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May 13, 1977 - Image 2

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Michigan Daily, 1977-05-13

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Page Iwo

THE MICHIGAN DAILY

F -iaay, may , J9

Iaqge Two THE MICHIGAN DAILY I-rsoQyMQy I,, 1'91)

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Shapp must repay $300,000

WASHINGTON (AP) - Penn-
sylvania Gov. Milton Shapp was
ordered yesterday to pay back
almost $300,000 in federal funds
he had been given for his brief
campaign last year for the
Democratic presidential nomi-
nation.
The Federal Election Com-
mission (FEC) ordered the re-
payment. Its investigators
found that Shapp's supporters

had made incorr
about raising the
money from the
donors required by
law for a candidati
for matching federz
SHAPP, DECLINI
his Harrisburg, Pa
the state capitol b
no comment on tI
sion's ruling,
However, his laws
Harvey, said there
dence that Shappj
ally aware of the il
ties. Harvey said S
fight the repayment
FEC Counsel Willi
said the irregulariti
covered during aud:
candidates who go
federal campaign
year. He said that
other irregularities
discovered.
THE SIX-MEMHI
sion voted 5-0 to ord
make repayment,
member abstaining-
Meanwhile, the
was pursuing an i
that could result in1
for othershinvolvedi
lug for Shapp.
The commission d
it had reached
agreements with 2:
the case, mostly inv

1app

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oct claims inal fines and agreements to
amounts of testify in the continuing probe.
number of
the election IN VOTING for the repay-
6 to qualify ment order, Commissioner
al funds. Thomas Harris said: "I am
puzzled and distressed with the
NG to leave rather casual and cavalier fash-
., office in ion by which many of these
uilding, had people have entered into this
he commis- scheme.. I find it shocking."
In deciding that Shapp was
er, Gregory unqualified for the $299,066 his
was no evi- campaign drew from the fed-
was person- eral treasury, the commission
legal activi- ruled that illegal contributions
happ would could not be counted in qualify-
t order. ing a candidate for the match-
am Oldaker ing federal dollars.
es were un- Under the federal election
its of all 15 code, Shaop is personally re-
t matching sonsible for paying back the
funds last funds.
so far no
have been THE CASE involves a provi-
sion of the new post-Watergate
election laws which provide fed-
ER commis- eral financing for presidential
et Shapp to elections. In the primaries and
with one other pre-convention campaign-
ing, the government matches the
commission private contributions raised by
nvestigation candidates once a threshold has
prosecutions been reached.
in fund-rats- 'o qualify, a candidate must
lsclosed that raise at least $5,000 from twenty
conciliation different states in individual
2people in gifts of no more than $250 each.
olving nom- Shapp certified on Jan. 21, 1976
that he had done this. After an
examination of his claim, the
FEC authorized matching pay-
ments.
Htarvey argued yesterday that
if Shapp erred in accepting his
campaign committee bookkeep-
ing, so did the FEC auditors who
approved the claim.
OLDAKER SAID the audit
showed that because of the il-
legalities, Shapp actually had
failed to raise the $5,000 limit
in five of the 20 states he had
claimed.
The five states where the
problems were discovered were
Alabama, Georgia, Nevada,
North Carblina and Texas.
The general counsel's report
said that in Alabama, several
donations credited to various
employes of Winfield Manufac-
turing Co., actually were paid
by plant manager Hugh Walk-
er, who in turn was reimbursed
by the company.
In Georgia, the FEC said,
Stanley Seigle, half owner of
Norstran Industries of Atlanta,
provided the money for dona-
tions listed in the names of
some of his employes.
A SIMILAR situation was al-
leged in Texas where insurance
executive Charles Luciano was
accused of paying for donations
listed to eniployes, relatives and
associates
tn the North Carolina case,
Gus Nicholas was reported to
have provided the donations
made in the name of various
friends and neighbors. And in
Nevada several donors were
listed asnbuying tickets tota
fund-raising event when the
tickets actually were paid for
by others.
THE MICHIGAN DAILY
Vol um LXXXvII, No. 8S
Friday, May 13, 1977
is edited and managed by students
at the University of Michigan. News
phone 764-0562. Second class postage
paid at Ann Arbor, Michigan 48109.
Published daily Tuesday through
Sunday morning during the univer-
sity year at 420 Maynard Street, Ann
Arbor.,Michigan 48109. Subscription
rates: $12 Sept. thru April (2 semes-
ters); $13 by mail oside Ann
Arbor.
Sumer ession published Tues-
day through Saturday morning.
Subscription ratesn$6.50 in Ann
Arbor; $7.50 by mail outside Ann
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