Bradbury accuses Smith of election law violations

The Associated Press ^ | 10/17/02 | MATTHEW DALY

[FLgator]

WASHINGTON (AP) -- Democrat Bill Bradbury filed a complaint with the Federal Election Commission Thursday charging that Republican Sen. Gordon Smith misrepresented personal funds used to pay off a $1.6 million campaign loan.

In the process, Bradbury said, Smith accepted an illegal campaign contribution from his wife that exceeded federal limits by nearly $500,000.

"In an era of corporate scandals, Smith's financial dealings are now all too familiar. Either Smith has deliberately deceived the FEC, intentionally made public statements that aren't true, or he has demonstrated utter and persistent incompetence in following the law," said Bradbury spokesman Neel Pender.

"Perhaps this gives us a better understanding why Smith voted against campaign finance reform," Pender added. "He couldn't live by the old rules and he's determined to do everything he can to avoid living by the new ones."

Smith spokeswoman Caroline Mullen denied Bradbury's allegations, which she said were born of desperation.

"Bill Bradbury is trailing in the polls, and once again he is throwing out empty allegations and desperate attacks in an attempt to salvage his sinking campaign," Mullen said.

Smith, who is seeking a second six-year term, "has been and is in full compliance with all FEC guidelines," Mullen said.

The latest allegation concerns $1.6 million in debt from Smith's two 1996 campaigns for Senate. According to an amended report filed this spring, Smith converted the debt to a personal loan, which he paid off two years ago.

The amended reports were filed in May after a federal analyst raised questions about interest payments on the debt. The amendments revise reports from a 1996 Smith committee and are separate from his 2002 campaign, which has raised $6.1 million and has no debt.

In August the state Democratic Party filed an election law complaint charging that $1.6 million in loans Smith received to help fund his two 1996 bids for Senate were insufficiently collateralized and were granted with "sweetheart" terms. The complaint is pending.

Bradbury's campaign added a new wrinkle Thursday, saying Smith arranged to pay off his outstanding debt to US Bank with a loan based on the value of his $2.2 million Maryland home. The transaction was illegal, Bradbury said, because under federal law Smith could only use half the value of the home, which he co-owns with his wife, Sharon.

The difference between the $1.1 million allowed as a personal loan to the candidate, and the $1.6 million used to pay off the debt, constituted a $500,000 contribution to Smith's campaign by his wife, Bradbury said. Federal law limits individual contributions to $1,000 per election cycle.

"To be clear," Bradbury said in a statement, "this complaint is filed against Gordon Smith for his failure to properly account for his loan and for accepting an illegal contribution."

There is no indication that Sharon Smith was aware of her husband's actions or approved them, Bradbury said.

Mullen declined to address the specifics of Bradbury's complaint, but said Smith's campaign was and is in compliance with all FEC guidelines.

The loans in question originated seven years ago, when Smith, a millionaire who owns a frozen food company in Umatilla County, launched the first of two consecutive Senate races in which his campaigns spent a total of nearly $11 million. Smith lost a January 1996 race to Democrat Ron Wyden, but was elected 10 months later.

Copyright 2002 Associated Press. All rights reserved.

[Rocksalt]

Another example of the dirty smear campaigns being run by both sides.In watching campaign TV commercials this election cycle,I have barely seen one candidate that talked about themselves,only mud-slinging from what I've seen.This is a desperate attempt by the rats to villify Smith.

[onehipdad]

In an era of corporate scandals, Smith's financial dealings are now all too familiar. Either Smith has deliberately deceived the FEC, intentionally made public statements that aren't true, or he has demonstrated utter and persistent incompetence in following the law," said Bradbury spokesman Neel Pender.

Or third choice, Senator Smith's campaign is operating strictly within the limits of existing law and Bill Bradbury was, is, and always has been a complete idiot. >