CA Collection Agency Indicted in Campaign Finance Investigation

A Texas grand jury has indicted a California-based collection agency on a third-degree felony charge that it broke a state law prohibiting corporate donations to state political candidates.

DCS, Inc. was indicted Tuesday along with seven other corporations and three aides of U.S. House Majority Leader Tom DeLay, R-Texas, for their contributions to a Republican political action committee, Texans for a Republicans Majority PAC (TRMPAC), during the 2002 Texas state elections.

The indictments come as a result of a 21-month investigation spearheaded by Travis County (TX) District Attorney Ronnie Earle. It is alleged that TRMPAC took donations from corporations and then funneled them to individual candidates seeking election to the Texas legislature, a violation of state law.

In addition to DCS, the companies named in the indictment are Sears Roebuck & Co., Bacardi USA Inc., Westar Energy Inc., Cracker Barrel Old Country Store Inc., the Williams Cos. Inc., Questerra Corp. and the Alliance for Quality Nursing Home Care Inc.

The corporations were indicted for giving a total of $270,000 to TRMPAC which was only part of the $600,000 in corporate donations recorded by TRMPAC in other public filings. Not all the companies that made contributions were indicted. Earle said the grand jury charged those companies where evidence suggested they intended their donations to be used for improper, political purposes. DCS is accused of making a $50,000 donation to TRMPAC.

In a statement released yesterday by DCS, the company said that it made the contribution in June of 2002 “in response to a corporate fund-raising solicitation.” The company points out that before its acquisition by Parthenon Capital at the beginning of this year, “DCS had a long history of making corporate contributions for charitable, educational, and political purposes.” The company said that it would never willingly make an illegal contribution and that they believe their contribution in 2002 was not unlawful. DCS claims to have fully cooperated with the Travis County District Attorney.