October 25, 2024
Texas Attorney General Ken Paxton requested a criminal referral to the US Department of Justice (DOJ) in regards to allegedly criminal campaign financing arrangements for ActBlue, one of the leading Democratic campaign finance platforms. Paxton’s team is saying it has found a network of “straw donations” — money donated under bogus names and in untraceable ways — that it believes are meant to sway US elections illegally.
Background of the Investigation
Paxton’s investigation of ActBlue started in December 2023, after it was reported that the site could allow users to get out from under federal campaign finance rules. Paxton notes that untraceable actors — rogue actors — seem to be using ActBlue’s site to send huge sums of money, all without any trace. Paxton claims such activity could involve foreign contributions or over the legal donation limits, which might damage U.S. elections.
Responding to these claims, ActBlue changed the rule in August 2024 to require CVV codes for credit card donations to mitigate abuse. But this hasn’t done much to curb the alleged abuse, says Paxton. “Our investigation into ActBlue has uncovered facts indicating that bad actors can illegally interfere in American elections by disguising political donations,” Paxton stated in a press release from his office.
Paxton’s Petition to the FEC.
Paxton sent the Federal Election Commission (FEC) a “Petition for Rulemaking” on Oct. 21 calling for them to close regulatory loopholes he says facilitate these abuses. Paxton’s petition asks the FEC to make new rules prohibiting third-party extortion. “It is imperative that the FEC close off avenues that allow foreign or excessive contributions to unlawfully enter our political system,” he added.
Paxton’s office included in his DOJ referral the federal laws where such activity could be prosecuted, such as wire fraud (18 U.S.C. 1343), identity theft (18 U.S.C. 1028), and making contributions in someone else’s name (52 U.S.C. § 30122).
Nationwide Scrutiny of ActBlue
Paxton’s call comes as ActBlue is under increasing scrutiny by multiple state administrators. The Attorney General of Virginia Jason Miyares, Attorney General of Missouri Andrew Bailey, and Secretary of State of Wyoming Chuck Gray have all opened their own investigations of ActBlue’s business. Miyares pointed to hundreds of thousands of dollars in possible consignments from Virginians, many of them retired or unemployed. The attorney general noted the implausible frequency of contributions from some donors, suggesting the possibility of “dummy accounts” or unauthorized donations.
Miyares requested detailed descriptions of ActBlue’s procedures for verifying donor legitimacy and the measures it employs to prevent deceptive practices. “The citizens of the Commonwealth of Virginia deserve to know that nonprofit and political entities are financed in a legal manner,” Miyares emphasized.
Previous Reports of Suspicious Donations
Concerns about ActBlue’s donation practices are not new. In December 2022, The Gateway Pundit reported findings from Chris Gleason, who had identified patterns of donations that suggested the presence of “campaign finance mules.” These alleged mules appeared to make hundreds or even thousands of contributions in a single year. The revelations, later explored in more detail, indicated that the donation volumes associated with certain accounts were “implausible and suspicious,” especially considering some were attributed to senior citizens or unemployed individuals.
Potential Implications
Whether the DOJ will pursue an investigation based on Paxton’s referral is unknown. This case could be a major move for federal regulation of campaign finance, especially the use of third-party funders such as ActBlue, if brought by the DOJ. This will probably mean more regulation of online donations, and more donor checks.
The growing calls for accountability reflect bipartisan concerns over the integrity of U.S. elections, as regulators and officials seek to ensure that campaign finance systems are not exploited by bad actors.
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