Stephen]. Zralek (615) 238-6305 Phone October 15, 2012 VIA HAND DELIVERY Mr. Drew Rawlins, Director Bureau of Ethics and Campaign Finance 404 James Robertson Parkway, Suite 1614 Nashville, Tennessee 37243 Re: Tim Burchett, Case 0. 12-36 Dear Mr. Rawlins: This Firm and I represent Tim Burchett in the matter pending before the Registry. In response to the Registry's letter dated September 1.2, 2012, we are submitting Mayor Burchett's Affidavit, explaining that he was unaware of any failure from within his campaign to follow campaign finance laws, and explaining how a review of all available financial records reveals that his ex-wife (Allison Beaver, formerly Burehett) used campaign funds (without his knowledge) for her own personal use. The campaign has made a complete accounting of all monies based on the records available to it through banks and discovery in the divorce proceeding. Based on that accounting, earlier today the Campaign submitted amended campaign finance reports to the Knox County Election Commission. Attached to Mayor Burchett's Affidavit are the following exhibits: Exhibit A: Appointment of Roger Goins, CPA as Treasurer Exhibit B: Memo to campaign re: campaign finance policy Exhibit C: Amended campaign finance reports filed today with Knox County Election Commission, covering January 1, 2009 June 30, 2011 {00826806.1 Nashville City Center, Suite 1600 51 1 Union Street - Nashville, Tennessee 37219 615.238.6300 (Phone) - 615.238.6301 (Fax) Mr. Drew Rawlins Tennessee Registry of Election Finance October 15, 2012 Page 2 Exhibit D: Copy of check reimbursing campaign from the Mayor's ex-wife's unauthorized transfers from contributions made to the campaign via PayPal Exhibit E: Email communication between Knoxville News Serz.tz'nel editor and Allison Beaver (formerly Burchett) Exhibit F: Copy of Knoxville News Sentinel article dated October 2, 2012 Pursuant to your letter dated September 12, 2012, Mayor Burchett is electing to submit this sworn statement instead of personally appearing at the Registry's next scheduled meeting on October 23, 2012. I will be present at the meeting as his representative. If you or the members of the Registry have any questions for the Mayor, please direct them to me. We are happy to provide you with any additional information you may need. Sincerely, Stephen]. Zralek SIZ/l> candldau polificai campaign cainifiittats. A state widldatc my rioi mm or In-ipond for an ebcflon until I pniiucai mmunor has been appointed fcarthat election. A iucai pursuant to T.C.A 240-101. may bu eump: irarn complains: this form, plum: chuck with county alum-an commimon for mom inforrnution. A candidate may appoirn himselfor herself as political treasurer. A new farrn must be filed ii' the trmuwr is changed. Clndidates for start public offict-. must file their ariginul of Political Tmsurar mumantomv with tho Rnyistiy of Election Fimmce. 404 James Rohertscan Par!-eway, Suite 104, TN 37243-1360. Candivdatn for public afficu must file thair original Appaintmm caf Paiiucai Tmsurarsmarnam ONLY with their cc-unty oiaction commlulcrn. (< Subject: RE: Documents Allison, I wanted to get back to you more specifically on this and let you know that, if it comes to the point where we are going to publish any of the Clayton Bank checks, we will first give you the chance to provide us with clean copies, if that's what you want to do. As of right now, though, we don't have any such plans. Ifin the future you would like to go on the record fuxther, or provide additional information off the record, please contact me. In the meantime, our existing con.fidentiality agreement stands. I do want to be clear, though, that the arrangement is based on your truthfulness. We're relying on your accuracy, and if there ends up being a conflict in what you're saying, we wouldn't consider the agreement; to still be in effect. Jack From: Allison Burehett Sent: Saturday, June 23, 2012 2:36 PM To: McElroy, Jack Cc: Birmingham, Patrick Subject: Re: Documents 01:. Tl1anl<:s. Allison Allison Burchett 865 -684-7895 Please excuse typos Sent from my iPhone 011 Jun 23, 2012, at 2:12 PM, "McElroy, Jack" wrote: At this point, we are not using any. Sent from my iPhone EXHIBIT Burchetts strike divorce dcat Knoxville News Sentinel Page 1 of 2 . . . Read more at Burchetts strike divorce deal By Jamie Satterfield Tuesday, October 2, 2012 He gets the marital home. She gets the marital bed. A proposed agreement in the divorce case involving Knox County Mayor Tim Burchett and his estranged wife, Allison Beaver Burchett, was made public Monday in Knox County Chancery Court. it shows the mayor waiking away with the house the couple bought after their June 2008 marriage without having to pay his estranged wife any monetary interest in the property and most of its furnishings. Allison Burchett is giving up any rights to two" other parcels of property the mayor brought into the marriage, while he is signing over any right to a condominium she owned before the marriage. She will receive per the settlement the "master bedroom bed, mattresses, night stand and dresser, television console and lingerie chest" as welt as a Ford Explorer and jewelry acquired during the marriage. The pair separated in March. Both aiieged inappropriate marital conduct, although Aliison Burchett's attorney, Martha Meares, never made specific claims against the mayor. The mayor's attorney, Albert Harb, has filed pleadings in which he aileges Allison Burchett engaged in "sexual intercourse and/or oral sex with men other than" the mayor during the marriage. Meares did not return a cal! seeking comment Monday. Mayor Burchett on Monday noted the agreement won't be final for 30 days. "i'm convinced I have one of the best legal minds in the country in Albert Harb, who has handled this and advised me on it," Tim Burchett said. The divorce documents disclose a separate confidentiai agreement reached between the parties but provides no detail. Earlier this year, Allison Burchett provided the News Sentinel access to the coupte's joint bank account and documents related to transactions on PayPal, an online system that aiiows people and businesses to transfer money via emaii, to try to show that Mayor Burchett had violated campaign finance laws by diverting money from his mayor election fund to personal accounts. 10/2/2012 strike divorce deal Knoxville News Sentinel Page 2 of 2 The mayor has blamed his estranged wife, who wrote the nearly $20,000 in checks at issue and, he said, set up and handled the PayPai accounts. He has said he left behind at the marital home Burchett currently occupies "at! of our banking and financial records, inciuding campaign accounts and expenditures." He is set to appear before the Registry of Election Finance later this month. The divorce agreement makes no mention of those records. (C) 2012 Scripps Newspaper Group Online 10/2/2012