The Hill
Friday, July 03, 2009
SEARCH
Home
HillTube
Mobile
White Papers Portal
New Member Guide
BLOGS
Pundits Blog
Congress Blog
Blog Briefing Room
Twitter Room Blog
NEWS
Leading The News
Business & Lobbying
K Street Insiders
John Breaux
John Engler
Vin Weber
Dave Wenhold
The Executive
Campaign
Obama Cabinet
COLUMNISTS
Dick Morris
A.B. Stoddard
Brent Budowsky
Ben Goddard
David Hill
David Keene
Josh Marshall
Mark Mellman
Jim Mills
Markos Moulitsas (Kos)
Cheri Jacobus
John Del Cecato
COMMENT
Editorial
Letters
Op-eds
Weyant's World
CAPITAL LIVING
Today's Stories
50 Most Beautiful 2008
Other Features
In The Know
Bookshelf
Announcements
Food & Drink
Onward and Upward
RESOURCES
Classifieds
Subscribe
Order Reprints
Aerospace
Energy Special Report
Telecom Special Report
Transport Special Report
Earth Day Special Report
Consumer Safety Report
Useful Links
RSS


Home arrow Campaign arrow The Subway candidate: Fleming’s business practices toe political line
Campaign PDF Print E-mail
The Subway candidate: Fleming’s business practices toe political line
Posted: 11/24/08 07:11 PM [ET]

If Louisiana Republican John Fleming wins a seat in Congress in two weeks, much of the thanks will go to his Subway restaurant business.

The intermingling of Fleming’s business and political interests continues to raise questions among his opponents, but Fleming maintains everything has been above-board and approved by a compliance expert.

Fleming, who is also a renowned physician, is in a tight race with Caddo Parish District Attorney Paul Carmouche (D) in the state’s 4th district House race. The race was delayed a month due to Hurricane Gustav and will conclude Dec. 6.

The latest Subway-related incident came this week when two former employees of Fleming’s Subways complained to The Hill that his workers were required to stuff the restaurant’s sandwich bags with literature for Fleming’s campaign.

Fleming explained Monday that his Subways often stuff the bags with advertisements, and that his campaign has paid his corporation for the advertising — which includes ads outside the stores.

Federal Election Commission (FEC) reports appear to confirm the arrangement, showing about $25,000 paid to Fleming’s Subway corporation for advertising purposes.

FEC advisory opinions in recent years do not appear to address such a relationship. But the FEC has ruled that candidates can pay rent to companies they own, as long as they pay fair market value.

So as long as Fleming paid the going rate for the advertising, the arrangement doesn’t appear to violate campaign finance law.

Regardless, it’s the latest example of Fleming using his business to enrich his campaign.

The money he has made from the business has allowed him to self-fund at least $775,000 for his campaign so far — a figure that makes up more than 75 percent of his total funds raised — and earlier this year he raised his name recognition with corporate advertising and distributed free food from the Subways during Gustav.

Also, in his campaign ads, Fleming features a clip of himself in one of his Subways. When opponents began raising questions about the ad, his campaign pulled it, said Fleming’s compliance expert, Paul Kilgore.

“The decision was made to avoid any air of impropriety, so they pulled that part of it,” Kilgore said, adding that the campaign was trying to “err on the side of caution.”

Democrats maintained that the inclusion of the Subway clip constituted a corporate contribution, but Fleming and Kilgore said it is compliant as long as he doesn’t insinuate some kind of endorsement from the company.

Kilgore said Fleming’s campaign has “gone to great lengths to keep the business world and the campaign world separate.”


 
 
 
BLOGS
TheHill.com Blogs Briefing Room Pundits Room Congress Blog Twitter Room
ADVERTISER
Home | Privacy Policy | Terms And Conditions
The Hill
1625 K Street, NW Suite 900
Washington, DC 20006
202-628-8500 tel | 202-628-8503 fax

The contents of this site are © 2009 Capitol Hill Publishing Corp., a subsidiary of News Communications, Inc.