Statement by CLC President Trevor Potter on the 2016 Election Results

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Today, it’s important to remember that elections come and go, but CLC’s mission remains constant: We will continue to fight to improve our democracy and for the fundamental right of all Americans to participate in the political process. We will continue to vigorously work for changes in money in politics practices, to defend voting rights and push to end the excessive partisan gerrymandering that undermines our democracy.

On Tuesday night, it was made clear that Americans support fundamental change in Washington, specifically focusing on issues of corruption and special interest power.

Donald Trump ran a campaign tapping into the deep-rooted sentiment of Americans who are unhappy with the status quo. Among his frequent targets were our broken political and campaign finance system. He spoke of "draining the Washington swamp" and proposed specific revolving door, ethics and lobbying reforms. He attacked super PACs and the power of secret money.

We know that 80 percent of voters of both parties believe that the federal government is out of touch with average citizens. This is the direct result of current money in politics practices. We saw this resonate loud and clear not only with the election of Washington-outsider Trump, but also through the passage of many strong pro-democracy measures on state and local ballots nationwide.

Tuesday’s results are proof that Americans have a hunger to fix our broken campaign finance system. As we to look toward the new administration, the Campaign Legal Center will hold President-elect Trump accountable to his campaign’s promise for democracy reform. And we will continue to work hard at the state and local level to pass more reforms that renew and expand our democracy.

Our work is needed now more than ever. 

 

State and Local Wins for Democracy in the 2016 Election 
 

-A matching funds public financing program in Berkeley, California

-A lobbyist gift ban and contribution restriction in San Francisco

-A direction to County Council to establish a matching funds program in Howard County, Maryland

-A reinstatement of contribution limits in Missouri

-An overhaul of South Dakota’s campaign finance laws including a voucher system, increased disclosure, lobbying restrictions and the creation of a campaign finance enforcement agency in South Dakota

-A resolution to overturn Citizens United in Washington State and California.

-New limits on contributions to candidates and on independent expenditures in Multnomah County, Oregon, a state that doesn’t currently have candidate limits

CLC Files FEC Complaint Against Thornton Law Firm For Illegally Funneling Money to Clinton, Other Democratic Candidates and Committees

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FEC Must Investigate Illegal Bonuses Tied to Campaign Donations

WASHINGTON – The Campaign Legal Center today asked the Federal Election Commission to investigate Boston-based Thornton Law Firm for reimbursing partners almost exact amounts for their political campaign contributions. This scheme allowed Thornton to funnel money to campaigns and party committees well above the legal contribution limits.

“The FEC must investigate this scheme,” said Brendan Fischer, associate counsel of the Campaign Legal Center. “Thornton employees made contributions to these campaign and were promptly reimbursed by the firm, allowing the firm to collectively give far more to individual candidates in a single year than the firm could have donated directly under federal law. This appears to be a clear violation of the law and the FEC should take this seriously.”

Lawyers at the firm have given $1.5 million to the Democratic Senatorial Campaign Committee (DSCC) and $333,000 to the Democratic National Committee between 2007 and 2016, as well as contributing significant sums to Sen. Elizabeth Warren, Sen. Chuck Schumer, Sen. Harry Reid, President Barack Obama and Presidential Nominee Hillary Clinton. There is no evidence the recipient candidates knew about Thornton’s scheme and many candidates have returned the contributions.

Based on reports from the Boston Globe and Center for Responsive Politics, the complaint also asks the FEC to investigate Thornton Law Firm partners Michael Thornton, Garrett Bradley and David Strouss for knowingly permitting their names to be used for the straw donor contributions. Between 2010 and 2014 the three partners (and Thornton’s wife) gave $1.6 million to candidates and party committees and were reimbursed $1.4 million in “bonuses” by Thornton Law Firm.

Trump Super PAC Accepted $100K from Private Prison Company in Violation of Federal Contractor Ban

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WASHINGTON –  One day after the Obama administration announced its decision to phase out federal private prison contracts, the private prison company GEO Group made a $100,000 donation to the pro-Donald Trump super PAC Rebuilding America Now, in violation of the longstanding ban on government contractors making political contributions, according to a Federal Election Commission complaint filed today by the Campaign Legal Center.

GEO receives 45 percent of its annual revenue from federal contracts. The GEO subsidiary that made the contribution, GEO Corrections Holdings Inc., operates a federal detention facility in Georgia whose contract extension was rescinded on the morning the contribution was made. Donald Trump has publicly praised the private prison system, whereas his opponent Hillary Clinton has called for its elimination.

“It is obvious GEO has a personal interest at stake this election,” said Brendan Fischer, associate counsel of the Campaign Legal Center. "One day after the Obama administration announced it would be ending GEO's contracts, the company spent $100,000 to support the one presidential candidate likely to reinstate those contracts. It’s for this exact reason why we have the federal contractor ban in place. Officials are supposed to make contracting decisions based on what's best for the public, not based on what's best for their big money backers."

The complaint alleges that GEO Corrections Holdings Inc. broke the law by making the contribution, and Rebuilding America Now also violated the law by accepting it.

CLC filed a similar complaint in July against a super PAC supporting Hillary Clinton, Priorities USA Action, for accepting a $200,000 contribution from a federal contractor, Suffolk Construction Company.

CLC more recently filed complaints with the FEC against both the Trump and Clinton campaigns for coordinating with their super PACs in violation of federal law.

Press Release: Donald Trump Super PAC Is Illegally Soliciting Money from a Chinese National to Influence U.S. Elections

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CLC Files FEC Complaint After The Telegraph Documents Trump Super PAC Soliciting Contributions from Fictitious Chinese Donor

The Campaign Legal Center today filed a complaint with the Federal Election Commission based on an undercover investigation conducted by The Telegraph. The British newspaper’s reporting showed how representatives of a super PAC supporting Donald Trump attempting to arrange for a Chinese businessman to illegally contribute $2 million to the super PAC by funneling the money through a for-profit company and two 501(c)(4) organizations.

In emails with the reporters and secretly recorded meetings, Jesse Benton, a former chief strategist at Great America PAC, and Eric Beach, co-chairman of the pro-Trump Great America PAC, provided instructions on how a Chinese businessman could launder foreign money into the super PAC – a clear violation of the law.

While the article in The Telegraph contained excerpts of the videos, Larry Noble, general counsel for the Campaign Legal Center, was allowed to review the full recordings.

“After viewing the recordings, it is clear Mr. Benton and Mr. Beach were soliciting an illegal contribution and explaining how to launder the foreign money to the super PAC to avoid detection,” said Noble.  “While no money changed hands, the solicitation of the money itself is illegal and the FEC must investigate.”

On the recordings, Benton suggested to the undercover reporters that he could help the foreign donor route the $2 million through Benton’s consulting firm. In turn, Benton’s company would donate the $2 million to two 501(c)(4s), which would then give those funds to the super PAC – leaving no trace that the money came from a foreign national. The super PAC officials also promised that Trump would be made aware of the foreign national’s secret contribution.  

“We have long argued that dark money groups that influence elections but keep their donors secret are dangerous to our democracy – here is clear evidence as to why,” said Brendan Fischer, associate counsel for the Campaign Legal Center.

The undercover reporters at The Telegraph attempted similar operations with pro-Hillary Clinton super PACs but none responded to their approaches, according to the newspaper.

CLC previously filed a complaint against the Trump campaign itself for soliciting money from foreign nationals. CLC has also filed complaints this election cycle against both candidates for coordinating directly with their supporting super PACS.

After Four Years, FEC Takes Action on CLC, D21 Complaint Against Former Rep. Aaron Schock

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Even Despite Inadequate FEC Fundraising Rules, Schock Faces $10,000 Penalty

More than four years after the Campaign Legal Center and Democracy 21 filed a complaint, the Federal Election Commission (FEC) has finally fined former Rep. Aaron Schock (R-Ill.) $10,000 for violating the prohibition on candidates asking for donations to a super PAC in excess of $5,000.

“It’s not everyday that the current FEC actually enforces campaign finance laws,” said Larry Noble, general counsel of the Campaign Legal Center. “But in this case, even the FEC agreed that Schock crossed the line, though it is absurd that it took the FEC more than four years to resolve a straightforward violation.”

On March 14, 2012, Schock asked former Rep. Eric Cantor for a $25,000 contribution to a super PAC. The legal limit is $5,000. Schock left Congress on March 31, 2015 amid concerns about misuse of campaign funds and other ethics abuses. The FEC plans to enter this case into public record by November 10.

"Our complaint was filed before the 2012 election, and it was relatively simple: it involved one solicitation by Schock that was reported in the press in an article in which Schock admitted to making the solicitation,” said Don Simon, general counsel to Democracy 21. “Yet, it has taken more than four years for the FEC to bring this to a close. That alone speaks volumes about the problems with the current system for enforcing the campaign finance laws.”

The law does not permit a federal candidate or officeholder to solicit more than $5,000 for a Super PAC.

“The agency’s rules make it far too easy for candidates to fundraise for a super PAC without violating the law,” said Brendan Fischer, associate counsel at the Campaign Legal Center. “Rep. Schock couldn’t follow even these inadequate rules, by expressly asking for a big donation rather than doing so implicitly.”