[House Report 116-451]
[From the U.S. Government Publishing Office]


                                                  House Calendar No. 83
_______________________________________________________________________

116th Congress }                                             { Report
                          HOUSE OF REPRESENTATIVES
 2d Session    }                                             { 116-451
                                                                
_______________________________________________________________________


                      IN THE MATTER OF ALLEGATIONS

                       RELATING TO REPRESENTATIVE

                              LORI TRAHAN

                               __________

                              R E P O R T

                                OF THE

                          COMMITTEE ON ETHICS

              
              [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]


      July 16, 2020.--Referred to the House Calendar and ordered 
                             to be printed
                             

               U.S. GOVERNMENT PUBLISHING OFFICE                             
                             
99-006                  WASHINGTON : 2020   



                             
                          COMMITTEE ON ETHICS

THEODORE E. DEUTCH, Florida,         KENNY MARCHANT, Texas,
  Chairman                             Ranking Member
GRACE MENG, New York                 GEORGE HOLDING, North Carolina
SUSAN WILD, Pennsylvania             JACKIE WALORSKI, Indiana
DEAN PHILLIPS, Minnesota             MICHAEL GUEST, Mississippi
ANTHONY BROWN, Maryland

                              REPORT STAFF

              Thomas A. Rust, Chief Counsel/Staff Director
           Brittney L. Pescatore, Director of Investigations
                 David Arrojo, Counsel to the Chairman
                Kathryn Lefeber Donahue, Senior Counsel
                        C. Ezekiel Ross, Counsel
                    Danielle Appleman, Investigator
                  Caroline Taylor, Investigative Clerk
                  
                  
                  
                  
                         LETTER OF TRANSMITTAL

                              ----------                              

                     U.S. House of Representatives,
                                       Committee on Ethics,
                                     Washington, DC, July 16, 2020.
Hon. Cheryl Johnson,
Clerk, House of Representatives,
Washington, DC.
    Dear Ms. Johnson: Pursuant to clauses 3(a)(2) and 3(b) of 
Rule XI of the Rules of the House of Representatives, we 
herewith transmit the attached report, ``In the Matter of 
Allegations Relating to Representative Lori Trahan.''
            Sincerely,
                                   Theodore E. Deutch,
                                           Chairman.
                                   Kenny Marchant,
                                           Ranking Member.
                                           
                                           
                                           
                                           
                                           
C O N T E N T S........................................................
                                                                   Page
  I. INTRODUCTION.....................................................1
 II. PROCEDURAL BACKGROUND............................................2
III. HOUSE RULES, LAWS, REGULATIONS, AND OTHER STANDARDS OF CONDUCT...2
      A. EXCESSIVE CONTRIBUTIONS.................................     2
      B. DISCLOSURES.............................................     3
          1. House Financial Disclosure Statements...............     3
          2. FEC Reports.........................................     4
      C. CODES OF CONDUCT........................................     4
 IV. BACKGROUND.......................................................4
      A. LOANS FROM PERSONAL FUNDS...............................     6
          1. March 31, 2018 Loan.................................     6
          2. June 30, 2018 Loan..................................     7
          3. August 22, 2018 Loan................................     8
      B. LOAN FROM REVOLVING LINE OF CREDIT......................     9
      C. CONTRIBUTIONS FROM THE TRAHANS..........................    10
      D. FINANCIAL DISCLOSURE STATEMENTS.........................    11
  V. FINDINGS........................................................12
      A. EXCESSIVE CONTRIBUTIONS.................................    12
          1. Loans from Personal Funds...........................    12
          2. Loan from Revolving Line of Credit..................    15
      B. DISCLOSURES.............................................    16
          1. Financial Disclosure Statements.....................    16
          2. FEC Reports.........................................    17
 VI. CONCLUSION......................................................20
 VI. STATEMENT UNDER HOUSE RULE XIII, CLAUSE 3(C)....................21
APPENDIX A: REPORT AND FINDINGS OF THE OFFICE OF CONGRESSIONAL 
  ETHICS (REVIEW NO. 19-5449)....................................    22
APPENDIX B: REPRESENTATIVE TRAHAN'S SUBMISSION TO THE COMMITTEE..    69
APPENDIX C: REPRESENTATIVE TRAHAN'S RESPONSES TO QUESTIONS.......    87
APPENDIX D: EXHIBITS TO THE COMMITTEE'S REPORT...................    93





116th Congress }                                             { Report
                          HOUSE OF REPRESENTATIVES
 2d Session    }                                             { 116-451

======================================================================

 
  IN THE MATTER OF ALLEGATIONS RELATING TO REPRESENTATIVE LORI TRAHAN

                                _______
                                

                 July 16, 2020.--Ordered to be printed

                                _______
                                

               Mr. Deutch, from the Committee on Ethics, 
                        submitted the following

                              R E P O R T

    In accordance with House Rule XI, clauses 3(a)(2) and 3(b), 
the Committee on Ethics (Committee) hereby submits the 
following Report to the House of Representatives:

                            I. INTRODUCTION

    On September 18, 2019, the Board of the Office of 
Congressional Ethics (OCE) forwarded to the Committee a Report 
and Findings (OCE's Referral) regarding Representative Lori 
Trahan. OCE recommended the Committee review allegations that 
(1) personal loans Representative Trahan made to her principal 
campaign committee, Lori Trahan for Congress (Campaign), were 
excessive contributions from her husband because they were 
sourced from her husband's personal funds; and (2) 
Representative Trahan omitted required information related to 
the personal loans from her congressional candidate Financial 
Disclosure Statements and from the Campaign's reports to the 
Federal Election Commission (FEC).
    The Committee reviewed the allegations referred by OCE 
pursuant to Committee Rule 18(a). Following its review, the 
Committee found that the funds used to source Representative 
Trahan's personal loans to the Campaign were marital property 
to which Representative Trahan had a legal right of access and 
control. Accordingly, the loans were sourced from 
Representative Trahan's personal funds, not excessive 
contributions from her husband. For this reason, the Committee 
did not find that Representative Trahan acted in violation of 
House Rules, laws, regulations, or other standards of conduct 
with respect to campaign contribution limits.
    As to the alleged disclosure omissions and errors on her 
Financial Disclosure Statements and the Campaign's FEC reports, 
the Committee found no evidence that they were knowing and 
willful. Specifically, the Committee considered allegations 
that Representative Trahan may not have properly reported a 
line of credit that she used to make an additional loan to her 
campaign. Because there was not a clear legal standard 
articulated by the FEC in their public guidance, the Committee 
determined the FEC was best qualified to determine whether 
Representative Trahan's campaign properly complied with the 
relevant reporting requirements and directs Representative 
Trahan to have the Campaign contact the FEC to ensure accurate 
disclosure.
    For these reasons, the Committee did not find that 
Representative Trahan acted in violation of House Rules, laws, 
regulations or other standards of conduct. Accordingly, the 
Committee unanimously voted to dismiss this matter, adopt this 
Report and take no further action. Upon publication of this 
report the Committee considers the matter closed.

                       II. PROCEDURAL BACKGROUND

    OCE commenced a preliminary review of this matter on May 
11, 2019. On June 10, 2019, OCE initiated a second-phase 
review. OCE voted on September 13, 2019 to refer this matter to 
the Committee. On September 18, 2019, the Committee received 
OCE's Referral recommending further review of allegations that 
Representative Trahan's Campaign accepted personal loans and 
contributions that exceeded campaign contribution limits and 
that Representative Trahan failed to disclose required 
information on her Financial Disclosure Statements and the 
Campaign reports to the FEC.
    Following OCE's recommendation that the Committee further 
review the matter, the Committee began an investigation 
pursuant to Rule 18(a). The Committee reviewed all of the 
materials provided to it by OCE. The Committee requested and 
received additional information from Representative Trahan, 
including statements subject to the penalty of perjury and the 
False Statements Act. In total, the Committee reviewed more 
than 12,800 pages of materials.
    On July 15, 2020, the Committee unanimously voted to adopt 
this Report and take no further action with respect to 
Representative Trahan.

  III. HOUSE RULES, LAWS, REGULATIONS, AND OTHER STANDARDS OF CONDUCT


                       A. EXCESSIVE CONTRIBUTIONS

    The Federal Election Campaign Act (FECA) prohibits any 
person from making, and a candidate and the candidate's 
authorized campaign committee from accepting, contributions 
exceeding the contribution limits set by the FEC in an election 
cycle.\1\ In the 2018 election cycle, the limit was $2,700.\2\ 
A contribution is any ``gift, subscription, loan, advance, or 
deposit of money or anything of value made by any person for 
the purpose of influencing any election for Federal 
office.''\3\ Contributions from spouses are subject to the 
contribution limitations.\4\ Contributions from candidates are 
not, so long as they are made from a candidate's personal 
funds.\5\
---------------------------------------------------------------------------
    \1\52 U.S.C. Sec. Sec. 30116(a)(1)(A); 30116(f).
    \2\82 Fed. Reg. 10904, 10906 (Feb. 16, 2017) (adjusting the 
contribution limit for the 2018 election cycle to $2,700 for each 
election the candidate participates in).
    \3\52 U.S.C. Sec. 30101(8)(A); 11 C.F.R. Sec. 100.52(a). The term 
``anything of value'' includes all in-kind contributions. 11 C.F.R. 
Sec. 100.52(d)(1).
    \4\Buckley v. Valeo, 424 U.S. 1, 51, n. 59 (1976) (``Although the 
risk of improper influence is somewhat diminished in the case of large 
contributions from immediate family members, we cannot say that the 
danger is sufficiently reduced to bar Congress from subjecting family 
members to the same limitations as nonfamily contributions.''); see 
also FEC Campaign Guide, Congressional Candidates and Committees (June 
2014) (hereinafter FEC Campaign Guide) at 28 (``Contributions from 
members of the candidate's family are subject to the same limits that 
apply to any other individual. For example, a candidate's parent or 
spouse may not contribute more than $2,700, per election to the 
candidate.'').
    \5\11 C.F.R. Sec. 110.10.
---------------------------------------------------------------------------
    FECA and the implementing regulations promulgated by the 
FEC define what constitutes a candidate's personal funds.\6\ 
Personal funds include (1) any asset that the candidate had 
legal right of access to or control over under applicable State 
law at the time the individual became a candidate, and with 
respect to which the candidate had ``legal and rightful title'' 
or an ``equitable interest''; (2) the candidate's income 
received during the current election cycle; and (3) a portion 
of assets that are jointly owned by the candidate and the 
candidate's spouse either ``equal to the candidate's share of 
the asset under the instrument of conveyance or ownership,'' or 
if nothing is specified, one-half the value of the jointly 
owned asset.\7\
---------------------------------------------------------------------------
    \6\52 U.S.C. Sec. 30101(26);11 C.F.R. Sec. 100.33(a), (b).
    \7\Id.
---------------------------------------------------------------------------
    A candidate may also use funds from a loan drawn on a home 
equity line of credit in excess of the contribution limits to 
fund that candidate's campaign if the loan is (1) obtained in 
accordance with applicable laws and under commercially 
reasonable terms, and (2) is made by an entity that provides 
lines of credit in the normal course of business.\8\ Under FEC 
regulations, if a candidate's spouse is the endorser or co-
signer for a home equity line of credit, the spouse is not 
deemed to have made a contribution to the campaign if the value 
of the candidate's share of the property used as collateral 
equals or exceeds the amount of the loan that is used for the 
candidate's campaign.\9\
---------------------------------------------------------------------------
    \8\11 C.F.R. Sec. 100.83. Home equity lines of credit are excluded 
from the definition of contribution. Id. Sec. 100.71.
    \9\Id. 100.83(b)(1).
---------------------------------------------------------------------------

                             B. DISCLOSURES

1. House Financial Disclosure Statements

    The Ethics in Government Act (EIGA) provides that 
candidates for the House must file a public Financial 
Disclosure Statement with the Clerk of the House.\10\ Once 
elected, Members are required under EIGA and House Rules to 
file annual Financial Disclosure Statements.\11\ Financial 
disclosures summarize financial information concerning the 
filer, their spouse and dependent children.\12\ If a filer 
knowingly and willfully falsifies or fails to file or to report 
any required information, the Committee may take appropriate 
action.\13\ The EIGA also authorizes the Attorney General to 
seek a civil penalty.\14\ Federal criminal law may be 
implicated.\15\
---------------------------------------------------------------------------
    \10\5 U.S.C. app. Sec. Sec. 101(c), 103(h)(1)(A)(i)(I). An 
individual becomes a ``candidate'' for purposes of EIGA when the 
individual meets the definition of ``candidate'' as codified in 52 
U.S.C. Sec. 30101 (``if such individual has received contributions 
aggregating in excess of $5,000 or has made expenditures aggregating in 
excess of $5,000'').
    \11\5 U.S.C. app. Sec. 101(f); House Rule XXVI, cl.2 (EIGA Title I 
``shall be considered Rules of the House as they pertain to Members, 
Delegates, the Resident Commissioner, officers, and employees of the 
House.'').
    \12\5 U.S.C. app. Sec. 102(e)(1); House Ethics Manual (2008) at 247 
(hereinafter Ethics Manual).
    \13\5 U.S.C. app. Sec. 104(c); Ethics Manual at 265.
    \14\5 U.S.C. app. Sec. 104(a); Ethics Manual at 265.
    \15\18 U.S.C. Sec. 1001; Ethics Manual at 265.
---------------------------------------------------------------------------

2. FEC Reports

    FECA requires a campaign committee to disclose all receipts 
in an election cycle, including any contributions or loans, on 
the campaign committee's reports to the FEC.\16\ The amounts 
and nature of any outstanding debts and obligations, including 
loans, must also be disclosed.\17\ When a candidate obtains a 
home equity line of credit to loan funds to the campaign 
committee, the candidate must also disclose the following on 
FEC Form 3, Schedule C-1: (1) the date, amount and interest 
rate of the loan; (2) the name and address of the lending 
institution; and (3) the types and value of collateral or other 
sources of repayment that secured the line of credit, if 
any.\18\
---------------------------------------------------------------------------
    \16\52 U.S.C. Sec. 30104(b)(2); 11 C.F.R. 104.3(a)(3). For 
contributions that exceed $200 in an election cycle, the campaign must 
disclose the name of the person who made the contribution, and the date 
and amount of the contribution. 52 U.S.C. Sec. 30104(b)(3). In-kind 
contributions from a candidate's personal funds that exceed $200 in an 
election cycle must be disclosed as both a contribution and 
expenditure, and the ultimate payee or vendor must also be disclosed. 
Reporting Ultimate Payees of Political Committee Disbursements, 78 Fed. 
Reg. 40625, 40627 (July 8, 2013). See also FEC Campaign Guide at 95-96.
    \17\52 U.S.C. Sec. 30104(b)(8); 11 C.F.R. Sec. 104.3(d). See also 
FEC Campaign Guide at 91, 108-109 (providing guidance on reporting 
loans from a candidate's personal funds).
    \18\11 C.F.R. 104.3(d)(4)(i)-(iii). See also FEC Campaign Guide at 
110-111 (providing guidance on reporting a candidate's loan derived 
from a line of credit).
---------------------------------------------------------------------------
    A contribution is considered to be received by the campaign 
committee on the day the contributor relinquishes control, or 
delivers it to the committee.\19\ A campaign committee's 
treasurer must make all deposits of receipts within ten days of 
receipt.\20\ A knowing and willful violation of FECA's 
reporting provisions also involves criminal penalties.\21\
---------------------------------------------------------------------------
    \19\11 C.F.R. Sec. 110.1(b)(6).
    \20\11 C.F.R. Sec. 103.3. See also FEC Campaign Guide at 23 
(``While all contributions must be deposited within 10 days, the date 
of deposit is not used for reporting . . .'').
    \21\52 U.S.C. Sec. 30109(d)(1); FEC v. John A. Dramesi for Congress 
Comm., 640 F. Supp. 985, 987 (D.N.J. 1986) (holding that to establish a 
knowing and willful violation, there must be knowledge that one is 
violating the law).
---------------------------------------------------------------------------

                          C. CODES OF CONDUCT

    Violations of FECA and the laws governing House Financial 
Disclosure Statements may also implicate House Rule XXIII, 
clauses 1 and 2, which state, ``[a] Member . . . of the House 
shall behave at all times in a manner that shall reflect 
creditably on the House,'' and ``shall adhere to the spirit and 
the letter of the Rules of the House.'' FECA violations are 
also inconsistent with paragraph 2 of the Code of Ethics for 
Government Service, which provides that government officials 
should uphold the laws and regulations of the United States 
``and never be a party to their evasion.''\22\
---------------------------------------------------------------------------
    \22\See Ethics Manual at 20.
---------------------------------------------------------------------------

                             IV. BACKGROUND

    On September 21, 2017, Representative Trahan became a 
candidate for the House to represent the Third Congressional 
District of Massachusetts.\23\ Representative Trahan was 
successful in her candidacy and was sworn in as Member of the 
House on January 3, 2019.
---------------------------------------------------------------------------
    \23\Lori Trahan, Statement of Candidacy (Sept. 21, 2017).
---------------------------------------------------------------------------
    Representative Trahan has been married to David Trahan 
since November 17, 2007. Prior to their marriage, 
Representative Trahan and Mr. Trahan executed a prenuptial 
agreement to ``define their respective rights in the property 
of the other during marriage.''\24\ Massachusetts permits 
couples like the Trahans to enter into prenuptial agreements 
prior to marriage to define their rights and obligations during 
their marriage.\25\ The Trahans' prenuptial agreement defines 
``marital property'' and ``separate property.''\26\ Per the 
agreement, marital property is defined as follows:
---------------------------------------------------------------------------
    \24\Exhibit 1. On Nov. 16, 2019, Representative Trahan provided the 
Committee, through counsel, the antenuptial agreement.
    \25\Mass. Gen. Laws ch. 209, Sec. 25(2019), (``At any time before 
marriage, the parties may make a written contract providing that, after 
the marriage is solemnized, the whole or any designated part of the 
real or personal property or any right of action, of which either party 
may be seized or possessed at the time of the marriage, shall remain or 
become the property of the husband or wife, according to the terms of 
the contract.''); Osborne v. Osborne, 429 N.E. 2d 810, 816 (1981) 
(``[A]n antenuptial contract settling the alimony or property rights of 
the parties upon divorce is not per se against public policy and may be 
specifically enforced.''); DeMatteo v. DeMatteo, 762 N.E. 2d 797, 809 
(2002) (``It is only where the contesting party is essentially stripped 
of substantially all marital interests that a judge may determine that 
an antenuptial agreement is not `fair and reasonable' and therefore not 
valid.'').
    \26\There is no evidence in the record to suggest that 
Representative Trahan's antenuptial agreement did not meet the ``fair 
and reasonable'' standard under Massachusetts case law at the time of 
execution and would be deemed invalid.

          During the course of the marriage the Parties shall 
        make equal periodic contributions to a fund for the 
        maintenance of their household and the care and support 
        of the children of the marriage, if any. All property 
        purchased with the proceeds of this fund shall be 
        deemed marital property. All wages, salary, and income 
        of each party earned or received during marriage, 
        together with all property purchased with such wages, 
        salary and income, shall also be marital property. Each 
        party shall have equal rights in regard to the 
        management of and disposition of all marital 
        property.\27\
---------------------------------------------------------------------------
    \27\Exhibit 1 para.11.

    The prenuptial agreement also provides that any real 
property purchased in joint title by the Trahans reflects the 
intent of the parties to have a joint interest in that 
property.\28\
---------------------------------------------------------------------------
    \28\Id. para.10.
---------------------------------------------------------------------------
    The prenuptial agreement states that each party gave the 
other a full and complete disclosure of the assets, income, and 
other property of the party or the party's estate.\29\ A list 
of those assets, income and property are included in the 
prenuptial agreement as Exhibits A (Mr. Trahan) and B 
(Representative Trahan), which are incorporated in the 
agreement by reference.\30\ The prenuptial agreement defined 
separate property as the assets, income and property of the 
Trahans specifically listed in Exhibits A and B, along with all 
income and increases in value arising from that separate 
property during marriage.\31\ Separate property also includes 
any property acquired by gift or inheritance by either spouse 
and any bonuses received by either spouse.\32\
---------------------------------------------------------------------------
    \29\Id.para. 6.
    \30\Id.para. 6, Exhibits A and B.
    \31\Id.para. 8, Exhibit A.
    \32\Id.para. 8.
---------------------------------------------------------------------------
    On July 30, 2008, Representative Trahan and Mr. Trahan 
established a joint checking account at Enterprise Bank.\33\ 
The Trahans also jointly own a home in Westford, 
Massachusetts.\34\
---------------------------------------------------------------------------
    \33\Exhibit 2; see also Representative Trahan's Financial 
Disclosure Statement for Jan. 1, 2018-May 15, 2019 (filed May 15, 2019) 
(hereinafter New Member FD) at 1.
    \34\New Member FD at 5 (disclosing the Westford, Massachusetts 
residential property has a joint mortgage of between $50,001 and 
$100,000). Representative Trahan's counsel confirmed that 
Representative Trahan owns one-half interest in the home. 
Representative Trahan's submission to the Committee (Appendix B) at 7.
---------------------------------------------------------------------------

                      A. LOANS FROM PERSONAL FUNDS

    During her candidacy, Representative Trahan loaned funds to 
the Campaign. In each instance, the Campaign reported those 
loans as from her personal funds on the Campaign's FEC Reports. 
Representative Trahan made the loans to the Campaign by check 
from the Trahans' joint checking account. The joint checking 
account received funds to cover the loans from Mr. Trahan's 
business accounts, either directly or through Mr. Trahan's 
personal account.\35\ The specific loans are described in 
further detail below.
---------------------------------------------------------------------------
    \35\In Representative Trahan's submission to the Committee in 
response to OCE's Referral, she explained through counsel, ``Rather 
than taking steady salaries, both [Representative Trahan and Mr. 
Trahan] regularly transferred funds from their respective business 
accounts into their joint checking account to pay for household 
expenses. That practice continued after Representative Trahan became a 
candidate in 2017. In addition, both spouses also had individual 
checking accounts that were used interchangeably to pay for joint 
expenses like credit card and tuition payments, as well as health and 
child care costs.'' Appendix B at 4.
---------------------------------------------------------------------------

11. March 31, 2018 Loan

    On March 31, 2018, Representative Trahan wrote a $50,000 
check to the Campaign from the joint checking account she holds 
with Mr. Trahan.\36\ The memo on the check states, 
``donation.''\37\ Representative Trahan, through her counsel, 
explained that she intended the check to be a loan to the 
Campaign, but at the time she wrote it, she did not know how to 
properly characterize a loan on the memo line of the check.\38\ 
On that date, the joint checking account did not have 
sufficient funds to cover the check.\39\
---------------------------------------------------------------------------
    \36\OCE's Referral, Exhibit 1.
    \37\OCE's Referral, Exhibit 1. Although the memo on the check 
stated ``donation,'' the Campaign reported the check as a loan from 
Representative Trahan.
    \38\Appendix C at 2.
    \39\OCE's Referral, Exhibit 2.
---------------------------------------------------------------------------
    On April 2, 2018, Mass Eagle Development, LLC (Eagle 
Development) deposited $100,000 into Mr. Trahan's personal 
checking account.\40\ Eagle Development is a residential 
property development founded in 2010.\41\ Mr. Trahan has a 33 
percent ownership interest in the company.\42\ Mr. Trahan 
deposited checks in varying amounts from Eagle Development in 
his personal checking account prior to, during and after 
Representative Trahan's candidacy for the House.\43\ 
Representative Trahan reported the funds Mr. Trahan received 
from Eagle Development as S Corporation income on her Financial 
Disclosure Statements.\44\ Eagle Development is not listed as 
separate property in the Trahans' prenuptial agreement.\45\
---------------------------------------------------------------------------
    \40\Exhibit 3.
    \41\Eagle Development, Certificate of Organization, Commonwealth of 
Mass. (Oct. 28, 2010) (hereinafter Eagle Development Certificate).
    \42\New Member FD at 1; Eagle Development Certificate.
    \43\Exhibit 4.
    \44\New Member FD at 1.
    \45\See Exhibit 1, Exhibit A (Eagle Development is not listed among 
the enumerated ``separate property'' assets in the agreement).
---------------------------------------------------------------------------
    On April 7, 2018, Mr. Trahan wrote himself a check for 
$50,000 from his personal checking account.\46\On April 9, 
2018, Mr. Trahan deposited the check in the couple's joint 
checking account.\47\Mr. Trahan's $50,000 deposit in the joint 
checking account provided sufficient funds to cover 
Representative Trahan's March 31, 2018, $50,000 check to the 
Campaign.\48\On April 9, 2018, the Campaign deposited the 
$50,000, nine days after it received the check.\49\
---------------------------------------------------------------------------
    \46\OCE's Referral, Exhibit 3. When Mr. Trahan wrote himself the 
$50,000 check on Apr. 7, 2018, his personal checking account had a 
balance of over $250,000. Exhibit 5.
    \47\OCE's Referral, Exhibit 3; see also Exhibit 6.
    \48\Exhibit 6.
    \49\OCE's Referral, Exhibit 1. The check has a date stamp of both 
Apr. 9, 2018 and Apr. 10, 2018 from Lowell Five Cent Savings Bank where 
the Campaign cashed the check. The check did not clear until Apr. 11, 
2018.
---------------------------------------------------------------------------
    The Campaign reported the $50,000 as a loan from 
Representative Trahan, received on March 31, 2018, on the last 
day of the FEC reporting period for the first quarter of 
2018.\50\ The loan was reported as from Representative Trahan's 
personal funds.\51\
---------------------------------------------------------------------------
    \50\Lori Trahan for Congress, Amended Apr. 2018 Quarterly Report of 
Receipts and Disbursements, at 145-146 (May 14, 2018).
    \51\Id.
---------------------------------------------------------------------------

2. June 30, 2018 Loan

    On June 30, 2018, Representative Trahan wrote another check 
for $50,000 from the joint checking account to the 
Campaign.\52\ The memo on this check states, ``loan.''\53\ 
Again, the joint checking account did not have sufficient funds 
to cover her $50,000 check on the date she wrote it.\54\
---------------------------------------------------------------------------
    \52\OCE's Referral, Exhibit 4.
    \53\Id.
    \54\OCE's Referral, Exhibit 5.
---------------------------------------------------------------------------
    On July 9, 2018, Mr. Trahan wrote a check to himself for 
$55,000 from DCT Development, Inc. (DCT Development).\55\ DCT 
Development is a general contracting corporation Mr. Trahan 
formed in 1992.\56\ Mr. Trahan owns 100 percent of the 
company.\57\ DCT Development is not listed in the Trahans' 
prenuptial agreement, despite being owned by Mr. Trahan at the 
time of the agreement.\58\ Representative Trahan informed the 
Committee that DCT Development was not disclosed in the 
prenuptial agreement because it did not normally have 
substantial assets besides cash, but instead served as a 
Subchapter S corporation through which he could receive income 
in connection with various construction projects.\59\ According 
to Representative Trahan, she and Mr. Trahan intended DCT 
Development and income he received from it to be marital 
property under the agreement, and Mr. Trahan treated the income 
as such.\60\
---------------------------------------------------------------------------
    \55\OCE's Referral, Exhibit 6.
    \56\New Bud Builders Inc., Articles of Organization, Commonwealth 
of Mass. (Mar. 2, 1992); DCT Development, Articles of Amendment, 
Commonwealth of Mass. (Nov. 15, 2000) (changing the name from New Bud 
Builders, Inc. to DCT Development, Inc.).
    \57\New Member FD at 1; DCT Development, Annual Report, 
Commonwealth of Mass. (Feb. 24, 2019).
    \58\See Exhibit 1, Exhibit A (DCT Development is not listed in 
Exhibit A, the assets, income, and property disclosed by Mr. Trahan 
that are ``separate property'' in the agreement).
    \59\Appendix C at 1.
    \60\Id. Representative Trahan informed the Committee that two other 
assets owned by Mr. Trahan prior to the prenuptial agreement, Granite 
Rock Management and Granite Rock Construction, were also not listed in 
Exhibit A because, like DCT Development, they did not normally have 
substantial assets besides cash. Mr. Trahan also treated those assets 
and income he received from them as marital property. Id.
---------------------------------------------------------------------------
    Representative Trahan stated that she and Mr. Trahan 
considered the $55,000 check from DCT Development on July 9, 
2018 to be income Mr. Trahan earned from DCT Development.\61\ 
He treated it as income for tax purposes.\62\ Representative 
Trahan specifically told the Committee the disbursement was not 
returned capital.\63\ On the date of the disbursement, DCT 
Development had a cash balance of $112,861.37, which 
represented DCT Development's value at that time.\64\ Because 
Representative Trahan and Mr. Trahan treated the disbursement 
as Mr. Trahan's income, they also treated it as marital 
property under the agreement.\65\
---------------------------------------------------------------------------
    \61\Id. at 1-2.
    \62\Id.
    \63\Id.
    \64\Id. at 2.
    \65\Id.
---------------------------------------------------------------------------
    Mr. Trahan frequently deposited checks from DCT Development 
into his personal account and sometimes into the Trahans' joint 
checking account in varying amounts, prior to, during and after 
Representative Trahan's candidacy for the House.\66\ In this 
instance, on July 9, 2018 when Mr. Trahan wrote the $55,000 
check to himself from DCT Development, Mr. Trahan deposited the 
check into the couple's joint checking account.\67\ Mr. 
Trahan's $55,000 deposit in the joint checking account provided 
sufficient funds to cover Representative Trahan's June 30, 
2018, $50,000 check to the Campaign. On July 10, 2018, the 
Campaign deposited Representative Trahan's check for $50,000, 
ten days after receipt.\68\
---------------------------------------------------------------------------
    \66\Exhibit 4.
    \67\OCE's Referral, Exhibit 6.
    \68\OCE's Referral, Exhibit 4.
---------------------------------------------------------------------------
    Representative Trahan's Campaign reported the $50,000 as a 
loan from Representative Trahan received on June 30, 2018, the 
last day of the FEC reporting period for the second quarter of 
2018.\69\ Like the previous loan, the Campaign reported it as 
from Representative Trahan's personal funds.\70\
---------------------------------------------------------------------------
    \69\Lori Trahan for Congress, July 2018 Quarterly Report of 
Receipts and Disbursements, at 282-283 (July 15, 2018).
    \70\Id.
---------------------------------------------------------------------------

3. August 22, 2018 Loan

    On August 21, 2018, Mr. Trahan initiated a transfer of 
funds from his personal checking account to the Trahans' joint 
checking account for $200,000.\71\ Mr. Trahan had deposited 
$180,900 from Middlesex Land Holdings, LLC (Middlesex) and 
$110,000 from Poplar Hill Development LLC (Poplar Hill) in his 
personal checking account on July 31, 2018, which provided 
sufficient funds to cover the $200,000 transfer to the Trahans' 
joint checking account on August 21, 2018.\72\
---------------------------------------------------------------------------
    \71\OCE's Referral, Exhibit 8.
    \72\Exhibit 7; Exhibit 8; Exhibit 9.
---------------------------------------------------------------------------
    Created in 2015, Middlesex is a company that holds vacant 
land for future development.\73\ Mr. Trahan and a business 
partner own the company.\74\ Mr. Trahan made deposits in 
varying amounts from Middlesex from December 2017 to January 
2019 in his personal checking account, totaling $316,848.\75\ 
Representative Trahan reported the funds Mr. Trahan received 
from Middlesex as partnership income on her Financial 
Disclosure Statements.\76\ Middlesex is not listed in the 
Trahans' prenuptial agreement as separate property.\77\
---------------------------------------------------------------------------
    \73\Middlesex, Certificate of Organization, Commonwealth of Mass. 
(Feb. 26, 2015) (hereinafter Middlesex Certificate).
    \74\Middlesex Certificate; New Member FD at 2.
    \75\Exhibit 4.
    \76\New Member FD at 2.
    \77\See Exhibit 1, Exhibit A (providing Middlesex is not listed 
among the enumerated ``separate property'' assets in the agreement).
---------------------------------------------------------------------------
    Poplar Hill is a residential home building company created 
in 2014.\78\ Like Middlesex, Mr. Trahan and a business partner 
own the company.\79\ Mr. Trahan made deposits in varying 
amounts from Poplar Hill from March 2018 to July 2018 in his 
personal checking account, totaling $295,000.\80\ On her 
Financial Disclosure Statements, Representative Trahan reported 
the funds Mr. Trahan received from Poplar Hill as partnership 
income.\81\ Poplar Hill is not listed in the Trahans' 
prenuptial agreement as separate property.\82\
---------------------------------------------------------------------------
    \78\Poplar Hill, Certificate of Organization, Commonwealth of Mass. 
(Mar. 3, 2014) (hereinafter Poplar Hill Certificate).
    \79\Poplar Hill Certificate; New Member FD at 2 (Mr. Trahan owns a 
50 percent interest in Poplar Hill).
    \80\Exhibit 4.
    \81\New Member FD at 2.
    \82\See Exhibit 1, Exhibit A (Poplar Hill is not listed among the 
enumerated ``separate property'' assets in the agreement).
---------------------------------------------------------------------------
    Prior to Mr. Trahan's $200,000 transfer, the Trahans' joint 
checking account had a balance of $2,769.54.\83\ On August 22, 
2018, Representative Trahan wrote a check from the joint 
checking account to her Campaign for $200,000.\84\ The memo on 
the check states, ``loan.''\85\ The same day, the Campaign 
deposited her $200,000 check.\86\ The Campaign reported the 
$200,000 as a loan from Representative Trahan, received on 
August 23, 2018 from her personal funds.\87\ Representative 
Trahan forgave $50,000 of this loan on September 24, 2018.\88\
---------------------------------------------------------------------------
    \83\OCE's Referral, Exhibit 7.
    \84\OCE's Referral, Exhibit 9.
    \85\Id.
    \86\Id.
    \87\Lori Trahan for Congress, Second Amended Oct. 2018 Quarterly 
Report of Receipts and Disbursements, at 158 (Dec. 15, 2018).
    \88\Id. at 144, 158.
---------------------------------------------------------------------------

                 B. LOAN FROM REVOLVING LINE OF CREDIT

    On October 15, 2010, the Trahans entered into a Revolving 
Credit Agreement and Note (Credit Agreement) with Washington 
Savings Bank which allowed them to borrow up to $200,000 
secured by their jointly owned home in Westford, 
Massachusetts.\89\ The Credit Agreement provides for an 
adjustable interest rate.\90\
---------------------------------------------------------------------------
    \89\OCE's Referral, Exhibit 10; New Member FD at 5.
    \90\OCE's Referral, Exhibit 10.
---------------------------------------------------------------------------
    On September 4, 2018, Representative Trahan wrote a check 
from the Trahans' revolving credit account for $71,000 to her 
Campaign.\91\ The memo on the check states, ``loan.''\92\ On 
October 2, 2018, the Campaign cashed Representative Trahan's 
$71,000 check.\93\ The bank records for the revolving credit 
account did not reflect a withdrawal of funds to cover the 
$71,000 check until October 3, 2018, when the Trahans withdrew 
$76,400 from the revolving credit account.\94\ As discussed 
further below, Representative Trahan also wrote a check to the 
Campaign for the remaining $5,400 withdrawn from the line of 
credit, for the Campaign's recount fund.\95\
---------------------------------------------------------------------------
    \91\OCE's Referral, Exhibit 11.
    \92\Id.
    \93\Id. 10.
    \94\OCE's Referral, Exhibit 12.
    \95\OCE's Referral, Exhibit 13.

          The Campaign initially reported the $71,000 check as 
        a loan from Representative Trahan's personal funds 
        received on September 4, 2018, but did not complete a 
        Schedule C-1 to disclose that the loan originated with 
        the revolving credit account.\96\ In its second 
        amendment to its FEC report on December 15, 2018, the 
        Campaign completed the Schedule C-1.\97\ It disclosed 
        that the loan was incurred or established on September 
        4, 2018 and was due on October 20, 2030.\98\ It also 
        disclosed Washington Savings Bank as the lending 
        institution, a 5.25 percent interest rate, and 
        collateral of real property valued at $950,000.\99\
---------------------------------------------------------------------------
    \96\Lori Trahan for Congress, Oct. 2018 Quarterly Report of 
Receipts and Disbursements, at 155 (Oct. 15, 2018).
    \97\Lori Trahan for Congress, Second Amended Oct. 2018 Quarterly 
Report of Receipts and Disbursements, at 160 (Dec. 15, 2018).
    \98\Id.
    \99\Id.

    The Campaign repaid the $71,000 loan to Representative 
Trahan on November 20, 2018.\100\ Representative Trahan 
deposited the check into the couple's joint checking account on 
December 3, 2018.\101\
---------------------------------------------------------------------------
    \100\Lori Trahan for Congress, 2018 Amended Post General Report of 
Receipts and Disbursements, at 279, 289 (Dec. 15, 2018).
    \101\Exhibit 10. OCE's Referral notes that Mr. Trahan repaid the 
$76,400 withdrawn from the Trahans' revolving line of credit plus 
interest to Washington Savings Bank from his personal bank account on 
Oct. 11, 2018. OCE's Referral 42. The Committee is not aware of any 
regulations prohibiting Mr. Trahan's repayment from his personal 
account. Further, the Campaign was not required to report any 
repayments by Representative Trahan to the lending institution. FEC 
Campaign Guide at 110-111.
---------------------------------------------------------------------------

                   C. CONTRIBUTIONS FROM THE TRAHANS

    Representative Trahan and Mr. Trahan made several 
contributions to the Campaign during the 2018 election cycle. 
Mr. Trahan made a $2,700 contribution on September 29, 2017, 
designated for the primary election.\102\ The following day, on 
September 30, 2017, he made a contribution for $2,700 
designated for the general election.\103\ Both of his 
contributions were made by check from his personal checking 
account.\104\
---------------------------------------------------------------------------
    \102\LoriTrahan for Congress, Oct. 2017 Quarterly Report of 
Receipts and Disbursements, at 32 (Oct. 15, 2017). See also Exhibit 11.
    \103\Id. at 27. See also Exhibit 12.
    \104\Exhibit 11; Exhibit 12; Exhibit 13.
---------------------------------------------------------------------------
    Representative Trahan and Mr. Trahan also wrote a $5,400 
check on October 2, 2018 to the Campaign.\105\ The memo on the 
check states, ``Dave $2700/Lori $2700.''\106\ The Campaign 
reported the check as a $2,700 contribution from each of them 
for the election recount.\107\ The Trahans made the 
contribution from the couple's revolving credit account 
utilizing the remaining funds from the October 3, 2018 
withdrawal that also funded Representative Trahan's $71,000 
loan to the Campaign.\108\
---------------------------------------------------------------------------
    \105\OCE's Referral, Exhibit 13.
    \106\ Id.
    \107\Lori Trahan for Congress, Second Amended 2018 Pre-General 
Report of Receipts and Disbursements, at 123-124 (Dec. 15, 2018).
    \108\OCE's Referral, Exhibit 12-13.
---------------------------------------------------------------------------
    In addition to the monetary contributions, Representative 
Trahan made numerous in-kind contributions to her Campaign 
throughout the election cycle for items like advertising, 
ground transportation, lodging, supplies and airfare, among 
other things.\109\ The in-kind contributions were reported by 
the Campaign on its FEC Reports.\110\
---------------------------------------------------------------------------
    \109\See e.g., Lori Trahan for Congress, Second Amended Oct. 2018 
Quarterly Report of Receipts and Disbursements, at 98-100, 143-144 
(Dec. 15, 2018).
    \110\Id. The Campaign reported the in-kind contributions as both 
receipts and disbursements on Schedules A and B of FEC form. The 
Campaign did not include information about the ultimate payees, such as 
the vendor that Representative Trahan paid, in a memo entry.
---------------------------------------------------------------------------

                   D. FINANCIAL DISCLOSURE STATEMENTS

    Representative Trahan filed Financial Disclosure Statements 
with the Clerk of the House as a candidate on March 26, 2018 
and May 21, 2018 and as a Member on May 15, 2019.\111\ 
Representative Trahan filed four amendments to each of her 
candidate financial disclosures on June 4, 2018, November 16, 
2018, February 19, 2019 and March 21, 2019.\112\ While the 
amendments were made by Representative Trahan on her own 
initiative, public reporting suggests that least some of the 
amendments may have been prompted by questions from the 
media.\113\ The amendments included:
---------------------------------------------------------------------------
    \111\Representative Trahan's Financial Disclosure Statement for 
Jan. 1, 2016-Dec. 31, 2017 (filed Mar. 26, 2018) (hereinafter 2017 FD); 
Representative Trahan's Financial Disclosure Statement for Jan. 1, 
2017-May 15, 2018 (filed May 21, 2018) (hereinafter 2018 FD); New 
Member FD. If an individual qualifies as a candidate during a non-
election year, they must file a Financial Disclosure Statement within 
30 days of becoming a candidate or May 15 of that year, whichever is 
later. Candidates must then file a second statement on May 15 of the 
following year. See 5 U.S.C. app. 101(c). Representative Trahan's 2017 
FD was due on Oct. 23, 2017. She requested and received an extension 
from the Committee. Representative Trahan's 2018 FD was due on May 15, 
2018. She filed it on May 21, 2018, within the 30-day grace period 
afforded to all filers.
    \112\Representative Trahan's Amended Financial Disclosure Statement 
for Jan. 1, 2016-Dec. 31, 2017 (filed June 4, 2018) (hereinafter First 
Amended 2017 FD); Representative Trahan's Amended Financial Disclosure 
Statement for Jan. 1, 2016-Dec. 31, 2017 (filed Nov. 16, 2017) 
(hereinafter Second Amended 2017 FD); Representative Trahan's Amended 
Financial Disclosure Statement for Jan. 1, 2016-Dec. 31, 2017 (filed 
Feb. 19, 2019) (hereinafter Third Amended 2017 FD); Representative 
Trahan's Amended Financial Disclosure Statement for Jan. 1, 2016-Dec. 
31, 2017 (filed Mar. 21, 2019) (hereinafter Fourth Amended 2017 FD); 
Representative Trahan's Amended Financial Disclosure Statement for Jan. 
1, 2017-May 15, 2018 (filed June 4, 2018) (hereinafter First Amended 
2018 FD); Representative Trahan's Amended Financial Disclosure 
Statement for Jan. 1, 2017-May 15, 2018 (filed Nov. 16, 2018) 
(hereinafter Second Amended 2018 FD); Representative Trahan's Amended 
Financial Disclosure Statement for Jan. 1, 2017-May 15, 2018 (filed 
Feb. 19, 2019) (hereinafter Third Amended 2018 FD); Representative 
Trahan's Amended Financial Disclosure Statement for Jan. 1, 2017-May 
15, 2018 (filed Mar. 21, 2019) (hereinafter Fourth Amended 2018 FD).
    \113\See Andrea Estes, Questions raised about source of late funds 
that helped carry Rep. Lori Trahan to victory, Boston Globe (Mar. 3, 
2019), https://www.bostonglobe.com/metro/2019/03/03/questions-raised-
about-source-late-funds-that-helped-carry-rep-lori-trahan-victory/
oGjvhDF9tbmV9FWt5zgQfJ/story.html (``After the November election, when 
the Globe began asking questions, [Representative Trahan] amended her 
financial reports four times . . .'') (hereinafter Boston Globe 
Article).
---------------------------------------------------------------------------
           Adding Representative Trahan's ownership of 
        and unearned income from Concire LLC to Schedule A: 
        Assets and ``Unearned'' Income;\114\
---------------------------------------------------------------------------
    \114\First Amended 2017 FD at 1; First Amended 2018 FD at 1.
---------------------------------------------------------------------------
           Adding Representative Trahan's joint bank 
        account she holds with Mr. Trahan at Enterprise Bank to 
        Schedule A: Assets and ``Unearned'' Income;\115\
---------------------------------------------------------------------------
    \115\Second Amended 2017 FD at 1; Second Amended 2018 FD at 1.
---------------------------------------------------------------------------
           Adding Representative Trahan's ownership 
        interest in Stella Connect to Schedule A: Assets and 
        ``Unearned'' Income;\116\
---------------------------------------------------------------------------
    \116\Third Amended 2017 FD at 3; Third Amended 2018 FD at 3.
---------------------------------------------------------------------------
           Updating Representative Trahan's earned 
        income from Concire LLC on Schedule C: Earned 
        Income;\117\ and
---------------------------------------------------------------------------
    \117\Second Amended 2017 FD at 4; Second Amended 2018 FD at 3.
---------------------------------------------------------------------------
           Adding ``confidential'' clients to Schedule 
        J: Compensation in Excess of $5,000 Paid by One 
        Source.\118\
---------------------------------------------------------------------------
    \118\Fourth Amended 2017 FD at 5; Fourth Amended 2018 FD at 5.
---------------------------------------------------------------------------

                              V. FINDINGS


                       A. EXCESSIVE CONTRIBUTIONS

1. Loans from Personal Funds

    Contributions, including loans, made from a candidate's 
personal funds are not subject to the contribution limits in 
FECA.\119\ A candidate's ``personal funds'' are any asset that, 
under applicable State law, the candidate had legal right of 
access to or control over, and with respect to which the 
candidate had ``legal and rightful title'' or an ``equitable 
interest,'' at the time the individual became a candidate.\120\ 
Personal funds also include a portion of assets that are 
jointly owned by the candidate and the candidate's spouse 
either ``equal to the candidate's share of the asset under the 
instrument of conveyance or ownership,'' or if nothing is 
specified, one-half the value of the jointly owned asset.\121\ 
Unlike a candidate, a candidate's spouse is subject to FECA's 
contribution limits, which in the 2018 election cycle were 
$2,700 per election.\122\
---------------------------------------------------------------------------
    \119\11 C.F.R. Sec. 110.10.
    \120\52 U.S.C. Sec. 30101(26); 11 C.F.R. Sec. 100.33(a), (b).
    \121\Id.
    \122\See FEC Campaign Guide at 28.
---------------------------------------------------------------------------
    The Committee considered whether three loans Representative 
Trahan made to the Campaign, totaling $300,000, were excessive 
contributions from Mr. Trahan. In doing so, the Committee 
reviewed the Trahans' prenuptial agreement and the transactions 
through which Mr. Trahan deposited funds into the Trahans' 
joint checking account which were then used for Representative 
Trahan's loans to the Campaign. The prenuptial agreement went 
into effect on November 17, 2007 in accordance with 
Massachusetts law, long before Representative Trahan became a 
candidate for the House.\123\ The prenuptial agreement defines 
marital property as ``all wages, salary and income'' of 
Representative Trahan and Mr. Trahan during their 
marriage.\124\ It provides the Trahans' with ``equal rights in 
regard to the management of and disposition of all marital 
property.''\125\ The agreement carves out certain specific 
assets disclosed in Exhibit A (and resulting income) that are 
designated as ``separate property,'' and therefore not 
considered marital property.\126\ Mr. Trahan's assets listed in 
the agreement as separate property (Exhibit A) are not owned by 
Representative Trahan.
---------------------------------------------------------------------------
    \123\Exhibit 1 at 1.
    \124\Id.para. 11.
    \125\Id.
    \126\Id.para. 8.
---------------------------------------------------------------------------
    As described in detail above, the funds Mr. Trahan 
transferred to the Trahans' joint checking account originated 
from businesses Mr. Trahan owns and that provide Mr. Trahan 
with a salary, investment income or both. None of the 
businesses are included in the list of assets in Exhibit A that 
were deemed separate property in the prenuptial agreement. 
Three of the businesses--Eagle Development, Poplar Hill and 
Middlesex--were created after the Trahans entered into the 
prenuptial agreement and thus, were not and could not have been 
disclosed on Exhibit A. As a result, the funds from these 
businesses that were the source for Representative Trahan's 
loans were not separate property, but instead considered to be 
the Trahans' joint marital property under the agreement.
    Unlike the other businesses, DCT Development did exist 
prior to the Trahans' prenuptial agreement. Paragraph six of 
the prenuptial agreement states that Representative Trahan and 
Mr. Trahan had given each other a ``full and complete 
disclosure of the assets, income, and other property'' which 
were listed in the exhibits to the prenuptial agreement.\127\ 
However, Mr. Trahan's disclosures on Exhibit A did not include 
DCT Development.\128\ This omission is notable because it 
appears to be inconsistent with the disclosure requirements in 
paragraph six of the agreement.
---------------------------------------------------------------------------
    \127\Id.para. 6.
    \128\Id., Exhibit A.
---------------------------------------------------------------------------
    Representative Trahan was able to address the omission of 
DCT Development from the agreement. She informed the Committee 
that Mr. Trahan did not include DCT Development because ``it 
did not normally have substantial assets besides cash, but 
instead served as a Subchapter S corporation through which he 
could receive income in connection with various construction 
projects.''\129\ Representative Trahan also said that two other 
businesses owned by Mr. Trahan at the time they entered into 
the agreement--Granite Rock Management and Granite Rock 
Construction (collectively Granite Rock Businesses)--were 
similarly excluded from the agreement for the same reason.\130\ 
According to Representative Trahan, she and Mr. Trahan intended 
DCT Development, Granite Rock Businesses and the income he 
received from those entities to be marital property under the 
agreement.\131\ Representative Trahan did not provide the 
Committee with any documentary evidence to support her 
explanation. While the Committee questions whether the omission 
of DCT Development and Granite Rock Businesses was in 
accordance with accounting principles at the time the Trahans 
entered into the agreement, it did not find evidence to 
contradict Representative Trahan's explanation that the Trahans 
intended DCT Development and Granite Rock Businesses to be 
marital property under the agreement, and therefore all 
resulting income to be marital property. As such, DCT 
Development and any income from it was joint marital property 
under the agreement.
---------------------------------------------------------------------------
    \129\Appendix C at 1.
    \130\Id.
    \131\Id.
---------------------------------------------------------------------------
    As to the $55,000 disbursement on July 9, 2018 from DCT 
Development to Mr. Trahan at issue here, Representative Trahan 
specifically asserted that she and Mr. Trahan considered it 
income earned or received by Mr. Trahan during their marriage, 
and thus marital property under the agreement.\132\ Likewise, 
it was treated as income for tax purposes.\133\ Representative 
Trahan also told the Committee the disbursement was not 
returned capital from DCT Development.\134\ On the date of the 
disbursement, DCT Development had a cash balance of 
$112,861.37, which represented DCT Development's value at that 
time.\135\ Her assertions are in accordance with her previous 
representations to the Committee in her Financial Disclosure 
Statements and in her submission in response to OCE's Referral, 
that funds Mr. Trahan received from DCT Development were his 
salary or income.\136\ Based on Representative Trahan's 
assertions to the Committee, the $55,000 disbursement was 
marital property.
---------------------------------------------------------------------------
    \132\Id. at 2.
    \133\Id.
    \134\Id.
    \135\Id.
    \136\New Member FD at 1-2; Appendix B at 4.
---------------------------------------------------------------------------
    As discussed above, Mr. Trahan deposited his salary and 
income from Eagle Development, Poplar Hill and Middlesex 
exclusively in his personal checking account and his income 
from DCT Development into his personal account and the couple's 
joint account--all of which was marital property under the 
prenuptial agreement.\137\ Paragraph eleven of the prenuptial 
agreement, which discusses the couple's marital property, does 
not specify any particular bank account where the Trahans would 
deposit their ``wages, salary, and income'' that constitute 
martial property, but it does contemplate the couple making 
periodic contributions to a fund for the maintenance of their 
household.\138\ Representative Trahan explained to the 
Committee the couple's practices with their incomes from their 
businesses:
---------------------------------------------------------------------------
    \137\Exhibit 4.
    \138\Exhibit 1para. 11.

          Rather than taking steady salaries, both 
        [Representative Trahan and Mr. Trahan] regularly 
        transferred funds from their respective business 
        accounts into their joint checking account to pay for 
        household expenses. That practice continued after 
        Representative Trahan became a candidate in 2017. In 
        addition, both spouses also had individual checking 
        accounts that were used interchangeably to pay for 
        joint expenses like credit card and tuition payments, 
        as well as health and child care costs. While Mr. 
        Trahan has historically had a larger income and has 
        thus historically contributed more to the joint 
        checking account and paid for more expenses than 
        Representative Trahan has done, that practice, too, 
        both preceded and post-dated Representative Trahan's 
        candidacy.\139\
---------------------------------------------------------------------------
    \139\Appendix B at 4.

    It appears that, in accordance with the agreement, the 
Trahans' incomes that were martial property were held in their 
personal and joint checking accounts, which were used 
interchangeably by the couple. The prenuptial agreement allows 
Representative Trahan to manage and dispose of all marital 
property, regardless of the bank account it was held in.\140\ 
In this instance, Representative Trahan exercised her right to 
manage and dispose of her marital property by loaning the funds 
from the couple's joint account to the Campaign. Moreover, 
Massachusetts Law allows either party to a joint account to 
withdraw, assign or transfer ``any part or all of the deposits 
and interest'' in a joint account.\141\ As such, Representative 
Trahan was able to execute her transaction under the relevant 
Massachusetts law.
---------------------------------------------------------------------------
    \140\The FEC has been inconsistent on whether it deems funds from a 
candidate's joint checking account shared with a spouse as ``personal 
funds'' of the candidate. See e.g., FEC Matter Under Review (MUR) Jim 
Huffman for Senate, et al. (MUR6417) (finding reason to believe the 
spouse's funds from a trust account transferred to a joint account and 
subsequently loaned to the candidate's campaign were excessive 
contributions from the candidate's spouse); Terri Lynn Land for Senate, 
et al. (MUR 6860) (deadlocking on finding a reason to believe spouse's 
income transferred to a joint checking account and subsequently loaned 
to the candidate's campaign were excessive contributions from the 
candidate's spouse). Because of the Trahans' antenuptial agreement, the 
Committee need not make a determination regarding funds in the Trahans' 
joint checking account.
    \141\Mass. Gen.Laws ch. 167D Sec. 3(a)(2015) (``Any bank or 
federally-chartered bank may receive deposits in the name of 2 or more 
persons as joint tenants, payable to 2 or more persons or the survivor 
or survivors of them, and any part or all of the deposits and interest 
represented by joint accounts may be withdrawn, assigned or transferred 
in whole or in part by any of the individual parties. Payments to any 
of the parties to a joint account while all of them are living shall 
discharge the liability of the bank or federally chartered bank to all 
persons and, in the event of the death of any of them, the bank or 
federally chartered bank shall be liable only to the survivor or 
survivors and the payment to any of the survivors shall discharge the 
liability of the bank or federally chartered bank to all persons.'').
---------------------------------------------------------------------------
    Because Massachusetts law allows for prenuptial agreements 
like the Trahans', and the prenuptial agreement provided 
Representative Trahan, long before she was a candidate, equal 
rights to manage and dispose of Mr. Trahan's salary and income, 
the Committee found Mr. Trahan's salary and income satisfied 
the definition of a candidate's personal funds under FECA. As 
such, the loans Representative Trahan made using Mr. Trahan's 
salary and income were her personal funds and not excessive 
contributions from Mr. Trahan. As a candidate, Representative 
Trahan was allowed to use her personal funds, irrespective of 
contribution limits, for the Campaign.\142\ Therefore, the 
Committee found the three loans Representative Trahan made to 
the Campaign from funds transferred to her joint checking 
account by her husband, totaling $300,000, did not violate any 
House Rules, laws, regulations or other standards of 
conduct.\143\
---------------------------------------------------------------------------
    \142\11 C.F.R. 110.10.
    \143\OCE's Referral states that Representative Trahan and Mr. 
Trahan did not cooperate with OCE's review and OCE does not cite to the 
Trahans' prenuptial agreement. OCE was not provided with a copy of that 
agreement and therefore could not analyze its impact on the 
allegations.
---------------------------------------------------------------------------

2. Loan from Revolving Line of Credit

    A candidate may use funds from a home equity line of credit 
to make loans to the candidate's own campaign as long as the 
loan was obtained in accordance with all laws and under 
commercially reasonable terms.\144\ Under FEC regulations, if a 
candidate's spouse is an endorser or co-signer for a home 
equity line of credit, the spouse is not deemed to have made a 
contribution to the campaign if the value of the candidate's 
share of the property used as collateral equals or exceeds the 
amount of the loan that is used for the candidate's 
campaign.\145\ A candidate's share of a jointly owned asset is 
either the share of the asset under an instrument of ownership 
or, if no share is indicated, the value of one-half the 
property.\146\
---------------------------------------------------------------------------
    \144\11 C.F.R. 100.83. Home equity lines of credit are excluded 
from the definition of contribution. 11 C.F.R. 100.71.
    \145\11 C.F.R. 100.83(b)(1). See also FEC Advisory Opinion (AO) 
Hochberg (AO1991-10) (finding the candidate's equity in a home owned 
with spouse is calculated as one half the tax valuation of the home 
minus outstanding mortgage).
    \146\11 C.F.R. 100.33(c).
---------------------------------------------------------------------------
    The Committee considered whether the $71,000 loan from the 
revolving line of credit established under the Credit Agreement 
with Washington Savings Bank resulted in an excessive 
contribution from Mr. Trahan to the Campaign.\147\ As discussed 
above, Representative Trahan and Mr. Trahan executed the Credit 
Agreement with Washington Savings Bank on October 15, 2010, 
many years before Representative Trahan's candidacy.\148\ The 
Credit Agreement allowed the Trahans to borrow up to $200,000 
secured by their home in Westford, Massachusetts.\149\
---------------------------------------------------------------------------
    \147\Sec. While not at issue in this matter, the Committee found 
the Credit Agreement was obtained in accordance with all laws and under 
commercially reasonable terms, as required under 11 C.F.R. Sec. 100.83.
    \148\OCE's Referral, Exhibit 10.
    \149\Id.; New Member FD at 5.
---------------------------------------------------------------------------
    In 2018, the Trahans' Westford home was valued at 
$1,242,800.\150\ On her New Member Financial Disclosure 
Statement, Representative Trahan disclosed the couple has a 
mortgage on their Westford home valued at between $50,001 and 
$100,000.\151\ Subtracted from the value of the home, the 
Trahans' equity in their home in 2018 was between $1,142,800 
and $1,192,799. Representative Trahan owns a one-half interest 
in the Westford home.\152\ Representative Trahan's share of 
their home is one half the value of the equity, totaling 
between $571,400 and $596,399.50 in 2018.
---------------------------------------------------------------------------
    \150\Town of Westford, Massachusetts,Property Assessment for 9 
Weetamoo Way, http://westford.patriotproperties.com/
Summary.asp?AccountNumber=10321 (follow ``previous assessment'' 
hyperlink) (last visited July 10, 2020); Appendix B at 7.
    \151\New Member FD at 5.
    \152\Appendix B at 7. Exhibit 1para. 10 (providing that any real 
property purchased in joint title by the Trahans reflects the intent of 
the parties to have a joint interest in that property).
---------------------------------------------------------------------------
    While Mr. Trahan was jointly liable for the funds borrowed 
under the Credit Agreement, Representative Trahan's $71,000 
loan to her Campaign funded by the revolving line of credit was 
well below her share in the collateral (between $571,400 and 
$596,399.50). In fact, the $71,000 loan is less than half the 
$200,000 available to the couple through the line of credit. 
Because Representative Trahan's share of the property used as 
collateral equaled or exceeded the amount of the loan, Mr. 
Trahan did not make a contribution to the Campaign as the co-
signer of the Credit Agreement. Therefore, the Committee found 
the $71,000 loan did not result in an excessive contribution 
from Mr. Trahan to the Campaign. As such, Representative 
Trahan's loan to the Campaign from her home equity line of 
credit did not violate any House Rules, laws, regulations or 
other standards of conduct.

                             B. DISCLOSURES

1. Financial Disclosure Statements

    Candidates for the House and Members are required to file 
Financial Disclosure Statements with the Clerk of the House 
under the EIGA and House Rules.\153\ If a filer knowingly and 
willfully falsifies or fails to file or to report any required 
information, the Committee may take action or the filer may be 
subject to civil and criminal penalties.\154\ Absent evidence 
that errors or omissions on financial disclosures are knowing 
and willful, the Committee's general practice is to notify the 
filer of the error and require that the filer submit an 
amendment.\155\ Once the amendment is properly submitted, the 
Committee typically takes no further action.\156\ A filer may 
also amend a Financial Disclosure Statement on the filer's own 
initiative. Such amendments are normally given a presumption of 
good faith by the Committee if submitted before the end of the 
year in which the report was originally filed.\157\
---------------------------------------------------------------------------
    \153\5 U.S.C. app. Sec. Sec. 101(c), (f), 103(h)(1)(A)(i)(I); House 
Rule XXVI, cl.2.
    \154\5 U.S.C. app. Sec. 104(a)(1), (2) and (c); see also Ethics 
Manual at 265.
    \155\Comm. on Ethics Instruction Guide: Financial Disclosure 
Statements and Periodic Transaction Reports at 8; see also Comm. on 
Ethics, In the Matter of Allegations Relating to Representative Vernon 
G. Buchanan, H. Rept. 112-588, 112th Cong. 2d Sess. 5 (2012) 
(hereinafter Buchanan).
    \156\Id.
    \157\Ethics Manual at 264.
---------------------------------------------------------------------------
    Representative Trahan filed Financial Disclosure Statements 
as a candidate and as new Member. As discussed above, 
Representative Trahan voluntarily amended her candidate 
Financial Disclosure Statements on four occasions to include 
previously omitted and additional information about her 
ownership, unearned income, earned income and client payments 
from Concire LLC, her joint bank account at Enterprise Bank 
with Mr. Trahan and her ownership interest in Stella 
Connect.\158\ Each of those amendments was made within a year 
of the Statement's original filing.
---------------------------------------------------------------------------
    \158\First Amended 2017 FD; First Amended 2018 FD; Second Amended 
2017 FD; Second Amended 2018 FD; Third Amended 2017 FD; Third Amended 
2018 FD.
---------------------------------------------------------------------------
    Representative Trahan's amendments to her Financial 
Disclosure Statements are not uncommon. In fact, between 20 
percent and 30 percent of all Financial Disclosure Statements 
reviewed by the Committee each year contain errors or require a 
corrected statement. It is also not uncommon for filers to 
become aware of errors in their Financial Disclosure Statements 
by members of the media or outside groups who review the 
statements and other public records.\159\ The Committee found 
no evidence that Representative Trahan's omissions on her 
Financial Disclosure Statements were knowing or willful. To the 
contrary, her amendments show her good faith effort to comply 
with the disclosure requirements. The Committee has previously 
encouraged filers to promptly file amendments whenever they 
learn of errors or omissions to avoid a knowing and willful 
violation, which is what Representative Trahan did.\160\ 
Because Representative Trahan has already amended her Financial 
Disclosure Statements to provide corrected information, the 
Committee concluded that no further action is necessary.
---------------------------------------------------------------------------
    \159\Buchanan at 5.
    \160\See Id. at 5, 6.
---------------------------------------------------------------------------

2. FEC Reports

    Campaigns must disclose all receipts, including any 
contributions, in-kind contributions, or loans, on reports to 
the FEC.\161\ For reporting purposes, a receipt is recorded by 
a campaign when it is actually received by the campaign.\162\ A 
campaign has ten days after receiving funds to deposit 
them.\163\ Loans are also reported as an outstanding debt.\164\ 
Certain loans, like a home equity line of credit, require 
additional reporting on Schedule C-1, including disclosing (1) 
the date, amount and interest rate of the loan; (2) the name 
and address of the lending institution; and (3) the types and 
value of collateral.\165\ If a campaign intentionally 
misreports information to the FEC, it may be subject to 
criminal penalties.\166\
---------------------------------------------------------------------------
    \161\52 U.S.C. Sec. 30104(b)(2), 11 C.F.R. Sec. 104.3(a)(3). For 
contributions that exceed $200 in an election cycle, the campaign 
committee must disclose the name of the person who made the 
contribution, the date and amount of the contribution. 52 U.S.C. 
Sec. 30104(b)(3). In-kind contributions from a candidate's personal 
funds that exceed $200 in an election cycle must also be disclosed. FEC 
Campaign Guide at 95-96.
    \162\11 C.F.R. Sec. 110.1(b)(6).
    \163\Id. Sec. 103.3. See also FEC Campaign Guide at 23 (``While all 
contributions must be deposited within 10 days, the date of deposit is 
not used for reporting . . .'').
    \164\ 52 U.S.C. Sec. 30104(b)(8), 11 C.F.R. 104.3(d). See also FEC 
Campaign Guide at 91, 108-109 (reporting guidance for loans from a 
candidate's personal funds).
    \165\11 C.F.R. Sec. 104.3(d)(4)(i)-(iii). See also FEC Campaign 
Guide at 110-111 (reporting guidance for a candidate's loan derived 
from a line of credit).
    \166\52 U.S.C. 30109(d)(1).
---------------------------------------------------------------------------
            i.) Personal Loans
    The Campaign reported to the FEC each of the personal loans 
Representative Trahan made to her Campaign by check on March 
31, 2018, June 30, 2018,and August 22, 2018. As discussed 
above, the Committee found those loans were made with her 
personal funds and thus, the Committee did not find the 
Campaign misreported the source of the funds.\167\ The 
Committee also examined whether the Campaign misreported the 
date it received the March 31, 2018 and June 30, 2018 loans. As 
to the March 31, 2018 loan, the Campaign reported it received 
the loan on the date of the check, but did not cash the check 
until April 9, 2018, nine days later. For the June 30, 2018 
loan, the Campaign also reported it was received on the date of 
the check, but did not cash the check until July 10, 2018, ten 
days later. As discussed above, the date Representative Trahan 
wrote each of the checks coincided with the last day of the FEC 
reporting period for that quarter. The date the Campaign 
deposited each of the checks corresponded with the date Mr. 
Trahan transferred funds to the couple's joint checking account 
to provide sufficient funds for the loan checks. Both checks 
were cashed within 10 days of receipt, as is required under FEC 
regulations.\168\ Thus, it does not appear the Campaign's 
reporting of the loans violated any House Rules, laws, 
regulations or other standards of conduct.
---------------------------------------------------------------------------
    \167\The FEC sent the Campaign a Request for Additional Information 
(RFAI) following the Campaign's submission of its Apr. 2018 Quarterly 
Report of Receipts and Disbursements where the Campaign first disclosed 
Representative Trahan's Mar. 31, 2018 loan. The RFAI requested 
additional information about the source of the funds for the loan and 
referenced the FEC's definition of ``personal funds.'' Letter from FEC 
Analyst Chris Jones to Martha Howe, Treasurer, Lori Trahan for Congress 
Committee (May 7, 2018). Following receipt of the RFAI, on May 15, 2018 
the Campaign amended its Apr. 2018 Quarterly Report to include 
additional notations that Representative Trahan's loan was from 
personal funds. Lori Trahan for Congress, Amended Apr. 2018 Quarterly 
Report of Receipts and Disbursements, at 145-146 (May 14, 2018).
    \168\11 C.F.R. Sec. 103.3. See also FEC Campaign Guide at 23 
(``While all contributions must be deposited within 10 days, the date 
of deposit is not used for reporting . . .'').
---------------------------------------------------------------------------
    The Committee notes, however, the dates of receipt and 
deposit raise questions about whether Representative Trahan 
intentionally reported the loans in advance of making the 
transfers in order to increase her cash-on-hand numbers at the 
close of the relevant quarterly reporting periods. Even though 
such conduct may be permissible under FEC regulations, the 
Committee cautions Representative Trahan that, as a Member of 
the House, she is expected to act in a manner that reflects 
creditably upon the House and should ensure accuracy and 
transparency in her campaign activities.\169\
---------------------------------------------------------------------------
    \169\While Representative Trahan was not a Member of the House at 
the time the loans were made and reported, the Committee has long held 
it has jurisdiction over misconduct relating to a successful campaign 
for the House. Comm. on Ethics, In the Matter of Allegations Relating 
to Representative Ruben Kihuen, H. Rept. 115-1041, 115th Cong. 2d Sess. 
5 (2018); Comm. on Standards of Official Conduct, In the Matter of 
Representative Jay Kim, H. Rept. 105-797, 105th Cong. 2d Sess. 6 
(1998).
---------------------------------------------------------------------------
            ii.) Loan from Revolving Line of Credit
    The Campaign first reported the $71,000 loan from 
Representative Trahan's revolving line of credit on its October 
2018 Quarterly Report, filed on October 15, 2018. At that time, 
it disclosed the loan was made on September 4, 2018, from 
Representative Trahan's personal funds, but did not disclose 
that it was a line of credit. Further, the Campaign did not 
file a Schedule C-1 to disclose additional requisite 
information about the date ``incurred or established,'' the due 
date, the source, and collateral for the revolving line of 
credit. On December 15, 2018, the Campaign amended its October 
2018 Quarterly Report, including filing Schedule C-1 for the 
$71,000 loan which disclosed additional information about the 
line of credit.\170\
---------------------------------------------------------------------------
    \170\The Campaign did not receive an RFAI from the FEC related to 
the $71,000 loan, which would have required a response from the 
Campaign on the public record. The Campaign's amendment may have been 
prompted by media inquiries. See also Boston Globe Article.
---------------------------------------------------------------------------
    The Committee encourages Members' campaigns to voluntarily 
amend FEC Reports to comply with FEC reporting regulations. 
Voluntarily amending FEC Reports, like voluntarily amending 
Financial Disclosure Reports, shows a good faith effort to 
comply with disclosure requirements. However, it is not clear 
that the line of credit was property reported on the amended 
filing. For example, in its December 15, 2018 amended Report on 
Schedule C-1, the Campaign reported the line of credit was 
``incurred or established'' on September 4, 2018, the date 
Representative Trahan wrote the check from the line of credit 
account to the Campaign. But, the line of credit was originally 
established on October 15, 2010. Further, the Trahans did not 
withdraw funds from the line of credit to cover Representative 
Trahan's check to the Campaign until October 3, 2018. It is not 
clear from available FEC guidance which date should have been 
disclosed as the date ``incurred or established.''\171\ 
Additionally, the Campaign reported the valuation of the 
collateral as $950,000, even though it appears that the total 
value of Representative Trahan's home at the time of the draw 
for the Campaign was more than that amount (between $1,142,800 
and $1,192,799), and her share would have been less that amount 
(between $571,400 and $596,399.50). FEC guidance also does not 
address valuation of a home used as collateral for a line of 
credit, which was initially established prior to 
candidacy.\172\
---------------------------------------------------------------------------
    \171\Instructions for Schedule C-1, Loans and Lines of Credit from 
Lending Institutions (FEC Form 3) at 17 (May 2016) (no discussion of 
lines of credit established prior to candidacy); FEC Campaign Guide at 
111 (no discussion of lines of credit established prior to candidacy); 
cf. Cunningham (AO 1994-26) (advising a candidate that lines of credit 
not obtained for campaign purposes need not be disclosed until the 
first draw for campaign purposes; after a draw for the campaign, 
candidate must disclose the source of the line of credit and 
information, including date of the granting of the line and first 
campaign draw and ``explain that this line was taken out well in 
advance of the campaign (as is evidenced by the date of the granting of 
the line) and was not granted or altered in anticipation of its use for 
or during any political campaign'').
    \172\Id.
---------------------------------------------------------------------------
    The Committee has a long history of undertaking 
investigations and, when appropriate, imposing sanctions or 
directing remedial measures where a Member or candidate in a 
successful election to the House is found by the Committee to 
have violated a clear standard of campaign finance laws or 
regulations. The Committee notes, however, that publicly 
available FEC guidance regarding reporting home equity lines of 
credit under these circumstances where a candidate and spouse 
establish a line of credit prior to candidacy is limited.\173\ 
Given the lack of a clear legal standard on the relevant 
reporting requirements and the Campaign's efforts to amend its 
disclosures, there is no evidence that any omissions or errors 
were knowing and willful. To the extent that the Campaign did 
not properly report information, the FEC (not the Committee) is 
best suited to make that determination. As such, the Committee 
directs Representative Trahan and the Campaign to contact the 
FEC to ensure they have properly disclosed the details of the 
revolving line of credit.\174\
---------------------------------------------------------------------------
    \173\See e.g., Instructions for Schedule C-1, Loans and Lines of 
Credit from Lending Institutions (FEC Form 3) at 17 (May 2016) (no 
discussion of lines of credit established prior to candidacy); FEC 
Campaign Guide at 111 (no discussion of lines of credit established 
prior to candidacy); cf. AO 1994-26 (advising a candidate that lines of 
credit not obtained for campaign purposes need not be disclosed until 
the first draw for campaign purposes; after a draw for the campaign, 
candidate must disclose the source of the line of credit and 
information, including date of the granting of the line and first 
campaign draw and ``explain that this line was taken out well in 
advance of the campaign (as is evidenced by the date of the granting of 
the line) and was not granted or altered in anticipation of its use for 
or during any political campaign'').
    \174\Similarly, the Committee directs the Campaign to consult the 
FEC regarding its disclosure of Representative Trahan's in-kind 
contributions. The Campaign appears to have appropriately reported the 
in-kind contributions as both receipts and disbursements, as is 
required to avoid inflating cash on hand. However, based on the FEC's 
Interpretive Rule on Reporting Ultimate Payees of Political Committee 
Disbursements, unreimbursed disbursements by a candidate for that 
candidate's own campaign also require an additional memo entry 
itemizing the ultimate payee if the aggregate amount to that vendor 
exceeds $200 for the election cycle. Reporting Ultimate Payees of 
Political Committee Disbursements, 78 Fed. Reg. 40625, 40627 (July 8, 
2013). See also FEC Campaign Guide at 95-96.
---------------------------------------------------------------------------

                             VI. CONCLUSION

    Representative Trahan's prenuptial agreement with her 
husband established clear delineations as to the couple's 
income and assets and rights to their income and assets during 
their marriage. Based on the prenuptial agreement, the 
Committee found that Representative Trahan's loans to the 
Campaign were from her personal funds, not excessive 
contributions from her husband, and therefore did not violate 
House Rules, laws, regulations or other standards of conduct. 
The Committee also found no evidence that Representative 
Trahan's omissions of required information or errors on her 
Financial Disclosure Statements and FEC reports were knowing 
and willful, and accordingly, did not merit further action. In 
fact, Representative Trahan's amendments to her disclosures on 
her own initiative show her good faith effort to comply with 
the relevant disclosure requirements.
    To the extent that there may have been errors in reporting 
information to the FEC, the Committee found that the FEC was 
best qualified to make that determination and directs 
Representative Trahan and the Campaign to contact the FEC to 
ensure accurate disclosure.
    The Committee notes that the disclosure requirements in 
FECA were created to provide voters with information about 
where political campaign money comes from and how it is spent 
so they may adequately evaluate those who seek federal 
office.\175\ Similarly, the public disclosure of assets, 
financial interests, and investments required under EIGA and 
House Rule XXVI are intended to provide the information 
necessary to allow Members' constituencies to judge their 
official conduct in light of possible financial conflicts of 
interest.\176\ Members should strive to ensure accuracy and 
transparency in their campaigns and Financial Disclosure 
Statements in furtherance of these objectives.
---------------------------------------------------------------------------
    \175\Buckley v. Valeo, 424 U.S. 66-67 (citing H.R. Rept. No. 92-
564, p. 4 (1971)).
    \176\Ethics Manual at 251.
---------------------------------------------------------------------------

            VI. STATEMENT UNDER HOUSE RULE XIII, CLAUSE 3(C)

    The Committee made no special oversight findings in this 
Report. No budget statement is submitted. No funding is 
authorized by any measure in this Report.


[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]