April 10, 2005 in City

Judge finds Eyman got hidden salary

Associated Press

EVERETT – Initiative maven Tim Eyman and his treasurer created a sham corporation in 2000 to hide salary payments to Eyman, a Snohomish County judge has ruled.

Permanent Offense Inc. was used to conceal money Eyman drew as salary for work with his political action committee, also named Permanent Offense, Superior Court Judge Linda Krese said Friday.

Campaign treasurer Suzanne Karr of Everett participated in a deliberate attempt to circumvent state public disclosure laws, Krese said. The judge identified six public-disclosure violations by Karr, which could result in her being fined as much as $22,000.

The ruling came in a lawsuit filed by the state Public Disclosure Commission against Eyman, Permanent Offense and Karr for campaign-reporting violations from 2000 to 2002.

Eyman and Permanent Offense settled out of court in 2002, agreeing to pay $53,000 in penalties. He also agreed to a permanent ban on handling political action committee money.

Karr, the only defendant left, represented herself in her recent two-day trial. She quit the committee as treasurer in late 2000.

Eyman’s political career was launched with the successful Initiative 695, the $30 car-tab measure voters approved in 1999. He and Karr established the corporation in February 2000, which allowed them to bill the political action committee for their services.

Krese scheduled a hearing May 13 to determine Karr’s fine.

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