Citizens Club for Growth Inc. Agree to Pay FEC Fine

The Federal Election Commission (FEC) reached an agreement with Citizens Club for Growth Inc., and if approved by the court, would end a lawsuit before the U.S. District Court for the District of Columbia. It would be the largest civil penalty the FEC ever collected after an enforcement case moved to litigation. Club for Growth has agreed to pay $350,000 for failing to register with the FEC as a political committee and report its contributions and expenditures. The group spent at least $1.28 million between 2000 and 2004 expressly advocating the election or defeat of clearly identified federal candidates. The FEC found that its major purpose was to influence federal elections and met the statutory definition of a political committee, and was therefore required to register and report with the Commission. Club for Growth issued a press release stating it is a separate legal entity from the group that will be paying the fine, Citizens Club for Growth Inc. Earlier this year Citizens Club for Growth Inc. (a 527 organization) sold its name to a new group, Club for Growth, a 501(c)4.
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