Mystery donation to PAC for Romney draws scrutiny

Company existed for only 4 months before dissolving

August 05, 2011|By Donovan Slack, Globe Staff

WASHINGTON - A $1 million contribution from an obscure firm to a political action committee run by former aides of Republican presidential candidate Mitt Romney prompted calls for an inquiry and concern among campaign finance specialists that the donor may be trying to circumvent federal law.

W Spann LLC gave the donation just 44 days after it was formed and 75 days before it was dissolved. It was unclear in what kind of business, if any, the firm had been involved. Corporate registration records do not list the names of the company’s owners.

“If there’s evidence that the intent was to route the money through a shell solely to hide the identity of the contributor, that’s illegal,’’ said Paul S. Ryan, associate legal counsel of the Campaign Legal Center, a nonpartisan nonprofit based in Washington, D.C.

Records show W Spann gave the money April 28 to Restore Our Future, a committee formed by Romney’s former political, legal, financial, and media advisers.

A spokeswoman for the committee, Brittany Gross, declined yesterday to reveal the identities of anyone associated with W Spann, saying the law only requires disclosure of the company’s name.

“Restore Our Future has fully complied with all FEC regulations, including publicly disclosing donors on our July 31 report,’’ Gross said in a statement.

Restore Our Future is a Super PAC, meaning it can take unlimited amounts from corporations, unions, and individuals and spend unlimited amounts to influence campaigns. It must spend that money independently, meaning the group cannot coordinate with a candidate’s campaign. And it must disclose the names of its donors.

Ryan said it is an example of the new types of groups that have cropped up since a Supreme Court decision last year allowed corporations and labor groups to spend unlimited amounts influencing campaigns.

But he said it remains illegal to set up a different name - whether that of a company or individual - to shield one’s true identity when funneling money to a political candidate or committee.

Ryan said the W Spann arrangement would be legal if the company did legitimate business, made $1 million during the four months it was open, and its board members then decided to give that money to Restore Our Future.

“I’m having a hard time envisioning that,’’ he said.

NBC News, which first reported the contribution, said records show the company was formed by Boston lawyer Cameron Casey of Ropes & Gray. Casey incorporated it in Delaware and registered it with an address on Madison Avenue in New York. NBC also reported that Bain Capital, a Ropes & Gray client that was cofounded by Romney, has offices at the same address.

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