Former Buchanan partner Sam Kazran settles with FEC

A former business partner of U.S. Rep. Vern Buchanan has settled a Federal Election Commission case, acknowledging violating campaign finance laws to support Buchanan’s 2006 and 2008 congressional campaigns.

As part of the settlement, Sam Kazran, who owned Hyundai of North Jacksonville with Buchanan in 2005, will pay $2,500 in fines spread over 25 months — a fraction of the $67,900 that the FEC initially sought.

The fine is in addition to $3,000 that Kazran has already paid.

The consent judgment released Tuesday by the U.S. District Court in Jacksonville is likely the final chapter in a four-year-old campaign donation case that has followed Buchanan, R-Longboat Key, since his first term in Congress.

Kazran and Buchanan, now legal adversaries, are still fighting in court over other business matters unrelated to the donations. Each has sued the other contending that his former partner violated terms of their business arrangements.

The consent judgement signed by Kazran and an FEC attorney state that Kazran’s violations were “non-knowing and non-willful.” The agreement declares that the settlement does not mean Kazran admitted any liability, but signed the document to avoid costs and risks of further litigation.

Since 2008, Kazran has told FEC investigators that he reimbursed employees at the dealership for donations to Buchanan’s campaigns. Such reimbursements violate federal campaign finance law. But Kazran has contended that he acted at Buchanan’s direction — an assertion Buchanan has repeatedly denied — and did not know it was against the law.

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The FEC sued and fined both Kazran and the now nearly defunct Hyundai of North Jacksonville dealership over the donations.

Hyundai of North Jacksonville reimbursed employees at the dealership a total of $67,900 for donations to Buchanan’s 2006 and 2008 races, FEC records show.

After a 10-month investigation, the commission voted 5-0 in early 2011 to not pursue any action against Buchanan or his campaign for the donations.

Hyundai of North Jacksonville is one of three dealerships once owned by Buchanan that were flagged by the FEC for illegally reimbursing employees for donations.

Venice Nissan agreed to pay $11,000 in fines in 2010 for reimbursing employees. Suncoast Ford in Pasco County agreed in December 2011 to $7,000 in civil penalties for making donations in the names of employees.

Buchanan attorney William McGinley said the consent judgment between Kazran and the FEC confirmed his argument that Kazran alone instructed employees to give to the campaigns and authorized the reimbursements.

“We are pleased that the truth finally has been established and hope this puts an end to the false allegations that Congressman Buchanan was aware of Mr. Kazran’s misconduct,” McGinley said.