Dean Corren
Dean Corren ran for lieutenant governor in 2014. File photo by Cory Dawson/VTDigger
[W]hen TJ Donovan campaigned successfully for attorney general, he promised to make settling the Dean Corren case a priority. Donovan thought allegations that Corren broke campaign finance laws had been too aggressively prosecuted by his predecessor and that the fine handed down was out of proportion to the alleged offense.

Donovan followed through on his pledge, making what he said was a โ€œreasonable offerโ€ after taking office a month ago to reach a โ€œglobal resolutionโ€ of all the cases involving Corren โ€” both state and federal. Correnโ€™s side has rejected the offer, as Seven Days first reported.

The two sides appear far apart. Still, โ€œIโ€™m optimistic,โ€ Donovan said of the prospects for a settlement.

According to attorneys involved, Donovan offered to dismiss the stateโ€™s case in return for a settlement well short of the $72,000 initially sought. Corren would have to agree to drop a federal lawsuit against the state that challenges the constitutionality of parts of Vermontโ€™s public campaign financing laws.

โ€œWeโ€™ve made a reasonable offer seeking a global resolution in terms of not only the stateโ€™s case but the federal lawsuit they brought,โ€ Donovan said. โ€œI want to hit the reset button, and I think the public financing questions can be and should be addressed with the Vermont Legislature.โ€

TJ Donovan
Attorney General TJ Donovan. File photo by Morgan True/VTDigger
Instead of the federal court dismissing the law in sections, Donovan said heโ€™d rather see the Legislature make changes he agreed need to be enacted, including adjusting how much candidates can spend and when they can start raising money to qualify for public financing of their campaign.

Correnโ€™s attorney, John Franco, said it would be foolhardy to count on the Legislature to make the necessary changes. Until the federal courts do, he said, no candidate will risk using public financing for fear of running afoul of the too-tight restrictions.

โ€œNo oneโ€™s going to want to touch it with a 10-foot pole,โ€ Franco said.

The stakes on the penalties are too high, despite a major change in the law, according to Franco. Even if the Corren case is dismissed, Franco said, a future candidate could be prosecuted โ€œand put through the same hell the Corren family has gone through.โ€ So far, Franco said, Corren has racked up $30,000 in legal bills.

Corren, a Progressive/Democrat, [was accused] of running afoul of the public campaign finance laws when he ran for lieutenant governor in 2014. According to the complaint, Corren improperly received an in-kind contribution โ€” an email supporting his candidacy from the head of the state Democratic Party.

Under the laws on public financing of campaigns, Corren received about $180,000 in public money. As part of the deal, candidates are not allowed to seek outside money other than a small amount they raise to qualify. The restriction on outside fundraising includes in-kind contributions.

Under the law at the time, a candidate was required to return the public money that had been at hand when the alleged violation occurred. In Correnโ€™s case, that penalty was pegged at $52,000. There were two additional fines of $10,000 for the actual violations, bringing the total sought by Attorney General William Sorrell, Donovanโ€™s predecessor, to $72,000.

Sorrell
Former Attorney General William Sorrell. File photo by Erin Mansfield/VTDigger
Under a change in the law made two years ago, the amount the candidate would have to return is capped at the amount of the prohibited contribution. In Correnโ€™s case, the email was valued at $255. The law was made retroactive to cover Correnโ€™s case, reducing his financial exposure from $52,000 (already spent) to $255. He is still subject to fines of up to $10,000 for the two alleged violations.

In addition to the amounts that can be raised โ€” Donovan said the Citizens United court case unleashed spending and makes the current public campaign amounts inadequate to compete โ€” both Donovan and Franco said the restriction on raising money to qualify until February of the election year is untenable given how long campaigns run.

One of the key areas of dispute between Donovan and Franco is where changes to the public financing law are made. Franco wants the federal judge to gut the law and the Legislature to enact a new one. Donovan wants to go straight to the Legislature instead and change the current law to include more reasonable requirements and limits.

โ€œIโ€™m not sure the expending of more resources is in anybodyโ€™s interest. Letโ€™s get this done, letโ€™s hit the reset button and letโ€™s change the law,โ€ Donovan said.

Failing to have the federal court decide the issues, Franco contended, would โ€œleave the madness unresolved for another victim.โ€

The Democratic Party agreed to pay a $10,000 penalty. Its executive director said it was a question reasonable minds could disagree on and that the party wanted to move on and avoid costly litigation.

As for Donovanโ€™s appeal to reach a settlement and take proposed changes in the law to the Legislature, Franco said he couldnโ€™t agree to dismiss both suits and โ€œgive up the federal court claim to go hold hands and sing kumbaya in front of the Senate Government Operations Committee.โ€ Instead, he said Donovan should dismiss the state case and join him in making changes to the public financing system through the federal case.

Franco also said his client had no interest in paying a penalty, even one less than the $10,000 maximum on each violation that Sorrell sought.

Donovan said he was trying to be โ€œcreative and fairโ€ in seeking an amount but also said he would not require Corren to admit guilt. Donovan would not say how much he was seeking or if he would attempt to collect it through seeking lawyerโ€™s fees for his office.

Franco said Corren wonโ€™t pay a dime in fines. He insisted Corren broke no laws and that the courts have found the email was an allowable contribution. Corren lost the 2014 race to Republican Lt. Gov. Phil Scott, who is now governor.

โ€œDean did nothing wrong, nothing illegal, and heโ€™s not prepared to do anything that looks, quacks or smells like capitulation. Heโ€™s just not prepared to do that, particularly not after spending 30 grand in defense of the case,โ€ Franco said.

Donovan hesitated when asked if Sorrell pursued the case too aggressively but noted prosecutors have the choice to pursue a case and how hard.

โ€œI think the case is now my responsibility, and Iโ€™m doing what I think is right,โ€ Donovan said. โ€œI think as a prosecutor you always have discretion, and restraint is an incredibly important quality for a prosecutor.โ€

Twitter: @MarkJohnsonVTD. Mark Johnson is a senior editor and reporter for VTDigger. He covered crime and politics for the Burlington Free Press before a 25-year run as the host of the Mark Johnson Show...

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