Corrected: DNC to File Complaint Against McCain Campaign for Ignoring FEC Law

McCain Campaign Intentionally Distorts Truth by Misrepresenting the Facts from
2004 Campaign

WASHINGTON, Feb. 24 /PRNewswire-USNewswire/ -- The DNC announced today
that it will file a complaint with the FEC against John McCain's campaign
Monday, calling on the FEC to investigate whether the McCain campaign violated
or is about to violate the law by ignoring the spending limit agreement and
other conditions Senator McCain agreed to when he became eligible to receive
federal matching funds. According to McCain's latest campaign filing, he has
already spent $49.6 million and given that a month has passed, he has exceeded
or is about to exceed the approximately $56.8 million spending limit.
"The crucial issue here is John McCain's integrity. John McCain poses as a
reformer but seems to think reforms apply to everyone but him," said
Democratic National Committee Chairman Howard Dean. "He used taxpayer money to
guarantee a loan so he could raise money from lobbyists and special interests
- it's the height of hypocrisy. This is just the latest example of his do as I
say, not as I do double standard, and it's unlikely to be the last. McCain
financially benefited from this legally binding contract - he got free ballot
access, saving him millions of dollars, and he secured a $4 million line of
credit to keep his campaign afloat by using public financing as collateral. He
should follow the law."
The McCain campaign has incorrectly stated that McCain is doing what Dean
did when he withdrew from public financing in his presidential bid, but they
have the facts wrong. Dean did not use the promise of matching funds as
collateral for a loan. As required, Dean obtained permission from the
Commission to withdraw from matching funds before any funds were disbursed.
Also, Dean spent resources to get his name on the ballot after withdrawing,
unlike McCain who had free ballot access in some states because he pledged to
accept matching funds.
In order to receive matching funds, John McCain signed a binding agreement
with the FEC to accept spending limits and to abide by the conditions of
receiving those funds. The FEC makes clear that any request to withdraw from
the agreement must be granted by the FEC. In other words, McCain can't just
unilaterally withdraw. FEC Chairman David Mason made this clear in a letter to
McCain advising him that the law requires the FEC to approve his request to
withdraw from his contract.
According to past Commission rulings, the McCain campaign would not be
allowed to withdraw from matching funds because it has already violated a key
condition for being let out of the program - pledging matching funds as
collateral for a private loan. McCain obtained a $4 million line of credit --
drew $2,971,697 from it - and documents make clear that the promise of public
financing was used to secure his loan.
In the complaint, the DNC says "the Commission should (1) find reason to
believe, pursuant to 2 U.S.C. Section 437g(a)(2), that Senator John McCain and
the McCain Campaign have committed, or are about to commit, a violation of
Chapter 96 of Title 26 and of the Commission's rules, and should conduct an
investigation; and (2) pursuant to 26 U.S.C. Section 9040(c), petition the
appropriate U.S. District Court for injunctive relief to implement and enforce
the provisions of Chapter 96 against Senator McCain and the McCain Campaign."
A copy of the DNC's complaint will be available Monday once it's filed.
SOURCE Democratic National Committee

Stacie Paxton, +1-202-863-8148