1)(i). 48 2 U.S.C. § 437g(d)(1)(A)(i). 49 2 U.S.C. §§ 441a(a)(1)(A), 441a(f). 50 Contribution Limitation Increases for Individuals, Nonmulticandidate Committees and for Certain Political Party Committees Giving to U.S. Senate Candidates for 2009-2010 Election Cycle, 74 Fed. Reg. 7437 (Feb. 17, 2009). 51 2 U.S.C. § 441a(f). 52 2 U.S.C. § 437g(d)(1)(A)(i). 53 2 U.S.C. §§ 434(a)(2), (b); 11 C.F.R. §§ 104.3. 54 2 U.S.C. § 437g(d)(1)(A)(i).
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