4.26.16 - Texas Democrats file complaint with FEC regarding Ted
Cruz’s violation of federal election campaign laws
Summary
Yesterday, the Texas Democratic Party filed a complaint with the Federal Election Commission
regarding Ted Cruz’s violation of federal election campaign laws. To follow-up on this and
ensure press coverage, they also hosted a press call yesterday, which I took the lead on from the
DNC and helped organize.
Media Coverage
KTSM -- NBC AFFILIATE IN EL PASO, TEXAS
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KJTL – FOX AFFILIATE IN WICHITA FALLS, TEXAS
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KWKT – FOX AFFILIATE IN CENTRAL TEXAS
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KMID – ABC AFFILIATE IN MIDLAND, TEXAS
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KHOU – CBS AFFILIATE IN HOUSTON, TEXAS
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KVUE – ABC AFFILIATE IN AUSTIN, TEXAS
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Texas Democrats allege Cruz campaign violated federal election laws during Dallas
fundraiser
DALLAS MORNING NEWS // KATIE LESLIE
Texas Democrats have filed a complaint with the Federal Election Commission alleging
presidential contender Ted Cruz and his associates violated campaign finance laws.
The complaint, dated April 22, asserts that Cruz national co-chairman J. Keet Lewis broke
election laws at an official campaign fundraiser in December by asking attendees to donate
unlimited amounts, as well as to make corporate contributions to the pro-Cruz Stand for Truth
PAC.
Cruz and his wife, Heidi, reportedly attended the Dec. 30 event in Dallas.
Federal law prohibits coordination between candidates and Super PACs. While a candidate or
agent of a candidate can solicit donors to a PAC, it is illegal for them to solicit unlimited
contributions or corporate contributions to a Super PAC. They can solicit only up to $5,000 from
individuals.
The Texas Democrats say Lewis clearly violated those terms when he told donors “If you hit
your max then we have a table for you that is the unlimited table. It can take corporate dollars, it
can take partnership dollars, and that’s the Super PAC, Stand for Truth,” according to the
complaint.
Lewis also said, “The method to our madness is this: You max out and then get engaged in the
Super PAC,” the filing states.
Lewis has denied wrongdoing and told Politico, which reported the potential violation earlier this
month, that he is not an agent of the campaign under federal standards. Lewis was one of roughly
50 co-hosts.
Texas Democrats argue that he is a campaign agent because of his national co-chair role.
“We’ve already seen that Ted Cruz will lie, cheat and say anything to gain power,” Texas
Democratic Party Chairman Gilberto Hinojosa said in a phone call with reporters on Monday.
“…Ted Cruz’s blatant disregard of the law is yet another reason why he is unfit to lead our
country.”
Neither the Cruz campaign nor Lewis could be reached for immediate comment.
Larry Noble, general counsel for the watchdog group Campaign Legal Center, said that if the
allegations are true, they could constitute a violation of federal laws prohibiting officeholders
and their agents from soliciting soft money.
The FEC had not received a copy of the complaint by Monday morning. In addition to Cruz and
Lewis, the complaint lists Cruz for President treasurer Bradley Knippa and Stand for Truth
Treasurer D. Eric Lycan as respondents.
It’s the latest FEC complaint filed against Cruz’s presidential campaign.
In January, the left-leaning group Texans for Public Justice filed a complaint alleging that Cruz
purposely hid more than $1 million in loans from major banks during his 2012 Senate campaign.
The Campaign Legal Center and the nonprofit Democracy 21 filed a similar joint complaint
against the Cruz campaign.
In response, Cruz noted that he reported the loans on personal financial disclosure forms filed
with the Senate and asked the FEC for guidance on how to amend the campaign reports in
question.
Hinojosa said Cruz’s alleged violations are “par for the course” for Texas Republicans, and took
a swipe at Attorney General Ken Paxton.
Paxton is facing a host of state criminal and federal civil fraud charges for allegedly breaking
federal securities laws. He maintains his innocence.
Texas Dems file FEC complaint over Ted Cruz fundraiser
HOUSTON CHRONICLE // BRIAN ROSENTHAL
The Texas Democratic Party filed a complaint Monday with the Federal Election Commission
alleging U.S. Sen. Ted Cruz's presidential campaign broke the law by soliciting donations for a
supportive super PAC.
The complaint alleges that prominent Cruz campaign supporter Keet Lewis suggested attendees
at a campaign fundraiser contribute the maximum amount to the campaign and then start
donating to the super PAC, "a blatant violation" of rules prohibiting coordination between a
campaign a super PAC.
POLITICO reported earlier this month about the fundraiser, which took place Dec. 30 in Dallas
and was attended by Cruz and his wife, Heidi. The article quoted Lewis as saying, "If you hit
your max then we have a table for you that is the unlimited table. "It can take corporate dollars, it
can take partnership dollars, and that's the super PAC, Stand for Truth, so pick up some of that
information."
In response, Lewis told the publication that he did not view himself as an agent of the campaign.
The complaint filed Monday noted that Lewis has been named a "national co-chair" of the
campaign, as well as a leader of the "Small Business For Cruz Coalition."
The complaint urges the Federal Election Commission to fine Cruz, his campaign, Lewis and the
super PAC.
A Cruz spokeswoman did not immediately return a message seeking comment.
Read the complaint here.
Ted Cruz fundraiser subject of Texas Democrats’ ethics complaint
AUSTIN AMERICAN-STATESMAN // SEAN COLLINS WALSH
The Texas Democratic Party on Monday filed a complaint alleging that U.S. Sen. Ted Cruz’s
presidential campaign violated campaign finance laws by soliciting donations at a Dec. 30
fundraiser in Dallas for a pro-Cruz “super-PAC.”
Super PACs, which are independent political action committees that can raise unlimited amounts
of money and withhold donor information, are not supposed to coordinate with campaigns, even
if they are created for the sole purpose of boosting a specific candidate.
The Texas Democrats’ complaint to the Federal Election Commission said prohibited
coordination occurred at the Dallas event when a Cruz campaign official asked donors to
contribute both to the campaign and to Stand for Truth, one of several super-PACs supporting
the Texas Republican.
The complaint stems from a recording in which J. Keet Lewis, who the Cruz campaign has
described as a “national co-chair,” instructs donors on how to contribute to the pro-Cruz effort by
giving the campaign the maximum amount allowed under federal election law and then giving
more to Stand for Truth.
“If you hit your max, we have a table for you that is the unlimited table. It can take corporate
dollars, it can take partnership dollars, and that’s the super-PAC, Stand for Truth,” Lewis said,
according to the recording. “So the method to our madness is this: You max out and then get
engaged in the super-PAC.”
The Cruz campaign did not immediately respond to a request for comment Monday.
When Politico published the recording earlier this month, Lewis said he did not consider himself
an agent of the campaign, despite his title. “Other than invite people to the events, that’s all I
do,” he told Politico.
Texas Democrats File FEC Complaint Against Cruz
TEXAS TRIBUNE // PATRICK SVITEK
Texas Democrats have filed a complaint with the Federal Election Commission claiming the
campaign of Republican presidential candidate Ted Cruz violated federal election law.
Announced Monday, the complaint asks the FEC to investigate an incident in which a Cruz
fundraiser reportedly suggested at a campaign-hosted event that supporters give unlimited
donations to a super PAC. Under federal election law, campaigns and their agents cannot solicit
contributions above the federal limit of $5,000.
"If you hit your max then we have a table for you that is the unlimited table," Cruz bundler Keet
Lewis said at a campaign fundraiser Dec. 30 in Dallas, according to Politico, which obtained a
recording of Lewis' remarks. "It can take corporate dollars, it can take partnership dollars, and
that’s the super PAC, Stand for Truth, so pick up some of that information."
The complaint by the Texas Democratic Party, which is dated Friday, says Cruz's campaign
"disregarded the law and brazenly asked supporters to give both unlimited contributions and
contributions from corporations to a Super PAC supporting Senator Cruz's campaign."
"He’s got to face the consequences, own up to it and make it right," party chairman Gilberto
Hinojosa said on a conference call with reporters. "We’ve already seen that Ted Cruz will lie,
cheat and say anything to get into power." Cruz's campaign did not immediately respond to a
request for comment on the complaint.
Texas Democratic Party Accuses Ted Cruz of Violating Election Campaign Laws
TIME WARNER CABLE NEWS // TWS NEWS STAFF
The Texas Democratic Party is accusing Ted Cruz of violating election campaign laws at a
Dallas fundraiser. The group has filed a complaint with the Federal Election Commission.
It claims back in December, Cruz's national co-chair, J Kleet Lewis, violated FEC rules by
asking supporters for unlimited contributions. They claim Lewis said any donor who hit their
$5,000 max could then give to a pro-Cruz Super PAC.
The group says Lewis also asked for corporate Super PAC contributions. Federal law allows
Super PACs to raise and spend as much money as they want, but any coordination with
candidates is illegal.
The Texas Democrats are asking the FEC for an immediate investigation. Time Warner Cable
News reached out to the Cruz campaign for comment, but have not heard back at this time.
Read the full complaint here. (.pdf)
O’MALLEY’S ‘IRISH WAKE’
POLITICO INFLUENCE TIPSHEET // ISAAC ARNSDORF
'IF YOU HIT YOUR MAX': The Texas Democratic Party asked the Federal Election
Commission to investigate the Cruz campaign for allegedly soliciting unlimited corporate
donations, citing my story about a recording from a December fundraiser in Dallas.
Paxton Tries To Calm Tempest Over Tea Party IRS Remark
TEXAS TRIBUNE TIPSHEET // JOHN REYNOLDS
Texas Democrats File FEC Complaint Against Cruz, by Patrick Svitek — Texas Democrats
have filed a complaint with the Federal Election Commission claiming the campaign of
Republican presidential candidate Ted Cruz violated federal election law.
Texas Take: April 26, 2016
HOUSTON CHRONICLE TIPSHEET // BOBBY CERVANTES
Texas Dems file FEC complaint over Ted Cruz fundraiser, Houston Chronicle