Businessmen Ed Hart And Bruce Lunsford Demand Return Of $10,000 Donation For Louisville Mayor Greg Fischer's Inauguration, That Fischer Used To Reimburse Himself For Campaign Loan. Tsk, Tsk!

Businessmen say donations to Louisville Mayor Greg Fischer's inauguration diverted to campaign fund

Businessmen Ed Hart and Bruce Lunsford say $10,000 in contributions that they and five other people gave to sponsor a table at Mayor Greg Fischer’s Inaugural Gala was instead kept by the mayor’s election campaign to repay personal loans he made to the campaign.

Hart wrote a letter Wednesday asking that Fischer return all of the money to the donors so it can be contributed to charity — a request Fischer told a reporter he will “seriously” consider.

In an interview Wednesday, Hart said that he and the other donors agreed to collectively pay for the table sponsorship at the gala — a black-tie fundraising event that climaxed a day-long series of free inaugural events in January — because they wanted to help ensure that most of the inaugural events were free and open to the public.

Hart said they became aware that their money was retained by the campaign after reading a story in The Courier-Journal on Monday about Fischer’s 2011 campaign finance reports, which were filed Nov. 14.

“In December 2010, we were asked by Tommy Elliott and Christy Brown, co-chairs of the Mayor Greg Fischer Inauguration Committee, to contribute to your inauguration gala so that thousands of Louisvillians, who otherwise could not afford to attend, could enjoy the festivities,” Hart’s letter says.

“I now find that … my contribution (and so perhaps amounts from other contributors as well) was used to help retire your personal campaign debt,” the letter continued.

“I respectfully request, on behalf of myself and the other members of the group of donors I assembled, that any of our donations not used for the inaugural celebration be returned to the individuals.”

Fischer counters that Hart and Lunsford wrote their checks to the campaign account and should have known that meant the campaign could use the money however it wanted.

“These are smart guys,” Fischer said. “They’ve been around the political world.”

But he added, “If there’s some legitimate beef they have, I’m happy to consider complying with whatever it is” they want.

Keeping the donations made by the group does not appear to violate Kentucky election law.

Fischer has raised $46,500 in campaign donations this year to pay down his campaign debt, according to reports filed recently with the Kentucky Registry of Election Finance. After withdrawing $40,000 from those accounts, Fischer still has about $250,000 in outstanding personal loans made to his mayoral campaign account.

Registry records show that Hart and Lunsford, two wealthy and prominent business partners in Louisville, each contributed $2,000 — making out checks for $1,000 each to Fischer’s primary and general election accounts.

Hart and Lundsford both said in interviews Wednesday that they assumed the campaign would use the money to pay off bills from the inauguration.

And e-mails obtained by The Courier-Journal clearly show that the donor solicitation was for inaugural events. In addition, an inaugural program lists all seven donors as being “Inaugural Host Sponsors,” which required $1,000 contributions.

Fischer called that acknowledgement a “discrepency.”

Elliott wrote in an email on Dec. 13 to a member of Hart’s staff handling the fundraising that the checks should be made out to “Greg Fischer Mayoral Inauguration.”

But eight days later, Elliott sent another e-mail asking that “everyone could write (checks) to Greg Fischer for Mayor.”

Lunsford said Wednesday that he contributed because he wanted the inauguration to be open to the public.

“It bothers me that somebody who has substantial means would ... use his power and position to get money and pay back campaign debt,” said Lunsford, who defeated Fischer in a bruising 2008 Democratic Senate primary election. “The money was clearly meant for the inaugural celebration.”

Hart, who at the time of the donation was negotiating with the city for an annual payment to help reopen his Kentucky Kingdom amusement park, said Wednesday that he incorrectly thought donors to the inaugural were bound by election laws that limit donations to $1,000 per election. Hart said if he knew contributions to the inaugural were unlimited, he would have just written the $10,000 check himself.

“From my point of view, I didn’t care where I sent the checks as long as the money ended up in the event,” Hart said.

During an interview Wednesday, Fischer repeated a claim he made in Monday’s story — that his campaign has not solicited any campaign contributions since the election.

But the newspaper on Wednesday obtained an invitation to a Fischer fundraiser held in Lexington on Nov. 29 — at the home of Insight Communications lobbyist David Whitehouse.

When asked about the event, Fischer initially called the fundraiser a “reception” and said, “I did not solicit money there.” He also said that his campaign “did not send (the invitations) out.”

When it was pointed out that the invitations say “Paid for by Greg Fischer for Mayor,” Fischer responded: “I did not see that and I do not know that.”

“They offered to hold a reception for me. I put it on my schedule and attended,” Fischer said. “This is all transparent.”

Fischer spokesman Chris Poynter confirmed that about $40,000 was raised for the mayor’s campaign debt at the event — an amount that won’t have to be reported to the Kentucky Registry of Election Finance until next year.

Insight is currently negotiating a new franchise agreement with the Fischer administration — a deal that must be completed before its $3 billion sale to Time Warner can be completed.

In addition to the Lexington fundraiser, Insight lobbyist Bob Babbage and his wife each contributed $1,000 to Fischer’s primary and general campaign accounts, according to the 2011 Registry of Election Finance reports.

Hart’s commitment to the gala was also made while he was negotiating a business deal with the city. Hart wanted the city to contribute annually to help finance renovation and operations of his Kentucky Kingdom amusement park.

Shortly after taking office, Fischer asked Elliott — who is not a Metro Government employee nor under contract as a consultant — to be an “advisor” on that deal.

Fischer said that was not a conflict of interest.

“Anytime we can get pro bono advice from a qualified source, we’re going to do that,” Fischer said of the city. “Tommy wasn’t negotiating. He was just offering advice.”

Elliott said Wednesday that Marty Cogan, from Hart’s staff, brought him into the Kentucky Kingdom negotiations. He declined to discuss his role in the talks, saying that was confidential.

Fischer’s inauguration cost $260,000, and his committee raised $290,000 from some 500 donors, according to records submitted to the Kentucky Registry of Election Finance.

Some $39,000 in leftover funds from the inaugural were contributed to the Community Foundation of Louisville, where the money sits in an interest-bearing account until the administration decides how to spent it.

Hart’s letter says he wants the $10,000 he raised to be donated to the Community Foundation of Louisville too.