Tuesday, June 28, 2005


Ethics watchdog files complaint against Senate Majority Leader


In June 2000, Senator Frist took $1 million of the money that had been contributed to his 2000 Senate campaign and invested it in the stock market, where it promptly began losing money. In November 2000, Senator Frist sought to collect $1.2 million he had lent his 1994 Senate campaign committee. As a result of the stock market losses, however, Frist 2000, Inc. did not have enough money to repay the loan. Senator Frist solved this problem by having the 1994 and the 2000 campaign committees jointly take out a $1.44 million bank loan at a cost of $10,000 a month interest. Frist 2000, Inc. did not report this debt on its FEC disclosure forms.

The Federal Election Campaign Act (FECA) requires full disclosure of any loans taken out by campaign committees. Yet only the 1994 campaign committee, which had been largely dormant, disclosed the loan. The loan papers, which are attached to CREW’s complaint, are signed by Senator Frist personally on behalf of each of the campaign committees.

Melanie Sloan, CREW’s executive director, said “it appears that Senator Frist deliberately broke the law by failing to disclose the $1.44 million loan in Frist 2000, Inc.’s FEC filings. Senator Frist was clearly trying to hide the fact that his 2000 campaign was over a million dollars in debt. Given the large sum of money involved and the fact that the violation appears to have been knowing and willful, the FEC should refer this matter to the Department of Justice for possible criminal prosecution.”

1 comment:

Mr. Natural said...

YES BUT...Tom, Dick and Harriet can invest thier Social Security in the stock market scam with ZERO RISK, according to this upstanding citizen and primier investor!