RECEIVED OCT 2 3 2020 wo OHIO ELECTIONS case# 2929S COMPLAINT To THE OWISEEEETPONS COMMISSION FROM: Secretary of State Frank LaRose ADDRESS: 22 North Fourth Street, 15" Floor Columbus, Ohio 43215 TELEPHONI 614-728-6855 NAME OF INDIVIDUAL: Representative Larry Householder 3825 Twp. Rd. 19 Glenford, Ohio 43739 NAME OF ENTITY: Friends of Larry Householder 207 N Market St. Somerset, Ohio 43783 NAME OF TREASURER: Gary A. Wills, Treasurer Friends of Larry Householder 207 N. Market St. Somerset, Ohio 43783 THE ABOVE NAMED PERSONS OR ENTITIES ARE BEING REFERRED TO THE COMMISSION PURSUANT TO OHIO REVISED CODE SECTIONS 3517.153 BECAUSE OF THE FOLLOWING APPARENT OR ALLEGED VIOLATION(S) OF THE LAW. REN’ As to Campaign Committee — Friends of Larry Householder: (1) No beneficiary of a campaign fund or other person shall convert for personal use, and no person shall knowingly give to a beneficiary ofa campaign fund or any other person, for the beneficiary's or any other person's personal use, anything of value from the beneficiary's campaign fund, including, without limitation, payments to a beneficiary for services the beneficiary personally performs, except as reimbursement for any of the following: (1) Legitimate and verifiable prior campaign expenses incurred by the beneficiary; (2) Legitimate and verifiable ordinary and necessary prior expenses incurred by the beneficiary in connection with duties as the holder of a public office, including, without limitation, expenses incurred through participation in nonpartisan or bipartisan events if the participation of the holder of a public office would notmally be expected... (R.C. 3517.13(0)).As to Individual — Representative Larry Householder: (2) No beneficiary of a campaign fund or other person shall convert for personal use, and no person shall knowingly give to a beneficiary of a campaign fund or any other person, for the beneficiary's or any other person's personal use, anything of value from the beneficiary's campaign fund... (R.C. 3517.13(0)) INFORMATION REGARDING THE REFERRAL! In Ohio Election Commission Advisory Opinion 96ELC-08, the Commission held: The Ohio Elections Commission has issued 6 separate opinions on the propriety of paying legal fees from campaign funds in consideration of the restrictions on the use of campaign funds contained in Ohio Revised Code Section 3517.13(O). In five of those opinions, the ‘Commission has focused on the legitimacy test as the critical element in determining whether such an expense is allowable on behalf of a candidate. In Ohio Elections Commission Advisory Opinion 87-9 (Op. 87-9), the Commission defined a “legitimate” expense as one which is truly or validly related to a purpose set forth in RC. §3517.13(0). To be true or valid, an expense must conform to recognized principles or accepted standards. R-C. §3517.13(O)(2) requires that an expenditure be related to the duties of the public office. Therefore, a proper campaign expense must be related, according 10 recognized principles or accepted standards, to a duty of the public office. Also in [Op. 87-9], the Commission stated that... [a]n officeholder’s duties do not include defending himself or herself against charges of criminal conduct. Therefore, any expenses incurred in such defense are not legitimate expenses related to the duties of the public office and may not be paid for from the officeholder's campaign funds. For the reasons stated herein, itis the opinion of the Ohio Elections Commission, and you are so advised, that an expenditure for legal fees to defend against criminal charges is not «an appropriate use of campaign funds on behalf of the officeholder. Following the Federal Bureau of Investigation’s Criminal Complaint,! a federal Grand Jury indicted Representative Larry Householder, along with four others, for an alleged conspiracy that funneled money to benefit Representative Householder personally and politically from interested businesses in exchange for the passage and defense of legislation.’ Ohio Secretary of State Frank LaRose filed two Complaints with the Ohio Elections Commission containing allegations that Friends of Larry Householder and Representative Houeholder, individually, violated Ohio's campaign finance laws.> + See Pursuant to Criminal Complaint United States of America v. Larry Householder, Case No. 1:20-MJ-00526, (July 17, 2020 S.D. Ohio) 2 See United States of America v. Larry Householder, Case No. 1:20-c1-00077, (July 30,2020 S.D. Ohio). ¥ See OFC case 20208-001, filed July 21, 2020, and case 20208-0083, filed August 27, 2020, 2Friends of Larry Householder Treasurer, Gary Wills, contacted the Ohio Secretary of State’s Office on or about July 31, 2020, asking, inter alia, “what are the rules for paying Larry’s attorney fees now that he has been indicted?” Citing the inability to give legal advice the Secretary of State’s Director of Campaign Finance refused to answer the question, but provided a copy of Advisory Opinion 96ELC-08 for the committee to seek legal counsel for their own interpreptatior Nevertheless, in violation of R.C. 3517.13(0), Representative Householder utilized campaign funds to employ attorneys from a law firm as legal counsel related to the criminal charges, making a payment to the firm on July 16, 2020 in the amount of $106,124.25. On or about August 3, 2020, the attorneys for ‘Householder moved to withdraw from representation citing a potential conflict of interest.” On or about September 2, 2020, Representative Householder utilized campaign funds to hire two new law firms as legal representation in the criminal proceedings and in front of the Ohio Election Commission. Law firm one received $660,000.00: law firm two received $260,000. Representative Householder also used campaign funds to pay $126.00 in wire fees to the Community Bank related to those impermissible expenditures. Finally, in violation of R.C. 3517.13(O), Representative Householder, the beneficiary of the Friends of Larry Householder committee, converted for personal use at least $1,026,250.25 in Friends of Larry Householder campaign funds for personal legal fees not related to influencing an election or the duties of public office. THE DESIGNATION OF TREASURER, RELEVANT PAGES OF THE CAMPAIGN FINANCE REPORT. AND EXPENDITURE VERIFICATION, CORRESPONDENCE, AND OTHER INFORMATION ATTACHED HERETO IS INCORPORATED HEREIN BY REFERENCE FOR THE CONSIDERATION OF THE COMMISSIO: Yours in service, BAK baw Frank LaRose Ohio Secretary of State «See Exhibit A. 5 See id. 6 See Exhibit B. * Soe Exhibit C. * See Exhibit D. See Exhibit E.Page 1 From: “Katz, Brian" To: *Gary Wills’ Date: 8/7/2020 6:00:53 AM Subject: RE: Campaign Finance questions Good morning Mr. Wills, Thank you for contacting our office. Regarding your 3 questions below which | would summarize in 2 questions as ‘L. May a candidate committee refund contributions? 2, Can a candidate committee utlize campaign funds to pay criminal defense legal fees? | must respectfully refuse to answer as those question require legal interpretation of Ohio's laws and our office would not be the final authority if our opinion was challenged, I can direct you tothe following two Ohio Elections Commission opinions for you and your legal counsel to determine if they apply to your specific circumstances, 2. Ohio Elections Commission Opinion 99€LC-03: http:/ele. ohio gov/AdvisoryOpinion/AdvisoryOpinion/99E1C:03, ad 2. Ohio Election Commission Opinion 96ELC-08: hrtni/lc.ahio gov/Advisorpinion/9GELC-08. nat Respectfully, “Brian Katz 1B ren nate| oiectr of campaign Finance and Campaign Finance Counsel Frankk | ottice of the ohio Secretary of State LaRose ox61s7200055 Byte Onis Lt Confidentiality Notice: This message is intended for use only bythe individual or entity to whom or which its addressed and may contain information thats privileged, confidential and/or otherwise exempt from disclosure under applicable aw. the reader ofthis message Is not the intended recipient, oF the employee or agent responsible for delivering the message to the intended recipient, you are hereby notified that any dissemination, distribution or copying ef this communication is strictly prohibited. f you have receive this ‘communication in error, please notify me immediately by telephone. Thank you. From: Gary Wills Sent: Friday, July 31, 2020 7:32 aM Tor Kal, Bilan Subject: RE: Campaign Finance questions Me. Kata, Thanks for getting back with me, 1 have an issue with Friends of Householder that | need to amend the report for, maybe two reports need amended (n 6/7/20 the folks in Columbus received a check from Charles L. Lehnert. The check was forwarded to me as part of avery large: batch of checks. | deposited the check and reported a contribution on the 2019 semi-annual report, While getting the report ready to submit or around that time | realize that the check hac been made out to Citlzens for Haraz N. Ghanbari (On 7/24/19 | wrote a check to Haraz Ghanbar for Ohio to get the money where Mr. Lehnert has wanted to contribute. | showed the check as a contribution from Friends of Larry Householder to Haraz Ghanbar for Ohio on the 2019 annual report. | probably should have listed the payee as Heraz Ghanbar for Ohio (c/o Charles Lehnert) and listed the description "return of missed deposited check" My question forthe above is that how I should amend the 2019 annual report and do f need to amend the seml-annual report to show the miss deposited check ina different manner? if need to amend the semi-annual report how do | do that? Ihave copies of the incoming check end the outgoing check. On the check to Haraz Ghana for Ohio | sted Chatles Lehnert on the memo line. Here are several questions | anticipate I may need to know the answers for going forward: 1. If Thave a request for a previously made contribution to be refunded am | under any obligation to honor the request ori it upto me? 2 What ifthe request is made for @ contribution made for his birthday fundraiser and the fundraiser never happens does that change the answer? 3: What are the rules for paying Larry's attorney fees now that he has been indicted? Am allowed to pay those fees or amt forbidden from paying those fees? Ex.A, 10/23/2020Page 2 | appreciate your help. | want to make sure ll of this is done correctly historically and going forward. Thanks, Gary Brian {malto:bkatz@ahlosos Gov) Sent: Thursday, July 20, 2020 6:27 PM To: MRW_GARYWILLS@RROHIO.COM Subject: Campaign Finance questions Good afternoon Mr. Wils, | was forwarded your information and told you have campaign finance questions. How can |help? Respectfully, Brian Katz 1B sian xatz|virector of campaign Finance and Campaign Finance Counsel Frank | office of the ohio Secretary of State Ean. ad Confidentility Notice: This message isintended for use only by the individual or entity to whom or which its addressed and may contain Information that is privileged, confidential and/or otherwise exempt from disclosure under applicable law If the reader of this message is ‘not the intended recipient, or the employee or agent responsible for delivering the message to the Intended recplent, you are hereby ‘notified that any dissemination, cistribution or copying ofthis communication i strictly prohibited. if you have receved ths communication in error, please notfy me immediately by telephone. Thank you 10/23/2020,Ex. B1:20-cr-00077-TSB All Defendants USA v. Householder et al Date filed: 07/30/2020 Date of last filing: 09/15/2020 Attorneys Steven L. Bradley 526 Superior Avenue Suite 222 Cleveland, OH 44114 216-781-0722 ; 216-781-6010 (fax) representing Steve@MareinandBradley.com Assigned: 09/02/2020 LEAD ATTORNEY ATTORNEY TO BE NOTICED Donald Carl Brey Isaac Wiles Burkholder & Teetor, LLC Two Miranova Place Suite 700 Columbus, OH 43215-5098 614-221-2121 614-365-9516 (fax) dbrey@isaacwiles.com Assigned: 07/21/2020 TERMINATED: 08/03/2020 representing Mark C Cc Mark C Collins Co LPA 150 E. Mound Street Suite 308 Columbus, OH 43215 614-443-3100 representing 614-413-3902 (fax) mark@mecollinslaw.com Assigned: 07/21/2020 LEAD ATTORNEY ATTORNEY TO BE NOTICED Larry Householder @ (Defendant) Jeffrey Longstreth Q) (Defendant) Juan Cespedes (5) (Defendant) Exc‘Megan Gaffney U.S. Department of Justice USS. Attomey's Office 221 E. Fourth Street, Suite 400 Cincinnati, OH 45202 513-684-7351 513-684-6385 (fax) megan.gaffney@usdoj.gov Assigned: 08/06/2020 ATTORNEY TO BE NOTICED Emily N Glatfelter United States Attorney's Office 221 E. Fourth Street Suite 400 Cincinnati, OH 45202 513-684-3711 513-684-6385 (fax) emily.glatfelter@usdoj.gov Assigned: 07/30/2020 LEAD ATTORNEY ATTORNEY TO BE NOTICED William S. Ireland, 1 William S. Ireland, Attorney at Law 85 Liberty Street Columbus, OH 43215 614-444-1555 willirelandlaw@gmail.com Assigned: 07/21/2020 LEAD ATTORNEY ATTORNEY TO BE NOTICED Robert F Krapene 601 S. High Street Columbus, OH 43215 614-221-5252 614-224-7101 (fax) rkrapenc6772@wowway.com Assigned: 07/23/2020 LEAD ATTORNEY ATTORNEY TO BE NOTICED representing representing representing representing USA (Plaintifp USA. (Plaintiff) Neil Clark (3) (Defendant) Jeffrey Longstreth 2) (Defendant)Todd Aaron Long ‘MeNees Wallace & Nurick LLC 21 East State Street Suite, 1700 Columbus, OH 43215 ; 614-719-2853 representing. 614-469-4653 (fax) tlong@meneeslaw.com Assigned: 08/03/2020 ATTORNEY TO BE NOTICED Mark B. Marein 526 Superior Avenue Suite 222 Cleveland, OH 44114 216-781-0722 representing 216-781-6010 (fax) Mark@MareinandBradley.com Assigned: 09/02/2020 ATTORNEY TO BE NOTICED Nicholas R. Oleski 101 W. Prospect Ave. Suite 1800 Cleveland, OH 44115 216-696-1422 representing 216-696-1210 (fax) nro@mecarthylebit.com Assigned: 09/03/2020 ATTORNEY TO BE NOTICED Karl Herbert Schneider MeNees Wallace & Nurick LLC 21 Bast State Street Suite 1700 Columbus, OH 43215 614-719-2843 614-469-4653 (fax) Generation Now Inc ©) (Defendant) Matthew Borges (4) (Defendant) Larry Householder a) (Defendant) Larry Householder @ (Defendant) Matthew Borges (4) (Defendant)kschneider@meneeslaw.com Assigned: 07/21/2020 LEAD ATTORNEY ATTORNEY TO BE NOTICED ‘Matthew Charlos Singor US. Department of Justice USS. Attorney's Office, Southern District of Ohio 221 E. Fourth St., Suite 400 Cincinnati, OH 45202 513-684-3711 513-684-6385 (fax) matthew singer@usdoj.gov Assigned: 07/30/2020 LEAD ATTORNEY ATTORNEY TO BE NOTICED Kaitlyn C. Stephens 492 South High Street, 3rd Floor Columbus, OH 43206 614-443-3100 614-413-3902 (fax) kaitlyn@mcollinslaw.com Assigned: 09/15/2020 ATTORNEY TO BE NOTICED David H Thomas Taft Stettinius & Hollister LLP 65 E State St Suite 1000 Columbus, OH 43215 614-334-6199 614-228-0899 (fax) dthomas@taftlaw.com Assigned: 07/24/2020 TERMINATED: 09/02/2020 LEAD ATTORNEY ATTORNEY TO BE NOTICED representing representing representing USA (Plaintif) Juan Cespedes (5) (Defendant) Larry Householder a) (Defendant)Kathryn S. Wallrabenstein Taft Stettinius & Hollister LLP 65 East State Street Suite 1000 Columbus, OH 43215 (614) 220-0238 representing (614) 221-2007 (fax) kwallrabenstein@taftlaw.com Assigned: 07/24/2020 TERMINATED: 09/02/2020 ATTORNEY TO BE NOTICED Larry Householder a) (Defendant)Conan ay Tried and True. Enclosures: FRIENDS OF LARRY HOUSEHOLDER DBA CITZZENS FOR HOUSEHOLDER GARY A'WELLS TREASURER 207 w wanker STREET Somerset On 43765 Effective Monday, September 14, 2020, the bank will follow the minimum federal regulatory requirements for next day funds availabilly for over the counter branch teller deposits. In an effort to provide optimal service to our customers certain deposited items will have availablity of funds the same day but others will be next day. Next day availablity will be based on the BUSINESS day of the deposit, SHALL SUSINESS CHK Inage statenent Kecoune Number Engin EtatGpent Bates 9/01/20 shy 9/30/29 Previous satance 249 Bays. tn the. statenent pervad Soepesresieresies ETE 9 average Ladue 249,090, sgerld -sheeks/oebits 828,127: rig Bert GMa 240000 Interest pat Ending Satance 240,000:88 ‘9/02 THIRD PARTY SWEEP FROM DOA ~ 600,096.00 AD ACCOUNT NUMBER Ending 8388 9/08 ‘THIRD PARTY SWEEP FROM DDA 8,631.29 a0 yao gQUNT MBER Ending 8388 520 000.00 9/30 THIRD PARTY SHEEP FROM DDR 000.00 Ao in’ . ACCOUNT NUMBER Ending” #388 Doesn't shaw on Les 100,000.00 9/02 WIRE TRANSFER BCARTHY LEBIT CRYSTAL & LI 9/02 WIRE TRANSFER TO 500,000.00 MAREIN & BRADLEY 9/02 WERE TRANSFER FEE 30.00, Reer shut Ex.DWelty Labi Crysbal Aiousand ——————it mn n Bare 9/30/20 page 2 Britany’ Acéount**endin Enclastees —_ FRIENDS OF LARRY HOUSEHOLDER DBA CETIZENS FOR HOUSEHOLDER Somerset On| 43783 Effective Monday, September 14, 2020, the bank wil follow the minimum federal regulatory requirements for next day funds availabilty for over the counter branch teller deposits. In an effort to provide optimal service to our customers certain deposited items will have availability of funds the same day but others will be next day. Nex! day availablity will be based on the BUSINESS day of the deposit, SMALL BUSINESS CHK ‘Thage statement 6 Aecount. Number Soding MMM Statenent, Dates 9/02/20 rhru 9/30/28 Previous galance 349°990-09 Gays Tn'the stacenent period 0 Bpoosrssrecedits $28,727.29 Average Ledger 240,000 iecks/oebits 928;727128 average Collected 240,000 service charge 30 Interest pa 90 Ending BaTance 240,000:00 ‘9/02 THIRD PARTY SWEEP FRON ODA 600,096.00 aD ACCOUNT NUMBER Ending 8388 9/08 THIRD PARTY SWEEP FROM ODA 8,631.29 a0 ACCOUNT NUMBER Ending. 8388 9/30 THIRD PARTY SHEEP FROM DOA 320,000.00 AD <= Doesn't 5 on Dey. ACCOUNT NUMBER Ending 8388 Reer shut BSL eg eS Tae 9/02 WIRE TRANSFER TO 100,000.00 MCARTHY LEBET CRYSTAL & LI 9/02 WIRE TRANSFER TO 500,000.00 MAREIN'& BRADLEY 9/02 WIRE TRANSFER FEE 30.00 Ex.Eaad Community Bank’ ‘Tried and True pate 9/30/20 page 2 of Primary’ account >" endin enclosures = SHALL BUSINESS CH Ending MMM (Continued) 9/02 WIRE TRANSFER FEE 3 9/02 WIRE TRANSFER FEE 18:00 9/02 WIRE TRANSFER FEE 18:00 a ca Sees 3/08 5 8 5/36 eB 15 indicates skip in check hunber TESTE 3701 249,000.00 9408 240,000.00 3/82 348,889:88 3/88 340:088:88 *-Great rates on Home Equi! visit ue at wn. TheComBank. comRECEIVED OFFICE OF THE | as JAN 22 2019 . Designation of Treasurer onczecciaystst | ORI ae Ohio Socretary ots Fo 30.9 one 3517.10 ‘TYPE OF FILING: [] NEW poate li * COMMITTEE TYPE: [X] Candidate [] PAC (]PCE [J Political Party [Legislative Campaign Fund lr update, please check the appropriate reason(s): * IO) crarge of Comite Nome. PtorName vas: 1) coange ot Fig Lecter. Loan ws ‘ew Leaten IC) cnange ones sus Prevou fe Saupe New once Sout 1) ohange of ean ito Dy esignation or change of Deputy rasa io [© Change of adsenaprontomat © Comes ©) Trensuer ©) DeputyTmusuer Cane [Q Otter Pease Exam: Friends of Lamy Househokier SrootAdeross 1207 N. Market St, rtpnone {740-452-9424 Feasrer [Gary A. Wis Bree rose 207 N, Market St [Depa Treasure am) Lary Householder Sivek Aaareas oy sate ap 3825 Twp. Rd. 19 Glenford OH |43739 roe Suh State Representative © Comporation ‘Wot ue PAC at aie O_Notspensored ‘sis Baotisue PAC ist ay Afisted PACHPCES © Ye O No Lalo M-T7-14 Be Die WHWOBYYYA) —_Slgnature of Candidate W Candidate Gonmition ate WHUDONYYY) ast Updates 072017 Ex:F