Buchanan Ethics Memo

Published on May 2016 | Categories: Types, Research | Downloads: 24 | Comments: 0 | Views: 217
of 24
Download PDF   Embed   Report

Vern BuchananEthics MemoJuly 30, 2012Table Of Contents Ethics Record ............................................................................................................................3 Campaign Reimbursement Scandal .........................................................................................4Employee Allegations.............................................................................................................................................................

Comments

Content

Vern Buchanan
Ethics Memo

July 30, 2012

Table Of Contents Ethics Record ............................................................................................................................3 Campaign Reimbursement Scandal .........................................................................................4
Employee Allegations.............................................................................................................................................................................. 4 Business Partner Accused Buchanan of organizing campaign reimbursement Scheme .............................................................. 5 Kazran Accused Buchanan of forcing him to falsify affidavit ......................................................................................................... 5 Ex-Employee alleged Buchanan reimbursed employees as early as 2003 ...................................................................................... 7 Buchanan sold car dealership in campaign reimbursement scandal ................................................................................................ 8 FEC Investigated Buchanan For Illegal Use of Campaign Funds ................................................................................................... 8 FEC sued Buchanan for illegal campaign reimbursements............................................................................................................... 8 FEC Ruled Kazran was responsible for campaign reimbursement scandal; POLITIFACT said Buchanan was not ‗Exonerated‘ .............................................................................................................................................................................................. 9 Fec Said Buchanan More Than Likely Violated Campaign Finance Laws ................................................................................... 10 The FEC Fined Buchanan‘s Campaign And Car Dealerships........................................................................................................ 11 Buchanan To Testify Under Oath In Kazran Lawsuit; Failed Attempt To Close Case To Public .......................................... 12 House Ethics Committee Investigation ............................................................................................................................................. 13 Ethics Committee Ruled Buchanan Failed To Disclose Finances; But He Did Not Do It Willfully ...................................... 15 Department of Justice Investigation ................................................................................................................................................... 16

Allegations of Fraud And Tax Evasion .................................................................................. 18
Salvatore Rosa Alleged Buchanan‘s Dealership Used False Records To Obtain False Tax Deductions ................................ 18 Joe Kezer Claimed He Was Fired From Sarasota Ford For Reporting Fradulent Business Practices .................................... 18 Duane Overholt Sued Buchanan Over Allegations Of Fraud, Including Forged Signatures ................................................... 19 Melissa Hacker Claimed She Was Fired From Sarasota Ford For Refusing To Ignore An IRS Tax Levy ............................ 20 Scott Russ Sued Mitsubishi Ford Alleging He Was Fired Because He Refused To Go Along With Illegal Practices ......... 21 Timothy Thornton Sued Buchanan, Alleging Fraud And Tax Evasion ....................................................................................... 21 Richard Thomas Sued Buchanan, Alleging Unlawful Termination And Misuse Of Dealership Cars For Campaign Purposes .................................................................................................................................................................................................. 22 Doug Lyons Represented Former Employees Suing Buchanan, Was Reprimanded By The State Supreme Court ............. 22

ETHICS RECORD
Daniel Ruth: Buchanan Has Been One Of The Most Ethically Challenged Congressmen Since He Was Elected. According to a column by Daniel Ruth in the Tampa Bay Times, ―From the day he arrived in Washington raising one hand to be sworn in as a member of Congress while extending his other outstretched palm, Rep. Vern Buchanan of Sarasota has consistently been considered one of the most ethically challenged figures on Capitol Hill. Whoa! The newbie congressman barely had time to unpack his Rolodex of defense lawyers and he was already on his way to achieving mythic status for being more ethically compromised than Silvio Berlusconi at a Miss Teen Italy pageant. This guy isn't a congressman. He's a cartel.‖ [Tampa bay Times, 5/11/12]  New York Daily News Editorial: Buchanan Gets A Pass For Being A Prolific Fundraiser. According to a New York Daily News editorial, ―Republicans made Rangel the poster boy for sleaze. Back in 2010, Rep. John Boehner, who was House minority leader at the time, said Rangel was a ‗sad reminder‘ of then-Speaker Nancy Pelosi‘s ‗most glaring broken promise: to ‗drain the swamp‘ in Washington.‘ As for Buchanan? He‘s a top GOP fund-raiser, and so outrage is muted. Boehner‘s office says, ‗the American people expect members of Congress to be held to the highest ethical standards.‘ As long as they‘re Democrats.‖ [New York Daily News, 2/26/12]

May 2012: Citizens For Responsibility And Ethics In Washington Asked House Leadership To Demand Buchanan Resign From Office. According to a press release posted on their website, Citizens for Responsibility and Ethics in Washington asked House leadership to urge Vern Buchanan to resign from his elected position. CREW wrote, ―n the wake of the release of the report by the Office of Congressional Ethics (OCE) last week, Citizens for Responsibility and Ethics in Washington (CREW) today called on House Speaker John Boehner (R-OH) and Majority Leader Eric Cantor (R-VA) to demand Rep. Vern Buchanan (R-FL) resign from Congress. Rep. Buchanan‘s litany of criminal and ethical problems – confirmed by the OCE‘s unanimous finding that the congressman had illegally tried to coerce his former business partner to sign a false affidavit – have become too great for him to continue serving in Congress.‖ [Citizens for Responsibility and Ethics in Washington, press release, 5/15/12]  CREW Executive Director Melanie Sloan: It Is Time For Rep. Buchanan To Go. According to a press release posted on their website, Citizens for Responsibility and Ethics in Washington Executive Director Melanie Sloan said, ―It is time for Rep. Buchanan to go. House Republican leaders – who swore a zero tolerance policy for ethical wrongdoing – should be condemning his conduct and demanding his departure, not playing golf with him in Sarasota.‖ Sloan continued, ―Despite his crimes, Rep. Buchanan continues to lead fundraising for the National Republican Congressional Committee. Of course, it‘s easy to raise money if you‘re willing to violate the law to do it.‖ [Citizens for Responsibility and Ethics in Washington, press release, 5/15/12]

CAMPAIGN REIMBURSEMENT SCANDAL
EMPLOYEE ALLEGATIONS
2008: Two Former Executives For Buchanan‟s Dealerships Said They Were Pressured To Donate To Buchanan‟s Campaigns And Were Told They Would Be Reimbursed. According to the Sarasota Herald Tribune, ―Two former executives for U.S. Rep. Vern Buchanan's auto dealerships said they were pressured to donate to Buchanan's 2006 congressional campaign and were offered cash and gifts as inducements, which would violate federal campaign laws. The former employees, Carlo A. Bell and Joe D. Kezer, are suing Buchanan, alleging his auto dealerships cheated customers. The alleged violations of campaign finance laws are not part of the lawsuit. The former employees went public with the claims this week, after Buchanan's lawyers rejected their $43 million offer to settle the lawsuit.‖ [Sarasota Herald-Tribune, 7/24/08]  Former Employee Carlo Bell Said He Was Told He Would Be Reimbursed For $1,000 Donation. According to the Sarasota Herald-Tribune, ―Bell, the former finance director at Venice Nissan Dodge, said the day he made a $1,000 donation to the Buchanan campaign, he was given $1,000 in cash from his boss at the auto dealership. Bell gave the Herald-Tribune banks records, which included copies of a canceled check dated Sept. 17, 2005, to the Buchanan campaign for $1,000 and a cash deposit made to his account the same day for $960. He said he took the rest as spending money. ‗I was told I was going to be reimbursed,‘ Bell said. ‗I either had to do this, or I was told I wouldn‘t be considered a team player. I took it as a threat. There was no gray area.‘‖ [Sarasota Herald-Tribune, 7/24/08] Former Employee Joe Kezer Said Buchanan Offered The Use Of His Vacation Home In Vail, Colorado For A Campaign Donation. According to the Sarasota Herald-Tribune, ―Kezer, the former finance director at another Buchanan dealership, Sarasota Ford, wrote a $2,000 check to the Buchanan campaign after he said he was told it was important to support the candidate. In exchange for the donation, Kezer said, Buchanan personally promised him a week at Buchanan‘s Vail, Colo., resort home. Buchanan sold the home last month for $6.5 million. ‗He put his arm around me and promised I could use his house in Vail if I donated,‘ Kezer said. Kezer, 50, said he never went to Buchanan‘s Colorado home because he feared it was a violation.‖ [Sarasota Herald-Tribune, 7/24/08] 2008: Other Employees Denied Allegations That Buchanan Coerced Employees To Donate To His Congressional Campaign. According to the Bradenton Herald, ―Four employees of U.S. Rep. Vern Buchanan‘s Venice car dealership are denying a former co-worker‘s claims that they were coerced into donating to Buchanan‘s 2006 campaign. The Venice Nissan Dodge employees signed nearly identical affidavits Wednesday, each one saying: ‗I made the donation of my own free will and was not pressured, coerced or forced by anyone to make the donation.‘ The affidavits were in response to a complaint filed with the Federal Elections Commission on Tuesday. In the complaint, Citizens for Responsibility and Ethics in Washington said dealership executives in 2005 pressured Carlo Bell into donating $1,000 to Buchanan‘s campaign and reimbursed him.‖ [Bradenton Herald, 8/21/08] 2009: Bankrupt Man Claimed He Was Pressured To Donate To Buchanan. According to the St. Petersburg Times, ―Swamped by debt from divorce and a struggling business, Terry Keith Howell of Pasco County had just emerged from one bankruptcy case in March 2008 and was about to file another. Yet Howell, a registered Democrat who has never voted in Florida, made the maximum $8,800 in contributions that month to a Republican U.S. Rep. Vern Buchanan of Sarasota. And last September, while in bankruptcy, Howell made the maximum $10,000 contribution to the Republican Party of Florida. How could a man in financial straits afford such big contributions? According to his deposition in a lawsuit, Howell was reimbursed by his partners in a short-lived trucking company. One of the partners was Timothy Mobley, a Tampa developer whose relatives and employees were the single largest group of contributors to Buchanan, a member of the House transportation committee.‖ [St. Petersburg Times, 6/19/09] December 2011: Buchanan Campaign Manager Testified That They Kept A List Of How Much Buchanan‟s Partners Were Expected To Raise. Buchanan‘s campaign kept a list tracking how much each of his partners was giving and emailed that list to Buchanan personally, the report said. According to a deposition of Buchanan‘s former campaign manager and current Sarasota County Republican Party Chairman Joe Gruters, the campaign kept a list









showing the amounts partners were to raise or what they had raised at various points in the campaign.‖ [Sarasota Herald-Tribune, 12/22/11]  February 2012: Former Buchanan Executive Christopher Narvaez Said He Pressured Employees To Donate To Buchanan‟s Congressional Campaign. According to the New York Times, ―While some employees said in interviews that they had given donations freely, others said they contributed after aggressive solicitations by Mr. Buchanan. Christopher Narvaez, who was chief financial officer at one of Mr. Buchanan‘s auto dealerships in the mid2000s, said in an interview that before Mr. Buchanan announced his Congressional candidacy in 2005, he strongly encouraged company executives to contribute.‖ [New York Times, 2/23/12] Narvaez Said Buchanan Cornered Him In A Hallway To Demand A Contribution. According to the New York Times, ―Mr. Narvaez said that at one meeting with partners and executives, Mr. Buchanan said: ‗I really need you to give the maximum allowance to get the campaign off to a good start.‘ Afterward, Mr. Narvaez said, Mr. Buchanan approached him in the hallway several times and asked, ‗Have you made your contribution yet?‘ (He eventually did, but not the maximum.)‖ [New York Times, 2/23/12] February 2012: New York Times: The FEC Established That Buchanan Reimbursed Campaign Donations With Cash Bonuses And Trips On His Corporate Jet. According to the New York Times, ―The election commission‘s investigation established that three of Mr. Buchanan‘s Florida dealerships used corporate money to reimburse employees for tens of thousands of dollars in contributions to his 2006 and 2008 campaigns. Some executives and employees, who donated thousands of dollars each after rarely, if ever, making a contribution before, said they were reimbursed through cash ‗bonuses,‘ or offered trips on Mr. Buchanan‘s corporate jet and to his Colorado home, according the commission‘s investigation.‖ [New York Times, 2/23/12]





BUSINESS PARTNER ACCUSED BUCHANAN OF ORGANIZING CAMPAIGN REIMBURSEMENT SCHEME
Buchanan‟s Former Business Partner Sam Kazran Admitted To Reimbursing Employees For Donations To Buchanan; Kazran Said He Was “A Pawn In A Scheme Devised By Vern Buchanan.‖ According to the Bradenton Herald, ―A former business partner admits that he was responsible for improperly reimbursing employees for contributions they made to Rep. Vern Buchanan‘s congressional campaigns. Under a consent judgement announced Tuesday, a federal court in Jacksonville found that Sam Kazran committed ‗non-knowing and non-willful‘ violations when he reimbursed employees of a Jacksonville car dealership he co-owned with Buchanan a total of $67,900 for contributions they made to Buchanan‘s congressional campaigns in 2005, 2006 and 2007. Kazran admitted to wrongdoing, but his attorney said he was ‗just a pawn in a scheme devised by Vern Buchanan‘ to launder campaign contributions. Robert Stok said Kazran agreed to a settlement because of the expense of taking the case to trial. He said the judgment does not clear Buchanan because the congressman was not a party in the lawsuit filed last year against Kazran by the Federal Elections Commission. ‗It‘s impossible from a legal or factual point of view for Mr. Kazran to be guilty and Mr. Buchanan not to be guilty,‘ Stok said.‖ Kazran was required to pay an $11,000 fine. [Bradenton Herald, 2/21/12] March 2012 Florida Independent: Kazran Alleged That He Put „Immense Amount Of Pressure‟ On Employees To Donate To Buchanan‟s Campaign. According to the Florida Independent, ―But when Buchanan decided to run for Congress, the relationship grew strained. According to a sworn deposition given by Kazran to the Federal Election Commission, Buchanan sought help from his employees to raise money for his campaign and there was an ‗immense amount of pressure‘ to donate.‖ [Florida Independent, 3/26/12]

KAZRAN ACCUSED BUCHANAN OF FORCING HIM TO FALSIFY AFFIDAVIT
October 2011: Kazran Alleged That Buchanan Pressured Him To Sign A False Affidavit That Claimed Buchanan Was Not Guilty Of Covering Up Illegal Campaign Finance Scheme. According to the Herald Tribune, ―The investigation came to light three months after Buchanan's former business partner Sam Kazran told a federal judge that Buchanan left threatening phone messages and tried to coerce him into signing a false affidavit to cover up Buchanan's alleged role in the illegal donation scheme dating back to 2005.‖ [Herald-Tribune (Sarasota, FL), 10/19/11]



October 2011: Kazran Said Buchanan Left Threating Voicemails Urging Him To Cover Up Illegal Contribution Scheme. According to the Herald Tribune, ―The investigation came to light three months after Buchanan's former business partner Sam Kazran told a federal judge that Buchanan left threatening phone messages and tried to coerce him into signing a false affidavit to cover up Buchanan's alleged role in the illegal donation scheme dating back to 2005.‖ [Herald Tribune (Sarasota), 10/19/11] Kazran Said He Was Forced To Sign An Affidavit That He Had No Knowledge Of A Campaign Reimbursement Scheme. According to a report by Citizens for Responsibility and Ethics in Washington, ―Mr. Kazran testified he had a ‗great relationship‘ with Rep. Buchanan until June 2008, when he discovered Rep. Buchanan ‗had taken some $800-or-so thousand out of the company without my consent.‘ In September 2008, this and related disputes resulted in litigation between Rep. Buchanan, Mr. Kazran, and their companies. According to Mr. Kazran, during the course of this dispute Rep. Buchanan agreed to pay Mr. Kazran $2.9 million for the damage to the company caused by the alleged embezzlement and to buy out Mr. Kazran‘s share of a Kia dealership they were in the process of buying. Rep. Buchanan sent Mr. Kazran a ‗Confidential Settlement Communication,‘ signed by Rep. Buchanan and his company‘s chief executive officer, John Tosch, laying out the terms of the settlement. The exact date Rep. Buchanan sent the settlement communication to Mr. Kazran is unclear, but an exhibit attached to it was dated October 2008. One term of the agreement was that Mr. Kazran would execute an attached affidavit attesting – under penalty of perjury – that Rep. Buchanan had no involvement in or knowledge of the contribution scheme. The affidavit provides that during ‗somewhat hostile‘ negotiations between Mr. Kazran and Rep. Buchanan‘s representatives, Mr. Kazran told one of Rep. Buchanan‘s representatives one or more of the dealerships of which Mr. Kazran had operational control reimbursed individuals for contributions to the Buchanan campaign.‖ [Citizens for Responsibility and Ethics in Washington, Most Corrupt: Vern Buchanan, accessed 4/26/12] Citizens For Responsibility And Ethics In Washington Petitioned FBI To Investigate Buchanan For Role In Campaign Donation Scheme And False Affidavit. According to the Herald-Tribune, ―The investigation came to light three months after Buchanan's former business partner Sam Kazran told a federal judge that Buchanan left threatening phone messages and tried to coerce him into signing a false affidavit to cover up Buchanan's alleged role in the illegal donation scheme dating back to 2005. A government watchdog group, Citizens for Responsibility and Ethics in Washington, then petitioned the FBI in August to investigate the allegations.‖ [Herald-Tribune (Sarasota, FL), 10/19/11] August 2011: Voicemail Transcript Said Buchanan Told Kazran He Could Not Reimburse Employees For Donations. According to the Sarasota Herald-Tribune, ―While he said he considered the messages threatening, other transcripts Kazran provided the FEC include statements from Buchanan stating he never told Kazran to arrange the illegal donations. And they seem to show Buchanan insisting he never told Kazran to reimburse employees for donations. ‗All I told you, and I‘ve always made it clear, is that you can‘t reimburse people,‘ Buchanan is quoted in the transcripts of the voicemails to the FEC. Buchanan later says on the tape that he‘s been Kazran‘s ‗best friend,‘ and that he wanted to work out their business problems.‖ [Sarasota Herald-Tribune, 8/3/11] FEC Report: Buchanan Said Affidavit Was True. According to the Tampa Bay Times, ―Buchanan‘s campaign told the FEC that the affidavit [in which Buchanan and former business partner Sam Kazran said they knew nothing about reimbursements] was ‗entirely true,‘‘ including a statement that Kazran had no information before September 2008 that the Jacksonville dealership reimbursed employees for donations. ‗This provision contradicts one of (Buchanan‘s) key claims in this case - that Kazran alone directed the reimbursements during the ‗06 and ‗08 cycles,‘‘ the report said.‖ [Tampa Bay Times, 12/22/11] FEC Report: Campaign Treasurer Contradicted Buchanan Testimony That He Sent Letter Saying Campaign Reimbursements Were Illegal. According to the Tampa Bay Times, ―Buchanan testified that his campaign committee sent his business partners a letter saying they could not reimburse contributions. However, former campaign treasurer Nancy Watkins said she was unaware of any documents prepared for the partners regarding campaign finance law, the report said.‖ [Tampa Bay Times, 12/22/11] FEC Report: Buchanan Couldn‟t Remember If He Asked Kazran To Raise Money For Campaign, But He Was Certain He Told Him Not To Reimburse For Donations. According to the Tampa Bay Times, ―Buchanan testified he could not remember ‗one way or the other‘ whether he asked Kazran to raise money for the 2006 campaign. ‗There is evidence Buchanan did ask, and it raises legitimate questions as to Buchanan‘s credibility that he could not admit this innocuous fact,‘‘ the report said.‘‘ (It is illegal to reimburse donors for contributions, but it is legal and even common to













ask business associates for help raising money.)‖ Adding, ―Although Buchanan said he did not remember whether he asked Kazran to fund raise, he was ‗certain that he had told Kazran not to reimburse contributions,‘‘ the report said. ‗These two statements are largely inconsistent with each other, and are inconsistent with other evidence.‘‖ [Tampa Bay Times, 12/22/11]  Buchanan Asked DOJ To Investigate Kazran For “Attempted Blackmail.” According to the Bradenton Herald, ―The attorneys accuse Kazran and Tallahassee lawyer Doug Lyons, who has filed about a dozen lawsuits against Buchanan, of trying to extort money from the congressman to buy their silence. Mark Ornstein, an Orlando attorney who represents Buchanan‘s auto dealership businesses, said Lyons told him it would take $43 million to keep his clients‘ complaints confidential. Buchanan‘s lawyers said they have asked the Justice Department to investigate the attempted blackmail.‖ [Bradenton Herald, 10/18/11]

Kazran Said Buchanan Instructed Him To Repay Campaign Contributions „Through The Corporation.‟ According to CNN, ―At the center of Kazran‘s allegations is a cash swap scheme used to finance some of Buchanan‘s campaigns. He says employees were forced to write checks, then were reimbursed with cash drawn from Buchanan‘s car dealerships. ‗It was to a point where I said, ‗Chief, we can‘t give you this kind of money. At which point he said, ‗Just run it through the corporation,‘‘ Kazran said. ‗What he said to me was ‗Get people to write a check to the campaign and then pay them back through the corporation.‘‘‖ [CNN, 6/22/12] Kazran Said Buchanan Wanted To Reimburse Contributions Because „It Wouldn‟t Look Good‟ If He Donated To Himself. According to CNN, ―People who never gave money to campaigns were suddenly writing big checks to Buchanan for Congress and, according to Kazran, getting reimbursed from the dealership. It added up to almost $70,000 at Kazran‘s dealership alone, he said. ‗I remember one of the partners jokingly saying, ‗Boss, you have all the money in the world. Why do you want us to pay you the money?‘ And he said, ‘Well, it doesn‘t look good if it‘s coming from me.‘‘‖ [CNN, 6/22/12] Buchanan Told CNN That He Did Not Attempt To Get Kazran To Sign Affidavit. According to CNN, ―After CNN‘s repeated requests for interviews were ignored, CNN decided to find Buchanan as he emerged from a hearing. Buchanan would not respond fully to any questions and quickly walked away from CNN‘s camera. When asked if he tried to get Kazran to sign the affidavit, Buchanan responded ‗No, no, no, no. No I didn‘t,‘ adding that he needed to get to another meeting, and that CNN should contact his office. When asked if he used the affidavit to hold up the $3 million settlement with Kazran, Buchanan replied: ‗No.‘‖ [CNN, 6/22/12]

EX-EMPLOYEE ALLEGED BUCHANAN REIMBURSED EMPLOYEES AS EARLY AS 2003
February 2012: Former Buchanan Executive Said Illegal Reimbursements Dated Back To 2003 And Buchanan Told Him To “Finesse It” When He Complained That Reimbursements Were Illegal. According to the New York Times, ―One former Buchanan executive, Salvatore Rosa, told investigators that reimbursements began as far back as 2003. He said Mr. Buchanan pressured employees to attend a $1,000-a-person fund-raiser for President George W. Bush‘s 2004 re-election campaign and instructed Mr. Rosa to reimburse them. When he objected to the reimbursements as illegal, Mr. Rosa said Mr. Buchanan told him to ‗finesse it,‘ according to his statement to commission investigators.‖ [New York Times, 2/23/12] 2010: Buchanan Refunded $16,000 In Campaign Contributions. According to the Sarasota Herald-Tribune, ―FEC filings show that on Nov. 1, Buchanan also refunded $10,000 in campaign contributions from Dean Morgan, who is listed as the Tampa chairman of Vistage, a global consulting firm for business leaders. Morgan did not return calls seeking comment. Records show that from Oct. 17 to Dec. 3, 2010, Buchanan refunded a total of $16,000 in campaign contributions. He returned less than $4,000 in the four years prior.‖ [Sarasota Herald-Tribune, 6/3/11]  June 2011: Buchanan Returned Donation To Employee That Was Allegedly Reimbursed. According to the Sarasota Herald-Tribune, ―Congressman Vern Buchanan has quietly returned campaign contributions to five former employees, including one who alleged that Buchanan‘s auto dealership illegally reimbursed donations with cash. It is not clear what prompted the refund, and Buchanan did not respond to questions seeking a specific explanation. However, the refunds are the first financial repercussions in a simmering fundraising scandal that has followed Buchanan since 2008.‖ [Sarasota Herald-Tribune, 6/3/11]



June 2011: Buchanan Hid Refunds To Former Employee Until After 2010 Election. According to the St. Petersburg Times, ―On Oct. 17, two weeks before the November election, U.S. Rep. Vern Buchanan refunded $5,000 in contributions made by five former employees one of whom had claimed that he and others were pressured to donate to Buchanan in violation of federal law. But voters never knew about the refunds. It was not until March four months after the Sarasota Republican won a third term that the ex-employees‘ names finally showed up on a report that Buchanan‘s campaign filed with the Federal Elections Commission.‖ [St. Petersburg Times, 6/4/11]

BUCHANAN SOLD CAR DEALERSHIP IN CAMPAIGN REIMBURSEMENT SCANDAL
December 2011: Buchanan Sold His Stake In Car Dealerships Embroiled In Campaign Fundraising Scandal. According to the Sarasota Herald-Tribune, ―Buchanan sold his stake in both Venice Dodge Nissan and Suncoast Ford in late 2010, according to his latest financial disclosure reports filed with the U.S. House. Buchanan sold the Venice dealership last December, about the time the FEC filed its lawsuit against Kazran in Jacksonville. Buchanan sold his stake in Suncoast Ford last November.‖ [Sarasota Herald-Tribune, 12/22/11]

FEC INVESTIGATED BUCHANAN FOR ILLEGAL USE OF CAMPAIGN FUNDS
2009: FEC Charged Buchanan With Using Campaign Funds To Pay Employees Of His Car Dealership. According to the Florida Independent, ―In 2009, the Federal Election Commission charged that Buchanan‘s former business partner, Sam Kazran, and a dealership the two once co-owned had violated campaign laws by using funds from the company ‗to reimburse [dealership] employees, Kazran‘s business partners, their family members and Kazran‘s relatives for $67,900 in contributions to Buchanan‘s 2006 and 2008 Congressional campaigns.‘ Though Buchanan was never charged in the case, the FEC report reveals that many at the agency had doubts about his innocence. Both the Department of Justice and the Office of Congressional Ethics also launched investigations into the matter.‖ [Florida Independent, 3/23/12] October 2010: FEC Wanted To Investigate Buchanan For „Knowingly And Willfully‟ Violating Campaign Finance Law. According to the Herald Tribune, ―FEC lawyers in October 2010 urged the commission to find that Buchanan, his campaign and treasurer Joe Gruters ‗knowingly and willfully‘ violated federal campaign laws. But they backed off that recommendation after Buchanan‘s attorneys presented their response, criticizing the credibility and fairness of the case against him.‖ [Herald Tribune (Sarasota), 1/20/12]

FEC SUED BUCHANAN FOR ILLEGAL CAMPAIGN REIMBURSEMENTS
December 2010: Former Buchanan Auto Dealership, Hyundai Of North Jacksonville, Was Sued By FEC For Reimbursing Employees For Contributions. According to the Bradenton Herald, ―The Federal Election Commission has filed a lawsuit against a Jacksonville auto dealer for reimbursing employees and others for almost $68,000 in campaign contributions to Rep. Vern Buchanan‘s election campaigns in violation of federal law. The reimbursements were made during the 2006 and 2008 election cycles, according to the lawsuit. Buchanan, R-Sarasota, was not named in the lawsuit. Defendants were listed as dealership owner Sam Kazran, also known as Sam Khazrawan, and Hyundai of North Jacksonville.‖ [Bradenton Herald, 12/21/10]  Buchanan No Longer Owned Jacksonville Dealership. According to the Sarasota Herald-Tribune, ―The FEC is seeking a maximum possible fine of $194,900 against Kazran and his Hyundai dealership. In 2004, Kazran purchased 49 percent of the Hyundai dealership from Buchanan. He purchased the remaining 51 percent in 2008, becoming the sole owner. Kazran is no longer Buchanan‘s business partner and the two have been legal adversaries since 2008. Buchanan company‘s, 1099 Management Co., sued Kazran in September 2008 claiming that Kazran defaulted on a $2.5 million loan Buchanan gave him for two Kia car dealerships in Jacksonville.‖ [Sarasota Herald-Tribune, 12/21/10] Suit Alleged Eight Employees Made $32,700 In Contributions To Buchanan; 4 Employees Reimbursed $18,400. According to the Florida times-Union, ―According to a complaint filed last week in federal court in



Jacksonville, eight employees of Hyundai of North Jacksonville and their family members were reimbursed for making $32,700 in contributions to the campaign committee of U.S. Rep. Vern Buchanan of Sarasota during the 2006 election cycle, and four employees were reimbursed a total of $18,400 for making contributions to the committee during the 2008 cycle. In September, the commission found that there was probable cause that owner Sam Kazran used the dealership to make contributions to Buchanan, a Republican, in the names of others, and that the dealership made contributions over the single-contribution limits in both 2006 and 2008 cycles. After a settlement was not reached, Kazran was notified Dec. 1 that the commission was suing him. Buchanan owned a 51 percent ownership stake in the company until 2008. He was partially bought out by Kazran, who was a partner, in 2004 and later sold his remaining share to Kazran.‖ [Florida-times Union. 12/22/10] June 2011: FEC Lawsuit Alleged That Jacksonville Hyundai Owner Was Able To Donate Almost $50,000 To Buchanan By Channeling Donations Through Employees. According to the Sarasota Herald-Tribune, ―By funneling donations through employees of Hyundai of North Jacksonville, FEC attorneys said Kazran was able to give Buchanan far more money in contributions for his campaigns than he would otherwise have been allowed. Kazran would have been limited to donating $4,200 in 2006 to Buchanan‘s primary and general election campaigns and $4,600 in the 2008 primary and general election. But by having employees donate Kazran was able to give $49,500 more to Buchanan‘s 2006 campaign and $18,400 more in 2008.‖ [Sarasota Herald-Tribune, 6/1/11]

FEC RULED KAZRAN WAS RESPONSIBLE FOR CAMPAIGN REIMBURSEMENT SCANDAL; POLITIFACT SAID BUCHANAN WAS NOT „EXONERATED‟
June 2011: FEC Dismissed Complaints In Contribution Reimbursement Probe. According to the Bradenton Herald, ―The Federal Elections Commission has dismissed complaints against U.S. Rep. Vern Buchanan, R-Sarasota, that he violated campaign finance laws, according to FEC letters released Monday by his campaign. Specifically, the FEC found no evidence that Buchanan encouraged employees of a Jacksonville car dealership to make donations to his campaign that were later reimbursed by their employer in violation of federal law. The FEC ‗concluded that the Hyundai dealership‘s former owner, Sam Kazran, was responsible for violating campaign finance laws,‘ a news release from Buchanan‘s campaign states. Buchanan had notified the FEC of the questionable donations more than two years ago. ‗After considering the circumstances of the matter, the commission determined on Feb. 1, 2011, to take no further action and close the file as to Vernon G. Buchanan‘ regarding the Kazran-related contributions, a Feb. 7 FEC letter states.‖ [Bradenton Herald, 6/14/11] June 2011: FEC Dismissed CREW Letter Regarding Alleged Campaign Contribution Reimbursements By Buchanan. According to the Bradenton Herald, ―The FEC also dismissed in a March 1 letter an unrelated complaint filed in 2008 by Citizens for Responsibility and Ethics in Washington (CREW) that alleged similar violations. ‗The congressman has been completely exonerated, as we know he would be,‘ campaign spokeswoman Sally Tibbetts said in the news release. ‗These phony accusations have been exposed as dishonest and partisan attacks.‘ The FEC letters were dated Feb. 7 and March 1 but had not been disclosed because of FEC confidentiality rules. The FEC allowed Buchanan to release them ‗in the face of bogus political attacks by Democrats,‘ his campaign said.‖ [Bradenton Herald, 6/14/11] 2011: PolitiFact Ruled Claim That FEC Completely Exonerated Buchanan As „Barely True.‟ According to PolitiFact, ―Tibbetts said the FEC has vindicated the congressman, taunting Democrats as she declared he had been ‗completely exonerated.‘ But a review of FEC procedure and discussion with an attorney who was general counsel to the FEC for more than a decade shows that‘s not exactly the case. It‘s true that the FEC has said it won‘t take any further action against Buchanan. And there may indeed be strong evidence in his favor in the confidential FEC case file - but that‘s not yet available. All we know now is that the FEC declined to make its strongest finding, that there was no probable cause to believe Buchanan violated the law. In other words, Tibbetts‘ statement contained an element of truth, but ignored critical facts that would give a different impression. We rate it Barely True.‖ [PolitiFact, 6/24/11] 2011: PolitiFact Ruled Claim That Buchanan‟s Old Business Was Caught Illegally Funneling Over $60,000 In Campaign Donations To Buchanan To Influence His Election As „Mostly True.‟ According to PolitiFact, ―That ad starts by naming the congressman, then says his ‗old business was caught illegally funneling over $60,000 in campaign donations to Buchanan to influence his election.‘ The FEC and Buchanan‘s team agree that he owned a significant stake until at least 2005, when suspect campaign contributions started. The FEC says the dealership reimbursed more than $60,000 in contributions. The money went to Buchanan‘s main campaign committee, and the FEC says the money was spent ‗in an attempt to influence an election for Congress.‘ What is contested is Buchanan‘s role in the scheme. The FEC has said it will

take no further action against him, closing his file. But it didn‘t go further to declare it had no probable cause to believe he was involved - which would have better supported his team‘s claim that he‘s been cleared. Meanwhile, his former business partner still says Buchanan put him up to it, and says he plans another lawsuit to prove it. While we think the DCCC could have done a better job noting it was Buchanan who turned in the illegal contributions, we rate this ad Mostly True.‖ [PolitiFact, 6/24/11] November 2011: Judge Denied Motion That Kazran Be Held Solely Accountable For Campaign Reimbursement Scheme. According to the Bradenton Herald, ―A federal judge has denied a motion requesting that a former business partner of U.S. Rep. Vern Buchanan, R-Longboat Key, be held solely accountable in a case involving illegal campaign contributions. U.S. Judge Roy B. Dalton, Jr., recently denied a request by the Federal Election Commission for partial summary judgment in a case against defendant Sam Kazran, who in 2004 purchased a 49 percent ownership interest from Buchanan in a car dealership, Hyundai of North Jacksonville, according to court documents. In May, the FEC filed a motion saying the dealership violated federal campaign finance law by making contributions in excess of the legal limit and by reimbursing employees who made the contributions. The FEC asked that the dealership be fined $67,900, and Kazran also faces the possibility of an identical fine. Kazran has acknowledged the company reimbursed employees, but said in court filings it was a ‗directive‘ issued by Buchanan.‖ [Bradenton Herald, 11/28/11] November 2011: Judge Ruled That Buchanan May Be Responsible For Campaign Contribution Reimbursement Scheme Even Though He Was Not Named In Lawsuit. According to the Sarasota Herald-Tribune, ―In his ruling against the FEC, Judge Roy B. Dalton Jr. sided with Kazran and expressed concern that Kazran may not be the only person liable for the donations. He wrote that ‗one theory may suggest that individuals who are not defendants in this enforcement action may have violated the statute as well.‘ Summary judgments are procedural and rarely successful, especially in cases where key facts are in dispute. Because of that, Buchanan's attorney said the judge's ruling was not unexpected. Buchanan's legal team had little hope of progress in another separate civil case in Sarasota against auto fraud consumer advocate Duane Overholt.‖ [Sarasota Herald-Tribune, 11/20/11] December 2011: FEC Voted Unanimously To Clear Buchanan In Campaign Finance Charges. According to the Bradenton Herald, ―The Federal Elections Commission had doubts about Rep. Vern Buchanan‘s credibility on certain ―background issues‖ related to its investigation of his campaign finances, but they were not enough to keep commissioners from voting unanimously to clear him of any wrongdoing, according to newly released documents. In a final report on its investigation dated Jan. 25 but not released until Wednesday, the FEC‘s general counsel wrote that because of ―significant concerns‖ about the credibility of Sam Kazran, Buchanan‘s former business partner and chief accuser, it was recommending the FEC take no action against the congressman. The FEC had been investigating allegations that Buchanan, R-Sarasota, had directed Kazran to improperly reimburse his employees for contributions they made to Buchanan‘s congressional campaigns from 2005 to 2007. The evidence, however, did not back up the charges.‖ [Bradenton Herald, 12/21/11]  Reported Stated That Kazran‟s Credibility Led To The Vote. According to the Bradenton Herald the FEC report stated, ―Given the new information relating to Kazran‘s credibility, we believe that his testimony regarding Buchanan‘s instruction to reimburse contributions ... needs strong corroboration to be considered sufficient enough to say that it is more likely than not that his version of the facts is true. As explained in this report, the record does not contain such corroboration.‖ [Bradenton Herald, 12/21/11]

FEC SAID BUCHANAN MORE THAN LIKELY VIOLATED CAMPAIGN FINANCE LAWS
December 2011: FEC Had „Significant Concerns‟ Over Buchanan‟s Involvement In Campaign Reimbursement Scheme. According to the St. Petersburg Times, ―Earlier this year, U.S. Rep. Vern Buchanan claimed the Federal Election Commission had ‗completely exonerated‘ him of accusations that employees of his car dealerships were illegally reimbursed for campaign contributions. In a just-released report, however, FEC attorneys said evidence suggests ‗it is more likely than not‘ that the millionaire Sarasota Republican and his campaign committee broke federal election laws. The report also said that there were ‗legitimate questions‘‘ about Buchanan‘s credibility and that an affidavit in which he and former business partner Sam Kazran said they knew nothing about reimbursements could indicate Buchanan was trying to hide his involvement. But the FEC‘s Office of General Counsel had ‗significant concerns‘‘ about Kazran‘s credibility, too. Faced with conflicting testimony and a shaky witness in Kazran, the commission closed its case against Buchanan last winter.‖ [St. Petersburg Times, 12/21/11]

FEC Documents Said Buchanan „More Likely Than Not‟ Violated Campaign Finance Law. According to the Sarasota Herald-Tribune, ―U.S. Rep. Vern Buchanan and his campaign ‗more likely than not‘ violated campaign finance laws and repeatedly provided inaccurate and inconsistent testimony to federal investigators, according to newly obtained Federal Election Commission documents. The Jan. 25, 2011, FEC report also, for the first time, offers evidence that employees at the then-Buchanan owned Venice Dodge Nissan dealership were given $1,000 each in cash to repay campaign donations, in violation of federal election law. Accusations by a former employee at the Venice dealership, Carlo Bell, first brought to light the donation scheme that has dogged Buchanan for years. At the time, a Buchanan attorney accused Bell of lying. But the FEC report concluded that the evidence supports Bell‘s assertions. The report leaked to the media Wednesday marked the latest turn in a case involving tens of thousands of dollars in illegal donations in Buchanan‘s successful 2006 congressional campaign. The Longboat Key Republican won by a razor-thin margin after a tough GOP primary.‖ [Sarasota Herald-Tribune, 12/22/11] February 2012: New York Times: The FEC Established That Buchanan Reimbursed Campaign Donations With Cash Bonuses And Trips On His Corporate Jet. According to the New York Times, ―The election commission‘s investigation established that three of Mr. Buchanan‘s Florida dealerships used corporate money to reimburse employees for tens of thousands of dollars in contributions to his 2006 and 2008 campaigns. Some executives and employees, who donated thousands of dollars each after rarely, if ever, making a contribution before, said they were reimbursed through cash ‗bonuses,‘ or offered trips on Mr. Buchanan‘s corporate jet and to his Colorado home, according the commission‘s investigation.‖ [New York Times, 2/23/12]

THE FEC FINED BUCHANAN‟S CAMPAIGN AND CAR DEALERSHIPS
January 2012: FEC Fined Buchanan $1,500 For Accepting Donations To Retire Debt That Did Not Exist. According to the Herald Tribune, ―This month, the FEC announced it had resolved another campaign violation with Buchanan‘s campaign. The FEC released documents that show Buchanan‘s campaign was fined $1,500 and pushed to refund another $27,900 because they accepted donations to retire debts from the 2010 primary campaign when there were no debts to retire.‖ [Herald Tribune (Sarasota), 1/20/12]  Buchanan Campaign Required To Send Staff Member To FEC Training. According to the Sarasota HeraldTribune, ―As part of an agreement to settle the issues, Buchanan's campaign agreed to pay the civil fine and send a representative to an FEC training seminar within a year.‖ [Sarasota Herald-Tribune, 1/14/12]

Buchanan Attorney Described The Fine As A „Minor Bookkeeping Infraction.‟ According to the Sarasota HeraldTribune, ―William McGinley, an attorney representing Buchanan, characterized the issue as ‗minor bookkeeping infraction.‘ Buchanan has been under investigation for other, potentially more serious matters related to the FEC, the U.S. Justice Department and the House Ethics Committee. But the paperwork issue is the first time Buchanan‘s campaign has been fined directly.‖ [Sarasota Herald-Tribune, 1/14/12]  Buchanan Campaign Returned Some Illegal Donations. According to the Herald-Tribune, ―Though Buchanan's campaign has repeatedly denied the allegations, the Herald-Tribune reported earlier this year that his campaign had returned some of the alleged illegal donations.‖ [Herald-Tribune (Sarasota, FL), 10/19/11]

May 2011: FEC Asked Court To Fine Company Formerly Owned By Buchanan For Engaging In Contribution Reimbursement Scheme. According to the St. Petersburg Times, ―The Federal Election Commission is asking a federal court to impose a $67,900 fine on a company formerly co-owned by Rep. Vern Buchanan that it says engaged in an extensive and ongoing scheme to reimburse employees who made contributions to the Sarasota Republican s congressional campaign. In a motion for default filed Friday in U.S. District Court in Florida, the FEC says Hyundai of North Jacksonville which Buchanan once partially owned -- violated federal campaign finance law by making contributions in excess of the legal limit and by reimbursing employees who made the contributions. Buchanan is not named as a defendant in the suit. The owner of the company said Tuesday he has acknowledged the company reimbursed employees, but said it was a directive issued by Buchanan.‖ [St. Petersburg Times, 5/31/11]  January 2012: Three Dealerships Buchanan Had Owned Were Fined $80,000 In Civil Penalties For Illegally Reimbursing Employees For Campaign Contributions; Buchanan Refunded $23,000. According to the Herald Tribune, ―Three car dealerships Buchanan owned in Venice, New Port Richey and Jacksonville in 2005 when he first

started running for Congress were fined a total of more than $80,000 in civil penalties for illegally reimbursing employees for making campaign donations to Buchanan. Buchanan has since sold his interest in all three businesses. Buchanan‘s campaign has had to refund more than $23,000 in illegal campaign donations from employees at two of the dealerships. Buchanan's flagship Sarasota Ford dealership was not found to have violated campaign finance laws as a former employee had alleged.‖ [Herald Tribune (Sarasota), 1/20/12]  October 2011: A Federal Judge Fined Hyundai Dealership $67,900 For Reimbursing Employees For Campaign Donations. According to the Herald-Tribune, ―A federal judge last week levied a $67,900 fine against Hyundai of North Jacksonville. Kazran is still fighting a personal fine. Kazran could not be reached for comment late Tuesday. At least two other former employees of Buchanan's car dealerships have told the FEC that they were pressured into giving Buchanan donations, then later reimbursed during the 2006 campaign.‖ [Herald-Tribune (Sarasota, FL), 10/19/11]

BUCHANAN TO TESTIFY UNDER OATH IN KAZRAN LAWSUIT; FAILED ATTEMPT TO CLOSE CASE TO PUBLIC
Court Ruled Buchanan Would Have To Testify Under Oath In Tax Evasion Lawsuit. According to WTSP, ―Sarasota Congressman Vern Buchanan will have to testify under oath in a lawsuit involving his former partner, who alleged Buchanan was the architect of a plan to violate federal elections laws. Buchanan lost a bid in court to force the matter to arbitration, which would have allowed him to avoid testifying. The Sarasota congressman is already under fire from the U.S. House of Representatives Ethics Committee and this latest ruling will really put him on the hot seat.‖ [WTSP-TV (Tampa), 6/19/12]  Case Alleged That Buchanan Did Not Pay Taxes On Profit From The Sale Of Melbourne Toyata Dealership. According to WTSP, ―One of the allegations of tax fraud includes Buchanan taking money from his Sarasota Ford dealership to purchase a Lexus and Toyota dealership in Melbourne. Overholt claimed Buchanan took the tax write-off from the Ford store as a loss when it was actually a gain. Then Buchanan sold the dealerships for $56,000,000 and claimed he didn‘t have to pay personal taxes on the profit because it was through what‘s called an S Corporation, which shielded him from paying personal taxes. His former CFO testified that he told Buchanan the IRS could argue he was violating the integrity of the S Corporation and should have paid $16,000,000 in taxes.‖ [WTSPTV (Tampa), 6/19/12]

Buchanan Filed Motion To Seal Documents In Kazran Case; Prevent Lawyers From Public Statements. According to CNN, ―On Friday [June 22, 2012], lawyers for Buchanan filed a legal motion in Sarasota, Florida, to seal all documents in the Kazran case and to stop Kazran and his lawyers from speaking publicly about it. Buchanan‘s lawyers said news stories about the congressman are ‗publicly disparaging‘ his character.‖ [CNN, 6/22/12] June 2012: Buchanan Dropped Bid To Seal Records From Kazran Lawsuit. According to the Bradenton Herald, ―Rep. Vern Buchanan has backed away from asking a judge to prohibit a disgruntled former business partner from speaking publicly about a deposition the Florida Republican is supposed to give under oath in their long-running business dispute. Buchanan‘s attorneys on Monday dropped the request, which was filed late Friday after CNN aired a story outlining the dispute with Sam Kazran, his former partner in a Jacksonville car dealership. Publicity about the case, which dates to 2008, occurs with ‗predictably increased vigor‘ in election years, Buchanan‘s lawyers wrote Friday.‖ [Bradenton Herald, 6/26/12]  Buchanan Said Facts Were „Clearly‟ On His Side In Dispute With Kazran. Buchanan‘s lawyer Mark Ornstein said, ―Vern has asked me to make sure that the public has full access to all of the court proceedings in his business lawsuit against Kazran for skipping out on a $3 million loan. The facts involving this business dispute are clearly on our side and we look forward to a swift resolution that forces Kazran to repay the money.‖ [Bradenton Herald, 6/26/12]

Buchan Was Scheduled For July 30 Deposition In Kazran Affidavit Case. According to the Sarasota Herald Tribune Vern Buchanan was scheduled to be deposed by a Sarasota County Court on July 30 and 31st for his role in a cash-forcampaign donations scandal. The deposition was part of a lawsuit brought by former business partner Sam Kazran. [Sarasota Herald-Tribune, 6/25/12] Buchanan‟s Attorney Said He Withdrew Motion To Seal Kazran Case At The Request Of The Congressman. According to the liberal publication Sarasota News Leader, ―When asked about the filing and its withdrawal, Buchanan

attorney Mark Ornstein writes in an email that the motion was rescinded ‗at Vern‘s request:‘ Kazran must be held accountable for refusing to repay the loans, and this proceeding must go forward without distraction. It is important to remember that Vern first sued Kazran on September 4, 2008 to recover his loans; and Kazran then cynically brought a different lawsuit against Vern on October 1, 2008. Kazran has no excuse for his failure to repay the $3 million he borrowed from Vern. The facts involving this business dispute are clearly on our side and we look forward to a swift resolution that forces Kazran to repay the money.‖ [Sarasota News Leader, 6/28/12] Buchanan Deposition Was Planned To Be Videotaped Over Two Days. According to the Herald Tribune, ―Buchanan, R-Longboat Key, is scheduled to be placed under oath in a videotaped deposition in Orlando on Monday and Tuesday as part of a lawsuit Kazran filed against Buchanan in 2008. Kazran claims Buchanan defrauded him and breached a business deal over car dealerships they co-owned in the Jacksonville area and Georgia. Buchanan‘s actions, according Kazran‘s attorney, triggered the collapse of Kazran‘s businesses and resulted in $40 million in losses. Buchanan is countersuing, claiming it was Kazran who failed to live up to their deal when he failed to repay a $3 million loan.‖ [Herald Tribune, 7/29/12]

HOUSE ETHICS COMMITTEE INVESTIGATION
September 2011: Constituent Filed Ethics Complaint Against Buchanan Over Alleged Scheme To Reimburse Employees For Campaign Contributions. According to the Florida Independent, ―Venice retiree Donna Cubit-Swoyer has filed a complaint with the Office of Congressional Ethics, requesting an investigation of Rep. Vern Buchanan, R-Sarasota. Buchanan has been plagued with rumors of campaign fraud in recent years. In June, his former business partner was fined nearly $68,000 for reimbursing employees who donated to Buchanan‘s 2006 and 2008 campaigns. That business partner alleges Buchanan himself orchestrated the scheme. At least 14 other lawsuits have made similar allegations. Cubit-Swoyer‘s complaint highlights recently filed court documents as a ‗basis to believe that Rep. Buchanan may have violated federal law and House standards of conduct by making untruthful statements to the Federal Election Commission in a matter involving illegal conduit contributions to his campaign.‘‖ [Florida Independent, 9/30/11]  Cubit-Sowyer Claimed No Connection To Buchanan, Filed Complaint As Constituent. According to the Florida Independent, ―In an email, Cubit-Swoyer writes that she has no connection with Buchanan, other than that she is one of his constituents. ‗I am disturbed by the allegations of Vern Buchanan‘s contribution scheme,‘ she writes. ‗I expect my elected representatives to hold to the highest possible ethical standard. Everything I have read about Congressman Buchanan‘s actions gives me reason to believe that he was less than truthful and brought disgrace upon himself and the Congress.‘ According to the complaint, the Office of Congressional Ethics ‗has jurisdiction to investigate any allegation that a Member, officer or employee of the House, on or after March 11, 2008, has violated a law, rule, regulation or other standard of conduct in effect at the time the conduct occurred and applicable to the subject in the performance of his or her duties or the discharge of his or her responsibilities.‘‖ [Florida Independent, 9/30/11]

December 2011: House Ethics Committee Extended Investigation Of Buchanan Fundraising. According to the Bradenton Herald, ―The House Ethics Committee said it will extend its inquiry into Rep. Vern Buchanan‘s fundraising activities, with a decision expected no later than Feb. 6. The Ethics Committee, the Federal Election Commission and the Justice Department have all probed Buchanan‘s fundraising connections to the owner of a car dealership whose business relationship soured with the Republican congressman. Buchanan‘s spokesman, Max Goodman, on Thursday called the Ethics Committee‘s announcement ‗routine.‘ ‗We are constructively engaged with the House Ethics Committee and are confident that the Committee will dismiss this matter,‘ he said. ‗Because of the confidential nature of these proceedings, we can have no further comment at this time.‘‖ [Bradenton Herald, 12/22/11] The Office Of Congressional Ethics Investigation Centered On Allegations That Buchanan Directed Employees To Be Reimbursed For Donations To His Campaign. According to Politico, ―OCE‘s investigation into Buchanan was centered on a September 2008 affidavit that Buchanan wanted Kazran to sign as part of a deal to end a $2.9 million business dispute between the two men. Buchanan and Kazran had been partners in a Hyundai dealership in Jacksonville, Fla., that was having severe financial problems. Kazran‘s alleges that Buchanan — who is worth more than $44 million, according to his latest financial disclosure form — first directed him to demand that some of the dealership‘s employees give to the Florida Republican‘s campaign and then be reimbursed for their donations, a violation of federal election law.‖ [Politico, 5/9/12]

May 2012: House Ethics Committee Investigated Buchanan Over Allegation That He Lied On Affidavit In Campaign Reimbursement Scandal. According to a May 9, 2012 report issued by the Office of Congressional Ethics, ―Representative Vern Buchanan‘s former business partner claims that Representative Buchanan made a $2.9 million lawsuit settlement agreement contingent on the business partner signing a false affidavit to be filed with the Federal Election Commission (‗FEC‘). The affidavit was related to allegations that individuals who contributed to Vern Buchanan for Congress received reimbursements from automobile dealerships owned by Representative Buchanan. If Representative Buchanan attempted to influence the testimony of a witness in a proceeding before the FEC in the manner alleged, he may have violated 18 U.S.C. §§ 201, 1505, and 1512, and House Rule 23, clause 1.‖ [U.S. House of Representatives, Office of Congressional Ethics, Report No. 11-7565]  May 9, 2012: The Office Of Congressional Ethics Voted 6-0 To Recommend A Full Probe Of Buchanan. According to a May 9, 2012 report issued by the Office of Congressional Ethics, ―The Board of the Office of Congressional Ethics recommends that the Committee on Ethics further review the above allegations because there is substantial reason to believe that Representative Buchanan attempted to influence the testimony of a witness in a proceeding before the FEC in violation of 18 U.S.C. §§ 201,1505, and 1512, and House Rule 23, clause 1.‖ [U.S. House of Representatives, Office of Congressional Ethics, Report No. 11-7565] 5/9/12: House Ethics Committee Decided To Continue Investigation Of Buchanan Violations, But Decided Against A Formal Probe. According to Politico, ―The House Ethics Committee will not launch a full-scale probe into Rep. Vern Buchanan, but the secretive panel will continue to review allegations that the Florida Republican improperly reimbursed donors to his congressional campaigns and asked a former business partner to lie about Buchanan‘s role in those payments. Reps. Jo Bonner (R-Ala.) and Linda Sanchez (D-Calif.), the chairman and ranking member of the Ethics Committee, announced the panel‘s decision not to move forward with a formal probe in a statement released Wednesday.‖ [Politico, 5/9/12]



Buchanan‟s Attorneys Called Ethics Report A „Disgrace.‟ According to Politico, ―The three attorneys — Robert Luskin, William McGinley and Benjamin Wood — added: ‗The [OCE] report is a disgrace. The [Ethics Committee] should reject its conclusions and hold accountable those individuals responsible for deliberately misleading the Committee and ignoring their obligations.‘‖ [Politico, 5/9/12]  Politico: Buchanan Refused To Meet With House Ethics Investigators. According to Politico, ―Buchanan would not agree to an interview by OCE investigators. OCE strongly pushed back against the criticism from the Buchanan camp, saying its investigation was handled in a ‗thorough and professional‘ manner.‖ [Politico, 5/9/12]

Ethics Committee Found „Substantial Reason‟ To Believe Buchanan Ordered Employees To Be Reimbursed For Donations. According to Politico, ―OCE found that there was ‗substantial reason to believe‘ that Buchanan asked Kazran ‗to sign an affidavit to be submitted to the FEC, that he knew to be false and conditioned a $2.9 million legal settlement on the signature.‘ The OCE board voted by a 6-0 margin to recommend that Ethics open a full probe into the matter.‖ [Politico, 5/9/12]  Buchanan Under Grand Jury Investigation By The DOJ And IRS For Possible Tax Fraud. According to Politico, ―DOJ and the IRS, for their part, are looking into Buchanan‘s business activities, including the donation reimbursements and tax deductions claimed by the Florida Republican‘s companies. The New York Times reported in February that a federal grand jury in Tampa has heard evidence in the case, although no indictments have been issued at this time.‖ [Politico, 5/9/12] May 2012: House Ethics Propped Announced Investigation That Buchanan Sought False Testimony From Witness. According to the Wall Street Journal, ―The House Ethics Committee announced it is broadening an existing review of Rep. Vern Buchanan (R., Fla.) to include a new allegation. Ethics investigators said Wednesday that they will look into a charge that Mr. Buchanan sought false testimony from a key witness in a case against the lawmaker. At issue is an increasingly complicated probe into Mr. Buchanan that turns on the question: Did Mr. Buchanan direct (or know about) reimbursements to former employees for campaign contributions they made to Mr. Buchanan when he first ran for Congress? At the time, Mr. Buchanan ran a string of car dealerships in Florida.‖ [Wall Street Journal, 5/9/12]





Washington Post: House Ethics Panel Will Not Launch A Full Probe Into Buchanan. According to the Washington Post, ―The House Ethics Committee said Wednesday that it will continue to review allegations that Rep. Vern Buchanan (R-Fla.) reimbursed employees for campaign donations, but it does not plan to launch a full-scale investigation, despite a report that found ―substantial reason to believe‖ Buchanan tried to influence a witness. The committee released a 184-page report by the Office of Congressional Ethics that cites e-mails, voice mails and documents alleging that Buchanan offered a former business partner $2.9 million if he signed a false affidavit claiming he knew nothing about plans to reimburse employees of Buchanan‘s car dealership. The committee did not say why it does not plan to launch a full-scale investigation.‖ [Washington Post, 5/9/12]

ETHICS COMMITTEE RULED BUCHANAN FAILED TO DISCLOSE FINANCES; BUT HE DID NOT DO IT WILLFULLY
House Ethic Committee Found Buchanan Failed To Disclose Financial Holdings, Did Not Do So Willfully. According to a House of Representatives Committee on Ethics press release, ―The Committee adopted a Report on June 29, 2012, based on its independent review, which resolves the allegations addressed by OCE in its November 8 referral. The Committee has determined that Representative Buchanan did not accurately report all of the positions or ownership interests he held with several entities on his Financial Disclosure Statements for 2007, 2008 , 2009, and 2010, and that he did not accurately report certain income received from those same entities in the same years. However, the Committee found no evidence that the errors were knowing or willful and unanimously determined that the errors were not substantively different from the hundreds or thousands of errors corrected by amendment at the requirement of the Committee every year.‖ [House of Representatives Committee on Ethics, Press Release, 7/10/12]  Ethic Committee: Buchanan‟s Errors And Omissions Were Not Substantially Different Than The „Thousands‟ Of Errors Made In Financial Disclosure Reports. According to a report by the House of Representatives Committee on Ethics, ―However, the Committee also unanimously determined that these errors and omissions are not substantively different from the hundreds or thousands of errors and omissions corrected by amendment at the requirement of the Committee every year. Such errors and omissions occur frequently but rarely result in Committee action other than requests for amendments which will be publicly filed, and, in certain cases, late fees when the amendments are not timely filed after notification.‖ [House of Representatives Committee on Ethics, Report, 7/10/12] Buchanan‟s Lawyer Said Ethics Committee Made Right Decisions; Said People Make Mistakes. According to the New York Times, ―The congressman‘s lawyer, William J. McGinley, said the ethics committee had made the right decision. ‗Anyone familiar with the working of Congress knows that these statements are amended all the time,‘ he said. ‗People do make mistakes.‘‖ [New York Times, 7/11/12] Buchanan Was „Pleased But Not Surprised‟ By Ethics Committee Ruling On Financial Disclosures. According to the Washington Post, ―Buchanan‘s office said in a statement that he is ‗pleased, but not surprised‘ by the decision and noted that the decision was the ―second major investigation to repudiate false allegations made against Congressman Buchanan.‖ [Washington Post, 7/10/12] Buchanan Failed To Report Positions For Six Companies In Several Financial Disclosures. According to the Huffington Post, ―In his disclosure statements for 2007, 2008, 2009 and 2010, Buchanan did not report all of his positions or ownership interests in six entities and income received from the entities, according to an earlier report by the independent Office of Congressional Ethics. They are: Boca Creek Development Co., LLC; Bowling Green Dealership, LLC; Country Club Shores LLC; its companion entity Country Club Shores II LLC; Regent Court Association Inc. and the Vernon G. and Sandra J.C. Buchanan Family Foundation Inc.‖ [Huffington Post, 7/10/12] Ethics Committee Said Almost Half Of All Financial Disclosure Reports Contain Errors. According to Politico, ―On Tuesday, Reps. Jo Bonner (R-Ala.) and Linda Sanchez (D-Calif.), the chairman and ranking member on Ethics, said that they were ending that review. ‗The committee has determined that Representative Buchanan did accurately report all the positions or ownership interests he held with several entities on his Financial Disclosure Statements from 2007, 2008, 2009 and 2010, and he did not accurately report certain income from those same entities in the same years,‘ Bonner and Sanchez said in a statement. ‗However, the committee found no evidence that the errors were knowing and willful and unanimously determined that the errors were not substantively different from the hundreds or thousands of errors









corrected by amendments at the requirement of the Committee every year.‘ Bonner and Sanchez added: ‗In fact, between 30% and 50% of all Financial Disclosure Statements reviewed by the committee each year contain errors or omissions. Such errors and omissions are not uncommon and are typically corrected through amendment to Financial Disclosure Statement, and do not involve any further committee action.‘‖ [House of Representatives Committee on Ethics, Press Release, 7/10/12; Politico, 7/10/12]  Citizens For Responsibility And Ethics In Washington Called Ethics Committee Ruling „Unfathomable.‟ According to the Bradenton Herald, ―Melanie Sloan, executive director of Citizens for Responsibility and Ethics in Washington, the group that originally reported the financial omission, said it was ‗unfathomable‘ that the Ethics Committee would clear Buchanan.‗Rep. Buchanan has a well-documented history of lying to avoid accountability,‘ Sloan said in a statement. ‗Nevertheless, the Ethics Committee just takes this proven liar at his word when he declares the errors were inadvertent.‘ Sloan said it was no defense that other members of Congress file reports that are later found to have errors.‖ [Bradenton Herald, 7/11/12] Roll Call: Ethics Ruling Was A Victory For Buchanan And The GOP. According to Roll Call, ―The announcement is a victory for Buchanan, who was elected in 2006 and represents a district in the southwest part of Florida that includes Sarasota and most of Bradenton. Had the committee decided to formally investigate the three-term lawmaker, it would have been a blow to House Republicans, as Buchanan also fundraises for the National Republican Congressional Committee.‖ [Roll Call, 7/10/12]



DEPARTMENT OF JUSTICE INVESTIGATION
October 2011: Justice Department Investigated Buchanan Over Illegal Campaign Donations. According to the Herald Tribune, ―The Justice Department is investigating District 13 congressional Rep. Vern Buchanan in connection with illegal campaign donations that supported his past campaigns for Congress. Buchanan's campaign said in a statement to the media that its officials "look forward to cooperating fully" with the inquiry, but declined to discuss details of the investigation's focus.‖ [Herald Tribune (Sarasota), 10/19/11] Buchanan „Expected‟ The Justice Department To Investigate Campaign Donation Scandal. According to the HeraldTribune, ―Buchanan‘s campaign said Tuesday it was not surprised that the Justice Department had started an investigation. ‗It has always been our expectation that the Justice Department would review the Federal Election Commission‘s finding,‘ spokeswoman Sally Tibbetts said. ‗The FEC carefully reviewed these politically motivated charges and concluded, based upon the factual record, that Vern did nothing wrong.‘‖ [Herald-Tribune (Sarasota, FL), 10/19/11]  Herald Tribune: Buchanan Tipped Off Press That That Justice Department Was Investigating His Campaign. According to the Herald Tribune, ―It is not often that a member of Congress tips off reporters to a confidential federal investigation about himself. But that is essentially what U.S. Rep. Vern Buchanan did last week when he instructed his campaign to tell select members of the media that the Justice Department was investigating his campaign. The Justice Department would not confirm the investigation and others who may be involved in the case have refused to talk to the media. But there was Buchanan, who is facing his toughest re-election in years, alerting some reporters about the investigation.‖ [Herald Tribune (Sarasota), 10/19/11]

February 2012: A Tampa Grand Jury Heard Evidence In The Buchanan Reimbursement Scandal After The FBI And IRS Contacted Former Employees. According to the New York Times, ―The Federal Election Commission has already completed one investigation that produced a settlement this week with a former partner of Mr. Buchanan‘s who used their car dealership to reimburse employees for contributing to the congressman‘s campaigns, in violation of federal law. The commission dropped its case against Mr. Buchanan himself over the reimbursements, despite testimony that he took part in the scheme. But agents for the F.B.I. and the Internal Revenue Service recently contacted former employees alleging financial improprieties by Mr. Buchanan, who owns a number of auto dealerships throughout Florida and elsewhere and is one of the richest members of Congress. A federal grand jury in Tampa is hearing evidence in the case as well, according to several people with knowledge of the inquiries.‖ [New York Times, 2/23/12] April, 2012: The Department Of Justice Was Investigating Buchanan For Illegal Campaign Reimbursements And Omitting Income In Financial Disclosure Forms. According to Roll Call, ―The Department of Justice is said to be looking into whether Buchanan directed his former business partner to reimburse car dealership employees for contributions made to Buchanan‘s congressional campaign. The Federal Election Commission investigated similar allegations and concluded there

would be ‗no further action‘ on the matter before closing Buchanan‘s file. The Ethics Committee will announce how it will proceed on May 9, when the OCE‘s findings will likely be released. Buchanan is also the subject of a separate case before the Ethics Committee related to income and director positions he omitted on his annual financial disclosure forms. The committee confirmed in February that it would continue reviewing the omissions, but would so without forming a formal investigative subcommittee.‖ [Roll Call, 4/17/12]

ALLEGATIONS OF FRAUD AND TAX EVASION
SALVATORE ROSA ALLEGED BUCHANAN‟S DEALERSHIP USED FALSE RECORDS TO OBTAIN FALSE TAX DEDUCTIONS
Florida Independent: Former Employee Salvatore Rosa Requested IRS Investigation Of Possible Fraud By Buchanan. According to the Florida Independent, ―In a deposition given on Jan. 9 and obtained by The Florida Independent, a former employee of Rep. Vern Buchanan, R-Sarasota, alleges that he reported Buchanan to the U.S. government in 2008 for tax evasion and conspiracy to evade U.S. income tax, and that he has been in contact with federal officials about Buchanan. According to his deposition, which was taken under oath, Rosa first started working for Buchanan in 1998, when he was hired as CFO of Sarasota‘s Buchanan Automotive Group. Rosa says in the deposition that he also acted as treasurer for many of Buchanan‘s other organizations during the span of his employment. But his tenure with Buchanan ended only five years later, in December 2003. And throughout ―virtually the entire period‖ of his employment, according to Rosa, he was witness to ―fraud and crime‖ that led him to request an IRS investigation into Buchanan.‖ [Florida Independent, 4/5/12]  Rosa‟s Deposition Makes Several References To Buchanan‟s Business Dealings, Including A Conspiracy To Avoid Taxes. According to the Florida Independent, ―The January deposition, which was given to the Independent by Duane Overholt, a consumer fraud advocate, was taken as part of a lawsuit filed by William Brooks (who owned a car dealership eventually bought by Buchanan‘s company) against Mark Ornstein, Buchanan‘s lawyer. Though Buchanan himself isn‘t a party to the case, Rosa makes several references to Buchanan‘s business dealings throughout the deposition. ‗There was a fraud and crime that predated my employment and went on through virtually the entire period of my employment,‘ Rosa says in the deposition. ‗I‘m going to reference to one incident, which was an evasion of U.S. income tax, also a conspiracy to evade U.S. income tax. I reported it to the federal government. I‘ve received recent correspondence that the matter has not been terminated by the federal government. And this federal crime predates my employment and went on virtually the bulk of my employment with Buchanan.‘‖ [Florida Independent, 4/5/12]

Rosa Accused Buchanan Of Using False Records To Obtain False Tax Deductions. According to the Florida Independent, ―According to an email sent by Rosa to law enforcement officials in June 2011 (also given to us by Overholt), his former employer ‗described during the employment interview process what [Rosa] later came to understand (and also has confirmed through the review and concurrence of his two legal counsels) to be a scheme which Employer should have known to be a tax fraud, and that such scheme was implemented by Employer through a conspiracy to commit Federal income tax fraud.‘ According to Rosa‘s deposition, the scheme ‗continued and expanded in complexity, and the number of participants grew throughout the vast majority‘ of his employment with Buchanan. Buchanan also ‗directed the preparation of blatantly false spreadsheet records regarding the business use of an aircraft to induce outside CPAs to include fraudulent income tax deductions in U.S. Individual Income Tax Returns, and Federal Forms 1040,‘ according to the email. According to Rosa, Buchanan ‗asserted this aircraft was operated under the FAA rules for ‗General Aviation,‘‘ while it was actually being operated under regulations applicable to ‗Commercial Aviation.‘ In his deposition, Rosa alleges that some of Buchanan‘s entities were created ‗so that Vern could get a favorable tax treatment on his personal jet.‘‖ [Florida Independent, 4/5/12] Rosa Claimed Buchanan Was Part Of A “Conspiracy To Evade U.S. Income Taxes. According to the New York Times, ―In a separate civil deposition last month, Mr. [Salvatore ] Rosa also said that the congressman took part in a ―conspiracy to evade U.S. income taxes‖ through improper business deductions and accounting methods, and Mr. Rosa has brought a complaint with the I.R.S. that would award him part of any money recovered. The agency declined to comment.‖ [New York Times, 2/23/12]

JOE KEZER CLAIMED HE WAS FIRED FROM SARASOTA FORD FOR REPORTING FRADULENT BUSINESS PRACTICES
2008: Former Employee Joe Kezer Sued Buchannan; Claimed That He Was Fired For Reporting Fraudulent Business Practices. According to the Sarasota Herald-Tribune, ―A former finance director at Sarasota Ford has named U.S. Rep. Vern Buchanan in a lawsuit that alleges he was fired for reporting fraudulent business practices at the dealership. In the suit filed on Thursday, Joe D. Kezer, who now lives in Lakeland, says store managers hid the true interest rates customers were being charged, cheated them out of warranty protections, and altered credit applications for customers who should not

have qualified for loans. Kezer, who worked at the dealership from October 2003 to November 2007, says he was fired after he went to his bosses with concerns about the way Sarasota Ford did business. Darrin Chrisman, a part-owner of Sarasota Ford, said in an interview Friday that all of Kezer‘s allegations are false. He said Kezer was fired for ‗poor performance.‘‖ [Sarasota Herald-Tribune, 5/24/08]  Kezer Said Buchannan‟s Dealerships Hid Interest Rates From Customers, Sought Loans For Customers Who Were Not Qualified By Altering Credit Reports. In his lawsuit, Kezer said store personnel used a feature on their computers to hide the true interest rates on car loans from customers who thought they were getting lower interest rates. New car managers reported selling cars that had not been sold to collect quota-based bonuses from the Ford Motor Co., the lawsuit says. Reporting cars as sold while they sat on the dealership‘s lot triggered the limited warranty periods for some cars before the real buyers purchased the car, says the lawsuit. Sales personnel and managers sought financing for customers who were not credit worthy by altering their credit applications to show higher incomes, Kezer said.‖ [Sarasota Herald-Tribune, 5/24/08]

Case Dismissed In April 2011. The case of Kezer vs. Sarasota 500 LLC, et al was Dismissed on April 16, 2011. [Clerk of the Circuit Court, Sarasota County, Kezer vs. Sarasota 500 LLC, et al, Case 2008 CA 008121 NC, Filed 5/21/08]

DUANE OVERHOLT SUED BUCHANAN OVER ALLEGATIONS OF FRAUD, INCLUDING FORGED SIGNATURES
Consumer Advocate Duane Overholt Claimed Employees At Buchannan‟s Dealerships Forged Signatures To Force Higher Interest Rates On Customer Loans. Consumers advocate Duane Overholt accused Vern Buchanan over ‗thousands of fraudulent transactions‘ at his car dealerships in Florida. According to WTSP, ―Although the wealthy Republican dodged a bullet on charges he violated federal election laws, regardless of what the Ethics Committee decides, Buchanan faces other severe legal problems. ‗We‘re talking about thousands of fraudulent transactions, thousands,‘ said consumer advocate Duane Overholt. It‘s not exactly a glowing endorsement, especially when you‘re talking about a U.S. representative. Overholt is talking about the car dealerships owned by Buchanan. ‗How many people would conceive that a U.S. congressman who took an oath to protect the consumer, his voters, would break the law? Well, he had according to the whistle blowers and, according to the documents, he has?‘‖ [WTSP-TV, 5/8/12] VIDEO Overholt Claimed Employees At Buchannan‟s Dealerships Forged Signatures To Force Higher Interest Rates On Customer Loans. Consumers advocate Duane Overholt accused Vern Buchanan over ‗thousands of fraudulent transactions‘ at his car dealerships in Florida. According to WTSP, ―Although the wealthy Republican dodged a bullet on charges he violated federal election laws, regardless of what the Ethics Committee decides, Buchanan faces other severe legal problems. ‗We‘re talking about thousands of fraudulent transactions, thousands,‘ said consumer advocate Duane Overholt. It‘s not exactly a glowing endorsement, especially when you‘re talking about a U.S. representative. Overholt is talking about the car dealerships owned by Buchanan. ‗How many people would conceive that a U.S. congressman who took an oath to protect the consumer, his voters, would break the law? Well, he had according to the whistle blowers and, according to the documents, he has?‘‖ [WTSP-TV, 5/8/12]  Former Customer Jeff Sutton Claimed Buchanan Ruined His Credit. According to STSP, ―[Consumers advocate Duane] Overholt has compiled thousands of documents, complaints, and lawsuits filed by former employees and customers. Some of the lawsuits have been settled out of court and some are working their way through the system. Buchanan denies any wrongdoing. Jeff Sutton is one of those consumers. ‗They destroyed my credit,‘ he said. Sutton says he was a Buchanan victim when he bought a Dodge Caravan from one of the congressman‘s dealerships. The loan he was promised wouldn‘t fly with the bank, so he maintains the dealership forged his signature on a different loan with a higher rate. ‗You‘re very angry, you feel like you‘ve been violated. It‘s just not a simple problem,‘ said Sutton.‖ [WTSP-TV, 5/8/12] Report Stated That Forging Documents Was Common Place At Buchanan Dealership. According to WSTP, ―Whistleblowers say forging documents was no big deal at the congressman‘s dealership. Managers, partners, and financial employees have all testified in depositions and alleged in various lawsuits that Buchanan‘s dealership not only forged signatures, but falsified information on credit applications, falsely reported cars sold to the manufacturer to get rebates for cars that were still on the lot, and solicited illegal campaign contributions. Robert Stok is an attorney and represents Buchanan‘s ex-partner. ‗If there was wrongdoing, he was captain of the ship. He had to own up to what was going on in



his company even if it was behind his back, but it was out in front of his face. It was not only in front of his face, it was at his direction, control, and command,‘ he said.‖ [WTSP-TV, 5/8/12] 2008: Buchanan Dealership Sued Consumer Advocate Duane Overholt For Contacting Former Customers To Sue For Alleged Fraud. According to the Sarasota Herald-Tribune, ―The Buchanan-owned Sarasota 500 LLC filed a lawsuit on Thursday in Sarasota County against Duane Overholt, a Maryland-based consumer fraud consultant who runs StopAutoFraud.com. The suit alleges Overholt has been improperly contacting former Sarasota Ford customers and encouraging them to join in the other lawsuits already filed against Buchanan‘s dealerships. Darrin Chrisman, Buchanan‘s business partner who runs Sarasota Ford, said Overholt went so far as to promise one former Sarasota Ford customer between $50,000 and $90,000 if he joined the suits. It is against Florida law to recruit people to sue a business.‖ [Sarasota Herald-Tribune, 8/22/08] Buchanan Attorney Admitted They Attempted To Settle With Overholt In Exchange For His Silence. According to the Sarasota Herald-Tribune, ―Since 1999, Overholt, who considers himself a watchdog for consumers, has helped former workers and customers sue dozens of dealerships across the nation for fraud. Overholt, among other things, has accused Buchanan‘s companies of hiding the true interest rates customers were being charged, cheated them out of warranty protections, billed them for options that were not on cars sold and altered credit applications for customers who should not have qualified for loans. Buchanan‘s companies have long denied Overholt‘s claims and accused him of improperly interfering with the businesses. Mark Ornstein, an attorney for Buchanan‘s car dealerships, confirmed the settlement offer to Overholt that would have ended the suit as long as he ‗promised to stop annoying and contacting Sarasota Ford‘s customers and employees and quit attempting to disrupt its business.‘ The proposed settlement included a confidentially agreement that would have banned Overholt from talking to the press about any of the information he has acquired over the years about Buchanan‘s dealerships.‖ [Sarasota Herald-Tribune, 11/20/11] The Lawsuits And Countersuits Were Eventually Dismissed. According to the Sarasota Herald Tribune, ―Buchanan's company sued anti-consumer fraud advocate Duane Overholt and customer Eve Abaza for making false and defamatory statements against Buchanan dealerships. Overholt, who has been in contact with most of the other plaintiffs, and Abaza countersued. Status: The lawsuits and countersuits were dismissed.‖ [Sarasota Herald Tribune, 7/7/10]

MELISSA HACKER CLAIMED SHE WAS FIRED FROM SARASOTA FORD FOR REFUSING TO IGNORE AN IRS TAX LEVY
2008: Buchanan Sued By Former Employee Melissa Hacker, Who Claimed Buchanan Fired Her For Refusing To Ignore IRS Tax Levy. According to the Sarasota Herald-Tribune, ―A lawsuit filed in Sarasota County on Friday levies new allegations against U.S. Rep. Vern Buchanan and his Florida car dealerships, including sexual harassment, death threats and federal income tax evasion. It is the eighth in a series of cases that former employees and one consumer have brought against the freshman Sarasota congressman since May. The new charges come from the highest-level former Buchanan employee yet to file suit -- a former controller at Sarasota 500 LLC, the company registered with the state to operate Sarasota Ford. The exemployee, Melissa Hacker, says she was fired in November 2006, after about a year on the job, for refusing to ignore an IRS tax levy on a 20-year employee for whom Sarasota 500 LLC had never withheld federal income tax. Her lawsuit alleges that the employee, Moe Gingerich, was a personal friend of Buchanan‘s who made more than $100,000 a year.‖ [Sarasota HeraldTribune, 8/30/08]  Hacker Said She Was Threatened After She Tried To Make An Employee Sign An IRS Levy. According to the St. Petersburg Times, ―Hacker was fired in 2006 - the same year Buchanan ran for federal office on the issue of a ‗fairer tax code‘ even as his dealership helped a top salesman avoid paying any federal taxes at all. Moses ‗Moe‘ Gingerich claimed that the IRS is an illegal agency. In 2005, he was among the plaintiffs in a $4 billion federal suit against the IRS - since dismissed - that was filed by a Hernando County man who ran what the Justice Department called a fraudulent tax avoidance scheme. The following year, the IRS filed liens against Gingerich for $182,006 in unpaid taxes. The agency also sent Sarasota Ford a notice to levy against his $100,000-plus yearly pay. When Hacker told Gingerich to fill out a withholding form, he wrote her letters that got ‗uglier and uglier,‘ her lawsuit says. She also received an angry call from John Tosch, Buchanan‘s longtime attorney and business associate. Tosch insisted that Gingerich, who had worked for Sarasota Ford for 20 years, was a subcontractor not subject to withholding. In response, Hacker noted that the dealership ‗provided Gingerich an office, set his hours, paid his health insurance ... and controlled the way he did business - in short,

Gingerich failed every single one of the subcontractor tests.‘ Ignoring the IRS levy would violate federal law, Hacker warned. ‗At this point,‘ the lawsuit says, ‗Tosch told her to enjoy her job while she still had it.‘‖ September 2009: The Lawsuit Was Dismissed. According to the Sarasota County Circuit Court, Hacker‘s lawsuit was dismissed on September 21, 2009. [Clerk of the Circuit Court, Sarasota County, Case Number 2008 CA 014037 NC, 9/21/09]

SCOTT RUSS SUED MITSUBISHI FORD ALLEGING HE WAS FIRED BECAUSE HE REFUSED TO GO ALONG WITH ILLEGAL PRACTICES
Scott Russ Sued Suncoast Ford Mitsubishi Over Allegations Of Fraud. According to the Sarasota Herald Tribune, ―The current lawsuits allege that managers and salesmen at three of Buchanan's Florida dealerships forged customers' names on contracts, falsified tax returns and lied on credit applications to secure loans. They say it was commonplace for employees to falsely report that accessories had been added to vehicles in order to justify higher prices to lenders when seeking inflated loans. Customers also were charged for features that were never put on their cars, the lawsuits allege, and told warranties were free when they were not. ‗The business plan at the dealership is set up in order to deceive customers as well as to defeat the law,‘ Scott Russ, a former finance and insurance director at Suncoast Ford Mitsubishi in Port Richey, charges in his lawsuit.‖ [Sarasota Herald Tribune, 8/24/08] Russ‟ Lawsuit Said It Was “Inconceivable” That Buchanan Didn‟t Know What Was Going On At The Dealership. According to the Sarasota Herald Tribune, ―The lawsuits, however, contend that Buchanan was in the know. They allege in detail that Buchanan regularly attended management meetings at Sarasota Ford, where his office was based, and actively participated in discussions about the alleged schemes. ‗It is inconceivable,‘ Russ' lawsuit says, ‗that Buchanan would not be aware of what's going on.‘‖ [Sarasota Herald Tribune, 8/24/08] Russ Said He Was Fired After He Refused To Follow Illegal Practices. According to the Sarasota Herald Tribune, ―The reported sales also started the clock on those vehicles‘ warranties, the lawsuits say, so when customers bought those cars the warranty was not good for the length of time they thought. Russ, the former finance and insurance director at Suncoast Ford Mitsubishi, said employees there used an accountant who charged $100 to prepare false tax returns for customers. Russ‘ lawsuit says he questioned the practices at Suncoast Ford Mitsubishi, and was eventually fired in 2006 for refusing to comply with them. He had been on the job for two years.‖ [Sarasota Herald Tribune, 8/24/08] Russ: “The Business Plan At The Dealership Is Set Up In Order To Deceive Customers As Well As To Defeat The Law.” According to the Sarasota Herald Tribune, ―Customers also were charged for features that were never put on their cars, the lawsuits allege, and told warranties were free when they were not. ‗The business plan at the dealership is set up in order to deceive customers as well as to defeat the law,‘ Scott Russ, a former finance and insurance director at Suncoast Ford Mitsubishi in Port Richey, charges in his lawsuit.‖ [Sarasota Herald Tribune, 8/24/08] Case Was Dismissed In April 2010. The case of S. Russ vs. 10-2002 LLC, et al, was dismissed after mediation on April 7, 2010. [Clerk of the Circuit Court, Pasco County, S RUSS VS 10 2002 LLC, et al, Case Number 51-2008-CA-006667-XXXXWS, Filed 8/13/08]

TIMOTHY THORNTON SUED BUCHANAN, ALLEGING FRAUD AND TAX EVASION
2008: Thornton Sued Buchanan, Claiming He Falsified Documents And Evaded Taxes. According to the Sarasota Herald-Tribune, ―Timothy Thornton, who worked on and off from 2002 to 2006 as a finance director or finance and insurance manager at Buchanan‘s Suncoast Ford in Port Richey, filed a lawsuit this week alleging that the dealership falsified documents, evaded state taxes and ripped off customers and its own salesmen. Thornton also alleges that some of the resulting money was then funneled into an offshore account set up for Buchanan and his business partners by John Moran & Associates, an automotive company whose products were sold at the dealership. Darrin Chrisman, one of Buchanan‘s business partners, said he had not seen the lawsuit, but denied the allegations. ‗Everything I‘ve seen so far,‘ Chrisman said, referring to the eight other lawsuits filed against Buchanan and his businesses since May, ‗has been absolutely false. And as for the offshore issues, we have regulations that we follow through the state of Florida. Everything we do is perfectly legal.‘‖ [Sarasota Herald-Tribune, 9/20/08]

Case Was Dismissed In December 2010. The case was dismissed on December 21, 2010. [Clerk of the Circuit Court, Pasco County, T THORNTON VS 10-2002 LLC, Case Number 51-2008-CA-007835-XXXX-WS, Filed 9/16/08]

RICHARD THOMAS SUED BUCHANAN, ALLEGING UNLAWFUL TERMINATION AND MISUSE OF DEALERSHIP CARS FOR CAMPAIGN PURPOSES
Former Employee Richard Thomas Alleged That Buchanan Used Cars Owned By His Dealership For Campaign Business. According to a report by Citizens for Responsibility and Ethics in Washington, ―Another former employee, Richard Thomas, who was the director of fixed operations for one of Rep. Buchanan‘s dealerships, alleged Rep. Buchanan repeatedly used dealership cars for campaign purposes. Mr. Thomas alleged vehicles were taken out of inventory for use by the campaign and, when returned, would frequently contain campaign materials such as literature and posters. These materials were cleaned out, and the cars were detailed by dealership staff before they were made available to customers. The dealership may not have been paid fair market value for the use of the vehicles. Rep. Buchanan also stored campaign materials at the dealership.‖ [Citizens for Responsibility and Ethics in Washington, Most Corrupt: Vern Buchanan, accessed 4/26/12] Thomas Said He Was Fired Because His Wife Was Diagnosed With A Brain Tumor. According to the Sarasota Herald, ―Thomas says he "did not gain popularity" by questioning certain procedures. But he believes he was terminated for a different reason shortly after his superiors learned that his wife had a brain tumor. ‗There was a discussion about her driving up the insurance premiums,‘ Thomas said. Thomas said he hopes to see Buchanan in court. But that seems unlikely because many employees at Buchanan's dealerships have signed a clause waiving their right to a jury trial in the event that they sue the company. Instead, they must have their cases heard in private proceedings.‖ [Sarasota Herald Tribune, 8/24/08] Case Was Dismissed In January 2012. The case was dismissed on January 3, 2012. [Clerk of the Circuit Court, Sarasota County, Thomas vs. Sarasota 500 LLC, et al, Case Number 2008 CA 013014 NC, Filed 8/13/08]

DOUG LYONS REPRESENTED FORMER EMPLOYEES SUING BUCHANAN, WAS REPRIMANDED BY THE STATE SUPREME COURT
Buchanan Asked Justice Department To Investigate His Adversaries. According to the Herald-Tribune, ―[Spokeswoman Sally]Tibbetts said Buchanan‘s campaign is asking the Justice Department to investigate some of the people who have become Buchanan‘s adversaries in court over the last three years. Tibbetts said they have tried to ‗extort‘ money from Buchanan and that Buchanan is a victim.‖ [Herald-Tribune (Sarasota, FL), 10/19/11]  Former Employee Sought $43 Million Settlement In 2008. According to the Herald-Tribune, ―The extortion claim is aimed at Doug Lyons, an attorney who represented former Buchanan employees in a series of lawsuits filed in 2008. Lyons, who could not be reached for comment, represented former employees of Buchanan‘s dealerships in Sarasota and Pasco counties. Those employees accused Buchanan‘s companies of defrauding consumers, wrongfully terminating employees and failing to live up to terms of contracts. None of those cases went to trial. Those employees had sought a $43 million legal settlement with Buchanan in 2008, which Buchanan‘s attorney rejected.‖ [Herald-Tribune (Sarasota, FL), 10/19/11]

Buchanan Sued Attorney Who Represented Former Workers Who Sued Buchanan. According to the Sarasota HeraldTribune, ―Buchanan‘s attorneys have filed a formal complaint with the Florida Bar against Doug Lyons, the attorney who represented more than a half-dozen former workers at Buchanan‘s dealership who sued Buchanan. Those former workers accused Buchanan in 2008 of defrauding customers, wrongful terminations and pressuring them to give campaign donations. Most of the cases have been dismissed; none have gone to trial. While Lyons confirmed the complaint was filed against him, the subject is not public information unless the Florida Bar rules there is just cause to take action against him. Lyons has said in past interviews that Buchanan‘s attorneys successfully filed motions to delay the cases, with many of the original clients financially unable to continue their cases.‖ [Sarasota Herald-Tribune, 8/3/11]  Buchanan Sued Consumer Fraud Advocate Who Helped Former Employees Launch Lawsuits Against Buchanan. According to the Sarasota Herald-Tribune, ―Buchanan companies are also suing Duane Overholt, a consumer

fraud advocate from Maryland, who consulted with the former workers connected from Buchanan‘s Venice Dodge Nissan and Sarasota Ford dealerships before they sued him. The case against Overholt still has not been to trial, but Overholt said the case has cost him thousands of dollars and has him on the financial brink. ‗I‘m almost broke,‘ Overholt said. ‗He doesn‘t give up.‘‖ [Sarasota Herald-Tribune, 8/3/11] January 2012: Florida Supreme Court Reprimanded Douglas Lyons For Filing Lawsuits Against Buchanan During 2008 Election. According to the Bradenton Herald, ―The Florida Supreme Court has reprimanded a Tallahassee lawyer, finding him guilty of ‗misconduct‘ for trying to extort U.S. Rep. Vern Buchanan in connection with several lawsuits he filed against the congressman. Douglas S. Lyons filed 11 lawsuits in 2008, alleging various types of fraud at Buchanan‘s auto dealerships. But the lawsuits perhaps were most significant because of the political threat they posed Buchanan, as some also included allegations of improper fund-raising by his campaign organization — a legal predicament that until recently clouded Buchanan‘s political future. Lyons denied trying to extort Buchanan, R-Sarasota. But he said Wednesday in an interview with the Herald that he pleaded guilty to the misconduct allegations because they included a charge that his law firm had improperly mailed a solicitation to customers of one of Buchanan‘s companies, which he acknowledged is true. The Supreme Court ordered Lyons to pay $1,450 for the cost of the investigation. Lyons said he also was ordered to attend a class about law firm solicitations.‖ [Bradenton Herald, 2/1/12]  Lyons Denied Attempting To Extort Buchanan. According to the Bradenton herald, ―But as the consent agreement notes, Lyons denied trying to extort Buchanan. Lyons said ‗extortion‘ involves threatening someone with reporting them to the authorities. ‗I did not threaten to take him anywhere,‘ Lyons said. ‗What I did say was that if we don‘t settle this, bad things could happen.‘ Lyons denied being politically motivated to file the lawsuits, and said he thought the complaints would change Buchanan‘s behavior.‖ [Bradenton Herald, 2/1/12]

Sponsor Documents

Or use your account on DocShare.tips

Hide

Forgot your password?

Or register your new account on DocShare.tips

Hide

Lost your password? Please enter your email address. You will receive a link to create a new password.

Back to log-in

Close