06/09/02

Despite the natural rivalry between Democrats and Republicans, they have shied from trying to have each other prosecuted for questionable political conduct - at least until now.

Last week, Ohio Republican Party Chairman Bob Bennett filed an official complaint with the Ohio Elections Commission, asking for a probe into alleged campaign finance violations by the Ohio Democratic Party and the Black Elected Democrats of Cleveland Ohio. The complaint centers on BEDCO's payments to a trio of black lawmakers for get- out-the-vote efforts during the last presidential campaign. Those who received the so- called "street money" have yet to account for how all of it was spent.

In a seven-page news release, Bennett blistered the BEDCO members, question ing whether they had tax-evasion troubles for failing to report the payments as income (a still-unanswered question) and should have reported the payments on financial disclosure statements (they did not).

Some Democrats viewed Bennett's filing as an effort to divert attention from Republican State Treasurer Joe Deters.

Deters is under fire for fund-raising irregularities of his own.

Said one prominent Democrat: "Bob Bennett opened a door that he didn't want to open, and now we're walking right through it."

Democrats are quietly exploring the possibility of finding a local prosecutor to take on the Deters campaign for alleged money laundering. Under Ohio law, individuals can give only $2,500 per election cycle to Deters and other statewide candidates. Individuals may give to county parties, but not with the understanding that the money eventually will make its way back to the candidate's account.

After months of denying that his campaign directed bankers and brokers to give the Hamilton County Republican Party, Deters has conceded that both he and his fund-raiser directed donations to the local party in Cincinnati that he once headed.

While The Plain Dealer showed that his campaign has received almost dollar for dollar from Hamilton County what the county party has received from the bankers and brokers, Deters maintains that no laws were broken because Hamilton County officials did not guarantee that that the donations to the county would be paid out to Deters.

Donors knew there was a "high likelihood" the money would end up in his account, but had no firm guarantee - an arrangement that Deters contends made the donations perfectly legal. The contributions to Hamilton County totaled $304,020 during 2001, and Hamilton County donated $303,620 to the Deters campaign during that same time.

In similar cases, the elections commission has ruled that money laundering depends - in part - on the understanding of the donor.

In the case of Deters, did the donors understand that the money would go to his re-election campaign?

Based on an account Deters gave to The Plain Dealer, donors sometimes called the Deters' campaign to ask how they could be "helpful." Some then were directed to Hamilton County by Deters or by his fund-raiser, Eric Sagun, Deters has said.

Another Republican in statewide office, Auditor Jim Petro, has been tainted by a similar scheme. The Dayton Daily News has reported that nearly $9,000 was funneled to Petro through the Montgomery County Republican Party from nursing homes. Nursing home operators are banned from giving to candidates for attorney general - the office Petro is seeking - because the office investigates Medicaid fraud.

Petro promptly returned the money and pointed to a string of audits his office conducted that were critical of Medicaid providers.

In the midst of all the finger-pointing, both sides have clamored for new, meaningful campaign finance reform. Most agree on the need for added disclosure, and several have called for Ohio to close the loophole that allows for the movement of large amounts of money through state and local political parties.

Sen. Dan Brady, a Cleveland Democrat, has introduced a bill that addresses one problem. It would force political parties to open their now-secret operating accounts. The bill has received no hearing. None is expected. And - at least so far - no comprehensive reform measures have been introduced.

Contact Sandy Theis at:

stheis@plaind.com, 800-228-8272