A green light from bankruptcy judge: AG Ferguson can pursue Eyman

Tim Eyman has lost initiative battles, and bounced back. He is in much deeper trouble now. Although Eyman has filed for bankruptcy, a federal judge has ruled that Attorney General Bob Ferguson can continue to investigate the tangled finances of Eyman's initiative campaigns and alleged six-figure kickbacks from a signature gathering firm. . less Tim Eyman has lost initiative battles, and bounced back. He is in much deeper trouble now. Although Eyman has filed for bankruptcy, a federal judge has ruled that Attorney General Bob Ferguson can continue ... more Photo: JOSHUA TRUJILLO Photo: JOSHUA TRUJILLO Image 1 of / 5 Caption Close A green light from bankruptcy judge: AG Ferguson can pursue Eyman 1 / 5 Back to Gallery

A federal bankruptcy judge has given a green light for Attorney General Bob Ferguson to go ahead with his civil suits against initiative promoter Tim Eyman, despite Eyman's recent filing for bankruptcy.

Judge Marc Barreca ruled that the AG's suit against Eyman, including its claim he took $308,000 in kickbacks from a signature gathering firm, is exempt from provisions of the federal regulatory code that halt civil actions against persons who file for bankruptcy.

"Mr. Eyman has engaged in a pattern of seeking to avoid accountability," Ferguson said in a statement released by his office.

"From refusing to fully cooperate with our investigation, repeatedly failing to comply with court orders, not answering questions under oath and now using bankruptcy process in a bad faith effort to delay our case, Mr. Eyman continued to engage in a pattern of stall tactics to avoid accountability to the people and the state for his misdeeds. It's not going to work."

RELATED: A bankrupt Tim Eyman is back in business with $30 car tab initiative

Eyman has charged he is a victim of political persecution, and continued to charge ahead with his initiatives.

Eyman and a supporting cast this week filed signatures on his latest $30 car tabs initiative, which would roll back voter-approved money for Sound Transit light rail expansion, and take back city transit funding.

The Attorney General's office had to pause in its ongoing investigative work after Eyman filed for bankruptcy on the last day of November.

Judge Becerra heard arguments from the Attorney General's office and Eyman's legal council, and then let the AG resume work on the case. He cited a federal statute that provides an exception for exercise of "police or regulatory power."

The state Public Disclosure Commission compiled a 76-page investigative report on Eyman's activities involving two initiatives he was sponsoring in 2012.

It found that the initiative promoter violated state campaign finance laws. The report detailed how donations were shifted from one initiative account to the other. It also reported that a signature gathering firm kicked money back to Eyman for his personal use.

The PDC report went to AG Ferguson, who last year filed a $1.8 million civil suit against Eyman.

The Attorney General's office has repeatedly hauled Eyman co-defendants into Thurston County Superior Court, arguing that Eyman has not fully supplied bank records. The AG is looking at transactions dating back to 2009.

Eyman and codefendants have been ordered to pay $101,000 in fines for contempt, and been hit with a $35,000 bill for state investigation and legal costs.

Earlier: Eyman lawsuit contempt fines doubled to $1,000 a day

Eyman has claimed, in fundraising appeals, that he is being "persecuted" by Ferguson, and is the victim of a political "jihad."

Ferguson has been ferociously bipartisan in enforcing state campaign finance laws, recently collecting a settlement from Spokane County Democrats, bring action against labor groups, and getting a seven-figure settlement against the Grocery Manufacturers Assn., over money laundering in a 2013 initiative campaign.

Andrew Villeneuve of the Northwest Progressive Institute, a decade long Eyman critic, on Friday compared the initiative promoter to a "slippery eel" but said Eyman is running out of room to wiggle.

"He's in a lot of trouble and is up against a lawman who is just as tough as he is," wrote Villeneuve in his blog.