New Hampshire-based Select Demo must pay $75,000 after illegally reimbursing its employees for political contributions made to Boston Mayor Marty Walsh and City Councilor Michael Flaherty, according to the Massachusetts Office of Campaign and Political Finance.
The contracting company made $21,000 in illegal corporate contributions in 2019 by reimbursing employees for their contributions, according to an agreement reached between the company and OCPF.
Massachusetts campaign finance law bars corporations from making contributions to political candidates. It also bars donors from misrepresenting the source of their funds.
The disposition agreement signed by Select Demo President Ryan Denver and OCPF Director Pro Tem Michael J. Sullivan states that the company acknowledged it violated both state statutes.
Neither Flaherty nor Walsh’s committees were aware of the campaign finance violations, according to OCPF. The campaigns are not allowed to keep the funds.
In a statement to MassLive, the Walsh Committee said it was notified Tuesday of the funds by OCPF and is working on disgorging the funds. “As stated by OCPF, the committee was not aware that any contributions received were prohibited until the Committee was notified by OCPF,” the committee said.
OCPF said it started investigating Select Demo after a routine review of campaign contributions, according to the disposition agreement. The office found bank records and other documents showing Select Demo paid several employees and affiliates either right before or after they donated to Walsh and Flaherty’s committees.
A Select Demo employee donated $1,000 to Flaherty. The employee was reimbursed with corporate funds by the company, according to the agreement.
Twenty Select Demo employees and company affiliates each donated $1,000 to Walsh’s committee. The company reimbursed them with $1,000 checks in December, according to the agreement.
Under the agreement, Select Demo agreed to campaign finance training for each employee.
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