Federal Election Com'n v. LaRouche Campaign

Decision Date25 August 1986
Docket NumberMisc. Action No. M18-304 (LLS).
PartiesFEDERAL ELECTION COMMISSION, Petitioner, v. The LAROUCHE CAMPAIGN, INC., Respondent.
CourtU.S. District Court — Southern District of New York

Federal Election Com'n, Washington, D.C., Charles N. Steele, Gen. Counsel, Ivan Rivera, Asst. Gen. Counsel (Michael A. Dymersky, of counsel), for petitioner.

Anderson & Associates, P.C., Boston, Mass. (Odin P. Anderson, Robert L. Rossi, Tracy Roach, Boston, Mass., Mayer Morganroth, New York City, of counsel), for respondent.

OPINION AND ORDER

STANTON, District Judge.

Petitioner Federal Election Commission (the "FEC" or "Commission") has applied pursuant to 2 U.S.C. § 437d(b) for enforcement of its combined subpoena and order issued to respondent The LaRouche Campaign ("TLC") in connection with the Commission's investigation into possible violations by TLC of the Federal Election Campaign Act, as amended, 2 U.S.C. § 431 et seq., ("the Act") and the Presidential Primary Matching Payment Account Act, as amended, 26 U.S.C. § 9031 et seq., ("the Matching Fund Act"). In opposition TLC makes numerous arguments, primarily challenging the Commission's purpose and motivations for its investigations of TLC, which have been addressed and disposed of today in this court's decision in Spannaus v. Federal Election Commission, 641 F.Supp. 1520 (S.D.N.Y., 1986). To be addressed here is TLC's remaining assertion that the subpoena and order are too broad, in violation of TLC's First Amendment rights.

On December 21, 1984 the Commission opened MUR 1852 and commenced an investigation, after finding reason to believe that TLC had violated the Act and Matching Fund Act by (1) reporting as contributors persons who had not intended to make contributions or loans to TLC, (2) including in its reports to the Commission debts which were incurred without the consent of the creditors, and (3) presenting the Commission with information that misrepresented the intent of individuals listed as contributors and lenders and the totals of monies received. See 2 U.S.C. § 437g(a)(2). The Commission's "reason to believe" finding is based on irregularities discovered during the course of an audit of TLC, as well as on other complaints filed with the FEC. In connection with its investigation the Commission issued a combined subpoena and order requiring TLC to produce documents and other materials and to answer written questions. See 2 U.S.C. § 437d(a)(1) and (3). TLC moved to quash the subpoena and order. The Commission denied the motion and demanded compliance. When TLC failed to respond, the Commission made this application.

Background

"A district court's review of an administrative subpoena is `extremely limited,' `extremely narrow,' and of `a summary nature.'" N.L.R.B. v. North American Van Lines, Inc., 611 F.Supp. 760, 763 (N.D. Ind.1985); Fed. Elec. Com'n v. Los Angeles Labor Committee, 648 F.Supp. 523, (C.D.Cal.1986). A court should enforce an administrative subpoena where the inquiry is for a proper purpose, the information sought is relevant to that purpose and the statutory procedures are observed. See United States v. Powell, 379 U.S. 48, 57-58, 85 S.Ct. 248, 254-255, 13 L.Ed.2d 112 (1964); United States v. Morton Salt Co., 338 U.S. 632, 70 S.Ct. 357, 94 L.Ed. 401 (1950); Fed. Elec. Com'n v. Citizens For LaRouche, No. 80-0203, slip op. at 3 (D.C. D.C. September 30, 1980). Where the Commission's demand for information will implicate a protected First Amendment interest, it must proffer a compelling governmental interest before the court will compel disclosure. NAACP v. Alabama, 357 U.S. 449, 463, 78 S.Ct. 1163, 1172, 2 L.Ed.2d 1488 (1958); Buckley v. Valeo, 424 U.S. 1, 64-66, 96 S.Ct. 612, 656-657, 46 L.Ed.2d 659 (1976); Federal Elec. Com'n v. Machinists Non-Partisan Political League, 655 F.2d 380, 389 (D.C.Cir.), cert. denied, 454 U.S. 897, 102 S.Ct. 397, 70 L.Ed.2d 213 (1981).

Here the inquiry has a legitimate purpose. The Commission administers and enforces the Act and the Matching Fund Act, and it is pursuant to that responsibility that it is investigating TLC. This court determined today in Spannaus v. Fed. Elec. Com'n, 641 F.Supp. 1520 that that investigation is a legitimate exercise of the Commission's statutory authority, and that the Commission has observed its procedural guidelines. By the affirmative vote of at least four of its members, the Commission found reason to believe that TLC has violated or is about to violate the statutes by reporting and providing to the Commission false information concerning contributions and loans. 2 U.S.C. § 437g(a)(2). The subpoena and order seek information to determine whether those violations will be proven. The subpoena and order were properly issued in compliance with the statute, 2 U.S.C. § 437d(a)(1) and (3), which state that "the Commission has the power ... to require by ... order ... such written reports and answers to questions as the Commission may prescribe ... and ... to require by subpena sic ... the production of all documentary evidence relating to the execution of its duties".

TLC asserts, however, that "this information is protected by the First Amendment and disclosure should not be compelled without a showing of a compelling interest and strict adherence to procedural safeguards." Plt.Mem. in Opp. at 12. In particular, TLC opposes disclosure to the FEC of the identities of its members, volunteers and supporters. It claims that "those identified as actual or potential supporters of the campaign will suffer detriment to their privacy and associational rights" and that "TLC will suffer similar detriment to its ability to retire its campaign debt and otherwise seek support for and express its political views." Id. at 14.

Discussion

"The Supreme Court has held that the compelled disclosure of an individual's affiliation with an organization may, standing alone, constitute a serious intrusion on the First Amendment right to privacy of association and belief." Jones v. Unknown Agents of the Fed. Elec. Com'n, 613 F.2d 864, 874 (D.C.Cir.1979), cert. denied, 444 U.S. 1074, 100 S.Ct. 1019, 62 L.Ed.2d 755 (1980) (discussing NAACP v. Alabama, 357 U.S. 449, 78 S.Ct. 1163, 2 L.Ed.2d 1488). "The right to political association is implicated in the compelled disclosure not only of organization ties, but also of campaign contributions." Ibid. An individual's associational interests, however, must give way when the governmental interest in requiring disclosure is sufficiently compelling. Buckley v. Valeo, 424 U.S. at 64, 96 S.Ct. at 656; see Fed. Elec. Com'n v. Machinists Non-Partisan Political League, 655 F.2d at 389.

The investigation being pursuant to statutory authority, "a compelling interest" is shown. Fed. Elec. Com'n v. Machinists Non-Partisan Political League, 655 F.2d at 389; Fed. Elec. Com'n v. Citizens for Freeman, 602 F.Supp. 1250, 1251 (D.Md. 1985). The FEC's interest in obtaining information to determine whether TLC violated the Act by reporting and providing to the FEC false information concerning contributions and loans is sufficiently compelling to justify requiring disclosure of actual solicitors and contributors, but no (at least on any showing made here) of potential contributors and lenders. Compare Jones v. Unknown Agents of the Fed. Elec. Com'n, 613 F.2d at 875 (government's compelling interest in enforcing the Act would be undermined if a candidate or his authorized committee were maintaining records of fraudulent campaign contributions).

TLC correctly asserts that a court must be particularly mindful of potential damage to associational interests when enforcing a subpoena against minor political parties and their members. Buckley v. Valeo, 424 U.S. at 71, 96 S.Ct. at 659. But even so, "the governmental interests underlying the disclosure provisions of the Federal Election Campaign Act are sufficiently compelling to outweigh the possible harm to the associational rights of minor parties and their members", Jones v. Unknown Agents of the Fed. Elec. Com'n, 613 F.2d at 877, unless an organization can make a showing similar to that made in NAACP v. Alabama...

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