Realtors Group Fails to Disclose Contributions

RISMEDIA, Sept. 13, 2007-(MCT)-The Georgia Association of Realtors faces the possibility of having to pay the largest fine in State Ethics Commission history after failing to disclose more than $400,000 in campaign contributions to candidates in last year’s election.Among the contributions not disclosed was $216,000 that went to an “independent committee” that ran media advertising in support of Lt. Gov. Casey Cagle, according to campaign reports.

The association — traditionally among the biggest donors in Georgia political races — acknowledged it didn’t file campaign disclosures for much of last year.

The group fired the comptroller who failed to file the forms, and the Ethics Commission received the reports — some of which were more than a year overdue — on Aug. 3, according to commission records.

The association could face a record fine of more than $80,000.

“We had an employee who was supposed to be taking care of that,” said Bob Hamilton, chief executive officer of the association. “I really don’t know why she didn’t file the reports.

“We weren’t trying to do anything intentionally,” he added.

Hamilton said the comptroller blamed computer problems in trying to file the reports electronically with the State Ethics Commission. The Ethics Commission staff discovered the problem during a routine audit.

Hamilton said the comptroller told them the association’s political action committee failed to disclose about $400,000 in contributions. However, the disclosures that were filed by Realtors PAC with the Ethics Commission last month show closer to $600,000 in contributions and other expenses, meaning the potential fine could top $100,000.

He said the group plans to seek a lower fine before an administrative law judge, arguing that “a 20 percent fine on that amount of money is not commensurate with the crime we committed.”

He said the association will use Robert Highsmith, a former member of the Ethics Commission and a one-time counsel to Gov. Sonny Perdue, as a consultant to guide it through the process. Highsmith, a lawyer, has represented high-profile clients before the Ethics Commission in the past.

A large chunk of the group’s money went to support Cagle in his successful campaign for lieutenant governor last year.

Cagle defeated onetime Christian conservative icon Ralph Reed in the GOP primary and then beat Democrat Jim Martin in the general election.

State law allows groups to set up independent committees to promote candidates and causes. Realtors for Casey Cagle collected $216,000 from the Georgia Association of Realtors last year, then spent $208,000 on advertising, according to campaign disclosure reports.

Realtors for Casey Cagle listed the same address as the Georgia Association of Realtors on its filing documents.

Such groups can claim independence as long as they don’t coordinate their efforts with a candidate. It allows them to get around contribution limits.

For instance, under state law, the Georgia Association of Realtors could only have contributed $10,000 directly to Cagle’s campaign last year.

The committee’s treasurer referred calls to Hamilton. Brad Alexander, who served as spokesman for Cagle’s campaign, said there was no coordination between Realtors for Cagle and the lieutenant governor’s campaign.

“We were certainly very pleased to see the ads when they came on the air, but we didn’t have any awareness of them prior to that point,” said Alexander, who is currently the lieutenant governor’s chief of staff.

Bill Bozarth, executive director of the watchdog group Common Cause Georgia, said, “If you have limits on what people can give and all they are doing is finding ways to get around them, what does that say about the organization? What does that say about the candidate?

“Special interests are basically making a mockery of campaign limits. If there is a loophole, we need legislation to close it.”

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