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Case 9:10-cv-80062-KAM Document 46 Entered on FLSD Docket 06/22/2010 Page 1 of 17

IN THE UNITED STATES DISTRICT COURT


IN AND FOR THE SOUTHERN DISTRICT OF FLORIDA

SOUTH FLORIDA TEA PARTY, INC.,


A Florida non-profit corporation, et al.,

Plaintiffs,

v. CASE NO.: 10-80062-CV-MARRA/JOHNSON

TEA PARTY, et al.

Defendants.
_________________________________/

PLAINTIFFS’ SECOND NOTICE OF SUPPLEMENTAL FILING IN OPPOSITION TO


DEFENDANTS’ MOTIONS FOR RULE 11 SANCTIONS

Plaintiffs, by and through the undersigned counsel, hereby file this Notice of

Supplemental Filing in Opposition to Defendants’ Motions for Rule 11 Sanctions (D.E. 29, 30, &

31) as follows:

Specifically, the Defendants have moved to Dismiss Plaintiffs’ Amended Complaint and

have separately moved for Rule 11 sanctions against the Plaintiffs. (D.E. 19, 29, 30, & 31). The

Plaintiffs have opposed the Defendants’ respective Motions. (D.E. 20 & 35).

Among the claims set out in Plaintiffs’ Amended Complaint is one for false association

under the Lanham Act. (D.E. 11). Plaintiffs assert that the Defendants have chosen to use the

phrase “Tea Party” to identify themselves in order to draw a false association between

themselves and the grassroots “Tea Party” movement to which the Plaintiffs belong. Yesterday,

June 21, 2010, WKMG, a local Orlando area television station, reported on its website that

Defendant Guetzloe had received approximately $20,000.00 from U.S. Rep. Alan Grayson and

that these funds were purported to “support a ‘sham’ party whose candidate will siphon away

conservative votes from the eventual Republican nominee in November, boosting Grayson’s

1
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chances of re-election.” See Exhibit A. The “sham party” mentioned therein is none other than

Defendant “Tea Party.” Id.

Plaintiffs believe that this news report and the underlying facts reported therein support

Plaintiffs’ contention that the Defendants have wrongfully adopted the name “Tea Party” in

order to create a false association with the Defendants’ grassroots “Tea Party” movement thereby

causing confusion amongst likely voters. See Caterpillar, Inc. v. Nationwide Eqiupment, 877

F.Supp. 611, 617 (M.D.Fla. 1994)(noting that “[t]he purpose of the Lanham Act is to protect the

public . . . by preventing confusion.”).

WHEREFORE, the Plaintiffs respectfully request that the Court take notice of the

documents attached hereto as Exhibit A, and that the Court consider that same to be filed in

opposition to Defendants’ Motions for Sanctions.

Dated June 22, 2010

Respectfully Submitted,

By: /s/ FRANK HERRERA


Frank Herrera
Florida Bar No. 494801
Email: fherrera@qpwblaw.com
Gustavo Sardiña
Florida Bar No. 31162
Email: gsardina@qpwblaw.com
QUINTAIROS, PRIETO, WOOD & BOYER
9300 S. Dadeland Blvd., Fourth Floor
Miami, Florida 33156
Telephone: 305-670-1101
Facsimile: 305-670-1161
And
Timothy Lucero, Esq.
LUCERO LAW GROUP
10693 Wiles Road, Suite 159
Coral Springs, Florida 33076
Tel.: (954) 592-5277
Email: attorneytimothylucero@yahoo.com

2
Case 9:10-cv-80062-KAM Document 46 Entered on FLSD Docket 06/22/2010 Page 3 of 17

CERTIFICATE OF SERVICE

I HEREBY CERTIFY that a true copy hereof is being filed via the Court’s CM/ECF online
filing system, and that the same is being served on the Defendants, namely:

The Tea Party and


Frederic B. O’Neal, Esq.
P.O. Box 842
Windermere, Florida 34786

Nicholas Egoroff
5402 Andover Drive
Orlando, Florida 32812

Douglas Guetzloe
P.O. Box 531101
Orlando, Florida 32853

via U.S. Mail this 22nd day of June, 2010.

By: _s/GUSTAVO SARDIÑA___


Gustavo Sardiña

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EXHIBIT A
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Grayson Paid Company Formed By Fla. Tea


Party Candidate
Payments Boost GOP Claims That Grayson Wants To Split
Conservative Votes
Tony Pipitone

POSTED: Monday, June 21, 2010


UPDATED: 9:38 am EDT June 22, 2010

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Alan Grayson.
ORLANDO, Fla. -- U.S. Rep. Alan Grayson's campaign has paid nearly $20,000 to a corporation
created by a Florida Tea Party candidate, with help from that party's top consultant, lending support to
Republicans' claims that Grayson is funneling some of his $30-plus million fortune toward a party
that is running a candidate against him in the general election.

VIDEO: Tony Pipitone's Report

Grayson's motivation, Republicans say: to support a "sham" party whose candidate will siphon away
conservative votes from the eventual Republican nominee in November, boosting Grayson's chances
of re-election.

A Local 6 investigation has found Grayson’s campaign spent $19,898 with Public Opinion Strategies
Inc., a company formed by Victoria Torres, a Florida Tea Party candidate for a state House of
Representatives seat in Pinellas County. Torres has said she created the company in December 2008
with the help of the Florida Tea Party’s public relations consultant, Doug Guetzloe.

Guetzloe and his attorney, Frederic B. O’Neal, who created the Florida Tea Party last year, are being
sued by Republican tea party movement activists who claim the pair created the Florida Tea Party to
“hijack” the tea party movement for their own “gains (and) profits.”

The actual owners of Public Opinion Strategies -- the people who stand to benefit financially from the
multimillionaire Grayson’s campaign money -- are not revealed in public records.

The only corporate director listed in state records is the Florida Tea Party candidate Victoria Torres,
who swore in court papers in April that she has no cash, no income, no potential income, no stock and
no possible asset from any corporation.

In a financial disclosure statement filed last week with her candidacy papers, Torres revealed she
earned $10,000 last year from Public Opinion Strategies, but claims no financial interest in the
company. Grayson paid the company $16,898 last year and $3,000 in February 2010, according to
filings with the Federal Elections Commission.

Torres did not respond to phone calls, visits to her Orange County house (which is also the
corporation’s official address), or a note left there by Local 6 asking about the company.

But Torres has for years worked off and on for Guetzloe and -- like Guetzloe -- has been represented
by attorney O’Neal, the Florida Tea Party chairman.

“I do things for (Guetzloe) that he asks for me to,” Torres testified last year in a deposition in an
unrelated lawsuit.

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For his part, Grayson, a first-term Democrat, continues to maintain Guetzloe has played no role with
anyone in his campaign.

When Local 6 began to question Grayson about how his campaign came to find and pay the company
Guetzloe helped form, Public Opinion Strategies, Grayson said, “That is a campaign matter. I'm not
going to be disclosing anything more” than required by federal law.

Republicans Demand Full Disclosure


Bruce O’Donoghue, a Republican seeking the nomination to oppose Grayson, called a news
conference last week to accuse Grayson of concealing his links to the Florida Tea Party.

“Alan Grayson's fingerprints are all over the creation of this so-called ‘party,’ and he insults the
intelligence of voters by claiming he had nothing to do with it,” O’Donoghue said. “These political
games are designed to hide the cozy relationship between Grayson and this sham organization.”

Monday, shown the paper trail revealing money from Grayson to Public Opinion Strategies,
O’Donoghue said Local 6 had uncovered the “direct connection. We were connecting the dots and
this research you've been able to bring forward really solidifies that. It shows the conduit and it’s what
we said, these guys ought to come clean and tell us exactly who's doing what and who's paying
whom.”

The $19,898 paid by the Grayson campaign to Public Opinion Strategies Inc. between October 2009
and February 2010 was for field work consulting and survey and polling expenses, according to
Grayson's filings with the Federal Elections Commission.

Guetzloe, 56, refused to tell Local 6 how much, if any, money has flowed from Grayson through
Public Opinion Strategies to him.

O’Neal said he does not know who owns Public Opinion Strategies, or how much money Torres and
Guetzloe may have received from the company. “I know nothing about it. He (Guetzloe) has his own
agenda. He has his own thing.”

As for whether Grayson is directly supporting the Florida Tea Party, O’Neal said, “I don’t know of
any Grayson money. Grayson hasn’t given any money to the (Florida) Tea Party.”

But he has bought advertising on Guetzloe's radio show on WEUS 810 AM, which was cancelled
effective today.

In addition to last year paying $2,750 for ads on Guetzloe's show, Grayson also apparently authorized
more ads after March 31; those expenditures will not become public until July.

Guetzloe said he is required to run ads from any campaign that requests it.

But documents on file at WEUS purport to show Guetzloe-related entities were involved in the
proposed or actual purchase of time for Grayson campaign ads on other shows. The station owner,
Carl Como, said one of those deals would have resulted in one of Guetzloe’s companies receiving a
commission. But Como said he canceled the ad buy because Guetzloe did not sign a required
document and he is going refund the $750 to Guetzloe’s company.

State elections records confirm Guetzloe is working hard for the Florida Tea Party while promoting
that party’s candidate against Grayson.

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Guetzloe’s consulting company has donated $30,800 in public relations services to the Florida Tea
Party, more than any other outside consultant helping the party.

In turn, the Florida Tea Party has donated $7,500 in public relations consulting to the campaign of
Peg Dunmire, a former Republican chosen by the Florida Tea Party to run as its candidate in
Grayson’s Eighth Congressional District.

On his now-canceled radio show, Guetzloe promoted Dunmire to conservative listeners, saying, “Peg
Dunmire is beginning quite the juggernaut of a campaign. ... She is a great, great candidate and she's
tremendously conservative.”

Lawsuit: Profit From Deception


There is nothing illegal with Grayson paying a corporation formed by Torres, Guetzloe or anyone else
-- as long as it is properly reported.

But if any funds are flowing from Grayson to Guetzloe, O’Neal or others helping the Florida Tea
Party, it would support Grayson critics who say he is using his considerable fortune to indirectly help
bankroll a “fake” tea party.

It would also lend support to a federal lawsuit that claims the Florida Tea Party, O’Neal and Guetzloe
are profiting from deceiving the public about the true nature of their Tea Party.

In the suit, tea party activists from South Florida -- some of them Republican political consultants --
claim the Florida Tea Party and its leaders are “confusing the public” and attempting to “hijack” the
tea party phrase as they “obtain gains, profits and advantages.”

Grayson’s motivation, they say: The more money the party and its candidate have to siphon
conservative votes away from the eventual Republican nominee, the better Grayson’s chances of
prevailing in the Nov. 2 General Election.

Splitting The Vote


The Florida Tea Party’s actions have upset those who claim they are the real “tea party,” a grass-roots
movement they claim is not linked to any one party.

“We’re all against what Fred O’Neal has done” by creating the Florida Tea Party and running a
candidate against Grayson, said Patricia Sullivan, a Lake County tea party organizer seeking the
Republican nomination to oppose Grayson in November.

“It more likely than not is going to split the Republican Party. I'm totally opposed to this Florida Tea
Party,” said another Republican candidate, Dan Fanelli, adding he spurned Guetzloe’s efforts to
recruit him to the Florida Tea Party.

O’Donoghue’s take: “They've got a great bedfellow in Alan Grayson and Alan Grayson (thought),
‘This makes sense if I can distract just a small number, or percentage points of the voters, then I have
a better chance of winning.’”

Guetzloe, O’Neal and Dunmire all say she is in the race to win it.

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“I expect that my running will take traditional votes away from both the Republican and Democratic
parties,” said Dunmire. “I fully expect to win in November. We are witnessing a true political change
here in Florida. The two-party system is under assault by the actions of candidates like me and the
voters will tell us in November if they are in fact supportive of this change.”

“Everything has changed,” said Guetzloe, “because not only of the tea party movement, because of
the angst in America today and the possibility tea party candidates can win.”

“I am 100 percent committed to seeing to it that Peg Dunmire is elected the next Congressperson from
the 8th Congressional District,” O’Neal said today. “Knowing Peg, knowing the electoral trends over
the past year, and knowing the disdain the majority of the voting public has with both major parties, I
am convinced that once Peg gains name ID and once her positions on the issues are known by the
voters … of all the candidates running to replace Alan Grayson, Peg stands the best chance of actually
unseating Congressman Grayson. “

Grayson Money For Poll


Grayson’s campaign said some of the money paid to Public Opinion Strategies was for a February 26
poll conducted by Middleton Market Research that claimed to show Grayson is so popular among
registered Republicans in his district, he would win the Republican primary. The campaign Middleton
Market Research of Melbourne was “a call-center subcontractor for Public Opinion Strategies.”

A similar poll of Republicans conducted by Middleton in May showed Grayson still outdrew a slate
of lesser-known Republican names mentioned in the poll -- and claimed 16 percent of registered
Republicans surveyed said the were most likely to support the Florida Tea Party in the election.

National Republican Congressional Committee spokesman Andy Sere called the survey “the most
bogus thing I’ve ever seen in my life,” adding Grayson was “not using a reputable firm” because
“reputable firms are not going to participate in those shenanigans.”

O’Donoghue, the Republican candidate who appears to have drawn the most support from the
national party, said there was “something fishy” about that poll because Grayson and the Florida Tea
Party are both trumpeting its results -- results that O’Donoghue said were concocted “to bring
recognition and credibility” to the Florida Tea Party congressional nominee, Peg Dunmire.

In a brief phone call, Middleton Market Research’s David Middleton would only tell Local 6 he
knows of Doug Guetzloe, before cutting off the conversation and not returning further calls.

Neither Public Opinion Strategies nor Middleton Market Research has ever been directly paid by a
campaign in Florida, according to state records.

The Grayson campaign said it was referred to Public Opinion Strategies by Middleton Market
Research, but would not say who referred it to Middleton Market Research.

A Grayson campaign aide declined to say whether the campaign knew Guetzloe helped form Public
Opinion Strategies. Questions about any connection to Guetzloe, the campaign said, suggest a story
that is “rife with speculation, exaggeration and conspiracy theories.”

While both Guetzloe and Grayson were willing separately to discuss their radio-ad relationship --
noting there is nothing wrong with Grayson buying ads on Guetzloe’s show -- they both refused to
answer detailed questions about Public Opinion Strategies.

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Searching For The Company


Internet searches by Local 6 revealed no website and no working phone number for Public Opinion
Strategies Inc., which is not affiliated with the widely known and respected Alexandria, Va.-based
Republican polling firm of the same name.

Public Opinion Strategies Inc. lists one director in Florida state records: the Guetzloe associate and
O’Neal client Victoria Torres, formerly known as Victoria Frauman. In addition to working for
Guetzloe, she’s previously worked for a preschool, sold cosmetics, run a cleaning service with her
current husband and worked at Florida Hospital.

In June 2009, Torres, 44, gave sworn testimony revealing Guetzloe helped her form Public Opinion
Strategies in December 2008. “When (Guetzloe) requests things to be done, I do things for him that
he asks for me to,” she said in a deposition involving a lawsuit Guetzloe filed in 2007 against Local 6
and Public Storage.

(Guetzloe, with O’Neal as his attorney, is still suing Public Storage and Local 6 in an attempt to
regain possession of files that were auctioned off from a Public Storage unit in November 2006 for
$10 and then given to Local 6 by the winning bidder.)

Online phone records revealed another address apparently once referenced by Public Opinion
Strategies: 20 N. Division Ave, an Orlando building owned in part by Ken Mulvaney, a 2004 Orlando
mayoral candidate who was helped by Guetzloe.

Behind the building sits a deteriorating van plastered with images of Guetzloe and activities of his Ax
the Tax group.

Dueling Lawsuits
As for the federal lawsuit filed against the Florida Tea Party, O’Neal, Guetzloe and the party’s
communications director, Nick Egoroff, a judge has set a hearing for Wednesday on their motion to
dismiss the suit. They are also seeking sanctions against the plaintiffs for bringing what O’Neal
argues is a frivolous complaint.

The lawsuit claims O’Neal threatened to sue the South Florida tea party activists if they used the “tea
party” name and seeks to have a federal judge declare the Florida Tea Party has no exclusive right to
the phrase “tea party.” In court papers, defendants deny the allegations in the lawsuit.

Guetzloe has since sued two of the South Florida tea party activists who sued him, along with their
public relations consultant and a former associate of Guetzloe who is now an Orlando tea party
activist. Guetzloe claims defamation, harassment, interfering in his business and “abuse of process”
for filing the lawsuit against him.

Guetzloe claims they are engaged in a conspiracy rooted in the “Republican Party Establishment” to
“harass and discredit” him and “turn other tea party movement organizations against Guetzloe and the
newly formed Tea Party.” He says their actions cost him business opportunities -- including potential
work with erstwhile Republican gubernatorial candidate Paula Dockery -- inflicted emotional distress
and damaged his reputation by, in part, calling him “unscrupulous … dishonorable … and a disgrace.”

For example, Guetzloe argues it was defamatory for one of the defendants to say Guetzloe was
subject to a 60-day jail sentence. In fact, Guetzloe faces up to a year in jail at a court-ordered

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resentencing, but is arguing his 2006 conviction on an elections law violation should be dismissed
because a federal court has in another case since ruled that statute unconstitutional. Prosecutors
disagree and a court has yet to rule on Guetzloe’s motion to dismiss.

In his defamation claim, Guetzloe also cites “a statement (albeit incorrect) that Guetzloe had been
‘indicted for extortion.’” In fact, in March 2007, Guetzloe was indicted on two felony perjury counts
for allegedly lying under oath in proceedings related to a Florida Elections Commission investigation
of the 2003 Daytona Beach city elections. The perjury charges were dropped in July 2007 after a key
witness against Guetzloe died suddenly.

Guetzloe was fined $4,000 by the Florida Elections Commission in 2007 for willfully violating state
elections laws by not properly reporting how much money he spent on that 2003 Daytona Beach city
election.

The state says he has failed to pay his fine.

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kay1968 1 hour ago

Anyone but not Grayson.........

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Flag Like Reply

marya 10 hours ago

1 person liked this.

Maybe this is some sort of karmic payback for poor senator-in-the-running Greene.

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