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.

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.”

Today, the Campaign Legal Center filed a friend-of-the-court brief in Harris v. McCrory, urging the Supreme Court to uphold North Carolina voters’ argument that the state used an impermissible racial quota to draw the state’s first and twelfth congressional districts.

“The Court should reject North Carolina’s argument that the Voting Rights Act required it to purposefully pack black voters into districts to reach some mechanical threshold ,” said Gerry Hebert, Director of Voting Rights and Redistricting Program at the Campaign Legal Center.

Hebert added: “The Court should not allow partisan officials to count the voting rights of minorities in North Carolina less than others in the state, which the General Assembly is effectively doing. This case is a clear cut example of legislators improperly using race as a proxy to achieve political gains.”

CLC filed another Supreme Court brief on the issue of racial gerrymandering this Term. In Bethune Hill v. Virginia State Board of Elections, CLC submitted a friend-of-the-court brief in support of the Virginia citizens and voters that challenged Virginia’s racial gerrymander. CLC also submitted a friend-of-the-court brief in Wittman v. Personhuballah last Term.