Campaign regulators call for steep fines against 2 Anchorage Republicans

Two East Anchorage Republicans are facing hefty fines from the Alaska Public Offices Commission after being accused of campaign finance violations in the 2022 and 2024 elections.

Outgoing Rep. Stanley Wright faces $11,442 in fines; former and incoming Rep. David Nelson faces $6,152 in penalties. Both men could also be ordered to surrender campaign funds to the state.

Nelson on Friday acknowledged his “mistake” that included previously undisclosed expenditures. He said he would pay the fine. Wright did not respond Friday to a request for comment.

The 907 Initiative, a progressive watchdog group, filed the complaints against Nelson and Wright in September. The group alleged that the two Anchorage Republicans improperly transferred funds from their 2022 campaign accounts to use in this year’s election.

By state law, leftover campaign funds must be disbursed by February following the November election. The funds can be put into an account for future campaigns.

However, the 907 Initiative said Wright and Nelson did not create those accounts, meaning their leftover 2022 campaign funds should have been surrendered.

Wright faced a tough rematch at the Nov. 5 election for a north Muldoon House seat against Democrat Ted Eischeid. Wright lost by 251 votes.

Nelson also faced a tough race against Democratic Rep. Cliff Groh to regain a North Anchorage seat he lost to Groh in 2022. Nelson won this year by a razor-thin 22 votes.

Staff at the Alaska Public Offices Commission, the state’s campaign finance regulator, recommended penalizing Wright and Nelson in late October. On top of the fines, Wright could be ordered to forfeit $5,155 in campaign funds to the state; Nelson, $1,373.

Both Anchorage Republicans amended their 2022 campaign disclosure reports after the September complaint was filed, said staff at the commission.

Nelson’s amended reports “showed substantial changes,” including thousands of dollars in previously undisclosed expenditures.

“Perhaps more concerning, the reported activity does not correlate with the campaign’s bank records, further calling into question the accuracy of the campaign’s reporting,” wrote Mike Sargent, the state’s campaign disclosure coordinator.

Wright reported having around $2,000 in leftover cash after the 2022 election. The true figure should have been over $5,000, but it was still unclear what caused those discrepancies, regulators said.

”In any event, it is clear that the campaign failed to reconcile its reporting and failed to accurately disclose its financial activity,” Sargent said.

In response to the complaint, Nelson told regulators that he had intended to transfer funds to a future campaign account and that he self-reported the undisclosed expenditures.

”We made a mistake, and accept responsibility for it,” Nelson said by text message Friday. “We worked with the APOC staff to identify the problems to ensure that this doesn’t happen again. My treasurer and I will pay this fine personally.”

Wright did not respond to the complaint, regulators said.

Because of yearslong reporting delays, Wright faced a maximum fine of $202,400; Nelson $163,050. Following long-held precedent, the penalties are set to be sharply reduced.

The five-member commission will ultimately decide whether the fines recommended by staff against Wright and Nelson should be imposed as written, increased, reduced or rejected.

Aubrey Wieber, executive director of the 907 Initiative, said that relatively minor violations of campaign finance rules are common.

Eagle River GOP Sen. Kelly Merrick, for example, faces a $150 fine for failing to report a contribution of salmon for a campaign fundraiser.

However, Wieber said improperly transferring funds at the start of a campaign created an uneven electoral playing field.

”You’ve got to play by the rules,” he said.

The Alaska Public Offices Commission is next set to meet Jan. 16.

Heather Hebdon, executive director of APOC, said she expects that the Wright and Nelson matters will be on the agenda. Both men will have an opportunity to call witnesses and present an argument before the commission renders its decisions, she said.