Zekelman agrees to pay $975,000 for illegal contribution to Trump campaign

Barry Zekelman in Windsor, Ont., on June 1, 2018. (Sacha Long / CTV Windsor)

Barry Zekelman has signed a conciliation agreement with the Federal Elections Commission (FEC), for violating the Federal Election Campaign Act in the United States.

According to court documents, Wheatland Tube made three contributions to America First Action Inc. (AFA) in the 2018 U.S. Election cycle. The total value of the contributions was $1.75 million.

The FEC alleges Zekelman had a conversation with Mickey McNamara, president of Wheatland Tube about contributing to the AFA because Trumps’ policies “were well-aligned with Wheatland Tube’s corporate interests.”

According to their website, Wheatland Tube is a division of Zekelman Industries, the largest independent steel pipe and tube manufacturer in North America.

According to the FEC, the AFA is a registered independent expenditure-only committee and is ”the primary super PAC dedicated to electing federal candidates who support the agenda of the Trump-Pence administration.”

The Federal Election Campaign Act prohibits any foreign national from directly or indirectly contributing to any federal, state or local election.

In their “Factual and Legal Analysis” filed in US court, the FEC says the Zekelman Respondents “did not know that having Mr. Zekelman participate in communications about a contribution…could have any legal implications.”

Zekelman is a Canadian citizen, while McNamara is citizen of the United States.

The court document reads “the key issue is not whether a U.S. citizen or national had final decision-making authority or final say regarding the making of the contribution or donation, but whether any foreign national directed, dictated, controlled, or directly or indirectly participated in a decision-making process in connection with election-related spending.”

The Zekelman Respondents assert the contributions were not prohibited because they were completed by McNamara who “exercised independent judgment” in approving them.

The document also indicates Zekelman emailed a U.S. director of Wheatland Tube, to “follow up” on the potential contributions.

Wheatland Tube made three contributions to AFA: $1 million April, $250,000 in June and $500,000 in October.

According to court documents, none of the contributions were reimbursed by Zekelman, Zekelman Industries or any other entity.

In a voluntary conciliation agreement, the Zekelman Respondents agreed to pay $975,000 in a civil penalty to the FEC, while contending the contributions to AFA were made in “good faith understanding they were permissible.”

Zekelman is expected to request the AFA refund the $1.75 million in contributions.

The lawyer for Zekelman Industries declined to comment. Barry Zekelman could not be reached for comment.