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McLachlan hit with campaign fines

Ordered to pay $2,660 for finance violations
McLachlan

DENVER – Former state Rep. Mike McLachlan of Durango was fined $2,660 recently for campaign finance violations dating back to last year’s failed re-election bid.

The Democrat acknowledged the violation in an interview with The Durango Herald on Friday, saying that a little-known law got the best of him and his team.

“I accept full responsibility,” McLachlan said. “It’s my campaign, and it’s been my decision that I’m simply going to pay the fine.”

McLachlan, an attorney, lost a re-election bid to Rep. J. Paul Brown, R-Ignacio, who took over for McLachlan at the start of the legislative session that began in January.

The issue stems from campaign finance laws governing limited liability companies. McLachlan accepted three contributions from LLCs in Colorado, but his campaign did not report the names and addresses of all LLC members or describe how the contributions were to be attributed to the LLC members.

The idea behind the law is to track individual contribution limits. In Colorado, the maximum an individual can contribute to a state legislative campaign is $400.

The fear is that individuals can hide behind an LLC, contributing not only through the LLC, but also as an individual. If the names of LLC members and a description of their contributions is itemized in a finance report, then officials can better track whether an LLC contribution should be counted against contribution limits for individuals.

Administrative law judge Keith Kirchubel pointed out in his ruling Feb. 19 that there was no evidence that McLachlan made the errors intentionally or in bad faith.

But the judge added that the error “is one which a committee for an experienced candidate should have detected.”

The first issue was a $400 contribution from Heizer Paul, a Denver-based law firm that is filed as an LLP. The firm often takes on high-profile Democratic cases. They actually defended McLachlan in his campaign finance case.

McLachlan was ordered to return the donation because the problem was not just an omission. McLachlan failed to recognize that Heizer Paul had included proper disclosures with its donation, according to the ruling.

The second violation involved the LLC Colorado Legislative Services, a well-known Denver-based lobbying firm that donated $350 to McLachlan’s campaign.

The final complaint revolved around a $400 contribution from McKenzie Rhody & Hearn, a construction-defect law firm with an office in Lone Tree that is filed as an LLC.

After being notified of the complaint Oct. 29 – just before the November election – McLachlan quickly set to work filing amended campaign finance reports.

He included the LLC member names for Heizer Paul and McKenzie Rhody & Hearn on Nov. 10; the member names for Colorado Legislative Services was filed on Nov. 29.

Because McLachlan had drained the majority of his campaign funds from the election, most of the fine is being paid out of his own pocket.

The complaint was filed by Matt Arnold and his organization, Campaign Integrity Watchdog, a campaign-finance oversight group.

While Arnold is a known Colorado conservative, he has had a rocky relationship with several Republicans, including state party chairman Ryan Call.

He said his organization is simply out to hold candidates accountable.

“Justice in this case ... has been served,” Arnold said. “Now-former state Representative McLachlan has been held accountable to the law, despite his protestations of ignorance. We should expect our elected officials to know, understand and obey the laws they foist upon the rest of Colorado.”

pmarcus@durangoherald.com

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