HERE WE GO AGAIN !!!!!
By Alexander Bolton
August 15, 2007
Seven vulnerable House Republicans face difficult decisions about whether to return contributions from a major Republican donor who was charged last week on 23 counts of bankruptcy fraud, mail fraud, money laundering, obstruction of justice and perjury.
The donor, Alan Fabian, is the CEO of the Centre for Management and Technology, a Baltimore-based company. Until last week, he was also a co-chairman of former Massachusetts Gov. Mitt Romney’s national finance committee.
A federal grand jury has indicted Fabian for allegedly making $32 million in false purchases of computer equipment to pay for his lavish spending habits. Prosecutors are seeking $32 million worth of Fabian’s assets, including beach real estate in North Carolina, property in Maryland and a yacht.
Fabian has since resigned his position with the Romney campaign.
Romney and former New York Mayor Rudy Giuliani, both GOP presidential candidates, have decided to refund contributions Fabian made to them this year. Fabian gave $2,300 to Romney in February and $1,000 to Giuliani in June.
Giuliani’s campaign wasted little time in distancing itself from Fabian.
“We are returning the contribution Romney’s national finance co-chair gave Rudy Giuliani,” said spokeswoman Maria Comella on Tuesday.
This may put pressure on seven vulnerable House Republicans to do the same. Otherwise, they will likely face Democratic criticism in the run-up to the 2008 election.
Reps. Steve Chabot (Ohio), Jim Gerlach (Pa.), Michele Bachmann (Minn.), Jon Porter (Nev.), Heather Wilson (N.M.), Cathy McMorris Rodgers (Wash.), and Dave Reichert (Wash.) have each accepted $1,000 or more from Fabian in the last three years, according to records on file at the Federal Election Commission (FEC).
Wilson accepted the most, a $1,000 contribution in October and a $1,468 contribution in September of 2004.
Heather Wade, a political aide to Wilson, said the campaign does not plan “at this time” to return Fabian’s money.
John Sides, an assistant professor at George Washington University who specializes in political behavior, said lawmakers who accept funds from an indicted donor face problems of appearance.
“Regardless of whether Mr. Fabian is convicted or guilty, the fact that he’s indicted casts suspicion on him and casts suspicion on the candidate for taking money from him,” said Sides. “It doesn’t matter if it’s only a thousand dollars, because your opponent can say you took money from a crook. The amount of money is only a detail.”
Sides said that lawmakers in this position have few good options available to them.
“It’s a decision between two bad things,” he said. “One bad thing is you keep the money and that makes you vulnerable [to attacks] or you give the money back and then you look guilty [of having accepted illicit funds].”
While campaign finance laws have been set up to limit the financial impact of any one donor, many voters view a $1,000 contribution as a significant gift.
“Any individual donor is not really responsible for very much,” said Burns. “But I don’t think voters necessarily make that distinction because most of them don’t give money to the campaign and many cannot afford to give the FEC limit. It just looks bad.”
Nevertheless, some lawmakers who expect to find themselves in Democratic crosshairs next year say they will keep Fabian’s money.
“We have no intention of returning the contribution,” said Matt Leffingwell, spokesman for Porter, who received nearly $1,500 from Fabian in 2004. “Until the individual is convicted in a court of law, we don’t return contributions.”
An official from the Democratic Congressional Campaign Committee was unavailable for comment.
Fabian has given generously to Republican candidates in recent years. During the first six months of 2007 he gave $25,000 to the Republican National Committee and $4,600 to Sen. Elizabeth Dole (N.C.), according to the Center for Responsive Politics, a nonpartisan group that tracks fundraising.
Fabian also gave $25,000 to the National Republican Congressional Committee during the 2004 election cycle.
The charges against Fabian stem from his employment with Maximus Inc., a government consulting company located in Reston, Va. Prosecutors have alleged that Fabian made sale-leaseback transactions for computer equipment that he never purchased. They claim he created phony companies as part of the scheme.
Fabian will be arraigned at the end of September.
