Saturday,

A ugust 2 9, 2 015 at 6 :24:25 PM M ountain Daylight Time

Subject: RE: Le'er to Chairman House re: Prohibited Loan

Date: Saturday, August 29, 2015 at 3:25:19 PM Mountain Daylight Time
From:
To:
CC:

Doug Childress
Steve House, Concerned GOP Members
Leo Jankowski, Derec Shuler, KRAIG ANDREWS, Jeremy Weathers, Isaiah Hess, robert miles, ,
Derrick Wilburn, Brandi Meek, Mike Kopp, Lilly Nunez, Je Hays, Richard Elsner, , Janell Reid, Rick
Fernandez, , , Sandra Foote, Bill Cadman, brian, Joy Homan, Anil Mathai, ROBERT, Randy
Corporon, George Athanasopoulos, Murray, Christopher O., Marilyn Marks, fsebern@gmail.com,
ebroordsprint1@earthlink.net, colorado4x4@yahoo.com

Mr. House,

While I dont agree with your posi\on to ignore the prohibited contribu\on and if we need to we can pay it
o or pledge future receipts and the FEC will typically do nothing. The COGOP, EXCOM and you as
Chairman need to follow the advice you believe is best. However, the COGOP has failed to report this loan
for 5 months between February and June and nally amended the lings for these months in late July.
These amended lings are s\ll not correct since we have reported the loan as a secured loan, which it is
not. The latest repor\ng of the debt as being secured was on August 20, 2015. The regula\ons provide
for a 30 day period to correct Prohibited Contribu\ons under (2 U.S.C. 431(h)(1)), I certainly dont know
when you or the EXCOM obtained knowledge of the Prohibited Contribu\on, but clearly before the July
report or you would not have corrected it. Whoever is ling our FEC reports appears to be incompetent!

From my review of the poten\al nega\ve consequences of engaging in prohibited transac\ons, I believe
that the civil penal\es under (111.24(52 U.S.C. 30109(a)(5), (6), (12), 28 U.S.C. 2461 nt.) can reach 100%
of the loan proceeds for a viola\on, and 200% if the viola\on is knowing and willful. Addi\onally, willful
illegal contribu\ons exceeding $25,000 can carry punishment of up to ve years imprisonment.

Lets recap, we failed to report the loan for 5 months, amended the repor\ng over a month ago, the
amended reports are s\ll incorrect. This fact pa'ern can only be one of two thing, (1) total incompetence
by the sta repor\ng this informa\on or (2) God forbid, willful disregard of the rules. The penal\es can
include 200% of the loan and imprisonment. This is an awful lot of bad things that can happen and we are
relying on good gracious of the FEC and hoping that will typically do nothing. The Execu\ve Commi'ee
should think about the fact that poli\cal opponents are more likely to le complaints on such ma'ers prior
to the FEC ini\a\ng ac\on on their own.

I urge you to reconsider the ma'er and urge party leadership to pull together and nd a new path to an
immediate solu\on to this mess that we nd ourselves in. I believe this was a mess handed to you, but the
longer you wait before you clean this up the more you own it.


Doug Childress
President
Avant Datacomm Solutions, Inc.
9500 W. 49th Ave.
Suite D-100
Wheatridge, CO 80033
Cell - 314-799-7250
Direct 720-974-4781
Office 303-202-9394

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I hope we have once again reminded people that man is not free unless government is limited. There's a clear cause and
effect here that is as neat and predictable as a law of physics: as government expands, liberty contracts." -- Ronald Reagan
From: Steve House [mailto:steve@cologop.org]
Sent: Friday, August 28, 2015 2:53 PM
To: Concerned GOP Members
Cc: Leo Jankowski; Derec Shuler; KRAIG ANDREWS; Jeremy Weathers; Isaiah Hess; robert miles;
<godlyfighter@live.com>; Derrick Wilburn; Brandi Meek; Mike Kopp; Lilly Nunez; Jeff Hays; Richard Elsner;
<radrake81143@yahoo.com>; Janell Reid; Rick Fernandez; <chairman@denvergop.org>;
<leatherneck73@comcast.net>; Sandra Foote; Bill Cadman; brian; Joy Hoffman; Anil Mathai; ROBERT; Doug
Childress; Randy Corporon; George Athanasopoulos; Murray, Christopher O.
Subject: Re: Letter to Chairman House re: Prohibited Loan

Mr Anthanasopoulos, Mr Childress, and Mr Corporon,

I am in receipt of your letter and provide the following response
with guidance from our attorney.
While it would be optimal for the CRC to have entered into an agreement
with Centennial Bank whereby the loan was secured by collateral or a pledge
of future receipts (11 C.F.R. 100.82(e)(1) and (e)(2), the FEC regulations
also provide that a loan may be considered to have been made on a basis that
assures repayment on a case-by-case basis. 11 C.F.R. 100.82(e)(3). Because
the FEC typically enforces prohibited loan provisions against standing
committees (like party committees) only if and when a loan is defaulted on,
loans that are otherwise commercially reasonable that are paid on time will
not draw FEC enforcement.
Reference 100.83(e)(3):
(3) If the requirements set forth in this paragraph are not met, the
Commission will consider the totality of the circumstances on a case-by-case
basis in determining whether a loan was made on a basis that assures
repayment.
If necessary the state party could go back to the bank to accept some pledge
of future receipts as an addendum to the agreement governing the line of
credit, which would allow the CRC to avail itself of the safe harbors at 11
C.F.R. 100.82(e)(1) and/or (e)(2). We do not believe this action is necessary
at this time and will take no further action.

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Sincerely
Steve House
Chairman
Colorado Republican Committee
5950 S. Willow Drive, Suite 210
Greenwood Village, CO 80111
303-758-3333 | Desk
steve@cologop.org
On Thu, Aug 27, 2015 at 11:36 PM, Concerned GOP Members
<coloradoconcernedgop@gmail.com> wrote:
Please see the attached letter and documents concerning the Centennial Bank loan.
On Thu, Aug 27, 2015 at 11:04 PM, Concerned GOP Members
<coloradoconcernedgop@gmail.com> wrote:
Please see the attached letter concerning the loan with Centennial Bank.

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