Tuesday, March 13, 2012

Article badly flawed

The article by Fran Spielman titled "Some of Burke's war chest may violate ethics law" [Aug. 8] has several inaccuracies and mischaracterizations.

First, Chicago's Campaign Financing Ordinance, which has been posted on my agency's Web site for 10 years and been in effect for more than 20, does not "prohibit elected officials from accepting more than $1,500 a year from city contractors or companies seeking city business." That is incorrect. If there ever is a violation for an excess contribution, it is the contributor's. The law prohibits the making of excess contributions, not the receiving of them.

Second, as I explained to Spielman, it is common for laws of this type to allow, or not prohibit, additional or separate contributions from officers, directors, employees or partners of companies subject to the limitations, provided the individuals are not reimbursed by these companies. This is "right there in the law."

And it is because, under basic corporate law in Illinois and elsewhere, individuals who are principals of corporations (or, more accurately, those who own corporate stock, even a controlling amount of it) are legally distinct "persons" from those corporations. This is why there would need to be evidence of reimbursement to the individuals named as the contributors, much like "piercing the corporate veil," before our board would or could interpret the law to find violations by individual contributors to an elected city official's committee. And this is why I said that the contributions mentioned in the article are not "apparent violations"; it always depends on the specific facts.

Third, I did not characterize this provision of the law as a "loophole." That may be a convenient term for your industry and your profession, but to me and others in my profession, who interpret and enforce these laws, this is not a loophole -- it is just another provision of the law that we consider and apply with great care.

Steve Berlin,

acting executive director, Chicago Board of Ethics

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