Rutherford County Mayor Bill Ketron has been handed another $10,000 fine from the state for late campaign finance reports.
The six-member Tennessee Registry of Election Finance Board unanimously issued the fine on Jan. 8. Ketron failed to meet the Jan. 31, 2019, deadline for a 2018 report for a campaign finance account he used as a former state senator, said Bill Young, the executive director for the registry.
Ketron declined to comment Wednesday about the state fine, only saying the matter is "still under investigation." He still faces $60,000 for six other campaign reporting fines and a state-ordered subpoena and audit of his campaign finance accounts.
“He received a Nov. 21, 2019, letter showing there was going to be a show-cause hearing to explain why it was untimely," said Young, whose board met in Chattanooga. "He didn’t file any written response, nor did he show up."
State records show the "Annual Year-End Supplemental 2018" document was submitted on July 15, 2019, and the account had a balance of $101,767. That report was filed two days before Murfreesboro Police and the U.S. Secret Service executed a search warrant on the offices of Ketron's family business, Universal International Insurance, and the home of his daughter Kelsey Ketron.
July 15 is also the same date listed for the filing of the senate campaign's "Annual Mid Year Supplemental 2019."
Kelsey Ketron was the treasurer for her father's campaigns. She's now faces a criminal trial after being indicted by a grand jury on charges of fraudulent insurance practices through her work with the family business, which is a defendant in the case, as well. The 70-plus count indictment also accused her of stealing $65,000 from her father's campaign accounts.
Ketron must report on all campaign balances
Auditors with the state registry of elections are examining Ketron's senate, Quest PAC (political action committee) and mayoral campaign accounts to determine if there are any "violations of state law," said Young, a former Davidson County Chancery Court chancellor.
Ketron can ask the state to reconsider his most recent fine, said Young, adding his board will probably be meeting in March.
Though Ketron is no longer a state senator, he's still required to file reports with the state on existing campaign accounts.
"You keep filing it until you close it out, which is a zero (balance)," Young said. "As long as he’s got a balance, he’s got to keep filing it within the time frame set by the statute and rules."
Campaign accounts total nearly $200K
According to documents on file with the state, Ketron's existing accounts total a little more than $196,000.
- The "Annual Mid Year Supplemental 2019" senate campaign finance report had a balance of $83,267. Records show he donated $16,500 to the Middle Tennessee State University Foundation and $2,000 to the MTSU Blue Raider Athletic Association.
- Quest PAC's "Annual Mid Year Supplemental 2019" showed a balance of $92,345.
- Ketron's campaign finance report for the county mayor's race showed a balance of nearly $20,503, according to a document filed on July 15, 2019.
Insurance business omitted from disclosure statement
The county mayor's state-required disclosure of interest statement filed Jan. 23, 2019, with the Tennessee Ethics Commission excludes mention of his 51% ownership of Universal International Insurance. He serves as the president of the family business and owns the South Church Street office where the business is located, his attorney Trey Harwell said during a court preliminary hearing.
Ketron said he excluded information because he's earning no income from the business.
Young said the county mayor "probably should have" mentioned the ownership stake on his disclosure forms. The state only would investigate the disclosure of interest from Ketron if someone filed a complaint, he said.
"Someone would have to raise it as an issue," Young said.
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Reach Scott Broden at sbroden@dnj.com or 615-260-0523. Follow him on Twitter @ScottBroden.
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