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Okay, Lamont Didn’t Crash the Servers. But What Did Lieberman Do with His $387,000 Slush Fund?

In thoroughly unsurprising news today, the Ned Lamont campaign was cleared of any wrong-doing in the crash of Lieberman’s server leading up to primary day in 2006. The Stamford Advocate reports that the FBI determined–way back on October 25, 2006–that Lieberman’s campaign bears all responsibility for the server crash.

Case closed, right?

No. Not on the outstanding legal issues arising from the campaign, anyway.

As you might recall, the Lamont campaign filed an FEC complaint, coincidentally just two days before the whole server crash case was closed in October 2006, noting that Joe Lieberman had a campaign finance entry for "petty cash" expenditures that were way beyond the legal limits: $387,000 of "petty cash."

The Friends of Joe Lieberman committee, and Joseph I. Lieberman, individually have violated the clear and unambiguous terms of 11 C.F.R. §102.11 in at least the following three ways.

First, according to the FEC October Quarterly report filed on October 13, 2006, the Lieberman campaign has petty cash disbursements amounting to $387,561.00, which is roughly 8 percent of its total disbursements, or one out of every twelve dollars spent. On several occasions, petty cash disbursements greater than $100 were reported, as supposed payment for “volunteers.” As summary of these disbursements from the Friends of Joe Lieberman report are attached hereto. These disbursements reflect patent violations of 11 C.F.R. §102.11.

Second, the report does not include the name and address of every person to whom any disbursement is made, as well as the date, amount, and purpose of such disbursement. Again, Friends of Joe Lieberman stands in clear violation of 11 C.F.R. §102.11.

Third, and perhaps most troubling, the Associated Press reported earlier today that Lieberman spokeswoman Tammy Sun claims the cash was supposedly used pay to field coordinators who then distributed money to workers who were canvassing (Andrew Miga, Lamont Questions Lieberman’s Spending, October 23, 2006). There is no evidence that the Lieberman committee kept and maintained a written journal of any kind regarding these disbursements as required by 11 C.F.R. §102.11. As I am sure you are aware, the rationale for this regulation is to, among other things, prevent the creation and utilization of slush funds for illicit purposes. The $387,561.00 involved here is a sum of supposed petty cash expenditures unprecedented in any race in our state’s history. Read more