CITY OF PHILADELPHIA

BOARD OF ETHICS

Contact: Michael J. Cooke, Director of Enforcement, 215-686-9450

For Immediate Release: June 28, 2018

PHILADELPHIA – On June 27, 2018, the Board of Ethics approved settlement agreements in the
following two matters. Copies of the approved agreements are attached.

- Asian American Licensed Beverage Association. This agreement resolves two violations of the
City’s Lobbying Law, one for the failure of the Asian American Licensed Beverage Association
(“AALBA”) to register as a lobbying principal with the Board of Ethics, the second for the failure of
AALBA to file an expense report for the fourth quarter of 2018. As explained in Paragraph I of the
Agreement, the violations arose because AALBA spent over $2,500 in indirect communications that
sought to influence proposed legislation to remove plexi-glass barriers from certain establishments in
Philadelphia. AALBA has agreed to pay $2,000 in civil monetary penalties and $200 in registration
fees. AALBA has registered for 2017 and filed a 2017 expense report with the Board, both of which
are attached to the Agreement.

- Tariq El-Shabbaz and Taylor Daukaus. This agreement resolves three violations of the City’s
Campaign Finance Law related to Mr. El Shabbaz’s 2017 campaign for District Attorney,
specifically: (1) acceptance of excess in-kind contributions from Trustwave PAC; (2) exercising
control over and directing the expenditures of Trustwave PAC through agents of the campaign; and
(3) failing to disclose in-kind contributions in campaign finance reports filed with the Board. Mr. El
Shabbaz will pay civil monetary penalties of $2,750. Ms. Daukaus will pay civil monetary penalties
of $2,000 and will file amended campaign finance reports with the Board.

The Philadelphia Board of Ethics is charged with interpreting, administering, enforcing and providing
advice and training on Philadelphia's Public Integrity Laws. The Board was established as an
independent, five-member City board in June 2006 through voter approval of an amendment to the
Philadelphia Home Rule Charter. The Board has jurisdiction over City laws pertaining to conflicts of
interest, representation and post-employment restrictions, gifts and gratuities, financial disclosure,
interests in certain City contracts, prohibited political activities, campaign finance and lobbying. The
Board has authority to issue regulations and advisory opinions, provide informal guidance and
trainings, engage in administrative and judicial enforcement actions and impose civil penalties.

###
 SETTLEMENT AGREEMENT

This Settlement Agreement is made and entered into by the Board of Ethics of the
City of Philadelphia, the Asian American Licensed Beverage Association, and J. Shane
Creamer, Jr., the Executive Director of the Board of Ethics, jointly referred to as “the
Parties.”

RECITALS

A. The Board of Ethics of the City of Philadelphia is an independent, five-member City

board established in 2006 through voter approval of an amendment to the
Philadelphia Home Rule Charter. Pursuant to Section 4-1100 of the Home Rule
Charter and Chapter 20-1200 of the Philadelphia Code, the Board is charged with
administering and enforcing Philadelphia’s Lobbying Law.
B. The Asian American Licensed Beverage Association (“AALBA”) is a non-profit
organization registered with the Commonwealth of Pennsylvania. The purpose of
AALBA is to advocate for and represent the interests of Asian American owned
beverage establishments throughout the City of Philadelphia.
C. Philadelphia’s Lobbying Law is found at Chapter 20-1200 of the Philadelphia Code
and Board Regulation No. 9, which provides a detailed interpretation of Chapter 20-
1200.
D. Under the City’s Lobbying Law, a principal is a person who engages in lobbying on its
own behalf or who pays someone else (a lobbyist) to engage in lobbying. Lobbying is
an effort to influence governmental administrative or legislative action through direct
communication, indirect communication, or by providing gifts, transportation,
hospitality, or lodging to City officers or employees. If a principal incurs expenditures
of more than $2,500 for lobbying expenses in a quarter, the principal must register
with the Board.
E. Under the City’s Lobbying Law, indirect communication is:
An effort to encourage others, including the general public, to take action, the
purpose or foreseeable effect of which is to directly influence legislative or
administrative action, such as letter-writing campaigns, mailings, telephone
banks, print and electronic media advertising, billboards, publications and
educational campaigns on public issues, but not including regularly published
periodic newsletters primarily designed for and distributed to members of a
bona fide association or charitable or fraternal nonprofit corporation.
Board Regulation No. 9, Paragraph 9.1(p).

F. A principal must file an expense report for each quarter in which the principal incurs
lobbying expenditures of more than $2,500. In an expense report, the principal must
disclose its expenditures incurred that quarter for direct communications, indirect
communications, and gifts, transportation, hospitality and lodging to City officers and
employees as well as detailed information about the nature of those expenditures.

Page 1 of 4
G. Pursuant to Code Section 20-1207(1)(b) and Regulation No. 9, Paragraph 9.26, the
failure to register as a principal or to file an expense report is subject to a civil penalty
not exceeding $250 for each late day up to a maximum of $2,000 for any one
registration or report.
H. In early 2018, Board Enforcement Staff became aware of potential violations of the
City’s Lobbying Law by AALBA and opened an investigation in the course of which
they obtained documents and records and interviewed witnesses.
I. In December 2017, AALBA spent $6,000 to organize and publicize a December 14,
2017 press conference across from City Hall. The press conference and related activities
encouraged the public to urge City Council members to oppose proposed legislation to
remove plexi-glass from certain beverage establishments throughout the City of
Philadelphia. As such, under Philadelphia’s Lobbying Law, these activities were
indirect communications.
J. In the 4th quarter of 2017, AALBA incurred expenditures of more than $2,500 for the
press conference and related activities and therefore should have registered as a
principal and filed a 2017 4th quarter expense report. However, AALBA did not register
as a principal or file a 4th quarter expense report.
K. At all times, AALBA fully cooperated with the Board’s investigation. AALBA has
registered for 2017 as a lobbying principal and filed a 2017 fourth quarter expense
report with the Board. Copies of the registration and the expense report are attached
hereto as Exhibit A.
L. The Parties desire to enter into this Agreement in order to resolve the issues described
herein.

Page 2 of 4
AGREEMENT
The Parties agree that:
1. By failing to timely register as a lobbying principal in 2017, AALBA violated Code
Section 20-1202(1) and is subject to a civil monetary penalty of $2,000.
However, in light of AALBA’s cooperation, the penalty is reduced to $1,000. AALBA
also must pay the City the 2017 lobbying registration fee of $200.
2. By failing to timely file an expense report with the Board for the 4th quarter of 2017,
AALBA violated Code Section 20-1203(1) and is subject to a civil monetary penalty
of $2,000. However, in light of AALBA’s cooperation, the penalty is reduced to
$1,000.
3. AALBA shall pay the aggregate civil monetary penalties and registration fee of $2,200
within 14 days of the effective date of this Agreement. Payment shall be made by
check or money order made payable to the City of Philadelphia and delivered to the
offices of the Board.
4. AALBA releases and holds harmless the Board and its staff from any potential claims,
liabilities, and causes of action arising from the Board’s investigation, enforcement,
and settlement of the matters described in this Agreement.
5. In consideration of the above and in exchange for the compliance of AALBA
with all of the terms of the Agreement, the Board waives any further penalties or
fines against AALBA for the violations described in this Agreement.
6. The Parties will not make any public statements that are inconsistent with the terms of
this Agreement.
7. If the Board or the City is forced to seek judicial enforcement of this Agreement, and
prevails, AALBA shall be liable for attorneys’ fees and costs reasonably expended in
enforcing compliance with the Agreement. Fees for time spent by Board or City
attorneys shall be calculated based upon standard and customary billing rates in
Philadelphia for attorneys with similar experience.
8. This Agreement contains the entire agreement between the Parties. The Agreement
shall become effective upon approval by the Board. The effective date of the
Agreement shall be the date the Board approves the Agreement.
9. The Executive Director will submit a signed copy of this Agreement to the Board for
approval.
10. If the Board rejects the proposed Agreement, presentation to and consideration of the
Agreement by the Board shall not preclude the Board or its staff from participating in,
considering, or resolving an administrative adjudication of the matters described in
the Agreement. If the Board rejects the proposed Agreement, nothing in the proposed
Agreement shall be considered an admission by either party and, except for this
paragraph, nothing in the Agreement shall be effective.

Page 3 of 4
EXHIBIT A
Registration No: P00519 Registration Status: Expired
Registration Name: Asian American Licensed Lobbying Commenced: 01/01/2017
Beverage Association
Acronym: AALBA Date Filed: 01/01/2017
Phone#: 215-923-3611 Ext. Additional Phone#:
Fax#: Last Renewed:
Email: xuadam@aol.com Additional Email:

Registration Period: 2017-2017 Last Amended Date: 05/31/2018

Nature of Business: Beverages
Address: 207 N. 11th Street
1st Floor
City: Philadelphia State: PA Zip: 19107

Lobbyist(s):
Name RegistrationNum Affiliated Start Date Affiliated End Date

Lobbying Firm(s):
Name RegistrationNum Affiliated Start Date Affiliated End Date

Political Action Committee(s):

Name Acronym

Association/Organization members:
Is this Principal an Association or Organization? Yes
No Number of Dues - Paying Members: 228
For The Calender Year : 2017

FILER AFFIRMATION:
 LOBBYING DISCLOSURE QUARTERLY EXPENSE REPORT
FILER'S INFORMATION:
Filer's Name: Asian American Licensed Beverage Association
Registration No.: P00519
Filing Period: Quarter: Oct - Dec Year: 2017
PERMANENT BUSINESS ADDRESS:
Address: 207 N. 11th Street
1st Floor
City: Philadelphia State: PA Zip: 19107
CONTACT INFORMATION OF FILER:
Phone: 215-923-3611 Ext.
Email Address: xuadam@aol.com

IDENTIFICATION OF LOBBYIST(S)/LOBBYING FIRM(S) LOBBYING ON PRINCIPAL'S BEHALF:

Registration Name Related to RegistrationNum Affirmation Status

TOTAL LOBBYING EXPENSES DURING THE REPORTING PERIOD:

TOTAL EXPENDITURES FOR GIFTS, HOSPITALITY, TRANSPORTATION, AND LODGING

TO CITY OFFICIALS, EMPLOYEES OR THEIR IMMEDIATE FAMILIES :
0.00

TOTAL EXPENDITURES FOR DIRECT 0.00

COMMUNICATION:

TOTAL EXPENDITURES FOR INDIRECT 6,000.00

COMMUNICATION:

+
TOTAL EXPENDITURES OF ALL LOBBYING FOR THE 6,000.00
PERIOD:

SUBJECT(S) OF LOBBYING:

Accessibility

DIRECT COMMUNICATIONS:
None.

INDIRECT COMMUNICATIONS:
Lobbying Category Subject Matter Position Taken Method of Recipient Group
Communication
Communications bulletproof glass Oppose news media press conference
bill 12/14/17
GIFT RECIPIENTS:
None.

REPAYMENTS:
None.

SOURCE OF CONTRIBUTIONS:
None.

FILER AFFIRMATION:

By affixing my signature to this expense report, I affirm that I have actual knowledge of the contents of
this expense report and that the information reported herein is valid, accurate, and complete to the best
of my knowledge. To the best of my knowledge at all times relevant to this quarterly expense reporting
period, I have complied with the requirements of City Code §20-1205(5). I acknowledge that this
affirmation is being made subject to 18 Pa.C.S. § 4904 (relating to unsworn falsification to authorities). I
consent to receive service of notices, other official mailings, or process at the address or email listed in
this expense report.
First Name: adam MI:
Last Name: xu
Title: chairman

Date: 06/08/2018
LOBBYING FIRM/LOBBYIST NOT ASSOCIATED WITH A LOBBYING FIRM AFFIRMATION:
None.
 SETTLEMENT AGREEMENT
This Settlement Agreement (“Agreement”) is made and entered into by the Board of
Ethics of the City of Philadelphia, J. Shane Creamer, Jr., the Executive Director of the Board,
Tariq El Shabazz, and Taylor Daukaus, jointly referred to as “the Parties.”

RECITALS
A. The Board of Ethics of the City of Philadelphia is an independent, five-member City
board established in 2006 through voter approval of an amendment to the Philadelphia
Home Rule Charter. Pursuant to Section 4-1100 of the Home Rule Charter, the Board is
charged with administering and enforcing the City’s Campaign Finance Law.
B. Tariq El Shabazz was a candidate for District Attorney in the May 2017 Philadelphia
Primary Election. Mr. El Shabazz designated the political committee Tariq for Justice as
the one committee which would accept contributions and make expenditures for his
campaign for District Attorney. The committee was terminated in June of 2017.
C. Taylor Daukaus was the treasurer of Tariq for Justice during Mr. El Shabazz’s campaign
for District Attorney. Kristen Stoner was the assistant treasurer of the committee.
D. In May of 2017, Board enforcement staff learned of potential violations of the City’s
Campaign Finance Law involving the El Shabazz campaign and a local political
committee named Trustwave PAC. Accordingly, the Executive Director opened an
investigation, during which enforcement staff obtained documents, including bank
records, emails, and text messages, and interviewed witnesses.
E. Trustwave PAC is a political committee based in Philadelphia. On April 16, 2017,
Kristen Stoner filed a Political Committee Registration Statement for Trustwave PAC
with the Department of State. The Statement listed Derrick Susswell as Treasurer and
Ismail Shahid as Chair of the PAC. On May 6, 2017, Ms. Stoner filed an amended
Political Committee Registration Statement for Trustwave PAC that made her the Chair
in place of Mr. Shahid.
F. Ms. Stoner is the principal of the St. Bernard Group, a Philadelphia based campaign
finance consulting firm. Mr. El Shabazz retained the St. Bernard Group to provide
fundraising and campaign finance compliance services to his campaign. Ms. Daukaus
served as treasurer of Tariq for Justice at Ms. Stoner’s request and worked under her
direction. The St. Bernard Group also provided campaign finance and consulting services
to Trustwave PAC. Mr. El Shabazz was not aware that Ms. Stoner was the Chair of
Trustwave PAC or that Trustwave PAC was a client of her firm.

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G. For a period of time during the 2017 Primary Election, in addition to his activities with
Trustwave PAC, Ismail Shahid acted as an agent and unpaid senior adviser of the
campaign of Tariq El Shabazz for District Attorney.
H. On October 18, 2017, the Board approved a settlement agreement with Trustwave PAC,
Mr. Susswell, Ms. Stoner, and Mr. Shahid. In the agreement, they admitted that:
i. In the months leading up to the 2017 Primary Elections, Mr. Shahid solicited
contributions for both the El Shabazz campaign and Trustwave PAC, in some
cases from common donors. After he stepped down as Chair in early May of
2017, Mr. Shahid remained actively involved in Trustwave PAC’s activities,
including implementing and directing its election-day get-out-the-vote activities
and ordering a Trustwave PAC sample ballot.
ii. Trustwave PAC’s activities during the 2017 Primary Election almost exclusively
involved printing and distributing a sample ballot promoting candidates for
District Attorney, Controller, and judicial office. A copy of the ballot is attached
hereto as Exhibit A.
iii. Among its expenditures, Trustwave PAC paid the consulting company
Countywide Strategies for consulting services, including management of
Trustwave PAC’s ballot distribution in a part of Philadelphia. One of the
principals/partners of Countywide Strategies is Steven Vaughn, who also held a
leadership position in the El Shabazz campaign.
iv. The candidate for Controller and most of the judicial candidates paid to be on
Trustwave PAC’s ballot. The El Shabazz campaign contributed $5,000 to
Trustwave PAC, approximately 5% of the total amount contributed by the
candidates on the ballot. Given Mr. El Shabazz’s prominence on the ballot, the
amount the other candidates contributed, and the amount Trustwave PAC spent to
print and distribute it, the amount the El Shabazz campaign contributed was not
the usual and normal charge.
v. The total amount Trustwave PAC charged candidates to be on its ballot was
approximately $80,000. Trustwave PAC used this money, as agreed with those
candidates, to promote their election. Trustwave PAC raised an additional
$81,500 from non-candidate PACs, which it also used to pay for and distribute its
sample ballot.
I. As provided by Board Regulation No. 1, Paragraph 1.1(q), if a political committee
coordinates its expenditures with a candidate’s campaign and those expenditures are
made to advocate or influence the election of the candidate, the expenditures are an in-
kind contribution to the candidate. In-kind contributions are subject to the contributions
limits of the City’s Campaign Finance Law.
J. Under the City’s Campaign Finance Law, in 2017 a candidate for District Attorney could
not accept contributions of more than $23,800 1 from a political committee. Acceptance
by a candidate of an excess contribution violates Philadelphia Code § 20-1002(12).

1
This figure is double the usual contribution limit because one of the candidates for District Attorney in
2017 contributed more than $250,000 of his own money to his campaign.

Page 2 of 5
K. Regulation No. 1, Paragraph 1.38 provides detailed guidance on what conduct gives rise
to coordination between a political committee and a candidate’s campaign, including
expenditures made in cooperation, consultation, or concert with the candidate’s campaign
or with the knowledge and assent of the candidate’s campaign. A political committee’s
expenditures are also coordinated with a candidate’s campaign if the candidate solicits
funds for or directs funds to the political committee within the 12 months before the
election that the expenditures seek to influence.
L. Board Regulation No. 1 defines a candidate’s campaign as a “candidate, the candidate’s
candidate political committee (or litigation fund committee), or an agent of any of the
foregoing.”
M. As a result of the activities described in Paragraph H, Trustwave PAC’s expenditures
were coordinated with the El Shabazz campaign. Accordingly, the expenditures
Trustwave PAC made to advocate for or influence Mr. El Shabazz’s election in the 2017
Primary were in-kind contributions to the El Shabazz campaign. These in-kind
contributions exceeded the limits for contributions from a political committee to a
candidate for District Attorney in 2017.
N. Additionally, Code Section 20-1003 requires a candidate for City office to have no more
than one political committee for the City office he or she is seeking and to make all
expenditures for that office out of that committee. As such, as explained at Regulation
No. 1, Paragraphs 1.29 and 1.30, it is a violation of the Campaign Finance Law for a
candidate’s campaign to exercise control over another political committee or over the
expenditures of another political committee.
O. Tariq for Justice filed a 2017 thirty day post primary election (cycle 3) and several 24
hour campaign finance reports with the Board. However, the committee did not disclose
any in-kind contributions from Trustwave PAC in the reports it filed with the Board.
P. Pursuant to Philadelphia Code § 20-1006(4) and Regulation No. 1, Paragraph 1.24, the
making of a material misstatement or omission in a report filed with the Board is a
violation of the City’s Campaign Finance Law.
Q. Mr. El Shabazz and Ms. Daukaus fully cooperated with the Board’s investigation and
resolution of this matter.
R. The Parties desire to enter into this Agreement in order to resolve the issues described
herein.

Page 3 of 5
 AGREEMENT
The Parties agree that:
1. Because the El Shabazz campaign controlled Trustwave PAC and the expenditures made by
Trustwave PAC in violation of Philadelphia Code § 20-1003, Mr. El Shabazz shall pay a
civil monetary penalty of $750 within 30 days of the effective date of the Agreement.
2. The in-kind contributions Trustwave PAC made to Mr. El Shabazz’s campaign exceeded the
City’s contribution limits in violation of Philadelphia Code § 20-1002(12), for which Mr. El
Shabazz shall pay a civil monetary penalty of $2,000 on the following schedule:
2.1 $1,000 within 60 days of the effective date of the Agreement; and
2.2 $1,000 within 90 days of the effective date of the Agreement.
3. The campaign finance reports Tariq for Justice filed with the Board did not disclose in-kind
contributions from Trustwave PAC in violation of Philadelphia Code § 20-1006(4), for
which Ms. Daukaus shall pay a civil monetary penalty of $2,000 on the following schedule:
3.1 $500 within 30 days of the effective date of the Agreement;
3.2 $500 within 90 days of the effective date of the Agreement; and
3.3 $1,000 within 150 days of the effective date of the Agreement.
4. Within thirty days of the effective date of the Agreement, Ms. Daukaus will amend Tariq for
Justice’s campaign finance reports to correct the reporting failures described in this
Agreement.
5. All payments required under the Agreement shall be made by check or money order made
payable to the City of Philadelphia and delivered to the offices of the Board of Ethics.
6. Mr. El Shabazz and Ms. Daukaus release and hold harmless the Board and its staff from any
potential claims, liabilities, and causes of action arising from the Board’s investigation,
enforcement, and settlement of the matters described in the Agreement.
7. In consideration of the above and in exchange for the compliance of Mr. El Shabazz and Ms.
Daukaus with all of the terms of the Agreement, the Board waives any further penalties or
fines against them for the conduct described in the Agreement and any related conduct.
8. The Parties will not make any public statements that are inconsistent with the terms of the
Agreement.
9. If the City is forced to seek judicial enforcement of Paragraphs 1, 2, 3, 4 or 5, or an order of
the Court, and prevails, Mr. El Shabazz and Ms. Daukaus shall be liable for attorneys’ fees
and costs reasonably expended in enforcing compliance with the Agreement. Fees for time
spent by City attorneys shall be calculated based upon standard and customary billing rates in
Philadelphia for attorneys with similar experience.
10. The Agreement contains the entire agreement between the Parties.
11. The Executive Director will submit a signed copy of the Agreement to the Board for
approval. The Agreement shall become effective upon approval by the Board. The effective
date of the Agreement shall be the date the Board approves the Agreement.

Page 4 of 5
EXHIBIT A