Rqnd Delivers STATE OF RHODE ISLAND BEFORE THE RHODE ISLAND ETHICS COMMISSION INRE: Give CHimenpo Complaint No. _QOIZ-1 Respondent (For Office Use Only) COMPLAINT The undersigned Complainant(s) files this Complaint in the public interest and requests that the Rhode Island Ethics Commission conduct an investigation into certain conduct and activities of the above-named Respondent, for the purpose of determining whether said Respondent has violated the Rhode Island Code of Ethics. To the best of my(our) information and belief, said Respondent has violated the Rhode Island Code of Ethics as follows: 1. Respondent is: (Please check one and fill in Respondent's title) _Va state or municipal elected official: _Govétnoe® __~astate or municipal appointed official: “an employee of state or local government or of a board, commission or agency: 2. The Respondent's home or business address is (include telephone number if known): Name OCF €.CE OF THE GovE ewe Tel. No Gen Z22-20F0 Street 2 Smith Sreeer City and State: PFEanp ence” (Set forth below in separately numbered paragraphs each specific act complained of including the time and place of its occurrence.) 3. Please Se€ AtwcHeD “aetnere A” GIWY 21/834 Bt clDATE: Feloy: ao4 \2, Zorg ature of Complainant randen S: Betl in his Print Name Capecity as Cheemen ard Presiding oe £T Ceeusicay Pair, Address One Owl Squve, Pt Prvidenu ee ergo (Hey 804- Fe60 Telephone Number State of Rhode Island County of _Providense Subscribed and sworn to by the above-signed at Provider) ¢& before me this 1A HA day of February 2008, ¢ b, NOTARY PYBLIC A ution My Commission Expires: 9//24 ' 2 oat (SEAL) ‘SHERILYN GUTIERREZ Neatary Pubic ~ Rhode isla ‘Notary 10 760202 My Commission Expites Jan 2¢, 2024EXHIBIT A—ACT OF COMPLAINT BEFORE THE RHODE ISLAND ETHICS COMMISSION MEMORANDUM IN SUPPORT OF COMPLAINT AGAINST GOVERNOR GINA RAIMONDO POTENTIAL VIOLATION: Governor Gina Raimondo appears to have violated Regulation 36- 14-5011 regarding financial transactions with subordinates. Governor Raimondo’s campaign entered into an unusual financial arrangement with the Providence Democratic City Committee involving the solicitation of campaign donations designed to benefit Governor Raimondo’s re- election. Patrick Ward, Chairman of the Providence Democratic City Committee at the time the arrangement was approved, is a state employee in an executive branch agency over whom Governor Raimondo exercises supervisor authority. FACTUAL BACKGROUND: In February 2017, Patrick Ward was elected Chairman of the Democratic Providence City Committee. About four months later, in June 2017, Patrick Ward ‘was hired by the Raimondo administration to a position in the R.1. Department of Human Services, an executive branch state agency? About seven months later, Ward and some undisclosed members of the executive board of the Providence Democratic City Committee approved an “agreement of mutual support” with Governor Raimondo’s campaign, which included “fundraising support” with the intention of “doing whatever is needed to elect Democrats” including Governor Raimondo.’ Prior to the meeting, members of executive board of the Providence Democratic City Committee were not informed they would be considering the ' “Patrick Ward elected to lead Providence Democrats” (WPRI 2/16/17). 2 “Raimondo, Providence Democrats in fundraising agreement” (ProJo 2/6/18). > “Providence Democrats have fundraising agreement with Gov. Raimondo’s campaign” (WPRI 2/5/18).agreement with Governor Raimondo’s campaign.4 Furthermore, Ward refused to disclose who voted for the agreement or produce a copy of the agreement.’ The R.I. Republican Party called for the release of the agreement and questioned whether the arrangement between Raimondo’s campaign and an organization fed by one of her subordinate state employees complied with RI. ethies laws. The next day, Democratic members of the Providence City Council began to call on Ward to resign due to an image Ward briefly posted on a facebook page two months earlier which compared to two members of the City Council to characters from The Godfather: Part II. Two days later, Ward resigned as chairman of the Democratic Providence City Committee. RELEVANT LAWS: (a) No person subject to the Code of Ethics shall engage in a financial transaction, including giving or receiving ... monetary contributions ... with a subordinate ... for which, in the official's or employee's official duties and responsibilities, he or she exercises supervisory responsibilities, unless (1) the financial transaction is in the normal course of a regular commercial business or occupation, (2) the subordinate or person or business described above offers or initiates the financial transaction ... (0) No person subject to the Code of Ethics shall solicit or request, directly or through a surrogate, political contributions, from a subordinate for whom, in the official's or employee’s official duties and responsibilities, he or she exercises supervisory responsi * “Questions raised about Gov. Reimondo'sfundrsing agreement with Providence Democrats” ( WPRI 2/6/18. id “id.(©) For purposes of this regulation, “subordinate” means an employce, contractor, consultant, or appointed official of the official's or employee's agency. Gen. Laws § 36- 3) "Business associate" means a person joined together with another person to achieve a common financial objective LEGAL ARGUMENT: ‘Ward, an employee of an executive state agency, is a subordinate of Governor Raimondo pursuant to Regulation 36-14-5011(c). Governor Raimondo's campaign acts as an agent for Governor Raimondo. Ward, as chairman of the Providence Democratic City Committee, and the other party officers who affect the financial directives of that party committee, are business associates. See e.g., A.O. 2006-50; A.O. 2004-01; A.O. 2001-72 A.0. 99-33. The Raimondo campaign and Ward's Providence Democratic City Committee have entered into an “agreement of mutual support” which includes “fundraising support” and is designed to do “whatever is needed to elect” Raimondo and others. Although the agreement has not been made public, it is apparent that under this agreement, the Raimondo campaign and Ward’s Providence Democratic City Committee share common financial objectives. Under R1G.L. § 36-14-2 (3), a “business another person to achieve 4 common associate” is defined as a “person joined together financial objective.” Through this agreement, Raimondo became a business associate with her subordinate state employee, Ward, in a “financial transaction” under Regulation 36-14-501 1(a).. Regulation 36-14-5011 prohibits Raimondo from engaging “in a financial transaction, including ... giving or receiving ... monetary contributions ... with a subordinate ... for which, inthe official's or employee's official duties and responsibilities, he or she exercises supervisory responsibilities.” The agreement between Raimondo’s campaign and Ward's Providence Democratic City Committee involve “monetary contributions” in the form of fundraising for campaign contributions.” As a result, it appears the agreement between Raimondo’s campaign and Ward’s Providence Democratic City Committee Raimondo violates Regulation 36-14-5011. For this agreement not to violate Regulation 36-14-5011(a), Raimondo must show that “(1) the financial transaction is in the normal course of a regular commercial business or occupation,” or “(2) the subordinate or person or business described above offers or initiates the financial transaction ...”. Neither exception is likely applicable here. The first exception is not applicable, Joint fundraising agreements between an incumbent Govemor and his or her political party are not uncommon. However, in this case, Governor Raimondo’s campaign has not entered into joint fundraising agreement with the R.1. Democratic Party, which would be the “normal” approach. Rather than enter info an agreement with the state party committee whose chairman is a state legislator, Governor Raimondo made the unusual decision to enter into an agreement with a local party committee, whose chairman was a subordinate state employee over whom she has control. Furthermore, the agreement was approved under secretive circumstances. There was nothing “normal” or “regular” about this financial transaction between Raimondo’s campaign and Ward's Providence Democratic City Committee. "The Guide tothe Code of Ethis specifically states:“You may not engage in a financial transaction, including private employment, loans, monetary, political or charitable contributions with an employee, contractor, or consultant over whom you exercise supervisory responsibilities.” it should be noted that joint fundraising agreements between a state party and a gubernatorial cempaign has led to fundraising practices, which violated campeign finance law. “SEEC Oks record $325,000 seitlement in Malloy campaign case” CT Miror (6/15/16).The second exception is likely not applicable as well. It is unlikely that Ward would have initiated or proposed such an agreement to Governor Raimondo or her campaign agents. Ward is not a sophisticated political operative or a seasoned fundraiser. During Ward’s chairmanship in 2017, the Democratic Providence City Committee raised less than $2,000 and had $122 in its campaign account at the end of 2017.? In all likelihood, the proposal to enter into this financial arrangement was initiated by a seasoned political operative involved in the Raimondo campaign or her administration.! The RJ. Ethies Commission should obtain further information from everyone involved in this arrangement including all electronie correspondence and text messages between Ward and Raimondo agents to determine who initiated this financial arrangement. If in its investigation, the R.I. Ethics Commission obtains evidence that the agreement was initiated by an agent of Raimondo, then there could also be a violation of Regulation 36-14- 5011(b), which prohibits Raimondo from soliciting or requesting, “directly or through a surrogate, political contributions, from a subordinate.”!! In this case, the solicitation for a contribution would be not only be directly from the subordinate, but for the subordinate to solicit others to make contributions in order to benefit Governor Raimondo in some manner under the agreement. CONCLUSION It is petitioner’s contention that there is sufficient information for the RI. Ethics Commission to initiate an investigation and to gather evidence in order to determine if Governor ° R11 Board of Elections Campaign Finance Reports '° It should be noted Governor Raimondo’s campaign manager, Jonathan Blair, would have been familiar with the fundraising agreement between the Connecticut Democratic Party and the Malloy eampaign. “Raimondo Hiring Jonathan Blair As Campaign Manager" (RIPR 11/1/17), "" It should be noted that the solicitation of classified state employees for campaign donations appears to violate RALG.L. § 36-4-53; and is subject to the penalties of RLG.L, § 36-4-56.Gina Raimondo, either directly or through her agents, violated Regulation 36-14-5011 in relation to the agreement reached between her campaign and the Providence Democratic City Committee, when Patrick Ward, her subordinate state employee, was the organization's chairman.