PRESS RELEASE FOR IMMEDIATE RELEASE Contact: Kit Kuzma July 22, 2011 334-262-2221 Governor Riley Violates Campaign Finance Law Governor Bob Riley has violated a new campaign finance law that bans PAC-10-PAC transfers—one of several new ethics reform laws that he signed on December 20, 2010, during the Special Session on Ethics. An Amended Pre-Election Report filed with the Alabamé Secretary of State by the Alabama 2014 Political Action Committee, of which Govemor Riley is Chairperson and which he formed on March 1, 2011, revealed the violation. $50,000 was transferred from Republican State Leadership Committee PAC to Alabamz 2014 PAC on March 15, 2011. ‘The Alabama 2014 PAC is the same entity described in a leaked email from Govemor Riley’s éaughter, Minda Riley-Cambpell, to a secret Republican group known as the Governor's Circle. That email said, “They have asked my father to establish a political action ccmmittee and campaign organization...[that] will serve to elect candidates committed to the same ideals as those who were chosen by Campaign 2010.” ‘The leaked email further revealed that the purpose behind Alabama 2014 PAC was to enable Republican leaders to operate outside of the rules and constraints of the Alabama Republican Party. Minda Riley-Campbell conchided: “This organization would rot be so constrained. We are committed to helping any way we can, and in ways the ALGOP cannot.” Judge Mark Kennedy, Chairman of the Alabama Democratic Party, responded: “Evidently, the Alabama 2014 PAC is also not constrained by laws—even laws that the former governor signed during a special session on ethics that he himself convened. It’s another example of Republican hypocrisy. Not only is ita clear violation of state ‘campaign finance laws, it is a violation of the Republican’s promise to bring ethics and transparency to Alabama politics. The special session was apparently just underhanded political :heater—it had nothing to do with ethics reform.” Kennedy concluded with, “Today I am submitting evidence to the Montgomery DA and Alabama's Attorney General calling on them to fully investigate and prosecute this blatant violation of the law.” aHSTATEMENT BY JUDGE MARK KENNEDY REGARDING RILEY PAC-TO-PAC VIOLATION FOR IMMEDIATE RELEASE Contact: Kit Kuzma July 22, 2011 334-262-2221 Good afternoon. I'm here today to call for an investigation of Bob Riley and the Bod Riley cartel for what I believe to be a blatant violation of the ethics laws he proposed and signed before he left office. On December 1, 2010, Bob Riley called the Alabama Legislature into special session on ethies, which resulted in a ben of PAC-to-PAC transfers. On March 15, 2011, three months after the legislature banned PAC-t0-PAC transfers, Bob Riley violated that law. Today I am submitting evidence to the Montgomery DA and Alabama's Attorney General calling on them to fully investigate and prosecute this. blatant violation of the law. According to records from the Secretary of State, on March 15th, Bob Riley's Alabama 2014 PAC accepted a $50,000 contribution from the Republican State Leadership Committee. The Republican State Leadership Committee is also a PAC registered with the Alabama Secretary of Siate. This proves that one PAC gave a political contribution to another PAC. That is a clear violation of Alabama's new law and should be investigated to the fullest. Not only is this a violation of the law, but the timeline of events behind this violation should be of lerest to the people of Alabama and in particular to Governor Robert Bentley and the current leadership of the Republican party * On February 19, 2010, Bill Armistead, a close ally of Robert Bentley, was elected Chairman of the Republican Party. * On February 20, 2010, Riley's daughter Minda Riley-Campbell wrote a letter to silk stocking Republicans letting them know that Bob Riley was in the process of setting up a PAC to help ensure that Riley and his cartel maintains control of Republican Party politics in Alabama. + On March 1, 2011, as promised, Bob Riley created the Alabama 2014 PAC to give Riley a forum to secret y collect contributions outside the more transparent system provided by the Republican Party. + On March 15, 2011, Riley's PAC accepted a $50,000 contribution from another PAC, less than three months after Alabama Law prohibited such PAC-t0-PAC transfers. 1 anticipate Bob Riley may try to contend that the Republican State Leadership Committee is not a PAC. ‘That would be both factually untrue and ethically a horrible attempt at deception. The truth is the Republican State Leadership Committee is an officially registered PAC with the Alabama Secretary of State. In fact, I've handed out a packet today that includes all appropriate documentation, So, let me close by quoting Bob Riley as he called the legislature into a special session to ban PAC-to- PAC transfers. "We have a historic opportunity to not only reform the corrupt political culture, but to end it once and forall.” 1 agree with Riley, in so much that today, we have an opportunity to show that we take our ethics laws seriously and will prosecute those that violate the law, regardless of their party affiliation and their prominence in pablic office. attExhibit 1. HB9 - 2010 First Special Session Exhibit 2. Letter from Minda Riley Exhibit 3. Alabama 2014 Political Action Committee documentation from the Alabama Secretary of State's Office Exhibit 4. Republican State Leadership Committee documentation from the Alabama Secretary of State’s Office Exhibit 5. Letter to Alabama Attorney General Exhibit 6. Letter to Montgomery County District Attorney