Untitled

DISPOSITION

AGREEMENT

..Y1\_

This

disposition

agreement ("Agreement")

is

entered

into

as

of Novemb

",

?

2020,by

and between

the Office

of

Campaign

and Political

Finance ("OCPF"),

Boston

Property

Ventures,

LLC

("BPV"),

and Boston

Property

Ventures'

President,

Richard

McDonald

("McDonald").

The

parties

mutually

agree,

fcrr

the

purposes

of

this Agreement

only,

as follows:

I. Introduction

l.

BPV

is a limited

liability

company

registered

in

Massachusetts.

BPV,

and its related

companies

and

subsidiaries,

Northeast

Addictions

Treatment

Center, LLC

("Northeast

Addictions"),1

are located

in

Quincy,

Massachusetts.

McDonald

is

the

owner

and

president

of BPV.

2.

The

fundraising

activities

of BPV

and McDonald

on behalf

of candidates

and

political

committees,

as

described

in this

Agreement,

are

subject

to the

provisions

of M.G.L.

c.

55, the

Massachusetts

campaign

finance

law.

3.

The

following

Committees,

at all

times relevant

to this Agreement,

were

duly

organized political

committees

subject

to

the

provisions

of M.G.L.

c. 55:

Charles

Baker

Committee

("Baker

Committee")

Brad

Croall

Committee

("Croall

Committee")

Noel

DiBona

Committee

("DiBona

Committee")

Micha.el

Flaherty

Committee

("Flaherty

Committee")

Edward

Flynn

Committee

("Flynn

Committee")

Kirsten

Hughes

Committee

("Hughes

Committee")

Thomas

Koch

Committee

("Koch

Committee")

Margaret

Laforest

Committee

("Laforest

Committee")

Jerry

McDermott

Committee

("McDermott

Committee")

Brian

Palmucci

("Palmucci

Committee")

Karyn

Polito

Committee

("Polito

Committee")

I

The

additional

subsidiaries

include

the following:

Boston

Property

Contractors,

Inc., Boston

Property

Management

LLC,

BP

Capital Fund

II

LL,C, TGB

Commercial

Way LLC,

and

patriot

Real Estate.

Boston

Property

Ventures

Page2

4.

OCPF

has

the

power

and

authority

to review

and investigate

the legality,

validity',

completeness

and

accuracy

of

all

reports

and

actions

required

to be filed

or taken

by

candidates,

treasuters, political

committees,

and

any

other

person

0r

entity

pursuant

to M.G.L.

c. 55

or any other

laws

of the

Commonwealth,

relative

to campaign

contributions

and

expenditures.

5.

The

political

contributions,

expenditures

and

other

activities

noted

herein

are

subject

to

the

provisions

of M.G.L.

c. 55

and

the regulations

promulgated

thereunder.

6.

Throughout

the

course

of its

review,

BPV,

McDonald,

and

their representatives

have

cooperated

with

and

provided

substantial

assistance

to

ocpF's

review.

II. Facts

1.

BPV

is

located

in

Quincy.

BPV

and its related

companies

and

subsidiaries

employ

approximately

400

individuals.

2-

Since

at least

2017,

McDonald

made

contributions

and

raised

funds for

various

candidates

and committees.

In

addition,

during

the

period

2017

to

2020,he

requested

that certain

employees

of BPV

and

Northeast

Addictions

support

certain

candidates

and

committees

with

campai

gn

contributions.

3.

Based

upon

a review

of campaign

finance

reports,

OCPF

noticed

a

pattern

of

contributions

made

by BPV

employees.

The pattem

suggested

that

the

contributions

may have

treen

made

to

avoid disclosure

of

the true

source

of the

contributions.

OCPF

accordingly

initiated

an

examination

of

such

contributions.

During

the

course

of its review,

OCPF

learned

that BPV

utiSzed

two

different

bank

accounts

in

the names

of

BPMS,

Inc.

and Northeast

Addictions.

Those

accounts

were

used to

provide

BPV

funds

to reimburse

employees

for

their

campaign

contributions.

4.

The

BPMS

and

Northeast

Addictions

accounts

were

administered

by Blake

Cunningham ("Cunningham"),

BPV's

Chief

Financial

officer.

Cunningham

signed

the

reimbursement

checks

at the

direction

of McDonald.

McDonald

and

Cunningham

have

admitted

that

they

provided

corporate

funds

to BPV

employees

to make

contributions

to

designated

candidates

and

Boston

Property

Ventures

Page

3

committees.

5.

OCPF

learned

that BPV

reimbursed

sixteen

individuals,

including

McDonald

antl

Cunningham,

for

contributions

made

to

candidates

and

committees,

using

funds

provided

for

that

purpose

by BPV.

The

persons

who received

BPV

funds deposited

funds received

from

BpV into

their

personal

checking

accounts

either

shortly

before

or

shortly after

the

contributions

were

made.

6. OCPF

has

determined

that

the following

contributions

were

made

using

funds

provided

by BPV:

A.

2017

Transactions -

$13.000

(i)

On

or

about March

30,2017

,

the following

named

contributors

made

contributions

to

the

Polito

Committee

in the

amount

of

$500

each

on their personal

checking

accounts,

using

BPV

funds provided

to

them for

that purpose,

for

a total

of

$1,500

in

reimbursed

contributions:

Alex

Blake

Maggie

Follen

Jonathan

Hanson

(ii)

On

or about

May

8, 2017,

Blake

Cunningham

made

a

contribution

to the

Croall Committee

in

the amount

of

$

1,000

on his

personal

checking

account,

using

BPV

funds

provided

to

him

for

that

purpose,

for

a

total of

$

1,000

in reimbursed

contributions.

(iii)

On

or

about

June

I 6,2017,

the following

named

contributors

made

contributions

to the

Laforest

Committee

in the

amount

of

$500

each

on their personal

checking

accounts,

using

BPV

funds

provided

to them

for

that

purpose,

for

a

total of

$1,000

in

reimbursed

contributions:

Blake

Cunningham

Maggie

Follen

(iv)

On

or

about

August

28,2017

,

the following

named

contributors

made

contributions

to the

DiBona

Committee

in

the amount

of

$500

each on

their

personal

checking

accounts,

using

Boston

Property

Ventures

Page

4

BPV {unds provided

to

them for

that

purpose,

for

a total

of

$1,000

in reimbursed

contributions:

Blake

Cunningham

Maggie

Follen

(v)

On or

about August

31,2017,the

following

named

contributors

made contributions

to

the

Baker

Committee

in the

amount

of

$500

each on

their

personal

checking

accounts,

using

BPV funds provided

to them for

that

purpose,

for

a total of

$3,000

in reimbursed

contributions:

Blake

Cunningham

Maggie

Follen

Alex Blake

Jonathan

Hanson

Daniel

Tufo

Joseph

Vericker

(vi)

On

or about

October

5,2017,

the following

named

contributors

made contributions

to

the

Koch

Committee

in

the amount

of

$

1,000

each on their

personal

checking

accounts,

using

BPV

funds

provided

to them for

that

purpose,

for

a total

of

$4,000

in

reimbursed

contributions:

Blake

Cunningham

Maggie Follen

Alex Blake

Daniel

Tufo

(vii)

On

or about

October

23,2017,B\ake

Cunningham made

a

contribution

to the Hughes

Committee

in the

amount

of

$1,000

and Maggie

Follen

made

a contribution

in the

amount

of

$500,

each on

their

personal

checking

accounts,

using BPV

funds

provided

to them for

that purpose,

for

a total

of

$

1,500 in

reimbursed

contributions.

B. 2018

Transactions-

$20,000

(i)

On

or about

March 14,2018,

the following

named

contributors

made

contributions

to the

Boston

Property

Ventures

Page

5

Croall Committee

in

the amount

of

$

1

,000

each

on their

personal

checking

accounts,

using

BPV

funds

provided

to them

for

that

pu{pose,

for

a total

of

$5,000

in reimbursed

contributions:

Blake

Cunningham

Maggie Follen

Jonathan

Hanson

Richard

McDonald

Peter

Mcloughlin

(ii)

On

or about

March

19,2078,

the following

named

contributors

made

contributions

to

the

Palmucci

Committee

in

the amount

of

$1,000

each

on their

personal

checking

accounts,

using BPV

funds

provided

to

them for

that

purpose,

for

a total

of

$4,000

in reimbursed

contributions:

Blake

Cunningham

Maggie

Follen

Richard

McDonald

Peter

Mcloughlin

(iii)

On or

about March

19,2018,

the

following

named

contributors

made

contributions

to the

Palmucci

Committee

in

the amount

of

$500

each

on their

personal

checking

accounts,

using

IIPV

funds

provided

to

them for

that

purpose,

for

a total

of

$

1,000

in reimbursed

contributions:

Jonathan

Hanson

Aidan

Johnston

(iv)

On or

about

March

20,2018,

the following

named

contributors

made

contributions

to the

Baker Committee

in

the

amount

of

$

1,000

each on their personal

checking

accounts,

using

BPV

funds

provided

to

them for

that

purpose,

for a

total of

$5,000

in reimbursed

contributions:

Maggie

Follen

Jonathan

Hanson

Richard

McDonald

Boston

Property

Ventures

Page

6

Peter

Mcloughlin

Daniel

Tufo

(v)

On or

about

March

30,

2018,

Maggie

Follen

made

a contribution

to the

polito

Committee

in

the

amount

of

$

I

,000

on her personal

checking

account,

using

BPV

funds

provided

to

her

for

that

purpose,

for

a total

of

$

1,000

in reimbursed

contributions.

(vi)

On

or about

August

28,2018,

the

following

named

contributors

made

contributions

to

the

Baker

Committee

in

the

amount

of

$1,000

each

on their personal

checking

accounts,

using

BPV

funds

provided

to

them

for

that

purpose,

for

a total

of

$2,000

in

reimbursed

contributions:

Alex

Blake

Aidan

Johnston

(vii)

On

or about

October

23,2018,

Blake

Cunningham

made

a contribution

to

the Flaherty

Committee

in the

amount

of

$1,000

on his

personal

checking

account,

using

BpV

funds

provided

to him

for

that

purpose,

for

a

total of

$

1,000

in reimbursed

contributions.

(viii)

On or

about

December

21,2018,

Blake

Cunningham

made

a contribution

to the Flynn

Committee

in

the

amount

of

$1,000

on his

personal

checking

account,

using

BpV

funds

provided

to

him for

that

purpose,

for

a

total of

$

1,000

in

reimbursed

contributions.

C. 2019

Transactions

-

$17.500

(i)

On

or about

March

18,2019,

the following

named

contributors

made

contributions

to the

Polito

Committee

in

the

amount

of

$1,000

each on

their

personal

checking

accounts,

using

BPV

funds

provided

to them

for

that

purpose,

for

a total

of

$3,000

in reimbursed

contributions:

Alex

Blake

Aidan

Johnston

Daniel

Tufo

(ii)

On

or about

May

30,

2019,

the following

named

contributors

made

contributions

to the

Boston

Property

Ventures

PageT

McDermott

Committee

in the

amount

of

$

1,000

each

on their

personal

checking

accounts,

using BPV

funds

provided

to them

for that

purpose,

for

a total

of

$3,000

in reimbursed

contributions:

Blake

Cunningham

Aidan

Johnston

Maggie

Follen

(iii)

On or about

September

18,2019,

the following

named

contributors made

contributions

to

the

Koch

Committee

in the

amount

of

$1,000

each

on their

personal

checking

accounts,

using

BPV

funds

provided

to them

for

that

pu{pose,

for

a total

of

$11,000

in reimbursed

contributions:

Alex Blake

Patrick

Cady

Bradford

Chambers

Blake

Cunningham

Maggie Follen

Jonathan

Hanson

Aidan

Johnston

Richard

McDonald

Robert

Mclachlan

Daniel

Tufo

Joseph

Vericker

On or

about

September

78,2079,

Taylor

Harrington

made

a contribution

to

the Koch

Committee

in

the

amount

of

$500

on his

personal

checking

account,

using BPV

funds

provided

to

him for

that

purpose,

for

a total of

$500

in reimbursed

contributions.

D.

2020 Transactions -

$7.000

On or about

May

29,2020,

the following

named

contributors

made

contributions

to the Clroall

Committee

in the

amount

of

$1,000

each

on their personal

checking

accounts,

using BPV

funds

provided

to them

lbr

that

purpose,

for

a total

of

$7,000

in reimbursed

contributions:

(iv)

Boston

Property

Ventures

Page

8

Patrick

Cady

Kayla

Brady

Bradford

Chambers

Blake

Cunningham

Jonathan

Cohen

Taylor

Harrington

Kevin

Pitts

7.

As

described

above,

individuals

employed

by BPV properties

or its

subsidiaries

used

corporate

funds

to

make

at least

$57,500

in

contributions

to

the above-named

Massachusetts

candidates.

OCPF's

review

concluded

that

the named

contributors

made

no

other

contributions

to

any

Massachusetts

candidates

or

political

committees

through

third

persons

using

personal

funds

or

any

other

funds.

8.

Neither

the

candidates

nor

their

respective

Committees

had

any knowledge

that

the

contributions

were

made

with

corporate

funds

provided

by

someone

other

than

the named

contributor

until

they

were

so notified

during

OCPF's

review.

The

contributions

were

made

using

checks

drawn

on

the individual

checking

accounts

of the

named

contributors.

It would

have

appeared

to the

recipients

of

the checks,

absent

other

information,

that

the contributions

were, in

fact,

from

those

individuals.

OCPF

has

no reason

to

believe

that

the relevant

candidates

or Committees

had

knowledge

that

the named

contributors

did

not in

fact

make

the

contributions,

until

they

were

so

notified

by

OCPF.

9.

The

candidate

committees

that received

the

contributions

have

voluntarily

disgorged

or

will

voluntarily

disgorge

in

a

payment

to the

Commonwealth

by

December

31,2020,the

contributions

received

in

the

following

aggregate

amounts:

$15,500

(by

Koch),

$13,000

(by

Croall),

$10,000

(by

Baker),

$5,500

(by'Polito),

$5,000

(by

palmucci),

$3,000

(by

McDermott),

$1,500

(by

Hughes),2

$

1,000

(by

DiBona),

$

1,000 (by

Flaherty),

s

1,000

(by

Flynn),

$

1,000

(by

Laforest).

2

Hughes'

since

her

account

is

closed

with

OCPF,

will

make

her

payment

to the

Commonwealth

out of her

personal

funds.

Boston

Property'Ventures

Page

9

III.

Conclusions

Based

upon

OCPF's

review,

OCPF

has

concluded

that

BPV

and

McDonald

violated

Sections

8

and l0

of

Chapter

55.

1.

egrporate

Contribution

Section

8 states

that

business

corporations

may

not "directly

or indirectly"

contribute

to a

candidate.

The

statute

also

provides

that

officers

or

agents

acting

on

behalf

of

a corporation

may

not

make

such

contributions

using

corporate

money.

BPV,

in violation

of

Section

8,

provided

funds

totaling

at least

$57,500 to

persons

who

each

used

the

funds to

make

contributions

to a

candidate

or

party

committee.

2.

Contributions

Made

in a

Manner

Intended

to Disguise

the

True

Source

of the

Contributions

-

M.G.L.

c. 55.

g

l0

Section

l0 states

that no

person

may

'omake

a campaign

contribution

in

any name

except his

own,

or in

any

manner

for

the

purpose

of

disguising

the

true origin

of

the

contribution...".

McDonald

violated

this provision

by

arranging

for persons

associated

with

BPV

to make

multiple

contributions

using BPV

funds

in

a manner

that disguised

the

true

origin

of the

funds.

IV.

Respondents'

Position

The

respondents,

who

have

been

operating

Boston

Property

Ventures

for

nearly

two

decades,

have

deep

roots

on the

south

shore.

They

have

sought

to be

good

neighbors

while

providing

quality

jobs

and opportuntties,

serving

as

an engine

of

economic growth

in

the

greater

Boston

area. Although

it

was

never

the

intention

of

the respondents

to violate

the law

in

any way,

they

now

understand

how

their

actions

may

be viewed

as

a violation

of

the

campaign

finance

laws.

When

OCpF

contacted

the

respondents

and informed

them

of

their

concerns,

the respondents

engaged

a team

to

assist

OCPIIs

investigation.

The

respondents

wish

to

thank

OCPF

for

their

professionalism

and dedication.

Lastly,

the respondents

stress

that

in supporting

particular

candidates,

they never

asked for,

nor

did

they

receive,

anything

in

return.

Boston

Property

Ventures

Page

l0

V. Resolution

In order

to resolve

the matters

now

before

OCPF

the

parties

agree,

pursuant

to 970

CMR

3.07(1)

and M.G.L.

c.

55,

g

3, for

the

purposes

of this

Agreement

only, as follows:

l.

Upon

execution

of this

Agreement,

unless

otherwise noted:

BPV will

make

a

payment

to the Commonwealth

of Massachusetts

in

the

amount

of

$250,000

in the

nature

of a civil forfeiture.

(b)

(a)

BPV

and McDonald

fuither

agree not to

provide

or arrange

to

provide

funds to

any third

person

to

enable that

person

to make

a

political

contribution in

the

future.

BPV

and

McDonald

shall,

on an annual basis,

provide

an Affidavit

to OCPF

attesting

to the fact

that neither

party

has

provided

funds

to

any

person

for

purposes

of making

campaign

contributions.

Said affidavits

must

encompass

all

activity for

the

prior

calendar

year

and are due

by January

3 I of each

y,ear

through

January

31, 2024.

2.

OCPF

agrees not

to refer BPV

or McDonald

to any

other

governmental

agency,

including

without

limitation,

the Office

of the Attorney

General, for

any failure

to comply with the

provisions

of M.C}.L.

c. 55,

cited herein,

during

the relevant period

that is specifically

referenced

in

this Agreement.

3.

OCIPF

may, at

any time, review

compliance with

this Agreement.

If it

believes that

the

provisions

of this

Agreement

have

been violated,

after notice

to BPV and McDonald,

OCPF

mav,

notwithstanding

the

provisions

of the foregoing paragraph,

proceed

with

any action

consistent with

M.G.L. c. 55

or otherwise

authorized

by law.

(c)

4.

This Agreement

shall

be binding

upon

OCPF, BPV

and McDonald,

and to the extent

Boston

Property

Ventures

Page

l1

specified

above,

BPV's

officers

and their

successors.

As

attorney

for

BPV

and

McDonald,

Vincent

DeMore

signed

this

Agreement,

and the

parties

agree

that DeMore's

signature

binds

BpV

and

McDonald

to all

aspects

of

this Ageement.

5. This

Agreement

constitutes

a complete

disposition

of all matters

specifically referenced

herein

for

the referenced period.

6.

The parties

have

entered

into

this Agreement,

knowingly

and voluntarily,

in an

effort

to

resolve

all matters

set forth

in the

Agreement.

BPV

and McDonald

have made

no

admissions with

respect

to the facts

and conclusions

set forth herein

and this Agreement

shall not

be admissible

in any

other

proceeding

except

one

to enforce

its terms.

7. This

Agreement

is a

public

record

under Section

7 of M.G.L.

c. 4

and shall

be subject

to

public

inspection

as required

by Section

l0

of M.G.L.

c.66.

BOSTON

PROPI]RTY

VENTURES,

LLC

OFFICE

OF

CAMPAIGN

AND

POLITICAL

FINANCE

'fu<

-

Vincent

DeMore,

As

Legal

Representative

Boston

Property

Ventures

'rfr"

Michael

J. Sulliv

Director

Pro T

incent

DeMore,

As

Legal

Representative

Richard

McDonald,

Individually