FEC, Club for Growth reach fine agreement

WASHINGTON, Sept. 5 (UPI) -- Club for Growth Inc. has agreed to pay a $350,000 fine for not registering as a political committee, the U.S. Federal Election Commission said Wednesday.

If a federal court approves the agreement, a pending lawsuit against Club for Growth Inc. would be dismissed, the FEC said in a news release. If approved, the penalty would be the largest the commission ever obtained after an enforcement case moved to litigation.

The Federal Election Campaign Act requires organizations making expenditures or receiving contributions greater than $1,000 to register with the FEC and file financial disclosure reports. The act bars organizations from accepting contributions from corporations or labor organizations and limits individual contributions to a maximum of $5,000 a year.

The FEC determined Club for Growth spent at least $1.28 million between 2000 and 2004 to promote the election or defeat of federal candidates, and mailed letters asking for contributions to promote its operations.

Because the organization had more than $1,000 in expenditures and received more than $1,000 in contributions, it met the statutory definition of a political committee -- and was required to register and report with the commission, the commission said.