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Young speaker embroiled in ethics controversy again

By RON JENKINS
Release Date: 09/30/2007 04:00 AM

OKLAHOMA CITY (AP) _ For the second time in his first year as speaker, Republican Lance Cargill has become embroiled in a controversy over fundraising.

Earlier this year, Cargill drew criticism for summoning lobbyists to a political consultant's office to personally ask them for donations.

Democrats charged that was symbolic of a "pay-for-play" atmosphere at the Capitol, where special interests who have legislation pending before the Legislature are pressured to make political donations.

Cargill, 36, said there was nothing improper about the solicitations.

The latest fundraising questions stem from activities in 2004 by the House Republican political action committee, which was headed by Cargill.

Those activities are being investigated by the Ethics Commission, according to party leaders.

The exact nature of the investigation is not clear, but it has exposed differences among GOP officials over how campaign funds should be handled.

One question being asked is how checks written to the Oklahoma Republican Party in 2004 wound up in the "Victory Fund" of the Oklahoma County Republican Committee.

As head of the House PAC, Cargill should have the answers, says former Speaker Todd Hiett, R-Kellyville. He and others said checks they wrote were intended for the Oklahoma Republican Party, not the county. Others said they had no problem with the county getting the funds.

For his part, Cargill is not responding to questions about the House PAC's fundraising and spending.

He has issued a statement in which he declared: "We are not aware of any ethics violations that have occurred, but to be absolutely clear: I did not solicit, receive, deposit or expend any Victory Fund checks."

State ethics rules limit contributions to a political party to $5,000, whether the money is received by the state party, the county party or similar entity.

Some of Cargill's supporters say that means checks made out to the state party can be given to the county.

Gary Jones, state Republican chairman, disagrees.

Jones says the state party should have received checks written to it in 2004. He said he did not know why funds were diverted.

"You will have to ask the people who directed that," Jones said. "Every dollar we received here was deposited and reported.

"If we chose to give money to another group or candidate, we wrote a check and reported that as well. I'm a stickler for the rules."

State ethics rules seek to prevent efforts to get around the $5,000 limit on contributions. State campaign laws do the same.

Violation of funding limits can lead to criminal charges. The most notable example was the case against former Gov. David Walters, who was accused of perjury for signing faulty campaign reports.

In the end, he pleaded guilty to a misdemeanor, paid a $1,000 fine and got a one-year deferred sentence. The controversy led to him not seeking re-election in 1994.

In a case brought against Oklahoma County Commissioner Brent Rinehart, the county official was charged with perjury, money laundering and conspiracy linked to an alleged scheme to exceed the $5,000 limit.

Those charges revolved around an accusation that Rinehart skirted campaign law by "knowingly accepting a contribution to a political candidate through an intermediary or conduit with unlawful intent."

The criminal charge is similar to a state ethics rule. Ethics rules carry only civil penalties, such as a fine, but a case can be forwarded to prosecutors for consideration of criminal charges.

The downfall of former Insurance Commissioner Carroll Fisher began with an Ethics Commission probe. The panel turned its files over to the state's multicounty grand jury. That led to bribery and other charges being levied against Fisher, who was impeached and sentenced to prison.

Both Jones and Pam Pollard, chairman of the Oklahoma County GOP, said they understood the Ethics Commission had sent letters asking some Oklahoma County Republicans to appear before the panel, but they did not know who got the letters.

Al Mertens of Oklahoma City, an unsuccessful candidate for the state House in 2000, was county GOP chairman in 2004.

He has not returned repeated calls to his home seeking comment.

Neither has Aaron Curry, a House Republican PAC official four years ago.

Ryan Wilson, Oklahoma City lawyer, performed legal services for the House PAC in 2004. He said he worked with Mertens and Curry. He said he was recommended for the work by Cargill.

Wilson said he sent bills to Cargill's law office in Harrah because he was acquainted with the House member.

"I was simply forwarding the bills (to Cargill's office) so that he could forward them on to the organization," the attorney said.

So far, no one has publicly alleged wrongdoing by Cargill or anyone else and the ethics investigation appears to be in its early stages.

Outcomes of Ethics Commission probes are not always made public. Ethics rules provide for a "private reprimand" in some cases.