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Stiff fine looms for a losing campaign

A federal agency says a former congressional candidate illegally paid his campaign from his own companies' bank accounts.

By COLLEEN JENKINS
Published January 12, 2006

The Federal Election Commission wants Chuck Kalogianis to pay more than $50,000 in fines for accepting illegal corporate campaign contributions and failing to properly disclose them during his unsuccessful 2002 congressional bid.

Kalogianis' reaction: Bring it on.

"This is so ridiculous," he said. "It's beyond absurd."

The commission filed suit against the New Port Richey attorney in federal court in Tampa on Wednesday. In it, the regulating agency said Kalogianis' campaign violated federal election law by taking six loans totaling $54,528 from two corporations owned by the candidate: Kalogianis & Associates, his law firm, and Liberty Title Agency, which he has since sold.

Then, the commission alleges, the campaign disclosed the money as loans coming from Kalogianis rather than his corporations. Coming from him, the money would have been legitimate - but from his companies, a no-no.

The campaign also did not spend any money for administrative and overhead expenses, illegally operating out of Kalogianis' law firm at no charge to the campaign committee, the lawsuit said.

All of which Kalogianis admitted when reached at his home Wednesday evening.

"I haven't done anything wrong other than being a first-time novice congressional candidate," he said. "If that's my crime, then I'm guilty."

Kalogianis, a Democrat, entered the campaign for U.S. Rep. Mike Bilirakis' 9th District seat in early 2001 and immediately began contributing his own money. Between January and June 2001, Kalogianis wrote multiple checks from his two corporate bank accounts. His treasurer, Patricia Jones, a local certified public accountant who volunteered her time to the campaign, disclosed the loans in public filings.

The FEC noticed during the campaign that the candidate was contributing money through his companies and informed him of the problem, Kalogianis said. He said the campaign quickly made efforts to correct its mistake.

Kalogianis lost the race to Bilirakis. But in December 2004, he and Jones got letters informing them the FEC was investigating their alleged campaign violations, the lawsuit said. In November, the commission sought to negotiate a settlement, which Kalogianis said Wednesday he rejected.

"Nobody likes getting sued," he said. "But at some point . . . enough is enough."

Jones, who also is named in the suit, could not be reached Wednesday evening. She, too, could face fines, and the commission is asking her to file corrected finance reports.

The campaign was Kalogianis' second foray into politics. In 1998, he lost to then-state Rep. Mike Fasano but gained notoriety when it was revealed he had worked as a male stripper during law school.

He said he understands the reasons behind federal election rules prohibiting corporate contributions. However, he said the fact that some of his early money came from corporations in which he is the sole shareholder should be viewed as a harmless technical violation.

If he had not reported the money as coming from his businesses, the elections commission never would have known, he said.

"It was all Chuck's money," he said. "Instead of taking it out of my own personal checking account, . . . I took it from my business account and put it in the campaign. But the bottom line is: It's my money. One hundred percent my money.

"It's Chuck. It's not anybody influencing Chuck."

Colleen Jenkins covers courts in west Pasco County. She can be reached in west Pasco at 869-6236 or toll-free at 1-800-333-7505, ext. 6236. Her e-mail address is cjenkins@sptimes.com

[Last modified January 12, 2006, 01:24:27]