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FEC fines Va. Republican Party, ex-chairman's company

By Anita Kumar
Anita Kumar

The Federal Elections Commission has fined the Republican Party of Virginia and the company owned by its former chairman, Jeff Frederick, for problems that arose when Frederick used his company, Gen-X Strategies, for party business, according to federal documents released Friday.

The FEC fined the party $3,300 and Gen-X Strategies $2,500 as part of agreements with both entities.

FEC documents indicate that Gen-X Strategies made a "prohibited in-kind contribution" to the party.

Frederick said in an interview Friday that he had his own company do technology work to get the party ready before the critical 2009 election after several party officials and lawyers gave him approval. He said after he discovered an omission in the party's state filing he directed the controller to submit an amended report.

"GXS made nothing (and in fact it lost money) on this work, because I wanted to avoid any appearance of a conflict of interest,'' he said. "The fact that GXS did the work was well known throughout [the party] and fully disclosed to the State Central Committee and other leaders."

FEC documents indicate that the party failed to "ensure the timely transmittal of contributions" and to "accurately report contributions" while Gen-X Strategies was collecting donations for the party and holding onto them too long.

Dave Rexrode, who became the party chairman this year, said party officials reported the problems to the FEC as soon as they recognized them. He said they also refunded donations made to the party through Gen-X Strategies.

Frederick, a former legislator from Prince William County, was ousted as chairman in April 2009 after allegations that included directing business to his company and spending party money for unbudgeted purposes without approval. (Frederick said the only work he directed to Gen-X Strategies was unpaid and that the only unbudgeted money he spent was for office space in Northern Virginia, which he did not need approval for.)

Read the agreement with the party and with Gen-X Strategies.

By Anita Kumar  | November 12, 2010; 3:12 PM ET
Categories:  Anita Kumar  
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Comments

Anita, thanks for getting this out there into the open. I’m a big believer in open campaign finance disclosure and this is great case where disclosure played a role, and just as I've always reported every contribution in my runs for office (even those under $100 that are not required to be disclosed), I also wanted to make sure RPV did the same under my watch.

Regarding the circumstances surrounding my removal as Chairman, if you mention the allegations, you should also mention the facts about those allegations: whatever business I directed to GXS was for unpaid/free work. That is, whatever business RPV gave to GXS, it was understood that GXS would not be paid for that work. Hence, the reported in-kind contribution. With regard to spending party money for unbudgeted purposes without approval, that money was for office space in Northern Virginia, which according the Party rules (Plan of Organization) at the time, I did not need approval for that type of expenditure – it was within the chairman’s prerogative for operating the Party.

Posted by: jefffrederick | November 12, 2010 5:06 PM | Report abuse

Did anybody stuff $80k in their bra, or flush a graft check for $100 grand down the toilet? Just checking..

Posted by: wewintheylose | November 13, 2010 7:15 AM | Report abuse

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