Is Ed Fallon A Hypocrite?

March 20th, 2008 at 07:51pm Geraldine

Iowa Independent just published a story that reveals that congressional candidate Ed Fallon has been hiding contributions to his political organization, IM For Iowa. Although IM for Iowa’s goal is “further develop a broad movement committed to progressive reform in state and local politics,” it is legally a for-profit partnership between Fallon and his campaign manager and girlfriend Lynn Heuss. As a result, IM for Iowa can take an unlimited amount of contributions and does not have to reveal its contributors or how it spends its money. However, it is highly questionable how a building a grassroots movement in Iowa for causes like advocating Clean Elections can be a moneymaking, for-profit entity. IM for Iowa does not sell any product or produce anything of tangible commercial value. People who give money to it have no idea where their money went. In fact Fallon admitted that he has been paying himself from IM for Iowa’s coffers, stating that “both Lynn and I took a small draw on the business.” Fallon compared his actions to that of former Congressional candidate Jeff Lamberti who received a salary from Casey’s, a family owned chain of conveniences stores that is a publicly traded stock on NASDAQ and subject to a wide array of federal disclosure laws. IM For Iowa is not subject to any federal disclosure laws, let alone traded on NASDAQ.

Last month, Fallon attacked Leonard Boswell for receiving a $5000 contribution from an AT&T sponsored PAC and then for voting for one version of telecom immunity. Regardless of whether one morally approves of Leonard Boswell taking a donation from a PAC, it is both clearly legal and the donation is fully disclosed. The public knows who gave money to Leonard Boswell and has the ability to raise questions about it. Fallon’s conduct with IM For Iowa raises some serious legal questions but most importantly, it raises the question of who is giving money to Ed Fallon and what are they getting in return?

Fallon’s political reputation is that of someone who values principle above all else, even at his own expense. But when he’s running an organization like IM for Iowa that seems to be deliberately structured to avoid any financial disclosure that undermines everything Ed Fallon has seemingly stood for in his decade and a half in public life. On one hand, Ed Fallon stands for clean elections, on the other, he is engaging in political activity that clearly violates the spirit of the election law he considers far too weak, (not to mention the actual law himself). Ed Fallon needs to make public all pertinent records and tax filings of IM for Iowa immediately. After all, if he has behaved ethically and has nothing to hide, it would only reinforce his reputation for probity. But if Fallon does not come clean, his reputation for honesty will be permanently tainted, if not destroyed.

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6 Comments Add your own

  • 1. noneed4thneed  |  March 20th, 2008 at 9:48 pm

    “it is highly questionable how a building a grassroots movement in Iowa for causes like advocating Clean Elections can be a moneymaking, for-profit entity. I’m for Iowa does not sell any product or produce anything of tangible commercial value”

    When did you become against grassroots movements? I think they have a large tangible value and important for the functioning of our democracy.

    I think the more important question to be asking is what I’m for Iowa has been spending money on. If Fallon chose to make a living promoting grassroots activism that is fine with me.

    If it is determined that if donors are getting something in return, then that is another thing. Right now there is no evidence of that at all. This seems to be just another hit piece on Fallon from this blog.

  • 2. Geraldine  |  March 20th, 2008 at 10:13 pm

    Grassroots Movements have great tangible value and are important for democracy. But it’s hard to see how they can be for-profit entities and what commercial products that a grassroots movement can create or sell.

    IM For Iowa could have taken the form of a 501c3, a 501c4, a PAC, a 527 or a variety of other incarnations for a non-profit or political organization instead. Instead, IM For Iowa took the possible form it could take where there would be no disclosure,as a for-profit partnership. It is not a form that grassroots movements usually take.

    You are also right that there is no evidence. That’s because there’s no disclosure from IM for Iowa at all because it has taken the only possible legal form for it to avoid disclosure. That’s a sign of something shady, especially from a clean elections advocate.

  • 3. desmoinesdem  |  March 28th, 2008 at 5:21 pm

    Keep trying, Geraldine!

    I have never donated to I’M for Iowa. However, if people want to give money to allow Ed Fallon to campaign for progressive candidates and causes around our state, I see no problem with that.

  • 4. Iowa Progress » Des&hellip  |  March 30th, 2008 at 12:25 pm

    […] irregularities that Chase Martyn uncovered last week. While both pieces reinforced the fact that something irregular was happening with Fallon’s group “I’m for Iowa.” Fallon answered questions […]

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