This story was reported for the San Diego News Network on August 25, 2009. It was reported by Hoa Quach and Joseph Peña.
A small but vocal group of local Republicans is accusing county party leaders of conspiring to rig Central Committee elections and abusing office powers.
They allege the local party and state party’s chair of dodging campaign finance violation fines, using party resources for personal gain, ignoring party bylaws and State Election Code and harassing and intimidating other party members.
The executive director of the state’s Fair Political Practices Commission (FPPC) confirmed it is investigating claims that the San Diego County Republican Party chair Tony Krvaric violated the state’s independent expenditure provision of the Political Reform Act.
Two party members allege Krvaric conspired with candidates for the Republican Central Committee to stack slate mailers with people he considered “team players,” and excluded other party members from the mailers. Slate mailers are the primary means candidates use to get their names out to voters.
The complaint also names 2008 Central Committee candidates Michael McSweeney, Warene Wall, Michael Rosen, Gary Felien and Bill Baber.
California Republican Party chair Ron Nehring is repeatedly mentioned in an affidavit filed in support of the FPPC complaint, though Nehring is not the target of the investigation. The affidavit outlines more than a dozen other complaints that do not fall under the purview of the FPPC’s investigation.
At least three members of the county party – including a former staff member – however, say they witnessed “questionable” or “inappropriate” behavior by both Krvaric and Nehring.
Four party members were willing to discuss the FPPC investigation and other allegations. Because of their fear of reprisal and concern that Krvaric and party leaders would jeopardize their livelihoods or future aspirations in the party, they requested anonymity in this story.
Two additional sources confirmed information and allegations of improprieties, but declined to elaborate.
In conversations with these members of the local Republican Party, a dark portrait emerged of Krvaric, who has a documented past in Internet piracy. Sources said Krvaric likes to think of himself as the “godfather of politics in San Diego” and runs the party like a “mafia.”
They say the chair has created a culture of fear and intimidation among party members, going so far as to threaten some. They say Krvaric’s leadership and the perceived wrongdoing could have a catastrophic impact on the party’s ability to mobilize voters and win elections in 2010.
The party’s executive director Barrett Tetlow deferred to Krvaric for comment. Krvaric did not return a phone call or e-mail for comment. A call to the San Diego County Republican Party Office to reach Felien and Baber was not returned.
McSweeney – who is first vice chair of the party – responded to questions via e-mail while vacationing with family.
McSweeney made headlines during the primary election in 2008 when he worked as campaign manager for Mayor Jerry Sanders’ re-election campaign. McSweeney admitted to e-mailing mayoral candidate Eric Bidwell and giving Bidwell talking points to attack Sanders’ chief rival, Steve Francis. When Bidwell revealed the e-mail and instant message exchanges with McSweeney, McSweeney was fired.
Of the investigation, McSweeney wrote: “As of this writing, I’ve never been contacted by anyone at the FPPC. My feeling was it was a courtesy form letter. I did not coordinate any slate mailers or approve any funding for slate mailings. Any individual(s) can form a committee, raise and expend funds for any cause, measure or candidates. Look up the committee and it’s [sic] reports. I’m sure you’ll find everything was done by the book.”
In response to a question regarding Krvaric’s leadership, McSweeney wrote: “Tony’s done an excellent job as party chairman. I’ve found him to be open and accessible to our members, donors and volunteers. San Diego is the model as far as a county party goes in California. Krvaric’s reimbursements are reasonable, fair and accurate as far as I know. In fact, I don’t believe he bills the party for every out of pocket expense. The allegations are, at best, a gross exaggeration. Any member has the ability to ask the treasurer for any information regarding our Party’s finances, and to my knowledge nobody has asked the treasurer to explain any expenditures (I was a former Treasurer of our county party) to date.”
Of the party members who filed the complaint and the supporting affidavit, McSweeney wrote: “My guess is their [sic] are less than a dozen members who have had their feathers ruffled by Krvaric’s leadership. Instead of figuring out ways to work collaboratively, they write complaints, allege corruption, write and post on blogs under assumed names or anonymously and complain about leadership without pitching in and doing any work. You’ll find Monday morning quarterbacks in any organization. It’s always easier to complain than actually produce results.”
The party members who filed the complaint, however, say they were active and engaged with the party but have been turned off by Krvaric’s leadership.
“The way Tony is running the committee, there is no room for independent discussion or independent thought,” a source said. “That is not a reflection on the Republican Party. That is a reflection on these individuals and the tyrannical way they’re running the party.
“This has been taken to a really absurd degree. He just wants total control. … This is really sick stuff.”
Krvaric’s history with the SDGOP and the FPPC investigation
Krvaric emigrated to the U.S. from Sweden in 1992, became a citizen in 2003, and became active with the local party around 2004. A source said Krvaric was excited to be involved and enthusiastic about local politics.
A source said Nehring — former chair of the local party, “took [Krvaric] under his wing.” He appointed Krvaric secretary, and in 2007 when Nehring was elected to the state party, the local Republican Party elected Krvaric chair. A source said he noticed a change in Krvaric a few months into his first term, and in 2008, published reports of Krvaric’s dodgy past surfaced.
Krvaric was reported to be the co-founder of Fairlight, an online video-software piracy group. In an e-mail to party supporters, Krvaric dismissed the report as a “hit piece.” A source said after the Fairlight ties were made public, Krvaric became “really heavy handed with the [Central] Committee.”
Despite the reports, he was re-elected chair in December for a two-year term.
Sources say Krvaric sought early endorsements within the party for his bid as chair, telling party members he was the only candidate for office. Sources say, however, Krvaric had a potential challenger, and when some candidates for the Republican Central Committee declined to give Krvaric an early endorsement, he turned on them. They say Krvaric had “favored” candidates for the Central Committee, and went to great lengths to “stack the deck.”
The FPPC complaint filed in November alleges a local political action committee (PAC) – Citizens for a Better San Diego – violated the independent expenditure provision of the Political Reform Act. The complaint alleges Krvaric raised funds from party donors for the PAC, and then met with party officers – many of them Krvaric’s “favored” candidates for Central Committee – and planned, coordinated and approved the PAC’s independent expenditures.
Krvaric’s critics say the slate mailers also included names of candidates who did not authorize the advertisement.
According to the FPPC, independent expenditures are one type of expense filed by PACs. Independent expenditures pay for communications (a billboard, advertisement, mailing, television and radio commercials) that expressly advocate the nomination, election, or defeat of a clearly identified candidate, but which is not made to, or at the request of, a candidate.
These expenditures must be made completely “independent” of the candidate; no coordination can take place between the candidates or their campaigns and the entity that makes the independent expenditure.
The complaint says Felien and Baber – both candidates for Central Committee – admitted to meeting and discussing expenditures for slate mailers. The complaint also says Felien said a decision had to be made that was “best for the party.”
A violation of the independent expenditure provision is punishable by a fine up to $5,000, and in some circumstances, the commission may file a civil lawsuit seeking up to three times the amount of the unreported or underreported contributions.
A search of the California Secretary of State’s Web site shows the PAC, Citizens for a Better San Diego, was terminated on Dec. 30, 2008. The PAC’s filing lists April Boling – former candidate for San Diego City Council – as the PAC’s treasurer, but no other name is associated with the PAC. A source said Boling did contract accounting work for the party. Boling did not return a call for comment.
In the case of the local Republican Central Committee elections – which are outside the City of San Diego’s Ethics Commission’s purview – there is no telling when the FPPC investigation into potential violations will be complete, or whether the findings will shake the party’s leadership.
The party members who filed the complaint fear perceived corruption or infighting within the ranks of the SDGOP will cost the party critical elections in 2010 and alienate the city’s Republican base, which, according to voter ID numbers, has grown weaker countywide.
One source said he would like to take a vote of no confidence in Krvaric, which could lead to the chair’s ouster. But, he said, it’s difficult to rally support for a vote because party members fear Krvaric’s wrath.
“Tony Krvaric has a habit of harassing, intimidating and coercing individuals to do certain things,” a source said.
‘Inappropriate use of power’
The affidavit by a party member filed in support of the FPPC complaint included more than a dozen other accusations against Krvaric and Nehring. A source said the additional accusations do not violate laws, but the “inappropriate use of power … should be a concern of Republicans.”
Sources said Nehring has his eyes set on replacing Michael Steele as chair of the Republican National Committee.
Among the affidavit’s claims are:
- Krvaric submitted vague or incomplete reimbursement request forms, including one for a one-year-old, $6,000 trip to Washington D.C. Krvaric allegedly took before he was chair of the county party; he was subsequently reimbursed in full, the former staff member said;
- Nehring and Krvaric ignored party bylaws by pushing through endorsements of local officials – including Sanders for mayor – and candidates for state party offices without notification to the membership or debate in an open forum;
- Krvaric violated state election code by ignoring valid motions, refusing to allow debate, and hand-picking candidates to fill committee vacancies, despite the fact they had violated bylaws, and were not eligible for appointment;
- Committee members were denied access to executive board meetings, attendance reports are no longer made available, meeting minutes are incomplete and financial information is not provided;
- Party members were “threatened” into voting for candidates for California Republican Party seats; and Nehring and Krvaric orchestrated a proxy scheme – obtaining blank signed proxy appointments and cajoling party members into using them to vote for particular candidates.
- Nehring – former chair of the county party and current chair of the state party – dodged an FFPC campaign finance violation fine by having a communications firm take responsibility and pay for the violation; and in return, Nehring allowed the company, Bieber Communications, to “pad” invoices to the party for future work;
- Nehring charged monthly public committee meeting costs to a Hyatt Rewards credit card, and used accumulated points to take personal vacations;
- Nehring was “liberal in his expensing” of hotels and car rentals, and even expensed a gym membership as part of the party’s “victory strategy”; and as of January 2009, Nehring had not returned a laptop that is county party property; and
- At the annual Lincoln-Reagan Dinner Krvaric seated Rep. Darrell Issa’s guests – who Krvaric “ostracized … as disloyal” – at the back of the venue, despite Issa’s political clout and high sponsorship level of the event.
Sources for this story acknowledged that a number of the affidavit’s complaints seemed “petty” – but, they hope the FPPC investigation sheds light on other “questionable” activity by the party’s leadership.
“It’s all very petty,” said one source. “It all adds up and compounds to two and a half years of pettiness. It’s not just petty bickering. It’s a lack of trust and authenticity and integrity that starts to fall under breaking the law. That concerns me.”