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FEC IMPOSES $477,000 FINE IN CONNECTION WITH DONATIONS

Campaign Gifts in Other People's Names Came from Toy Maker's Fund

By Pete Yost, The Associated Press, Reported in Las Vegas Review-Journal, 12-06-02

WASHINGTON - Mattel Inc., maker of Barbie dolls and other toys, agreed with two former workers to pay $477,000 in fines for making political donations in the names of other people, the third-largest fine ever imposed by the Federal Election Commission.

The fines, announced Thursday, stem from $120,714 in donations from 1996 to 2000. The money went to 23 Democrats and Republicans, two party committees and five political action committees.

Among the recipients were the Democratic National Committee, the Gore 2000 presidential campaign and committees for California's Democratic senators, Barbara Boxer and Dianne Feinstein.

Several Republicans were among the recipients, including committees for Res. Lincoln Diaz-Balart and Ileana Ros-Lehtinen, both of Florida, and Steven Kukendall of California.

The FEC said it found no evidence that any of the recipients were aware that the toy maker was the true source of the donations.

The reimbursement arrangement involved Mattel Senior Vice President Fermin Cuza and Mattel consultant Alan Schwartz, according to agreement signed with the FEC.  Cuza was in charge of government affairs for the toy company.

Mattel at Cuza's direction paid Schwartz's firm for consulting services, and Schwartz used the money to make donations to federal candidates and political committees.  Schwartz used money from Mattel to reimburse people, including Cuza, for donations to political committees, according to the documents.

The Federal Election Campaign Act prohibits making a contribution in the name of another person and bars corporations from making contributions from their general treasury funds in connection with any election for federal office.

Cuza directed the hiring of Schwartz as a company consultant, the FED said.

Evidence existed that Cuza concealed the payments from his superiors at Mattel, the FEC said.

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