Second lawsuit filed regarding political calls

Clark County

Discussion

September 26, 2006

So-called ‘stealth PAC’ says it will review the law

By DAVID MANN The News and Tribune Tue Sep 26, 2006, 02:40 PM EDT

The state has filed a another lawsuit against a company making automated political phone calls to Indiana residents — only this time the calls were excoriating incumbent Republican Mike Sodrel.

According to Indiana Attorney General Steve Carter, the group — an organization known as American Family Voices — violated an Indiana law which forbids the use of unsolicited, automated phone calls.

“I’m hopeful groups are getting the message that enforcement is happening in Indiana for the benefit and personal privacy that all Hoosiers deserve from unwanted and illegal telephone messages,” said Carter.

Monday’s announcement comes just one week after a lawsuit was filed against the Economic Freedom Fund — a rightwing political action committee bankrolled by Texas millionaire Bob Perry, who funded the Swift Boat Veterans for Truth during the 2004 presidential election. The Economic Freedom Fund made calls in the district disparaging Sodrel’s Democratic challenger Baron Hill.

At least six complaints had been filed against American Family Voices for making the calls. The calls started last July, Carter said.

Since then Carter’s office has been able to gather enough information to take action.

The lawsuit was filed in Harrison County Court in Hill’s hometown of

Corydon. Despite that coincidence, Carter said, the group appeared to be acting independently and was not affiliated with the Hill campaign.

Similarly, the Economic Freedom Fund was not affiliated with the Sodrel Campaign.

Carter said he has been in contact with the group and they said they would look into the state law. A temporary injunction has also been filed in an effort to stop the group’s activities in the meantime.

Who is American Family Voices?

Because the group is a tax-exempt 501(C)(4) organization — unlike the freedom fund, which is a tax-exempt 527 organization — it’s donors and contributions are not subjected to public scrutiny.

The group is what’s known as a “stealth PAC” by campaign finance watchdogs.

According to Public Citizen, a consumer advocacy group, numerous nonprofit groups with 501(c) tax status exploit loose regulations and lax oversight to spend millions of dollars influencing elections while keeping secret the identities of their donors.

Public Citizen has compiled known information about American Family Voices. According to its report, the group was initially funded by the American Federation of State,County and Municipal Employees when it was founded in 2000.

It has since launched several media campaigns against President George Bush regarding his ties to what the group calls corporate corruption.

The Attorney General warned such groups against making automated calls last month as the campaign season began to heat up.

Carter said then that he knew it would be a contentious election season and wanted to make sure all potential callers were warned that Indiana would go after violators.

American Family Voices is the eighth company that the state has either filed suit against, or reached court-ordered agreements with, for alleged violations of federal or state statutes regulating automated and prerecorded calls.

Sodrel, Hill and Libertarian candidate Eric Schansberg are running for Indiana’s 9th District Congressional Seat.