Oregon attorney general wants Sizemore stopped

Now that two teachers unions have proven to a jury that organizations run by union-foe Bill Sizemore engaged in a pattern of fraud and forgery, Oregon Attorney General Hardy Myers announced that the state will join as a party to the lawsuit. On Nov. 7, it filed a set of requests for the judge in the case to consider.

The state joined the Oregon Education Association (OEA) and the American Federation of Teachers-Oregon in requesting that Multnomah County Circuit Court Judge Jerome LaBarre dissolve Sizemore's Oregon Taxpayers United Education Foundation and restrict Sizemore's ability to open up a similar operation under a new name.

In addition, the state asked LaBarre to:

* Prohibit Sizemore from using any funds for political purposes from any new tax-exempt charitable organization he may form, for five years;

* Prohibit any new or existing Sizemore political action committee from participating in the initiative process until Sizemore's current organizations file accurate contribution and expenditure information with the Oregon secretary of state for the period of 1996 to 2000 [Even then, Sizemore's organizations would be prohibited from receiving any support from tax-exempt organizations for five years];

* Require any political organization Sizemore may form to give complete access to all records to the Oregon secretary of state and the attorney general.

The lawsuit was originally filed in December 2000 by Oregon Education Association and American Federation of Teachers-Oregon. A jury ruled on Sept. 27 of this year that Oregon Taxpayers United's related organizations had engaged in fraud and forgery in qualifying several anti-union ballot measures which the unions were then forced to spend money fighting. Evidence offered in the trial showed that the groups violated laws that restrict tax-exempt non-profits, as well as election laws requiring disclosure of political contributors and prohibiting forgery and fraud in signature gathering.

Plaintiffs demonstrated that Sizemore's "educational foundation" illegally funded political work while concealing the identity of contributors and giving them tax advantages.

The teachers unions should know before the end of the year the exact amount of damages Sizemore's organizations will owe them. The jury awarded the organizations to pay $842,000 in damages; under racketeering statutes, that amount can be tripled to $2.52 million because the jury found the groups engaged in a "pattern of criminal activity." The actual order must come from Judge LaBarre.

LaBarre has scheduled a Dec. 12 hearing at which he is expected to rule on the tripling. He may also rule on the other requests at that time.

Sizemore attorney Gregory Byrne has said the defendants will appeal the jury verdict after the judge makes his ruling.

Anticipating the dissolution of his Oregon Taxpayers United, Sizemore in October filed papers with the Oregon Elections Division to create a new political action committee called the Oregon Taxpayer Association. That choice of name reportedly sparked a "cease-and-desist" letter from the attorney of rival anti-tax activist and millionaire Don McIntire, a former health club owner, who has a group called the Taxpayer Association of Oregon. It's unclear whether the Internal Revenue Service will grant the new organization tax-deductible status, considering past abuses. OEA attorney Greg Hartman said he expects as soon as the legal judgment is entered, a sheriff will be sent to seize the organizations' assets. Shortly after that the unions plan to file suit against Sizemore personally for his part in the schemes.

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