Agency to investigate Eyman

Anti-tax activist says he'll cooperate with Public Disclosure Commission

BRAD SHANNON, THE OLYMPIAN

OLYMPIA -- Tim Eyman might have diverted more money from initiative campaigns than previously reported, state elections watchdogs said Wednesday in announcing a formal investigation into finance practices of the state's premier initiative sponsor.

The inquiry was announced three days after Eyman admitted he had taken $45,000 from his campaigns in 2000 for personal uses, then lied about it.

Eyman also said he planned to take an additional $157,000 this year that he had diverted to his for-profit, initiative-promoting business, Permanent Offense Inc.

The investigation could include an audit and its length will depend on how cooperative subjects are, said Doug Ellis, director of public outreach for the PDC.

"Sometimes you have to subpoena documents, you have to subpoena testimony. It just depends how forthcoming people are," Ellis said. "I've seen things drag on for over a month."

Eyman suggested that won't happen.

"I've been doing initiatives for several years," he said in a written statement released Wednesday night through his successor in the initiative campaign, Monte Benham. "I've always had a good working relationship with the PDC. I will continue to cooperate with them and will make sure their questions are answered."

Ellis said notice was given to all the named parties, including Permanent Offense, Permanent Offense Inc., and the Transportation Improvement Initiative Committee.

Investigators will be trying to verify if there are "campaign disclosure violations" by Eyman's initiative-promoting business, Permanent Offense Inc., as well as by Eyman himself and the campaign committees he formed for several initiatives.

Vicki Rippie, executive director for the state Public Disclosure Commission, said Eyman might have diverted even more than the roughly $210,000 he has admitted to. Rippie spelled out her theory in the formal complaint sent to Eyman.

The investigation was triggered by several discrepancies between Eyman's public statements and campaign reports he filed with the PDC, she said. The agency staff found "reason to believe that one or more violations" of campaign finance law "may have occurred," Rippie's complaint said.

Jack Fagan, a retired Spokane businessman who with Eyman, Benham and his son, Mike, formed the leadership of Permanent Offense, said they will have a reorganization meeting this weekend to sort out what the group will do next. Until then, Benham is serving as the organization's leader.

Fagan said he learned of the PDC investigation from a reporter and had "no comment on it at this time," except that he doesn't think the PDC will find any violations of disclosure law.

"I'm not going to worry about it," he said.

The Olympian Copyright 2002

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