Sharon Boyd, Editor/Publisher

April 24, 2002

Texas Ethics Commission to get sworn complaint against former Mayoral Candidate Tom Dunning on Wednesday in Austin

Dallas activist claims Dunning never fully disclosed payments to South Dallas political machine operative Kathy Nealy, despite his promises to do so

Austin, TX – Allen Gwinn, publisher of the Dallas NetActivism site Dallas.org, has filed a complaint with the Texas Ethics Commission against former Dallas Mayoral Candidate Tom Dunning.

The complaint is being filed at the Texas Ethics Commission’s office in Austin on Wednesday afternoon.

Gwinn is also speaking at the Sunset Commission Hearings in Austin this afternoon on the subject of Texas Ethics Commission.

Accoding to Gwinn –  In it’s 10 year-history, the TEC has received over 800 external sworn complaints. It has never initiated a staff generated complaint, never subpoenaed a witness, never subpoenaed a document, never conducted an audit, never made a criminal referral, and has held only one formal enforcement hearing. All other actions taken by the Commission have been conducted in secret.

The complaint alleges that during the recent Dallas Mayoral campaign, Dunning made payments "to others with the knowledge that such payments were intended for other than the recipients to whom the payment was made" and that Dunning has willfully withheld disclosing or reporting these expenditures as required by law.

According to Gwinn’s complaint, nearly 20% (more than $410,000) of Dunning’s campaign expenditures were paid to Kathy Nealy, recognized as a South Dallas get out the vote organizer, for Consulting Fees, Advertising Expenses, and Phone Bank operations. But Dunning refused to account for Nealy’s expenditures in detail, even after the campaign was concluded.

In accordance with the Act §253.001(b), a person may not knowingly make or authorize a political expenditure in the name of or on behalf of another unless the person discloses in writing to the person on whose behalf the expenditure is made the name and address of the person actually making the expenditure in order for the person on whose behalf the expenditure is made to make the proper disclosure.

SWORN COMPLAINT
BEFORE
THE TEXAS ETHICS COMMISSION

I. IDENTITY OF COMPLAINANT

I, R. ALLEN GWINN, JR. , complainant, hereby file this sworn complaint with the Texas Ethics Commission. My address is *Dallas, TX 75218 . My telephone number is ***.

II. IDENTITY OF RESPONDENT

The respondent is THOMAS DUNNING . The respondent holds the position or title of former candidate for Mayor of the City of Dallas . The last known address of respondent is 3232 McKinney Avenue, Suite 855, Dallas, TX 75204 . The last known telephone number of respondent is (214) 871-0783 (c/o Carole Young, campaign treasurer) .

III. NATURE OF ALLEGED VIOLATION

(Include the specific law or rule alleged to have been violated, if possible. The Texas Ethics Commission has jurisdiction to enforce only Chapters 302, 305 and 572 of the Government Code and Title 15 of the Election Code.)

The City of Dallas, Texas has on file sworn statements from respondent submitted on forms promulgated by the Texas Ethics Commission and identified as Form C/OH and accompanying schedules, for the time periods discussed below in Section IV. Based upon these sworn statements and additional statements and communications from respondent as discussed below in section IV, respondent appears to have violated TEX. ELEC. CODE, Title 15 (the "Act") as well as other applicable laws or rules. Respondent knowingly and willingly gave payments to others with the knowledge that such payments were intended for other than the recipients to whom payment was made. Sworn and unsworn statements and other communications were made by respondent with the intention of concealing the true recipient and purpose of the expense in contravention of the Act, as well as other applicable law. Additionally respondent, by his own statements, knowingly withheld disclosing these expenditures and failed to report the expenditures as required by law. These acts and omissions are in violation of the Act, §§253.001(b), 253.004(a), 254.231(a) and others, and may give rise to civil and/or criminal liability as specified in the Act.

IV. STATEMENT OF FACTS

(State the facts constituting the alleged violation, including the dates on which or the period of time in which the alleged violations occurred. Identify allegations of fact not personally known to the complainant but alleged on information and belief. Please use simple, concise, and direct statements.)

In accordance with the Act §253.001, a Candidate/Officeholder Report of Contributions, Expenditures and Loans and accompanying schedules (the "Campaign Report") must list, among other things, each expenditure, the name and address of the 

recipient, and the description of the purpose of the expense. The filing is to be sworn to under oath by the candidate.

Respondent filed three Campaign Reports associated with his bid for the office of Mayor of Dallas. Copies of the reports are attached hereto as Exhibits A, B and C. These reports disclose a total of $421,950 paid to recipient Kathy Nealy ("Nealy"). Nealy is an individual, and payments were made to Nealy at her home address. These payments represent approximately 20% of the total expenditures made by Respondent’s campaign. The following table details the expenditures made by the Respondent to Nealy, the date such payments were made and the purpose reported in Respondent’s Campaign Report.

In accordance with the Act §253.001(b), a person may not knowingly make or authorize a political expenditure in the name of or on behalf of another unless the person discloses in writing to the person on whose behalf the expenditure is made the name and address of the person actually making the expenditure in order for the person on whose behalf the expenditure is made to make the proper disclosure.

On February 10, 2002 while on live television and in response to questions from WFAA reporter Chris Heinbaugh , respondent stated they could account for every dollar that is being spent by Nealy and said he would disclose these details after the campaign. Please see the transcript from the television event attached hereto as Exhibit D. Respondent failed to disclose the expenditures at the time and in the detail required by law. Respondent stated that, "… you don’t show somebody the amount of dollars you’re putting into advertising—where you’re buying your advertising," and "… we’re sure not going to show you where we’re spending our money and let you know what our campaign strategy is." These statements and actions of respondent clearly indicate a knowing and deliberate attempt to avoid further disclosure as required by Texas Election Code. The campaign concluded on February 16, 2002. To this date, respondent has failed to disclose this required information.

On February 14, 2002, The Dallas Morning News published an article entitled "Dunning Dismisses Worker," in which it was investigated and reported that respondent dismissed a campaign worker on respondent’s campaign by the name of Terrence Gore. Terrence Gore reportedly ran a mail-in ballot operation along with his mother Jan Gore. Jan Gore also operated a phone bank for Nealy on behalf of respondent’s campaign which employed Terrence Gore. Jan Gore received payment for her services from Nealy. On information and belief, complainant believes that respondent made or had payments made on his behalf or that of his campaign to Nealy, who in turn caused payments to be made to Jan Gore and/or Terrence Gore. None of these expenditures are reported by respondent. In addition, respondent’s Campaign Reports fail to list descriptions for the services Terrence Gore was apparently hired to perform. According to the article, Mr. Gore was one of two operatives hired to perform these duties. A copy of the article is attached hereto as Exhibit E.

V. LISTING OF DOCUMENTS AND OTHER MATERIALS

1. Candidate/Officeholder Report of Contributions, Expenditures and Loans and accompanying schedules, dated December 20, 2001, and attached hereto as Exhibit A.
2. Candidate/Officeholder Report of Contributions, Expenditures and Loans and accompanying schedules, dated January 11, 2002, and attached hereto as Exhibit B.
3. Candidate/Officeholder Report of Contributions, Expenditures and Loans and accompanying schedules, dated February 8, 2002, and attached hereto as Exhibit C.
4. Relevant portions of transcript from live television debate of February 10, 2002, attached hereto as Exhibit D.
5. Article "Dunning Dismisses Worker" published in the Dallas Morning News dated February 14, 2002, attached hereto as Exhibit E.
   

VI. AFFIDAVIT
BASED ON PERSONAL KNOWLEDGE

I, complainant, swear that I have knowledge of the facts alleged in this complaint and that the information contained in this complaint is true and correct to the best of my knowledge and information.

Signature of complainant

Sworn to and subscribed before me, by the said , this the day of , 2002, to certify which, witness my hand and seal of office.

Notary Public, State of Texas

VII. AFFIDAVIT
BASED ON INFORMATION AND BELIEF

I, R. ALLEN GWINN, JR. , complainant, swear that I have reason to belief and do belief that the violation alleged in this complaint has occurred. The source and basis of my information and belief is the sworn documentation on file with the City of Dallas, and the acts, statements and omissions of respondent as reported, copies of which are attached hereto and marked as Exhibits A through E.

R. ALLEN GWINN, JR.

Sworn to and subscribed before me, by the said R. ALLEN GWINN, JR. , this the day of MARCH , 2002, to certify which, witness my hand and seal of office.

Notary Public, State of Texas