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Suit: Rep. Buchanan Skirted Campaign Finance Law

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By MARK DOUGLAS

News Channel 8

Published: August 4, 2008

SARASOTA - A former employee has filed a lawsuit accusing U.S. Rep. Vern Buchanan of falsifying business documents in the operation of a Venice car dealership.

The lawsuit also says Buchanan skirted federal campaign laws by reimbursing dealership employees for contributions they made to his political campaign. These allegations echo claims in a previous lawsuit filed by another former employee.

In the suit filed Thursday in circuit court in Sarasota County, Carlo Bell says the Buchanan dealership, Venice Nissan & Dodge, falsified credit reports and engaged in a practice known as "power booking," described as duping banks into approving car loans based on contracts listing nonexistent luxury options.

Bell, the dealership's former finance director, said the illegal practices were a way for the dealership to reduce commissions paid to employees. He filed the suit, in part, to collect unpaid commissions.

Bell worked at the dealership from 2001 until he quit in 2007 over the dealership's business practices, according to the suit. Defendants in the suit include Buchanan and the Buchanan Auto Group.

The suit, filed by Tallahassee lawyer Douglas Lyons, also alleges:

•The dealership used a "menu system" for its financing and insurance products that packages options and prevents consumers from seeing exactly what they're buying.

•The menu system is provided by a contractor, who paid the dealership "massive kickbacks," which went into offshore, tax-exempt accounts.

•In a 2006 audit of Venice Dodge, Chrysler LLC found $290,000 in bogus rebates and other transgressions.

•Some employees were instructed to make a $1,000 contribution to Buchanan's political campaign fund and were reimbursed in cash to avoid campaign finance law restrictions.

Contacted during an appearance in Sarasota this past week, Buchanan, a Republican from Longboat Key, referred questions to corporate managers, who did not return phone calls.

In an e-mail to News Channel 8, the Venice dealership refers to Bell as a "disgruntled employee" and calls the suit by Bell "false and frivolous."

"They know full well that the practice they refer to is a common and LEGAL industry practice that has been approved by the state of Florida for years," the e-mail states.

Mark Ornstein, an Orlando lawyer representing Buchanan, said in an interview that even if money did end up in offshore accounts, the transfers were legal and are common practice in the industry.

Before filing the suit, Bell made many of his allegations in an interview with News Channel 8. Bell said he believes Buchanan knew about the business practices but he couldn't be sure.

"I don't see how he couldn't know," Bell said then.

Asked for his reaction at that time, Buchanan said in an interview, "I'm not involved in the day-to-day stuff; I never have in my business. I'm more of an investor that helps people. But it's basically, we don't do business that way."

Buchanan is serving his first term as a U.S. representative from District 13, representing Sarasota, Manatee, Hardee and DeSoto counties.

He faces opposition in the Nov. 4 general election from candidates including Democrat Christine Jennings, whom he defeated in 2006 in a vote Jennings challenged in court.

Reporter Mark Douglas can be reached at (727) 536-9603 or mdouglas@wfla.com.

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