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Spokane, Washington  Est. May 19, 1883

Chenoweth Says Fec Contacted Commission Has No Record; Attorney Claims She Misspoke

Associated Press

Still stinging from questions about a $40,000 bank loan to her campaign, Republican Congressman Helen Chenoweth asserted on Tuesday that it was obtained in conjunction with discussions with attorneys for campaign finance regulators at the Federal Election Commission.

But commission spokesman Ian Stirton said there was no record that the Chenoweth campaign ever sought a determination on whether the unsecured loan from West One Bank would be legal and without a formal written request for that determination no one on the commission staff could provide legal advice.

“The conclusion that this is an illegal loan is entirely wrong,” Chenoweth said during her weekly interview with KIDO radio in Boise.

“It’s totally legal, and we were in consultation with the lawyers at the FEC as we made the loan so there was nothing illegal about it or untoward,” Chenoweth told the radio station. “I wouldn’t want to do that because I think a person is as good as their word, and the day I can’t be relied on - because I’m a reliable person - is the day I should no longer be congressman.”

Stirton said routine inquiries from campaigns to the commission are fielded by the commission’s information division - a cadre of nonattorneys authorized only to restate what the commission regulations are and whether there have been any advisory legal opinions issued by the commission that might impact the area of inquiry.

“What our information division does not do is pass on specific answers to factual situations,” Stirton said. “If someone has some questions about what is to be done, they can request an advisory opinion from the commission and only the commissioners can give an advisory opinion.”

That request must be made in writing, Stirton said, and no written request was received from the Chenoweth campaign.

Later in the day, campaign attorney John Keenan said Chenoweth misspoke and meant to say that her campaign treasurer, Wayne Crow, had discussed the loan with lawyers for the National Republican Congressional Committee in Washington, the GOP’s U.S. House campaign organization.

“He talked to a gentleman back there, who said this is OK,” Keenan said. The loan was made at 10.25 percent last Nov. 23 on Chenoweth’s signature only with no specific collateral or method to guarantee repayment. It was carried for eight months on three different campaign finance disclosure statements as a personal, unsecured and unguaranteed loan from Chenoweth to the campaign.

Finally in August, after two $1,030 interest payments showed up on the midyear statement, Crow acknowledged that the loan was from West One Bank and an amended statement would be filed.

In mid-October, an amendment was filed declaring the loan was from West One but that it was not secured with collateral, guaranteed or subject to be repaid with future campaign contributions as required by Federal Election Commission regulations. Then last Friday, the Chenoweth campaign filed a completely revised midyear campaign finance disclosure statement that abruptly declared the loan secured and designated Chenoweth as the guarantor.