Scottsdale councilman Guy Phillips is facing a campaign finance violation after his campaign accepted donations from PayPal accounts tied to a limited liability company, according to Tucson City Clerk judgment.
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Scottsdale councilman Guy Phillips is facing a campaign finance violation after his campaign accepted donations from PayPal accounts tied to a limited liability company, according to Tucson City Clerk judgment.
Scottsdale resident Mark Greenburg filed the complaint July 8. Scottsdale City Clerk Carolyn Jagger referred the complaint to Tucson City Clerk Roger Randolph. declaring a conflict of interest.
While Mr. Randolph did find Mr. Phillips’s campaign violated a state statute that prohibits accepting campaign donations from corporations, limited liability companies and labor organization, Tucson City Attorney Michael Rankin determined the campaign would have to refund $2,525, the exact amount in donations.
Mr. Rankin, who acted as enforcement officer, wrote in a notice of violation he found no circumstance that would justify the penalty be triple the refund, calling the violations technical.
“While the committee or Mr. Phillips could certainly have taken more timely and effective action to ensure resolution of the confusing organization of the PayPal accounts that eventually caused the violations, there is no indication whatsoever here of a severe, extensive or willful violation of the statute,” Mr. Rankin said in the notice.
Mr. Phillips’s campaign responded to the allegation on July 20 and cooperated with the investigation, the notice stated.
Attorney Timothy La Sota answered questions on behalf of the campaign and voluntarily turned over documents.
Mr. Randolph’s investigation established Mr. Phillips’s campaign received two donations that ran through Budget Mechanical’s PayPal account. Mr. Phillips owns and operates Budget Mechanical, an air conditioning contracting business.
The notice states Nancy Baurichter paid $2,500 and Tom Sinyard paid $25 to Budget Mechanical’s PayPal account, which subsequently transferred the money to Mr. Phillips’s campaign as a donation.
Along with the refund, the campaign must file a revised campaign report within 20 days of the notice, which was filed on Aug. 14.
Mr. Rankin emphasized in the notice the campaign documented the amounts and their true sources of the donations, further stating the campaign never hid anything. Mr. Rankin further said compliance, not punishment, is the end goal with state campaign finance statutes and he believes this penalty accomplishes this goal.
Mr. Phillips recently advanced to the Nov. 3 general election after garnering 16,559 votes cast in the Aug. 4 primary election. This placed him fifth on the list of six candidates who advanced seeking to fill three seats on the City Council.
The other candidates included: Betty Janik (30,753 votes); Tammy Caputi (29,687 votes); John Little (25,742 votes); Tom Durham (25,140 votes); and Becca Linnig (15,770).
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