Seattle Ethics and Elections Commission director Wayne Barnett says former mayoral candidate Joe Mallahan appears to have violated city campaign-finance rules by failing to report several debts accrued by his campaign in a timely manner.
Under city election rules, candidates must pay off debts within 90 days; otherwise, the debt is considered a contribution to the campaign. Since contributions are limited to $700, any unpaid debt over that limit is an over-the-limit contribution.
As we reported this morning, Mallahan’s campaign failed to pay off three debts to his campaign consultant, Argo Strategies, totaling just under $22,000 before the 90-day deadline. One of the debts, for $2,953, was paid more than a month late. “It would appear, based on those facts, that there are some violations,” Barnett says.
Barnett says the violations could be subject to a fine of up to $5,000; however, he says, “I don’t think we’re in that neighborhood.” The elections commission could either choose to put the matter to a hearing, or they could reach a settlement with the Mallahan campaign.
If the commission fines the campaign, both Mallahan himself and Argo Strategies, which also served as Mallahan’s treasurer, would be liable. Argo’s owner, Jason Bennett, has not returned a call for comment.
