FEC Goes After Fraudulent Donations
**FEC Moves to Crack Down on Fraudulent Campaign Donations
By Chelsea Betonie / November 29, 2024
The Federal Election Commission (FEC) is seeking public input
on proposed rule changes to combat fraudulent campaign contribu-
tions, particularly through untraceable electronic payments. This
comes in the wake of allegations of donation laundering schemes
involving stolen identities and false payment methods, raising
significant concerns about the integrity of campaign financing.
Last month, Texas Attorney General Ken Paxton called for a
Department of Justice investigation into ActBlue, citing evidence
of fraudulent donations allegedly laundered through the platform.
According to Paxton, a network of false identities was used to
make thousands of small-dollar contributions, potentially masking
illegal sources of funds.
The scheme, previously highlighted by Peter Bernegger of
ElectionWatch.info and journalist James O’Keefe, involves using
the identities of senior citizens to funnel repeated small-dollar
donations into campaigns. Many victims were unaware their names
had been used, and some expressed shock when confronted with re-
cords of thousands of dollars in contributions made in their names.
In addition to identity theft concerns, the scheme could ex-
pose victims to unintended tax liabilities, further complicating
the fallout from these fraudulent practices.
In response to these allegations, the FEC has proposed amend-
ments to its regulations governing credit card contributions. The
changes include:
Enhanced Record-Keeping: Contributions made using credit,
debit, prepaid, or gift cards would require a cross-check between
the contributor’s reported information and the issuing institution’s
records to confirm the cardholder’s name and billing address.
Restrictions on Prepaid Cards: Contributions from prepaid or gift
cards would only be accepted if their issuing institution’s records
can confirm the required identifying information. The FEC opened
the public comment period for these proposed amendments on Novem-
ber 26, 2024, and it will remain open until January 27, 2025.
The FEC’s proposed changes come at a time when the Supreme
Court has overturned Chevron Deference, which allowed federal
agencies significant leeway in interpreting laws. This decision
could invite legal challenges to the FEC’s authority to implement
these rules or lead to non-compliance by organizations like ActBlue,
despite their recent adoption of basic security measures, such as
requiring CVV numbers on donations.
While the FEC’s amendments represent a step toward trans-
parency, Congress has yet to act on the issue. Senator Marco Rubio’s
proposed CVV Act, introduced in February 2023, would require all
internet-based contributions to include a credit verification value
(CVV) check. The one-sentence bill has languished in committee for
over two years without a vote.
The focus on fraudulent campaign donations has also reignited
broader concerns about money laundering in U.S. elections. Former
Polish politician Piotr Kulpa recently alleged that half of U.S.
aid to Ukraine is being funneled back to Democratic campaigns,
claims echoed by investigations into FTX founder Sam Bankman-Fried
and NGO payment structures.
Peter Bernegger has further claimed that foreign funds from
China and Ukraine may pass through U.S. Treasury channels and
multiple NGOs before reaching campaign coffers, with each inter-
mediary allegedly taking a percentage cut.
These controversies come amid striking disparities in fundraising
between political campaigns. According to Ballotpedia, Kamala
Harris’s 2024 campaign raised an estimated $1 billion, making it
the second-highest-funded campaign since 2008. By contrast, Donald
Trump’s campaign raised $391 million, the second-lowest during the
same period.
With the FEC opening public comment on these crucial rule
changes, the issue of campaign finance fraud is once again in the
spotlight. Whether these measures will be sufficient to curb illicit
donations or face resistance in the courts remains to be seen.
However, the revelations about fraudulent schemes and the growing
influence of foreign funds underscores the urgent need for reform to
restore trust in the electoral system.
For the public, this comment period represents an opportunity
to weigh in on safeguarding the integrity of campaign contribu-
tions—an essential step in preserving democracy.**
When the Dems announced that they raised $500M in one day you
have to suspect that something was not right. Then they said they
had raised almost $1B and didn't blink. It was an obvious scream
for help but then articles about people questioning donations they
never made, their reputation jumped off the page. How many years
are we going to let them pull these stunts.
If it's not dead people voting, a problem with their ballots
and yet they get away with it. These things have been going on for
decades. It is time to return to basics like photo IDs and paper
ballots and same day voting.
God has had enough, now it is our turn to clean up the rest
of the swamp. Pray for our future.
Conservatively,
John
Conservativelyjohn.com 