UPDATED 8/9/24 1:23PM: To include comment from Ruiz.

Cesar Ruiz’s SuperPAC crosses a Rubicon. (via Hispanic Executive)

Hispanic Latino Leaders Now Independent Expenditure Political Action Committee (HLLN) is no more. The first SuperPAC to seriously intervene in Springfield elections dissolved as part of a disposition agreement with state campaign finance regulators. The Office of Campaign & Political Finance (OCPF) and HLLN inked an agreement Wednesday.

Although its chair and principal funder was Cesar Ruiz, a former Springfield School Committee member, HLLN did not exclusively intervene in Western Mass. The SuperPAC’s stated goal had been to elect more Latinos across the commonwealth. Although it backed a few non-Latino candidates, it did eventually make good on that focus. Yet, as the disposition outlines, HLLN’s history is littered with errors and omissions that appear to have cost Ruiz a considerable sum.

Ruiz, the founder and CEO of Golden Years homecare services, must donate $189,500 to charity as recompense for the SuperPAC’s most egregious errors. While HLLN made several record-keeping errors, what led to Ruiz’s penalty was the SuperPAC’s direct contributions to candidates.

“By making contributions to candidates, [HLLN] transformed from [a SuperPAC] into a PAC, subject to all of the restriction and requirements applicable to traditional PACs,” the disposition states. “Specifically, [HLLN], once it became a traditional PAC, could not accept contributions without limit.”

Since the Supreme Court decision Citizens United v. FEC, and its progeny, so-called SuperPACs can receive unlimited contributions from donors. Under Massachusetts law, traditional PACs cannot. They are subject to a $500 per person cap per calendar year. As Ruiz was HLLN’s only contributor, giving it $190,000 throughout 2023, he overcontributed to the tune of $189,500.

SCOTUS dropped a bomb in campaign finance law 14 years ago, but Bay State campaign finance law has adapted to it somewhat better than federal law. (WMP&I)

HLLN’s treasurer, Cristina Berrios, signed the disposition, too. However, she does not appear to have any monetary obligations under the agreement.

OCPF had no comment on the agreement. Commonwealth Beacon Reporter Gin Dumcius first reported the disposition agreement.

In an email, Ruiz referred to HLLN’s statement in the disposition agreement in response to most questions. However, he emphasized that the errors were “unintentional errors.” He likened the SuperPAC’s formation and operations as “flying the plane as we were building it.” As for the penalties, he said he would be making the donations to groups that “support and advocate for the Latino community.”

“It is high time that issues affecting our community get the support they deserve and through these contributions,” Ruiz emailed. “I am happy to be a part of that.”

HLLN ultimately spent thousands on candidates across the state, including in the lead up to preliminary elections last September. Still, its biggest investment was in State Rep Orlando Ramos who, in 2023, was a candidate for mayor of Springfield. Ramos would not advance beyond the primary and Mayor Domenic Sarno would win reelection in November.

The spending leading up to the preliminaries were the subject of several major edits in later reports. The disposition agreement reveals that HLLN was in contact with OCPF during the summer. During this time, OCPF informed HLLN that the SuperPAC could not give directly to candidates.

Haverhill was blessed with HLLN’s largesse. (via wikipedia)

Nevertheless, from October 16 to November 2, it gave $5,500 directly to candidates for office in Chelsea, Holyoke, Leominster, Waltham and Worcester. That move sealed HLLN’s fate.

In its statement in the disposition, HLLN defends its goals of electing more Latinos and supporting issues important to them.

“We’re proud of what we accomplished in our first year,” HLLN states in the agreement. “We also acknowledge minor and unintentional missteps were made in initially funding the organization, which led to a clerical error made by the founder.”

HLLN states it recognized the error and worked with OCPF to correct them. It said it was returning the funds to the community to express its commitment to the responsibilities it had not met before.

“We believe in a fair election process and look forward to continuing our mission to elect leaders who prioritize creating an including Massachusetts where all Latinos can prosper and thrive,” HLLN concludes.

Despite its ambiguous statement in the disposition, HLLN filed its dissolution report on August 5. Ruiz said he and other would form a new PAC to ensure Latinos are heard in the political process.

The disposition agreement points out two comparatively minor errors HLLN made. The first, perhaps the more serious of the two, was not disclosing expenditures made within seven days or within 24 hours if less than 10 days before an election. The second concerned receiving a type of check over $100. HLLN also overreported expenditures and did not reconcile refunds from vendors.

The disposition agreement states that Ruiz had already donated $50,000 of the $189,500 to charity. He had until the end of 2024 to donate the rest. Ruiz told WMP&I he still had $107,000 to donate as of the end of July. Recipients so far, he continued, were the Irish Cultural Center ($25,000); Voto Latino, a national group that advocates for Latino voter participation ($25,000); New North Citizens Council/Josiah’s House ($15,000); Springfield Puerto Rican Parade ($10,000); and Boston-based Talented & Gifted ($7,500).

He must supply OCPF with documentation of the donations by the end of the year. In addition, Ruiz has affirmed he would follow state campaign finance law if he becomes politically active in the future.

In exchange, OCPF agreed not to refer Ruiz or Berrios to the attorney general for failure to comply with campaign finance law. However, the agency reserves the right to perform reviews for compliance. If it finds any violations, after notice to Ruiz and/or Berrios, OCPF can undertake appropriate legal action.