FEC fines Va. Republican Party, ex-chairman's company
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.)
| November 12, 2010; 3:12 PM ET
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