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September 19, 2005 08:00 AM UTC

Big Trouble at 777 Santa Fe?

  • 37 Comments
  • by: Colorado Pols

Colorado Democratic Party chairwoman Pat Waak, it seems, was left with quite a mess to clean up from her predecessors. A late-day AP story:

State Democratic Party officials said today they were trying to clear up a $3.2 million discrepancy found by a Federal Election Commission audit in which investigators determined that the party may have misallocated campaign funds in 2001 and 2002.

According to the FEC, the Colorado Democratic Party reported a payment for media consulting of $343,000 as a $343 payment, failed to report receipts from a third-party fundraiser totaling $99,802 in 2001 and $112,700 in 2002 and failed to return an illegal $10,000 contribution from the New Democrat Network in a timely manner.

…the party has asked the FEC for more information, and subpoenas will be sent to vendors who fail to provide documents. He said if vendors do not have the documents, the party may have to transfer funds from federal races to state races, which could hurt the party in next year’s congressional races.

Waak said the party only had $90,000 in the bank at the end of August, and it could take years to pay the money back if the party is ordered to do so by the FEC, but she said she isn’t worried.

Waak said former state party chairman Tim Knaus was in charge at the time. Knaus did not return phone calls seeking comment…

We can’t imagine how a surprise 3.2 million dollar invoice from the FEC isn’t worth worrying about when your organization is already famously broke. Waak may not have created this problem, but she had certainly better handle it properly before the “Be The Change amateur” label sticks for good.

FEC audit report (.PDF)

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37 thoughts on “Big Trouble at 777 Santa Fe?”

  1. I always figured that the Dems were a tad bit corrupt, but my oh my, we might have a little problem here, if this happened in my business, I would be finished by tomorrow morning, perhaps we should hold the demorcratic party to the same standard.

  4. The Enron Corporation became one of the largest bankruptcies in U.S. history in December 2001. A short, short, within this Republican administartion 4 years ago. AND, the guilt have yet to go to trial or be punished.

    The company?s spectacular collapse resulted from the disclosure that it had reported false profits, using accounting methods that failed to follow GAAP. Both internal and external controls failed to detect the financial losses wherein the Principals disguised them as profits for a number of years. Enron?s Republican managers, whose activities ruined the lives of THOUSANDS of hard working Americans, escaped with millions of dollars as they retired or sold their company stock before its price plummeted.

    This story pales in comparison.

  5. I find it ironic and telling that the Republicans post on this site from DAY to DAY about the need to raise money. It’s a given that the Republicans raise more money because they side with BUSINESS over PEOPLE! Give me a little time and I’ll come back with the story.

  6. What price STEALING democracy? And do tell, WHERE was the outrage in COLORADO amongst Republicans? Hypocrites!

    The head of DIEBOLD, the company vying to sell voting machines in Ohio told Republicans in a recent fund-raising letter that he is “committed to helping Ohio deliver its electoral votes to the president next year.”

    The Aug. 14 letter from Walden O’Dell, chief executive of Diebold Inc. – who has become active in the re-election effort of President Bush – prompted Democrats to question the propriety of allowing O’Dell’s company to calculate votes in the 2004 presidential election.

    O’Dell attended a strategy pow-wow with wealthy Bush benefactors – known as Rangers and Pioneers – at the president’s Crawford, Texas. Then, he penned invitations to a $1,000-a-plate fund-raiser to benefit the Ohio Republican Party’s federal campaign fund – partially benefiting Bush – at his mansion in the Columbus suburb of Upper Arlington.

    The letter went out the day before Ohio Secretary of State Ken Blackwell, also a Republican, was set to qualify Diebold as one of three firms eligible to sell upgraded electronic voting machines to Ohio counties in time for the 2004 election.

  7. So, Pat Waak and the Colorado Democratic party are in the midst of an accounting nightmare, and you cite Enron in response?  Tell me how I’m supposed to shut up now?  And since when is it news that the Republicans side with Business?  Isn’t that the way that it’s supposed to be?  I remember when Terry McCaullife ran the DNC, now THAT was a time when the PEOPLE were thought of by the dems, you remember don’t you?  All of those pardons to Marc Rich, all of the those Hollywood fundraisers, yeah, that was when the PEOPLE were really thought of.  The fact of the matter is that we all knew that the Colorado dems were in big trouble because they are a poorly ran party, from top down, that is no surprise.  You can bring all the corporate scandal bs you want Senor Robin, but it still doesn’t deflect the fact that Waak and the boys are in big, deep trouble,

  8. The same people who now find themselves with a $3.2 million “discrepancy” on the books are making the case for Ref C – a $3.7 billion tax hike.  Irony?

  9. Tricky Dick (so apt a name!)

    “We may say with truth and meaning that governments are more or less republican as they have more or less of the element of popular election and control in their composition; and believing as I do that the mass of the citizens is the safest depository of their own rights, and especially that the evils flowing from the duperies of the people are less injurious than those from the egoism of their agents, I am a friend to that composition of government which has in it the most of this ingredient.” –

    -Thomas Jefferson to John Taylor, 1816. ME 15:23

    This does NOT mean that a good Republic should be controlled by a bought and sold Media and Corporate Boards!

  10. Please do not paint all Democrats with that “something is fishy in Denmark” brush. This “discrepency” seems to have taken place during a previous administration of the party. None of the people who were there then are in office now.

    My big question is if this is an accounting error on paper only, or is there really money missing? If there is, I will be pushing for a ciminal investigation and prosecution of the culprits.

  11. It’s not as if BTC folks are working with the State Party. There is not one person involved with BTC on the State Party staff. It has been my impression that the State Party doesn’t even work with any of the 527’s. & don’t give me that shit about “coordination” It isn’t coordination unless there is money involved. Money is not involved when the State Party advertises for example, a BTC event on their website. That is just passing information of interest to constituents. & they are too damn scared to do that!

    BTC, DFC, ProgressNow… only help the State Party & Democrats. They are the people who are getting Democrats excited & involved. The last time I checked, getting people involved in the political process was a good thing.

    Those of you who think 527’s are hurting the State Party, or the Democrats in general need to go sit on a cactus-mit. In my opinion, the 527’s are the real reason that the Democrats had so much success in 2004. This trend will continue into 2006. Why do you think Benson & gang are starting Headwaters & such?

  12. What I have found in years and years of business, is that honest people make honest mistakes and dishonest people lie with numbers. Under the guise of “numbers don’t lie, the liers lie. I’ll wait before passing judgment on this.

  13. It seems I might have gotten a little righteous a little too quickly.

    I made a couple of phone calls to get more information. So far, it seems the problems are simply clerical errors on the reports filed with the FEC in the years in question, compounded by a general sloppiness by the then treasurer.

    There does NOT appear to be any money missing. The party is now in the process of rounding up the necessary documents to prove all the payments were made correctly.

    From the info I am getting, the worse the party may face is a small fine for failing to refund the $10,000 in a timely manner. But since the money was refunded without FEC prompting, perhaps that fine will also be avoided.

    Although, I would have given anything to have been a fly on the way when the current treasurer got the initial report. He turns wonderful shades of purple quite easily!

  14. After the ALJ’s ruling against the Dem. 527 (and the fine was laughably reduced from $800,000+ to $36,000), and now the revelations about the Dem. Party’s shady finances…  I don’t want to hear about fines anymore.  This should be a crime.

    And one more thing– let’s hear Common Cause denounce the Dems.  Let’s see a press conference with Pete Maysmith blasting Alice Madden for being named in the ALJ’s ruling!

  16. This story is really about nothing. Some documents counldn’t be matched and it seems that people are working on it to fix the problem. Noone has been fined, noone is going to jail, so y’all should just calm down. Do a “insert random democratic or republican party FEC Fine” google search and every party has had these issues. (The first search i did,the Idaho Republican Party Came up). Slow news day I guess that this is the story. It’s not like people are not trying to solve the problem.

  17. What a waste of time.  No kidding it was a slow news day and the AP scrapes the bottom of the barrel to come up with a “scandalous” story about a clerical error.
    And you hysterical Republicans are an embarassment to yourselves and this board.  Let’s see how this plays out and come back to some of these retarded posts.  Pathetic all around.

  18. Is this the part we accuse dead govs of having a republican slant like they whine everytime a piece of bad news for them across this site?  It the republican corporate media that just won’t cut us a break…whaaaaaaaa!!!!!

    Obviously some paperwork is out of waak but I am sure it will all get straightened out.

  21. I was reading this thread and was amazed that the arguements made are right out of the Democrat handbook.

    1) Make personal attackes against Republicans that criticize the Democrats.

    2) Bring up instances of businesses breaking the law and tie it to the Republicans.

    3) Accuse the Republicans of accepting money from big business.

    4) Accuse the Republicans of rigging elections.

    5) Take a quote from a founding father, out of context, and use it against Republicans.

    6) Take a hands off approach and suggest that everyone wait until all of the facts are in.  (But for Bush it is attck first and find out the facts later)

    7) Say that the story is really about nothing. 

    8) Bring up instances of Republicans being fined.

    9) Attack the messenger by saying it was a slow news day.

    At least it is nice to see that you are all on the same page.

  22. I don’t see anything criminal about this. Very well be an honest mistake.

    What I see is that the Liberals don’t have a candidate and don’t have any money. They continue to spend their energy and time Bush bashing rather than getting to work on a candidate and solidifying a message for victory. Strange, don’t they know Bush that isn’t running for Governor?

  23. The FEC issue is no big deal.
    It is one more example of the complete incompetency of Tim Knaus. Tim ran the Democratic Party like his personal candy store handing out big contract treats to law firms and consultants he favored. It led to one of the worst election cycles for the Democrats.
    Pat Waak is equally incompetent. Again, following the pattern of making excuses rather than doing her job. The FEC end result will be a small fine at the most. The legacy of Waak’s incompetency could be longer lasting

  24. Jonathan,

    Maybe we should take the Republican approach and just try scapegoating an entire class of people.  Would that make you feel better and you forgot to mention whining about the liberal media and the grand liberal conspiracy by the creators of this site…oh wait that is the Republican excuse everytime.

    There is no excuses here from Democrats, get the paperwork figured out or pay the fine.  Seems pretty simple to me.

  25. Thats what I’m talking about Marshall. You guys keep slaming Republicans but pay no attention to your money. We all get it: Republicans are bad.

    Where is your money? Who is your candidate? What is your message (besides Republicans are bad)?

  26. A $3.2 million discrepency does not imply a $3.2 million invoice.  Clearly, the book keeping at Democratic party headquarters could have been better.  But, as the Pols aptly note, those problems occurred on Gate’s shift, not Waaks, and as Waak notes but the Pols seem to misunderstand, the vast majority of the issues are paperwork issues — matters of getting receipts in orders and correcting errors like mistyped expenses.

    The problem is not minor or irrelevant, but it is also clearly not a case of massive misappropriation of funds.

  28. I will not contribute one penny or one minute to this #$%& State Party, what the heck if I managed my checkbook this way even Ken S. would have locked me up and we are close friends! Tim Knaus was a complete joke second only to Queen Bee Elaine G. Pat W. is well meaning but clueless about what we need to do to win.

    I supported Chris because he delived in spades, I think we need change it’s time to ask Chris to resume as our leader!!!

  29. Teddet and KsWntg –

    You both are f*cking jokes. Obviously you have no idea what you are talking about and know nothing about how the state party works.  When you get off of Gates’ jock, come blow me too.

  33. I understand that one of the 527 Millionaire boys (and girl) club was found to be in violation of the campaign finance law.  Congratulations on your victory KL!  Maybe there’ll be more to follow.

  35. Mike Miles as Party Chair.
    Mike can actually show that he is not controlled by a bunch of loony tunes who got him 23% of the vote.
    Dan Slater as Vice-Chair
    Chris Gates as Executive Director
    Such a team would show unity. It would put an articulate leader in a place to comment to the press. It would put skilled political operatives in charge. Everyone wins. Plus Pat Waak could again run for Congress in the Musgrave seat as she did in 2002. Her 2002 campaign consisted of ill advised attacks on a good guy, Stan Matsunaka.
    Everyone wins.

  37. To Jonathan:

    1. I;m afraid this cuts both ways, and I’m as ashamed as you that it occurs. Let’s agree to argue only the merits.

    2. Businesses that break laws are exponentially capable of doing damage, as opposed to, say, individuals. Individuals tend to hde behind the “corporate veil”. The founding fathers never liked the corpoaration an an “entity”. It hides scoundres. I’m sorry, most scoundrels are Republicans.

    3. See # 2.

    4. Gain, money, power are, biblically speaking….great motivators. Stop kidding yourself.

    5. You’ve identified the quote “out of context” (which, by the way, shows your complete inability to tie actions to results). I’ll use this arguement against either party. It’s just that, in this instance, the Reublicans are egresiously out in front. Accept it.

    6. The facts are in. Open your eyes.

    7. Subsequent posts agree.

    8. Sorry. The facts must speak for themselves.

    Get a clue. Take your head where it might get a tan.

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