CLC Complaint Alleges Six Government Contractors Made Over $1,080,000 in Illegal Contributions

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Washington, DC – Today, Campaign Legal Center (CLC) filed new complaints with the Federal Election Commission (FEC) alleging that six government contractors violated the ban on active federal contractors making political contributions.

Marathon Petroleum, Amedisys, Kirby Smith Machinery, Excel Dryer, Inc., DTE Energy Company, and TonerQuest, all have active government contracts and according to recent campaign finance reports, together donated over $1,080,000 to several super PACs while holding active federal contracts.

The FEC is responsible for enforcing the laws that govern the U.S. campaign finance system for campaigns for president and Congress.

“The ban on federal contractors making political contributions protects against the appearance or reality that taxpayer-funded contracts are for sale, and big super PAC contributions run a substantial risk of buying influence,” said Brendan Fischer, federal reform director at CLC. “Federal contractors should be on notice that they are barred from donating to super PACs. Given the FEC’s general reputation for dysfunction, perhaps these federal contractors thought they could give to super PACs and get away with it, but the FEC has a record of enforcing the contractor contribution ban.”

Marathon Petroleum donated $500,000 each to Congressional Leadership Fund super PAC and Senate Leadership Fund super PAC. This Ohio-based company has a Department of Defense contract worth up to $1.9M.

Amedisys, has several federal contracts and grants, including a two-year indefinite delivery vehicle contract with the Department of Veterans Affairs. The Louisiana-based company donated $25,000 to the Senate Leadership Fund super PAC.

TonerQuest donated $25,000 to President Trump’s America First Action. This New York-based company has two ten-year federal contracts with General Services Administration (GSA).

DTE Energy Company, a Michigan based company, donated $15,000 to American Working Families super PAC. It is the recipient of a ten-year contract with the Department of Veterans Affairs and a contract with the Department of Defense.

Excel Dryer, Inc. also donated $10,000 to American Working Families, a super PAC that was active in the Massachusetts first congressional Democratic primary race of Richard Neal. This company was the recipient of a 15-year contract with General Services Administration (GSA).

Kirby Smith Machinery, which has numerous federal contracts and grants including a contract with the Department of Defense, donated $10,000 to Restore Oklahoma, a super PAC supporting Stephanie Bice in the Oklahoma 5th congressional race.

The FEC has a record of enforcing the contractor contribution ban. Earlier this year, the FEC fined the federal contractor Alpha Marine Services $17,000 for contributing to the super PAC Congressional Leadership Fund, following a CLC complaint.

Last year, also in response to a CLC complaint, the FEC fined federal contractor Ring Power Corp. $9,500 for giving to a super PAC supporting Sen. Rick Scott.  In 2017, after CLC filed a complaint, the FEC fined federal contractor Suffolk Construction Company $34,000 for giving to a super PAC supporting Hillary Clinton’s campaign. In each of these cases, the FEC fined the federal contractor even though the contributions were refunded following CLC’s complaints.

CLC Publishes “Know Your Rights” Guides to Protect Voters From Intimidation

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NEW HAVEN, CT - As concerns about voter intimidation grow ahead of the Nov. 3 election, Campaign Legal Center (CLC) in conjunction with students from the Yale Law School Peter Gruber Rule of Law Clinic, Monday published comprehensive guides in key states to protect the rights of voters and prevent voter intimidation.

Students in the Rule of Law Clinic developed the guides, which were published on CLC’s DemocracyU website. The guides offer a full range of information on federal and state laws and resources protecting voters from intimidation, including rules on electioneering, polling place conduct, observers, firearms, law enforcement, mask mandates and similar topics. They also provide examples of illegal tactics, and points of contact if voters experience intimidation. Students developed guides for Arizona, Florida, Georgia, Michigan, Nevada, Pennsylvania and Wisconsin.

Concern about voter intimidation is high in advance of the election, given the tense national political environment and threats, rhetoric and aggressive activity from some political groups and actors. There have already been a number of incidents reported at early voting sites across the country.

However, federal law and laws in every state offer strong protection to voters against intimidation, threats and harassment. State laws also generally require election officials to maintain a safe and orderly voting environment. The guides are intended to make sure that voters and advocates are aware of the rights and protections provided by law, so that they can exercise their right to vote freely, safely and privately. 

“The law is clear: every American has the right to vote free from intimidation and harassment,” said Danielle Lang, Co-Director of Voting Rights & Redistricting at CLC. “As these guides explain, state and local election officials have a duty to ensure a safe environment for voters at the polls.”

“Developing these guides made clear the full range of legal protections provided to voters so that they can cast their ballots without fear,” said Alex Boudreau ’21, a clinic member. “We hope these guides will prove useful as voters exercise their rights this election cycle, and beyond.”

Students developed the state-by-state guides in partnership with Lang and CLC. CLC advances democracy through law, fighting for every American’s right to participate in the democratic process. The organization uses tactics such as litigation, policy advocacy, communications and partnerships to win victories that result in a more transparent, accountable and inclusive democracy. CLC’s DemocracyU website provides toolkits and information to voters and community members participating in the democratic process.

Yale Law School students and Rule of Law Clinic members Pirzada Ahmad ’21, Alex Boudreau ’21, Lisa Chen ’21, Kate Hamilton ’22, Laura Pietrantoni ’21, Matthew Quallen ’21 and Georgia Travers ’21 worked on the guides. They were supervised by Lang and Clinical Lecturer in Law Hope Metcalf, Executive Director of the Orville H. Schell, Jr. Center for International Human Rights.

The Yale Law School Peter Gruber Rule of Law Clinic addresses issues of national security, antidiscrimination, climate change and democracy through litigation, policy advocacy and strategic planning.

CLC DemocracyU: Protecting Voters from Intimidation

For additional information, please contact Corey Goldstone at [email protected].

Guarding Against Pay-to-Play in Federal Contracts

At a Glance

The federal contractor ban, which has been in place for over 75 years, prohibits government contractors from making federal political contributions to avoid the appearance or reality that taxpayer-funded contracts are for sale. CLC is working to ensure that this important protection against pay-to-play is followed and enforced.

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About This Case/Action

For 75 years, federal government contractors have been prohibited from making federal political contributions. The ban protects against the appearance or reality that taxpayer-funded contracts are for sale, and has been upheld by courts as an important protection against pay-to-play in the contracting process, even as courts have struck down other campaign finance laws.

The FEC has generally enforced the contractor contribution ban, including against contractors that contribute to super PACs. However, the agency is not actively reviewing campaign finance reports for illegal contractor contributions; it falls on independent watchdogs like CLC to identify illegal contributions and file complaints with the FEC.

Given the FEC’s general reputation for dysfunction, some federal contractors might believe that they can illegally give to super PACs and get away with it. CLC is working to ensure that they cannot.

CLC Calls for the Investigation of Michigan LLC and its Scheme to Hide the True Source of Campaign Contributions

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Washington, DC - Today, Campaign Legal Center (CLC) filed a complaint with the Federal Election Commission (FEC) alleging that a $150,000 donor to the Congressional Leadership Fund (CLF) appears to be a shell corporation established for the purpose of funneling secret donations to the super PAC.

Montcalm LLC donated $150,000 to the super Political Action Committee (PAC) CLF on Oct. 8, 2020, less than two weeks after its formation on Sept. 28, 2020. The entity does not have a business imprint or an online presence, which suggests that the funds came from a different source, and that Montcalm was used as part of a “straw donor” scheme to hide the true source of the contribution.

A “straw donation” occurs when a donor uses the name of another person or entity to make political contributions. These are illegal because they are a means of evading the law’s transparency requirements and contribution limits.

“Voters have a right to know who is trying to influence their vote. The evidence indicates that this LLC was used to unlawfully keep voters in the dark about the true source of a $150,000 super PAC contribution,” said Brendan Fischer, senior director federal reform at CLC. “This is a serious violation, and is very similar to the violation that led to the arrest of Lev Parnas and Igor Fruman. Both that case and this one involved an LLC making a six-figure super PAC contribution within weeks of being formed.”

The address used for Montcalm LLC’s contribution is associated with the billionaire Meijer family, heirs to the Meijer supermarket chain. The Meijer Family Foundation is located at that same address, and a Meijer family member has used the address when making contributions to Democratic party committees.

One day after the $150,000 contribution, CLF began making independent expenditures in Michigan’s 3rd Congressional district opposing candidate Hillary Scholten, who is running against a member of the Meijer family, Peter Meijer.

The FEC must take this matter seriously and investigate this illegal straw donor scheme and also determine whether Montclam failed to properly register as a political committee.