Many years later, the Michigan Democratic Party’s bizarre process of raising millions of dollars in campaign money for Dem candidates through – of all things – Bingo games populated mostly by unsuspecting senior citizens, resulted in a spectacular ending.
The state party was hit with a mammoth $500,000 fine last week after the Federal Election Commission concluded the Dems under-reported cash contributions at past Bingo fundraisers by $4.4 million and violated several campaign finance laws.
According to the Detroit Free Press, the party inaccurately reported approximately 12,500 contributions from the game-of-chance fundraisers, which it had operated over nearly two decades but shut down three years ago, according to a conciliation agreement with federal regulators.
The civil fine is largest levied by the FEC and ranks among the all-time Dirty Dozen.
Johnson
The FEC first inquired about Bingo parties in early 2014, according to former Michigan Democratic Party Chairman Lon Johnson, who launched an internal investigation that led to a federal probe.
“We discovered the Bingo operation was not in compliance,” Johnson told The Detroit News. “We shut it down immediately. We investigated and turned over what we found.”
The Bingo operation had its beginnings in Macomb County, where Mark Brewer served as county party chairman before rising to state chairman in 1995.
The finance reports documented by the party through the years regarding Bingo parties are voluminous, recording dizzying amounts of money in and money out. But Brewer always insisted that everything was reported accurately and transparently, with the exception of small Bingo transactions of less than $50 or $60.
Johnson, who forced Brewer out as party chairman in a bitter 2013 battle and took the reins, held the top post until he resigned in 2015 to make un ultimately unsuccessful run for Congress.
In a 13-page statement released on Friday, Brewer slammed Johnson’s internal investigation of the Bingo games as a “shoddy” probe that was “hardly more than an inquisition full of fiction.”
Brewer
In a bold move, Brewer hired a lawyer who sent warning letters to Johnson and current party chair Brandon Dillion ordering them to “issue a full and complete retraction of any and all charges, statements and/or claims toward Mr. Brewer” by Wednesday. The missive also demands that Johnson and Dillon “cease and desist making any statements” regarding the FEC actions.
But, even as Johnson’s fundraising abilities for the party faced criticism during his short reign, insiders say the FEC investigation did not result from a Brewer-Johnson feud. It’s simply bad news all around.
Meanwhile, the GOP gleefully pounced on the Dem debacle. House Speaker Tom Leonard labeled it “Brewergate.” Other Republicans tried to tie the mess to two top Dems, Sen. Debbie Stabenow and 2018 Dem gubernatorial frontrunner Gretchen Whitmer. Whitmer has dumped Brewer as her campaign legal counsel.
The half-million dollar setback will gradually take its toll for the next two years.
The party has to pay $100,000 of the fine immediately and the rest in quarterly installments through mid-2019. It also has to hire a treasurer who is well-versed in campaign finance law and an independent accounting firm to review the party’s finances for the next two years.
