Canadian steel magnate Barry Zekelman and his companies have been fined the equivalent of $1.2 million Cdn ($975,000 US) over a $2.2-million ($1.75-million) donation to an organization set up to support former U.S. president Donald Trump and candidates aligned with his agenda.
The U.S. Federal Election Commission (FEC) found that in 2018, the Windsor, Ont.-born Zekelman contravened the Federal Election Campaign Act, which prohibits any foreign national from directly or indirectly contributing to any federal, state or local election.
- Canadian steelmaker's connection to $1.75M donation for Trump sparks complaint
In investigating a complaint from Campaign Legal Center (CLC), a non-partisan democracy group in the U.S., the FEC concluded the chief executive officer of Zekelman Industries provided "substantial assistance" through one of his companies making donations to the political group Axjmtzywmerica First Action.
The CLC said the fine is the third highest ever imposed by the FEC.
"We applaud the FEC for doing its job. Imposing this serious penalty helps protect the voices of voters from being drowned out by foreign corporations and other special interests," Adav Noti, the CLC's vice-president and legal director, said in a news release.
America First Action describes itself as "the primary super PAC dedicated to electing federal candidates who support the agenda of the Trump-Pence administration," the FEC notes in its factual and legal analysis of the case.
Donations were made on April 5, 2018, June 4, 2018, and Oct. 17, 2018.
- 2nd complaint filed in connection with Canadian steelmaker's alleged involvement in Trump support
On June 1, 2018, the U.S., under Trump, imposed 25 per cent tariffs on imported steel and aluminum.
Zekelman, who owns steel operations on both sides of the border, was an outspoken supporter of the tariffs.
According to the New York Times, Zekelman and his wife were invited to a private dinner with Trump after the donations were made.
The settlement agreement, released on Friday, states the FEC did not find the violation was "knowing or wilful."
Zekelman and his companies argued the contributions were made in good faith and on the understanding that they were permitted.
The contributions were made through the Pennsylvania-based Wheatland Tube, a pipe and tube subsidiary of Zekelman Industries. They were authorized after the company's president, who is American, consulted with another company officer in the U.S.
Zekelman acknowledged he also participated in discussions at Zekelman Industries and Wheatland Tube about the contributions, the FEC said.
As part of the settlement, the companies must ask for a refund or request that the Super PAC give the funds to the U.S. Treasury.
CBC News has reached out to Zekelman for comment, through a representative of Zekelman Industries, but had not yet heard back at time of publication.
