Former State Representative, Campaign Treasurer Indicted for Failing to Properly Report Campaign Contributions, Expenses
Brian Wallace, age 61, former State Representative from the Fourth Suffolk District in Boston, was indicted today by a Suffolk Grand Jury on charges of Failing to Report Campaign Contributions and Failing to Preserve Expense Records. Timothy Duross, age 50, of Boston, was his campaign treasurer at the time of the alleged violations and was also indicted today on similar charges. The violations are alleged to have occurred in 2008. The case is being prosecuted by the Attorney General's Public Integrity Division.
"Candidates and their treasurers are required by law to accurately record campaign contributions and preserve all records of expenses," Attorney General Coakley said. "These laws are critical to the integrity of our campaign finance system, ensuring greater transparency and protecting against the misuse of campaign funds. We allege that Mr. Wallace and his treasurer failed to properly record thousands of dollars in contributions and expenses in direct violation of those laws."
Wallace was elected as State Representative for the Fourth Suffolk District in Boston in 2003 and served until January 4, 2011. He did not seek re-election in 2010. Duross was appointed treasurer for the Committee to Elect Brian Wallace in 2001. The campaign finance laws of Massachusetts mandate that every candidate for political office and the treasurer for a political campaign committee maintain and keep detailed accounts of all the committee's financial activity on behalf of the candidate, including all contributions and expenditures received or made on behalf of the candidate and their political campaign committee. During each calendar year, the committee files periodic reports with the Office of Campaign and Political Finance (OCPF) and must file additional reports during election years. These reports are made available to the public on OCPF's website.
The indictments stem from an investigation by the Office of Campaign and Political Finance (OCPF) in 2009, which referred the case to the Attorney General's Office for further investigation. Based on that investigation, it is alleged that Wallace and Duross failed to report $6,345 worth of campaign contributions in 2008 (17% of his total contributions). When confronted by OCPF and asked to provide backup documentation to support reported campaign donations and expenditures, neither Wallace nor Duross were able to do so. Both candidates and committee treasurers are required under the law to maintain receipts for the campaign's expenditures for six years after the relevant election.
The case is being prosecuted by Assistant Attorney General Jason Cofield of Attorney General Coakley's Public Integrity Division with the assistance of Financial Investigator Jack D'Isidoro. Sarah Hartry, Legal Counsel for the Office of Campaign and Political Finance also investigated and assisted with this case. In February 2011, AG Coakley announced the formation of the Public Integrity Division - the first division in the office focused exclusively on cases of public corruption and fraud. The Division is prosecuting numerous public integrity cases, including a case brought against an employee of an MBTA subcontractor in connection with an alleged scheme to illegally produce millions of dollars worth of MBTA monthly passes.