Steel cautioned on ads, income

Ex-AG candidate fined $100

The former Democratic state representative who failed in his bid for the Arkansas attorney general's office was cautioned and fined by state ethics officials for last year's campaign conduct.

On Friday, the Arkansas Ethics Commission announced a series of settlements with attorney Nate Steel in which Steel agreed with the commission's finding that he violated campaign laws with the airing of TV advertisements that used government property.

Steel also admitted he violated election laws requiring him to list his income from the city of Nashville on his statement of financial interest.

In all, Steel was given two letters of caution, the lowest form of discipline the commission gives, as well as two $50 fines.

A more serious accusation -- that Steel used his influence as a public official to make his campaign ads -- was dismissed for lack of probable cause.

Steel, who has moved to Little Rock and is establishing a banking and health care-oriented law practice in the area, said he was pleased that the commission dropped the other claim and said that he agreed to the settlements for the other allegations because it was the right thing to do.

"They were both minor infractions. Rather than lawyer up and find some technical defense, it's my campaign and my responsibility for everything that I do, so I didn't have any problem with an agreement," he said.

Ethics complaints and accusations flew during the race between Steel and his Republican opponent, Attorney General Leslie Rutledge.

Rutledge was accused of illegally accepting excessive campaign contributions from a third party by appearing in a $300,000 ad campaign produced and paid for by the Republican Attorneys General Association.

In late January, the commission dismissed those complaints, finding that Rutledge broke no campaign or ethics rules.

The complaints against Steel, filed in October by Republican Party of Arkansas Chairman Doyle Webb, accused Steel of unduly using his influence as a Nashville city attorney to make the ad and also accused him of breaking Arkansas Annotated Code 7-1-103, which states that it is "unlawful for any public servant to use for campaign purposes any item of personal property provided with public funds."

The ad in question featured several law enforcement figures in uniform, as well as a Nashville Police Department car in the background.

Nashville police property, as well as law books and office furniture belonging to the state, were included in the ad, the commission found.

The commission noted in the settlement with Steel that "the evidence in this case reflected that you were not directly involved in the organizing or production of the web ads or television ads in question Although the items of personal property belonging to [Nashville] and [Arkansas] were actually 'used' by other public servants who appeared in the advertisements, you were willing to assume responsibility for such property being used contrary to [the law]."

Steel said he hadn't known that having a police vehicle in the background of an ad broke the law.

"I'm proud of the campaign we ran, but clearly there was a car in my ad," he said. "Rather than shift that responsibility onto the producers of the ad or the law enforcement officers [in the ad] or anyone else, ultimately it's my campaign and the buck stops with me."

Steel also was given a letter of caution for failing to include the income he earned providing legal services on contract to Nashville though, both he and the commission agree, he never held the post of city attorney.

Steel's campaign website had originally listed him as the Nashville city attorney, but the claim was taken down after Republicans raised questions.

Not long after Webb filed the ethics complaints, he sued Steel in Pulaski County Circuit Court for "illegal exaction" by collecting two public salaries, one as a state representative and one as a city attorney, which he argued was barred by Article 5, Section 10 of the Arkansas Constitution; it says no legislator shall take another public office while serving as a legislator.

The lawsuit is lingering in court. When it was filed, Steel described it as a campaign stunt and on Friday he said he expected it will either be thrown out or withdrawn by Webb.

Webb was not available by phone Friday but said in a statement that his complaint against Steel for illegal exaction is still "in the process of discovery."

Metro on 02/21/2015

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