A longtime critic of the Hawaii Republican Party is alleging top state GOP leaders violated federal campaign spending laws by illegally funneling excess contributions to Cam Cavasso during his campaign for the U.S. House this year, but Republican Party Chairwoman Shirlene Ostrov says the party assistance to the Cavasso campaign was legal.
Eric Ryan, president of the Hawaii Republican Assembly, said in a filing with the Federal Elections Commission last week that he learned of the violations while he was listening to a telephone conference call of the state Republican Executive Committee on Nov. 27 in which party leaders discussed state GOP finances.
Ryan alleges Ostrov acknowledged during the call that the party was a “pass-through” for money from two donors who had already given the maximum $2,700 legal contributions to Cavasso but wanted to donate more to his campaign.
The party allegedly used the money from donors Mikio Izuka and Melba Cavasso to pay vendors who were providing campaign services to Cavasso, according to the Ryan filing. Ryan contends that was illegal, but Ostrov said in an interview Wednesday those payments were legal under federal law.
Izuka donated $7,300 to the party, and Melba Cavasso gave $2,500, for a total of $9,800. The party then paid $8,300 to Frank Petsche, who provided digital campaign consulting services to the Cavasso campaign, and paid $1,500 to Dennis Linn for video services.
In a separate filing with U.S. Attorney for Hawaii District Kenji M. Price, Ryan alleged the party
officials and the Cavasso campaign engaged in conspiracy, money laundering and wire fraud when the party moved nearly $10,000 in “campaign
contributions” to the Cavasso campaign that illegally exceeded federal contribution limits.
Ryan alleged that “the officers of HRP and the Cavasso campaign have undermined the transparency and integrity of the electoral process by conspiring to violate federal campaign finance laws and to engage in money laundering and wire fraud.”
Ostrov said the payments were reported to the FEC as “coordinated expenditures,” which are allowed under federal law.
She said donors who have contributed the maximum amounts allowed under federal law to a candidate can make donations to state parties that are “earmarked” for the same candidate. The parties can then use that money to support the same candidate’s campaign, she said.
Ostrov said the Hawaii GOP consulted with the FEC before making the payments to the Cavasso vendors.
She also provided an email from an unidentified representative of the FEC’s Information Division that indicated that coordinated contributions are allowed provided that “the party committee pays for goods or services in coordination with a candidate but does not give the money directly to the candidate or candidate committee.”
Ryan was expelled from the state Republican party in May.
Ostrov said the conference call that Ryan listened in on was meant for the 17 members of the executive committee, and “he shouldn’t be on the phone call, as you can imagine, if it’s an executive committee meeting. However, we also have nothing to hide.”
According to Ryan’s public filings, party officials have used the same call-in number for state GOP telephone conferences since June 2017, and the number has been distributed to various party members and leaders.
Ryan has been a fierce critic of the Hawaii Republican Party, alleging that it is corrupt and that party leaders are “just a light version of the Democrats.”
Earlier this year he made public allegations that Republican state House candidate Sailau Timoteo was ineligible to run, and she was later forced to withdraw from the race.
Hawaii GOP candidate for governor Andria Tupola went to court last spring to obtain a three-year restraining order against Ryan after she accused him of harassment and cyberbullying.