More details on Durham’s alleged campaign money misdeeds

In a formal, 30-page letter to former state Rep. Jeremy Durham, the Registry of Election Finance staff lists around 690 alleged violations of state campaign finance laws that were found in an audit. Since each could lead to a maximum civil penalty of $10,000, the total theoretically could be $6.9 million – more than the total collected from all fines in the Registry’s history.

The letter is a step toward deciding what, if any, penalty will be imposed. Durham has until May 1 to respond to the letter, offering any explanation or defense he wishes to the allegations – most involving use of campaign money for personal expenses and investments, but multiple cases of failure to disclose contributions and other infractions.

A Registry hearing is scheduled for June 14. The FBI is also reportedly investigating Durham, apparently with an eye toward tax evasion or fraud charges.

A copy of the letter is available by clicking on this link: durhamletter

The Tennessean has an overview story on the letter’s allegations. An excerpt:

The information… also provides for the first time the names of prominent campaign donors and business owners who gave Durham thousands of dollars that the former Franklin lawmaker never reported on his campaign disclosures… Additionally, the report details nearly $76,000 in improperly disclosed campaign expenditures — on everything from Florida restaurants and airplane tickets to flowers and a Yankee Candle purchase.

The donors and reportedly undisclosed contributions listed in the show cause notice include:

Lee Beaman, a well-known Republican fundraiser and prominent Nashville car dealer, gave Durham $3,000. Durham reported receiving only $1,500;

Cathy and John Simmonds gave Durham $6,000, but he reported receiving only $1,000. John Simmonds, the former CEO of Southeast Financial Credit Union, wrote a letter to a federal judge seeking leniency for a former youth pastor who admitted to statutory rape and child pornography charges. Durham also wrote a letter on the man’s behalf, although there is no discernible personal connection between Durham and the man;

Tracy and Cynthia Miller, who are the brother and sister-in-law of prominent Republican donor and businessman Andy Miller, donated $6,000 to Durham. He reported only $4,500.

2 Responses to More details on Durham’s alleged campaign money misdeeds

  • Amy says:

    Curious about the legal position of the campaign finance or treasurer.? What is their liability in this kind of dis-reporting of funds?

    • Tom Humphrey
      Tom Humphrey says:

      Not qualified to offer a legal opinion. But would note that TCA 2-10-110 (c ) says that a civil penalty against a candidate’s campaign “shall be considered as a personal judgment against the candidate” with no mention of the treasurer. Suspect that means the treasurer is off the hook – unless he/she engaged in conspiring to the extent that criminal fraud charges could be brought by a DA. On the other hand a penalty assessed against a PAC (subsection f) “the treasurer of the committee is personally liable for the penalty.”

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