AG Sues Initiative Campaign for Public Disclosure Violations

OLYMPIA -- Acting on a recommendation from the state Public Disclosure Commission, the Attorney General's Office today filed suit against the political action committee Permanent Offense and campaign leaders Tim Eyman and Suzanne Karr for alleged violations of Washington's Public Disclosure Act.

The suit, filed in Thurston County Superior Court, alleges Eyman and Karr made payments to Eyman for services provided to Permanent Offense PAC by moving money from Permanent Offense PAC to Permanent Offense, Inc., to conceal the fact that payment was being made to Eyman.

According to the complaint, Permanent Offense, Inc., a separate for-profit corporation established by Eyman and Karr, billed Permanent Offense PAC for campaign services. Money received from the PAC through Permanent Offense, Inc. was then paid to Eyman without disclosure to the public as required by law.

Other alleged violations of the Public Disclosure Act include:

• Eyman used Permanent Offense PAC campaign funds to pay personal expenses, as well as those of his other business, Insignia Corp.
• Eyman and Permanent Offense PAC failed to keep adequate campaign records to substantiate out-of-pocket expense reimbursements made to Eyman.
• Permanent Offense PAC, Karr and Eyman failed to properly report "in kind" contributions made to Permanent Offense PAC from Permanent Offense, Inc. The Permanent Offense PAC and Karr also allegedly failed to properly report debts and obligations incurred by the PAC.
• Permanent Offense PAC and Eyman used campaign funds to reimburse Eyman for campaign contributions he made.
• Permanent Offense PAC failed to properly report that Eyman served as the PAC's treasurer between January 2001 and February 2002.
• The complaint also alleges that the actions by Eyman and Karr were negligent and/or intentional. Under the law, the state can seek up to triple damages for intentional or negligent violations.

The lawsuit seeks civil penalties against the defendants in an amount to be determined at trial, as well as injunctive relief and all costs of the investigation and enforcement.

The lawsuit follows a recommendation Tuesday from the Public Disclosure Commission that the Attorney General's Office file suit, based on an investigation conducted by Commission staff.

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