Patterson: Where’s the money?

MONTROSE — County Commissioner Bill Patterson hit the committee seeking his recall with an allegation of his own.

In a letter sent Tuesday to the Colorado Secretary of State, Patterson's attorneys allege the recall committee violated the Fair Campaign Practices Act by failing to disclose contributions and expenditures as required under statute.

"From what we have available, it would appear there has been a significant violation," Patterson's private attorney David Reed said Wednesday.

"We feel this is a very justified claim and the recall committee — who complains about Mr. Patterson's activities as violating the law — has clearly violated the law in failing to properly report their income and expenditures."

Patterson wants an administrative law judge to hear his case and, if necessary, issue a subpoena for the Patterson Recall Committee's records.

Patterson Recall Committee attorney Mark Haynes said Wednesday he hadn't yet seen the letter, which was mailed to him Tuesday. He could not be reached for additional comment after the letter was faxed to him.

Businessmen Al Head, Joe Goecke and Mike Gordon began recall attempts against Patterson in late May, which were announced at a luncheon by Rep. Ray Rose, R-Montrose. The men alleged Patterson exerted undue influence over county airport finances.

Rose turned over their allegations to the district attorney's office, which sent them away for independent legal review. The La Plata County district attorney subsequently found no basis for a criminal investigation.

The county clerk ruled in August the committee failed to turn in enough signatures to place the recall question on the ballot; the Patterson Recall Committee protested the decision and has since filed suit against the clerk.

The Patterson Recall Committee is listed with the SOS as an issue committee, which must disclose contributions and expenditures under Colorado law.

There is also a nonprofit corporation registered with the SOS under the same name, which is subject to different reporting requirements with the Internal Revenue Service. The nonprofit would have to make public its form 990, which does not have to be filed until four and a half months after the close of the corporation's fiscal year.

"This was an election," Patterson said Wednesday. "Once they have taken out a petition for recall, then they have to report it in the same way as an election concern."

The Patterson recall issue committee filed a report in July, listing $14,300 in contributions from Kienholz-Miller and Co., a Montrose-area real estate agency. That report lists expenditures of the same amount, leaving a balance of $0. Subsequent reports filed Aug. 15, Sept. 10 and Oct. 10 list $0 in expenditures and contributions.

"Upon information and belief, the recall committee has violated (statute) by failing to disclose contributions received and expenditures made from July 12, 2007, through the present, and by failing to timely file its October report," the letter of complaint alleged.

Patterson said he suspects the committee has been spending money on recall efforts, including for petition circulators, who, according to Head's Sept. 7 testimony during the protest hearing, were paid.

"Yet none of the recall committee reports identify these expenditures, nor the source of funds used to make them," the letter said. "Nor do the recall committee reports set forth the amount they have expended in legal fees."

The SOS Campaign Finance division will review the letter and then has three days to either ask for additional information or to send it on to an administrative law judge.

"Right now, all we can do is say we have this proof they (committee) violated the act and they need to come forward and provide the information," Patterson said.

"If they don't, we do ask for subpoena powers to obtain that information."