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NewsAugust 28, 1994

A group that placed newspaper and radio advertisements around the state opposing a $250 million bond issue approved Aug. 2 by voters is linked to Cape Girardeau and has not filed the required campaign finance-disclosure reports required by law. The ads were placed by Red Letter Communications, a Cape Girardeau public relations firm, for a group known as Missourians Against Amendment 4. A disclaimer on the ads listed H.C. Mellone of Cape Girardeau as treasurer...

A group that placed newspaper and radio advertisements around the state opposing a $250 million bond issue approved Aug. 2 by voters is linked to Cape Girardeau and has not filed the required campaign finance-disclosure reports required by law.

The ads were placed by Red Letter Communications, a Cape Girardeau public relations firm, for a group known as Missourians Against Amendment 4. A disclaimer on the ads listed H.C. Mellone of Cape Girardeau as treasurer.

The Missouri Ethics Commission on Friday had no record of a committee by that name. The Cape Girardeau County clerk's office on Friday had no finance-disclosure reports from the group.

Missouri law requires any committee formed to support or oppose a ballot issue to file a statement of committee organization and a series of disclosure reports if more than $1,000 is raised or spent, or if more than $250 is received from any group or individual.

The reports for a statewide issue like Amendment 4 would have to be filed with the ethics commission in Jefferson City and with the county clerk in the home county of the committee's treasurer. Failure to file reports is a Class A misdemeanor, and courts have the authority to levy civil penalties.

Mellone refused Friday to reveal who else was involved in the committee. Jim Riley of Red Letter wouldn't say who hired the company, because he didn't have their consent.

Amendment 4 provides money for state capital improvements.

Ray Snider, an aide to Missouri Senate President Pro Tem James Mathewson, said he filed a complaint against the group with the ethics commission on Aug. 5. Snider said he filed it as a citizen and not on behalf of Mathewson.

Initially, when the ads began running a number of days before the election, Snider said he was asked to determine the source of them. He learned that radio ads on the Brownfield radio network and some of the newspaper ads had been placed by Red Letter.

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The cost of the advertising exceeded the $1,000 disclosure minimum.

Snider said his complaint was acknowledged by the ethics commission and he was advised the commission would look into the matter and get back to him.

Mike Reid, director of compliance for the Missouri Ethics Commission, said he is prohibited from discussing cases under investigation. He wouldn't confirm that a complaint had been filed.

Reid said the commission meets every four to six weeks and has conference calls more frequently to discuss cases. Decisions on whether to take action is based on reports from investigators.

"We work on complaints as quick as we can, but we are busy with a lot of complaints," said Reid. "All of our complaints are confidential."

Reid said if the commission finds something is wrong the information is forwarded to the Missouri Office of Prosecution Services, which follows a procedure for hiring a special prosecutor. The Office of Prosecution Services picks a panel of five attorneys whose names are given to a presiding judge of the circuit where the offense allegedly occurred, and the judge selects the prosecutor from the list.

"The important part of this law is disclosure," said Reid. "Voters have a right to know who supports or opposes ballot issues and candidates."

Said Snider: "I just want to know who is behind it. That is what the law is intended to show. With candidates you have to file a report to show who and where their support is coming from, and the law also requires that on ballot issues so the voters and public can be informed. Compliance is what I am after."

Mellone acknowledged Friday that as treasurer he had not filed any campaign-disclosure reports. He said he would check on it.

Riley said his company made the ads and placed them for the group. "We handled the advertising," said Riley. "We are a communications company. We get hired by all kinds of people. That's our job."

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