The State Elections Enforcement Commission (SEEC) is currently accepting public comments in response to a request for a declaratory ruling involving the transfer of funds stolen from the Senate Republican Leadership Committee (SRLC) by Michael Cronin.
On August 12, Joel Rudikoff, the Senate Democratic Caucus’ chief legal counsel, filed a petition with the SEEC seeking a declaratory ruling on whether a $160,000 lump sum payment transferred from the SLRC to the Senate Republican Victory Committee (SRVC) should be subject to a campaign finance law in effect between 2014 and 2018.
Cronin, who served as the treasurer of the SLRC between 2007 and 2018, plead guilty to one count of first-degree larceny and four counts of second-degree larceny and was sentenced to seven years in prison with all but six months suspended in October 2023. Cronin was found to have stolen roughly $267,800 in SLRC funds between 2012 and 2018.
The SLRC reported the theft of committee funds to the SEEC in December 2019. Shortly after, it issued a cease-and-desist order to the political action committee. The order also authorized the creation of a successor committee to transfer any funds that remained when the SLRC was dissolved. The SRVC was registered shortly after.
According to the SEEC’s finding from the SLRC’s report of the theft of funds, Cronin was ordered by the court to repay $248,670. After outstanding obligations were met and expenditures were reported, the SLRC has $160,928.93 remaining in funds.
At an April 17, 2024 meeting, the SEEC adopted a motion lifting the cease-and-desist order and allowing the SRVC to accept a transfer of the remaining funds from the SRLC.
In 2023, the legislature passed a law updating state statute that applies to expenditures various types of political action committees can make and allows them to make aggregate expenditures for candidates participating in the Citizens’ Election Program (CEP). Prior to that, and including during the time period when Cronin stole funds from the SLRC, aggregate expenditures for candidates participating in the CEP were banned.
Rudikoff, on behalf of Senate Democrats, has asked the SEEC to determine whether the lump sum transfer should be subject to the 2023 law allowing for aggregate expenditures or the previous language, which was in effect at the time the money was stolen.
They have also asked the SEEC to determine whether the SRVC can spend the funds in one election cycle.
In the petition, Rudikoff argues that if the SEEC finds the 2023 law applies, SRVC would receive a “windfall” by being allowed to spend the money in a way it could not at the time it would stolen. During the 2014, 2016, and 2018 elections, leadership committees were not only not allowed to make aggregate expenditures but could also only give $10,000 to candidates participating in CEP. He also argues it would create “inequity that would be detrimental to legislative caucus and leadership committees operated by the Senate Democrats.”
“Spelled out, given the current allowable maximum organization expenditure limit of $14,200…this $160,928.93 could theoretically be used to provide a maximum aggregate organization expenditure of $42,600 to three CEP candidates from SRVC and two of their additional, aggregated committees, with $32,2000 left over towards the maximum aggregated contribution to a fourth such candidate. In this scenario, a full two thirds [of the money] would effectively be being spent by committees other than the SRVC, the successor committee to the committee from which the money was originally taken.” Rudikoff wrote.
The situation, Rudikoff continued “would be so unfair and injurious to our fair electoral process that it cannot be allowed to occur.”
Rudikoff also asked the SEEC to limit the SRVC’s ability to spend the lump sum, requiring it to be spread over three election cycles. He asked spending limited to the largest amount taken from the three election cycles during which Cronin stole funds. Again, Rudikoff argued allowing the SRVC to spend the money at once would create an inequitable situation and give Republicans an unexpected fundraising advantage that would “unfairly affect” the 2024 election.
State Senate Republican Leader Stephen Harding commented: “Six years ago, Senate Republicans were the victims of a crime that saw over $250,000 stolen from our political committee coffers at a time when we were threatening to take a majority. Since then, this office has worked hand-in-hand with the courts, the Division of Criminal Justice and the State Elections Enforcement Commission (SEEC) to come to an agreement on the process by which any funds recovered from Mr. Cronin as a result of his criminal settlement would be returned to us. That understanding was memorialized by SEEC on May 1st of this year when they dismissed the civil case against Cronin, which allowed a portion of the funds he paid in restitution to flow back to our committees. The Senate Democrats failed to raise any concerns at that time. Instead, they waited until now to launch this blatantly political attempt to restrict our use of those funds in an effort to revictimize Senate Republicans. It is our hope that the Commission will honor the language of their own May 1, 2024 Order, as we have.”
The SEEC announced on August 28 that it was opening a public comment period related to Rudikoff’s petition. It runs through September 10.
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