Ticket Number: 
42940
Complainant: 
Michael Fertakis
Respondent: 
David Chan
Created Date: 
November 13, 2018
Status of Investigations: 
Case Closed with Written Warning
Description: 

The Public Disclosure Commission (PDC) has completed its review of the three complaints filed by Michael Fertakis in October 2018. The three complaints alleged that David Chan, candidate for Snohomish County Public Utility District Commissioner No. 1 in 2018, may have violated RCW 42.17A.235 and .240 for failure to timely and accurately file Monetary Contribution reports (C-3 reports) and Summary Full Campaign Contribution and Expenditure reports (C-4 reports), disclosing contributions and expenditures undertaken by the Campaign. For your information, in order to more efficiently use PDC resources, these three complaints have been combined into one letter. PDC staff reviewed the allegations; the applicable statutes, rules, and reporting requirements; the response(s) provided by David Chan; the applicable PDC reports filed by Respondent; and the October 17, 2018 Statement of Understanding with $300 civil penalty completed by Mr. Chan and acknowledging violations of RCW 42.17A.235 and .240, to determine whether the record supports a finding of one or more violations. The 2018 election was the first time David Chan filed as a candidate under the “Full Reporting” option and was required to file C-3 and C-4 reports using the PDC’s ORCA program disclosing campaign contribution and expenditure activities electronically. Serving as his own treasurer, Mr. Chan spent several weeks working with PDC Filer Assistance Staff on how to properly enter and correct information reported in ORCA, and he continued to work with staff throughout the 2018 election cycle. In July 2018, two complaints were filed against David Chan alleging his campaign failed to timely and accurately file reports of campaign activities. On October 22, 2018, Mr. Chan completed a Statement of Understanding (SOU) acknowledging violations of RCW 42.17A.235 and .240 for failure to timely and accurately file C-3 and C-4 reports, and paid a $300 civil penalty, resolving similar allegations in PDC Cases 42329, 42397 and 42940.Based on these findings staff has determined that, in this instance, failure to timely file a small number of C-3 and C-4 reports late disclosing details of a mailed political advertisement, does not amount to an actual violation warranting further investigation or additional enforcement action. Pursuant to WAC 390-37-060(1)(b), David Chan will receive a formal written warning concerning failure to timely and accurately disclosure of all contribution and expenditures. The formal written warning will include staff’s expectation that David Chan timely files all future required reports of contributions and expenditures, including all required vendor information during the accelerated reporting periods prior to and after any election in which his name appears on the ballot. The Commission will consider the formal written warning in deciding on further Commission action if there are future violations of PDC laws or rules. Based on this information, the PDC finds that no further action is warranted and has dismissed this matter in accordance with RCW 42.17A.755(1).