Vermont AG files campaign finance law action against Dean Corren, settles alleged violation against Dems

Vermont Business Magazine Vermont Attorney General William Sorrell announced today that his office has filed a civil lawsuit on behalf of the State of Vermont against Dean RCorren seeking enforcement of Vermont’s campaign finance laws and the provisions governing the public financing of election campaigns. The violations asserted arise out of requests by Corren, a publiclyfinanced candidate, to the VDP to contribute to his campaign for lieutenant governor in 2014, Corren’s facilitation of such support, and the VDP’s assistance by sending a mass email expressly advocating Corren’s election to a distribution list of between 16,000 and 19,000 people. Corren has counter-sued the AG's office.

Corren, a member of the Progressive Party, was listedas a Progressive/Democrat on the November 2014 ballot for lieutenant governor. He finished a distant second with 36 percent of the vote to Republican Phil Scott. The Democrats did not field a candidate in that race.

TheComplaint, filed today by the Attorney General’s Office in Vermont Superior Court, Washington Unit, alleges that Corren qualified for public financing for his campaign for election to the office of lieutenant governor and received over $180,000 in campaign finance grants from the State of Vermont. As a condition of receiving these public funds, Corren was prohibited from soliciting or receiving contributions, facilitating related expenditures, and spending money on his election campaign from sources other than his initial qualifying contributions and the public financing. Corren signed an affidavit agreeing to abide by all the conditions of the campaign finance grant.

Despite the restriction on these public funds, Corren solicited assistance in the form of an in-kind contribution for his campaign from the VDP. Specifically, Corren’s campaign manager worked with the VDP’s executive director to write a mass email telling supporters how they could “help Dean Corren” (including a link for contacting Corren’s campaign to volunteer), praising his “skills and experience,” and positions on the party platform, and urging recipients to “vote for” Corren on November 4th. The VDP email was sent out on October 24, 2014.

Under Vermont campaign finance law, because Corren’s campaign intentionally facilitated and solicited the email message, it is a related expenditure by the VDP and a contribution to Corren, the candidate on whose behalf the expenditure was made.

Vermont law provides that a publicly financed candidate who violates the prohibition against soliciting or receiving contributions must refund the unspent balance of his campaign finance grants as of the date of the violation. The Attorney General’s enforcement action asserts two counts of campaign finance law violations against Corren for soliciting and accepting a prohibited contribution and failing to report that contribution. It seeks statutory penalties and the return of approximately $52,000 in public funds unspent as of the October 24, 2014 violation date.

Attorney General William Sorrell also announced today that his Office has reached anagreementto resolve a campaign finance law violation by the VDP arising out of its October 24, 2014 email supporting Corren’s candidacy. Pursuant to this agreement, the VDP stipulates to the truth of the relevant facts in the Corren action, admits to a campaign finance law violation, agrees to pay the maximum statutory penalty of $10,000, and agrees to cooperate with the Attorney General’s Office in any further investigation and in the litigation of the Office’s enforcement action against Corren. The Attorney General’s Office expects to receive the fully executed and ratified settlement agreement from the VDP by April 15.

In a separate but related matter, the Attorney General’s Office reports that in response to the Office’s investigation of Corren’s alleged campaign finance law violations, Corren has filed alawsuitagainst Attorney General Sorrell in federal court. Corren’s suit seeks to enjoin the Office from enforcing Vermont’s campaign finance laws against him and asks the court to declare Vermont’s system for the public financing of election campaigns unconstitutional. Investigation and enforcement of actions relating to alleged violations of Vermont’s campaign finance laws are among the duties of the Office of the Attorney General. See 17 V.S.A. §§ 2903, 2904.

“Candidates enjoying the tremendous benefit of receiving taxpayer money to fund their election campaigns must strictly comply with the rules,” said Attorney General Sorrell. “A failure to do so carries weighty penalties under our law.” “My office is committed to the even-handed enforcement of Vermont’s campaign finance laws. I am pleased we were able to resolve these matters with the VDP without the need to file suit. We will vigorously pursue this important case against Corren, as well as defend the lawsuit filed in federal court,” concluded the Attorney General.

Vermont AG: Mar 25, 2015