Sharpton probed by Federal Election Commission.

REV. AL'S FAT WALLET SPURS FED ELEX PROBE

By STEFAN C. FRIEDMAN
--------------------------------------------------------------------------------


February 25, 2004 -- EXCLUSIVE

The feds are demanding the Rev. Al Sharpton answer a number of questions about problems with his campaign-finance reports, The Post has learned.

In a letter, the Federal Election Commission has given him until March 11 to explain excessive campaign donations, the way in which he reported his debt, and why he didn't itemize large payments made to him personally.

Sharpton, who is seeking the Democratic nomination for president, could face a substantial fine for violating federal finance rules. He was earlier fined $5,000.

One question concerning the FEC is two unexplained payments made by the campaign totaling roughly $22,000 to Sharpton himself late last year.

"Regulations require that you disclose the purpose for each expenditure made by your committee to a person," the FEC letter says

The two payments - one for $21,200.87 and the other for $799.13 - are simply made out to Sharpton and are not itemized as is required.



Sharpton spokesman Charles Halloran, who said he hadn't seen the FEC letter, said the expenses were "travel-related" and that they were itemized.

The FEC letter comes in the wake of Post reports that Sharpton was using campaign cash to stay at some of America's glitziest hotels and to pay himself.

Sharpton spent tens of thousands of dollars in swank hotels, including the Four Seasons Los Angeles, Arizona's Phoenician Resort and the ultra-hip Delano in Miami's South Beach.

Halloran for the first time yesterday offered an explanation for Sharpton's spending, saying, "Our donors have asked that he stay in nicer hotels for security reasons. They don't want to schlep down to some inappropriate place for a fund-raiser."

But despite extensive travelling around the country from October to December in support of his presidential bid, Sharpton's campaign listed just one hotel in its filings for the entire three months.

Halloran admitted that the campaign is "running behind" on filing specific travel expenses due to employing a "very small staff," adding that the $22,000 payment was a "small part" of the reverend's travel expenses.

"What you'll see fairly soon is several hundred thousands more in travel expenses," Halloran said.

Sharpton may also be in hot water with the FEC for receiving $4,500 from a single donor.

Donald Coleman, the CEO of Globalhue - a Michigan-based marketing communications company - gave the Sharpton campaign $1,500 last June and $3,500 last October.

Though the campaign returned $500 in October, campaign-finance rules dictate that an individual can give only $2,000 per election.