CLC, D21 Complaint: Tom Price Violated Law By Using Campaign Funds to Secure HHS Confirmation
WASHINGTON – Campaign Legal Center (CLC) and Democracy 21 filed a complaint today with the Federal Election Commission (FEC) alleging Tom Price violated federal law by illegally using congressional campaign funds to support his confirmation as President Trump’s Health and Human Services Secretary, in violation of the prohibition on using campaign funds for personal use.
“Federal law is clear that congressional campaign funds are to be used to support a run for Congress or one’s duties as a Member of Congress—not so you can land a job after Congress,” said Brendan Fischer, director of CLC’s federal and FEC reform program. “The corrupting potential of campaign contributions is amplified if officeholders can use the funds for their own personal benefit.”
In January, as Price’s nomination to lead HHS was pending before the U.S. Senate, his campaign committee, Price for Congress, paid $40,000 to America Rising, a self-described “opposition research and communications organization,” which then promoted research and videos promoting Price’s confirmation. America Rising also promoted the confirmation of other Trump cabinet nominees, but only Price paid the group with campaign funds.
“The FEC should investigate whether Secretary Price improperly used campaign funds for personal benefit by transferring funds to a group that advocated for his confirmation as Secretary,” said Donald Simon, counsel to Democracy 21. “Price’s use of his campaign funds appears to have violated the law prohibiting the personal use of campaign funds, and the FEC should take appropriate action.”
Several prominent Members of Congress have been convicted for personal use violations in recent years, including Rep. Aaron Schock (R-IL), Rep. Jesse L. Jackson, Jr. (D-IL), and Sen. Larry E. Craig (R-ID).
OGE Director Walter M. Shaub, Jr. to Join CLC and Lead Ethics Practice
WASHINGTON – Walter M. Shaub, Jr., director of the United States Office of Government Ethics (OGE), will join Campaign Legal Center (CLC) as Senior Director, Ethics, beginning on July 19.
“I have had the honor and privilege of serving the American public at the U.S. Office of Government Ethics under three presidents – George W. Bush, Barack Obama and Donald Trump,” said Shaub. “In working with the current administration, it has become clear to me that we need improvements to the existing ethics program. I look forward to working toward that aim at Campaign Legal Center, as well as working on ethics reforms at all levels of government.”
Shaub, who submitted his resignation as OGE director this afternoon, will expand the capacity of CLC’s ethics program, which has a long track record of holding government officials accountable on both sides of the political aisle.
Over the past several administrations, CLC has been instrumental in not only watchdogging public officials, but also shaping and advancing ethics legislation, including the Honest Leadership and Open Government in 2007, which created the Office of Congressional Ethics (OCE).
Shaub will work with Larry Noble, senior director and general counsel at CLC, who has been a strong voice for ethics laws and currently serves as a regular contributor on the topic to CNN. CLC will continue to address violations of the ethics laws, issue policy recommendations and educate the public on the importance of ethics to a functioning democracy.
“It’s imperative that we sustain a culture of high ethical standards in our government,” said Trevor Potter, president of CLC and a former Republican chairman of the Federal Election Commission. “Walt, in serving the American public at the OGE under three presidents, has demonstrated the highest level of professionalism and integrity. All of us at CLC are thrilled to have him join us in our continuing work to protect and improve our democracy.”
Alabama Must Immediately Educate Voters About Updates to State’s Felony Disenfranchisement Law
CLC takes legal action following Secretary of State Merrill’s refusal to implement the law
Campaign Legal Center today asked a federal court to immediately order the state of Alabama to implement the Felony Voter Disqualification Act (HB 282) (signed May 25, 2017) by educating and advising voters of the law, and ensuring that voters who are eligible are added back to the state’s voter rolls.
Alabama Secretary of State John Merrill told the Huffington Post he was “not going to spend state resources” educating Alabamians about the updates to the law, even though the state had previously inaccurately told many voters they could not vote, but thanks to the clarity in the law with HB 282, will now be able to vote. The Secretary of State has yet to update AlabamaVotes.gov, voter registration forms, or any other public materials to advise voters of the eligibility requirements.
CLC’s motion calls for the court to immediately order the state to take a series of actions to effectively implement the law before the next statewide election on August 15, 2017.
“This law has the potential to ensure eligible voters – who never should have been denied the right to vote in the first place – can now vote,” said Danielle Lang, senior counsel for Campaign Legal Center, which is representing 10 plaintiffs in a lawsuit challenging the state’s felony disenfranchisement law. “The state is responsible for correcting the confusion that has wrongly disenfranchised voters for decades. In order for HB 282 to have any meaningful effect, Alabama must notify voters about their right, and ensure they are able to successfully cast a ballot going forward.”
HB 282 provides a comprehensive list of crimes that “involve moral turpitude.” The state’s felony disenfranchisement law, originally enacted in 1901, denies individuals who have committed a crime of “moral turpitude” from registering to vote, unless they file further paperwork, pay significant fines and fees and have their right to vote restored by the state.
Yet, until the passage of HB 282, the state had never defined what constituted a crime that “involved moral turpitude,” confusing eligible voters of whether or not they could vote. And the state denied voters the ability to vote, claiming their crime was one of moral turpitude when it was not.
The passage of HB 282 does not fully resolve Alabama’s deeply troublesome felon disenfranchisement laws. The process is still inherently racially discriminatory and overbroad, permanently disenfranchising many individuals, including many convicted of non-violent crimes. The law also does not address Alabama’s system of conditioning restoration of the right to vote based on wealth by requiring the payment of fines and fees – a clear constitutional violation.
CLC, D21 File Complaint Against Tennessee Congressional Candidate, American Conservative Union, and Others Who Coordinated on Elaborate Scheme to Evade Campaign Finance Law
Violations include illegal coordination, straw donor schemes, excessive contributions and failure to report contributions
WASHINGTON – Today, Campaign Legal Center (CLC) and Democracy 21 (D21) filed a complaint with the Federal Election Commission (FEC) and will file with the Department of Justice (DOJ) against former Congressional candidate Brian Kelsey and others, including the American Conservative Union (ACU), for their part in a scheme to circumvent contribution limits and disclosure laws by illegally funneling funds from Kelsey’s state account through intermediaries to secretly support Kelsey’s run for U.S. Congress in 2016.
“In order to disguise the illegal transfer of prohibited state money into his federal race, it appears that Kelsey concocted a scheme to pass the money through a dark money daisy chain and straw donor reimbursement plot,” said Brendan Fischer, director, federal and FEC reform at the nonpartisan Campaign Legal Center. “Kelsey appears to have stacked legal violation on top of legal violation, and we anticipate that the FEC and DOJ will take this very seriously.”
“The FEC needs to investigate whether the unusual pattern of money transfers laid out in the complaint was in fact an effort to funnel non-federal funds into a federal campaign,” said Democracy 21 Counsel Donald Simon. “The timing and amounts of the transfers is more than enough to raise suspicions that warrant further scrutiny by the FEC.”
Kelsey, a Tennessee state senator, unsuccessfully ran for Congress in the Republican primary for Tennessee’s 8th Congressional District in 2016. Because Tennessee allows state candidates to accept donations in amounts and from sources prohibited by federal law, federal candidates cannot transfer or spend state campaign funds in their federal race.
But on July 11, in the midst of the primary, Kelsey’s state campaign committee transferred $106,341 to Standard Club PAC (a Tennessee state PAC), which constituted almost all of the PAC’s fundraising for 2016, and then:
- On July 15, the Standard Club PAC transferred $30,000 to the 501c4 ACU;
- On July 20, ACU reported making a $30,000 independent expenditure in support of Kelsey.
Additionally:
- On July 15 and 20, the Standard Club PAC transferred a total of $37,000 to Citizens 4 Ethics in Government (which was almost all of C4EG’s fundraising for 2016);
- On July 21, Citizens 4 Ethics in Government transferred $36,000 to ACU (which was almost all of C4EG’s spending for 2016);
- On July 22, ACU reported making a $19,480 independent expenditure in support of Kelsey, and on July 26, reported a $30,520 independent expenditure in support of Kelsey.
ACU never reported the source of the contributions to the FEC.
These schemes appear to have violated the Federal Election Campaign Act (FECA) ban on federal candidates transferring state “soft money” funds that exceed federal limits and the “straw donor” prohibition on making contributions in the name of another. Since executing such a plan would appear to require an exceptional degree of communication between Kelsey and ACU, ACU’s expenditures were likely illegally coordinated with Kelsey.
Evidence also suggests Kelsey used funds from his state campaign and PAC to reimburse state legislators who contributed to his congressional campaign, providing further evidence that Kelsey treated his state campaign accounts as slush funds to illegally support his federal candidacy, in violation of FECA’s straw donor ban.