State Reaches Settlement with Eyman and Permanent Offense

EVERETT -- In a judgment filed today in Snohomish County Superior Court, Tim Eyman agreed to accept a lifetime ban on involvement in any political committee's financial accounts and to pay $50,000 to settle charges he violated the state's Public Disclosure Act.

In addition to a $42,000 fine and $8,000 to reimburse the state for its costs and fees incurred in filing the suit, Eyman agreed he will never again serve as a treasurer for any political committee or have control over its financial accounts.

In a separate judgment also filed today, the Permanent Offense political committee agreed to a $6,500 fine, with $3,500 of that amount suspended for five years on the condition that no further violations occur. The committee will also pay $2,000 in costs and fees.

The Attorney General's Office filed suit in April alleging improper campaign finance reporting against Eyman, Permanent Offense PAC, and former Permanent Offense treasurer Suzanne Karr.

No settlement has been reached in the case against Karr.

The lawsuit was filed after the Public Disclosure Commission referred the case to the Attorney General's Office for further action.

The suit alleged that 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.

While it was legal for Eyman to accept a salary for his work on the campaign, he violated the law by concealing that salary.

The suit also alleged:

• 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.

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