CLC v. FEC (Straw Donors)

At a Glance

LLCs are growing vehicles for laundering dark money contributions into federal elections. Anonymous donors are giving contributions to super PACs through LLCs, and only the LLCs, not the actual donors, are being disclosed to the public by the super PACs. CLC and Democracy 21 filed a lawsuit in the United States District Court for the District of Columbia against the Federal Election Commission for dismissing five complaints that CLC and D21 filed with the agency. The dismissed complaints called for FEC investigation into donors who broke disclosure laws by hiding behind personal Limited Liability Companies (LLC) to anonymously make contributions to super PACs.

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About This Case/Action

LLCs are growing vehicles for laundering dark money contributions into federal elections. Anonymous donors are giving contributions to super PACs through LLCs, and only the LLCs, not the actual donors, are being disclosed to the public by the super PACs.

The Campaign Legal Center and Democracy 21, over the course of several years, filed complaints with the Federal Election Commission (FEC) against donors for violating the “straw donor” provision of Federal Election Campaign Act (FECA). These donors broke disclosure laws by hiding behind personal Limited Liability Companies (LLC) to anonymously make contributions to super PACs. Their anonymous contributions ranged from $857,000 to over $12 million, and several of the donors openly admitted in the media that they had used their personal company for the purpose of hiding their identities from the public. Still, the FEC dismissed all five complaints, after the three Republican commissioners voted not to investigate and sanction these donors.   

The Campaign Legal Center and Democracy 21 filed this lawsuit against the FEC for dismissing five complaints that CLC and D21 had filed with the agency. The Supreme Court has repeatedly recognized that disclosure laws play a vital role in providing the electorate with critical information to make informed choices. Prohibiting the use of straw donors to hide the true source of a contribution is essential to the law.

On March 29, 2017, the U.S. District Court for the District of Columbia rejected the FEC's motion to dismiss, allowing the case to proceed.

Even though this is a clear violation of the law, the FEC refuses to take action to enforce the law.  The agency is now sanctioning the intentional undermining of the integrity of campaign finance disclosure.  Each time the FEC fails to pursue a serious violation of the law, it weakens our democracy and the ability of Americans to know who is truly influencing our elections. It also sends a loud and clear message that those who violate campaign finance laws will face no penalties.

Our FEC complaints and lawsuit are designed to bring an end to these ‘secret money’ schemes before they get completely out of hand and to obtain enforcement of the law in cases that we believe involve clear violations.

The lawsuit states that in dismissing these complaints, the FEC has “undermined FECA’s purposes, including its goal of promoting transparency in elections and providing the electorate with information about who is speaking to it during elections.” CLC and D21, along with the public, “were deprived of timely information about the sources of the contributions made to the super PACs – information to which they are legally entitled to under FECA.”

The lawsuit calls for the court to find that the FEC’s dismissal of the complaints was “arbitrary, capricious, and an abuse of discretion, and otherwise contrary to the law,” and seeks a judicial order demanding the FEC enforce the law within 30 days.

Plaintiffs

Campaign Legal Center

Defendant

FEC

U.S. Supreme Court Unanimously Upholds Arizona’s Redistricting Plan Drawn to Protect Minority Voting Rights

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State rightfully complied with the Voting Rights Act, and did not engage in a partisan gerrymander

WASHINGTON – The U.S. Supreme Court today unanimously held the Arizona Independent Redistricting Commission did not engage in a partisan gerrymander, but instead drew its legislative map to comply with the Voting Rights Act (VRA). The decision is a huge victory for voting rights.

“The high court has preserved the rights of minorities to elect candidates of their choice under existing plans,” said Gerry Hebert, executive director of the Campaign Legal Center. “Denying Arizona the ability to have considered the VRA’s guidance in drawing districts before Shelby County v. Holder was decided would have disrupted thousands of other plans that have previously considered the VRA in the drawing of their maps.”

Since Arizona drew its map in 2012, the U.S. Supreme Court gutted a key provision of the VRA, potentially allowing many jurisdictions across the country to implement racially discriminatory redistricting maps in the 2020 cycle if Congress does not act to restore the VRA.

Campaign Legal Center submitted a friend-of-the-court brief in Harris v. Arizona Independent Redistricting Commission, in support of Arizona’s ability to consider complying with the VRA in drawing its maps. 

Voting Rights Institute Asks Department of Justice to Investigate Daphne, Ala. for Possible Voting Rights Violations

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The Voting Rights Institute today called on the U.S. Department of Justice to investigate Daphne, Alabama’s City Council’s March 21 decision to reduce the number of polling places in the city from five to two. The city’s decision forces residents of one of the only districts with a sizable black population to travel more than two and a half miles away from their current polling place, while preserving the polling locations for most of the city’s heavily white districts.

“This is exactly the type of voting change that would have had to have been precleared by the Department of Justice before the Supreme Court’s disastrous ruling in Shelby County v. Holder,” said Harry Baumgarten, Legal Fellow with the Voting Rights Institute. “In gutting a key provision of the Voting Rights Act, the Supreme Court has opened the door for these potentially discriminatory measures to be passed and implemented throughout the country.” 

The Voting Rights Institute, a project of the American Constitution Society, Campaign Legal Center and Georgetown University Law Center, sent the letter to the Department of Justice after receiving a complaint from African-American leader and voter in Daphne, Willie Williams. In addition to reducing the number of polling locations, the city also recently passed a new mid-decade redistricting plan whose impact on the black voting age population in each district is at best unclear because the city has not been forthcoming about the racial impact of its new plan.

 “We want fair and honest elections, and what the Daphne City Council has done in reducing polling locations is not fair and it’s not honest,” said Willie Williams, Daphne resident. “Voters need convenient polling places and need to be able to vote, and not be confused where to go to vote in their local elections.”

Read our letter.

The Voting Rights Institute protects one of the most precious rights held by Americans — the right to vote. Established in response to the Supreme Court’s 2013 decision in Shelby County v. Holder, which invalidated a key provision of the 1965 Voting Rights Act, the Voting Rights Institute is training the next generation of attorneys, experts and activists to preserve our democracy and protect the ability of all Americans to vote.

Opposing “Pay-to-Play” Politics in Virginia (McDonnell v. United States)

At a Glance

Former Virginia Governor Robert F. McDonnell was convicted on public corruption charges for accepting $175,000 in gifts and loans—including a Rolex watch, a custom golf bag, and expensive vacations and shopping sprees—from multi-millionaire Jonnie Williams, and then using his official position to promote the interests of Williams and his company, Star Scientific.

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About This Case/Action

ABOUT

Former Virginia Governor Robert F. McDonnell was convicted on public corruption charges for accepting $175,000 in gifts and loans—including a Rolex watch, a custom golf bag, and expensive vacations and shopping sprees—from multi-millionaire Jonnie Williams, and then using his official position to promote the interests of Williams and his company, Star Scientific.

Gov. McDonnell appealed his conviction to the U.S. Supreme Court arguing, among other things, that campaign finance cases like Citizens United v. FEC (2010) and McCutcheon v. FEC (2014) recognized a “fundamental constitutional right” under the First Amendment to buy “access” to public officeholders.  

But those cases never recognized the “purchase of access” as a constitutional right. What’s more, the Court’s 2003 decision in McConnell v. FEC explicitly acknowledged that because “large soft money donations . . . are likely to buy donors preferential access,” those types of campaign contributions can be limited. 

In any case, Gov. McDonnell was not convicted for receiving campaign contributions, which are protected under the First Amendment, but instead for taking $175,000 in personal gifts and loans, which are not. And he did far more than provide mere “access” to Williams in the way an official might take a donor’s phone call; instead, he facilitated access to other governmental officials and exerted his considerable influence over those officials in an effort to secure the governmental actions requested by Williams. 

WHAT’S AT STAKE

For the last several years, five justices on the U.S. Supreme Court have been sympathetic to challenges to campaign finance regulations, and by putting a First Amendment gloss on corruption, McDonnell is hoping that bribery laws will be their next target. But as the Campaign Legal Center lays out in an amicus curiae brief, he simply goes too far. If McDonnell is successful in getting the Court to recognize a constitutional right to buy “access” and to extend protections for campaign spending to private gifts to elected officials, then government truly is for sale.

Read our one pager about the case

Update: On June 27, 2016, the U.S. Supreme Court unanimously vacated and remanded the conviction of former Virginia Gov. Robert F. McDonnell, holding that actions like setting up an event or talking to another official on behalf of a benefactor would not sustain a conviction under the standards of the federal bribery statute. The ruling, however, leaves open the possibility that Gov. McDonnell could be re-tried under new jury instructions that reflect this narrower interpretation of the statute. Read our press statement

Plaintiffs

McDonnell

Defendant

United States

Wisconsin Challenge to State’s Redistricting Scheme Can Move Forward, District Court Rules

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Whitford v. Nichol Partisan Gerrymandering Case to Go to Trial

A Wisconsin district court ruled today that 12 regular Wisconsin voters, represented by the Campaign Legal Center, can have their day in court to challenge the state’s 2012 partisan gerrymander, which unconstitutionally drew district lines in a way that would keep Republican control of the state’s legislature.

“The Campaign Legal Center is proud to serve as co-counsel to Wisconsin residents and Democratic voters who are challenging one of the worst partisan gerrymanders in modern American history,” said Gerry Hebert, executive director of the Campaign Legal Center. “The plaintiffs look forward to presenting evidence at trial showing that the plan was drawn in secret, in consultation with a political scientist and without any input from Democrats, in an attempt to maximize Republican wins and minimize Democratic influence over the political process for as long as the plan was in place.”

Though the U.S. Supreme Court has made clear that excessive partisan gerrymandering is unconstitutional and can be addressed by the courts, the Supreme Court has yet to develop a judicially manageable standard for courts to use in deciding these cases. 

“In denying Wisconsin’s motion for summary judgment and setting the case for trial next month, the three-judge court  has left it to us to develop a workable standard that reflects a voter’s right to fair and effective representation, and that’s exactly what we plan to do,” said Ruth Greenwood, senior redistricting counsel for the Campaign Legal Center

Read the order and opinion.

Issues

U.S. Supreme Court Should Reject Former Va. Gov. Bob McDonnell’s Claim that Citizens United Sanctions His Acceptance of Bribes

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Allowing Public Officials to Engage in Public Business for Private Gain Undercuts Basic Principles of Our Democracy

WASHINGTON – The Campaign Legal Center today told the U.S. Supreme Court in a friend-of-the-court brief that it should reject former Va. Gov. Bob McDonnell’s claim that the First Amendment protects political quid pro quos in the case McDonnell v. United States.

“If the Supreme Court buys into former Gov. McDonnell’s arguments, politicians face no penalty for freely accepting gifts and favors from America’s wealthiest who are trying to buy influence,” said Tara Malloy, deputy executive director of the Campaign Legal Center. “Public officials should not be permitted to engage in public business for private gain, while pretending to represent the interests of their constituencies. That would undercut the very basic principles of our democracy and the integrity of our political system.”

Gov. McDonnell accepted from a wealthy business man and founder of the dietary supplement company Star Scientific Inc., Johnnie R. Williams, Sr., up to $175,000 of gifts and loans –including a Rolex, expensive vacations and shopping sprees, and money for his daughters’ wedding – in exchange for favors from the governor’s office. McDonnell was convicted on public corruption charges, but has appealed his case to the U.S. Supreme Court, arguing not only that these favors weren’t “official actions,” but also that his conduct was protected by the Supreme Court’s campaign finance decisions in Citizens United v. FEC (2010) and McCutcheon v. FEC (2014).

Those cases held that general concerns about donors merely having “access” to a politician will not justify certain campaign finance restrictions – but Gov. McDonnell stretches these holdings beyond the breaking point, making the stunning argument that Citizens United actually created a constitutional right to lavish politicians with gifts in exchange for official favors and access.

CLC’s friend-of-the-court brief argues that neither of these Supreme Court cases “invented a new free-standing constitutional right to purchase access to officeholders” – not to mention that McDonnell in fact gave Williams more than “mere access” – and interpreting these decisions to create such a “right” would result in “enormous damage to this Court’s longstanding campaign finance precedents.”

Read our friend-of-the-court brief.

 

U.S. Supreme Court Unanimously Rules Every Person Counts in Evenwel v. Abbott

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WASHINGTON – The U.S. Supreme Court today unanimously held in Evenwel v. Abbott that all people count for the purpose of drawing voting districts, not just eligible voters.

“Today’s Supreme Court decision is not only a victory for equality, it is a reaffirmation that our Constitution protects all of us,” said Campaign Legal Center Executive Director Gerry Hebert. “As Justice Ginsburg accurately points out in her opinion, our representatives serve all residents, not just those eligible to vote. Today’s decision ensures that states can, and should, continue to draw their districts taking into account every person’s interests.”

The Campaign Legal Center filed a friend-of-the-court brief in the case on behalf of former Census Bureau Directors, arguing in defense of the total population standard, noting that states lack the proper data to count eligible voters for redistricting, rather than people, in the drawing of election districts.

Read the court’s opinion.

U.S. Supreme Court Must Take Action so Texans Are Not Harmed by Voter ID Law

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New Application Filed with High Court After 5th Circuit Refused to Rule 

WASHINGTON – The Campaign Legal Center (CLC) today called on the U.S. Supreme Court to take immediate action in the Texas voter ID case so that voters will not be harmed by the law in the 2016 presidential election.

The application filed with the U.S. Supreme Court follows the 5th U.S. Circuit Court of Appeals refusal to offer relief in time for the upcoming election. Last week, the appellate court effectively denied the Campaign Legal Center’s emergency motion to vacate its stay of a lower court’s ruling that struck down the law. Under the 5th Circuit’s order, the voter ID law will remain in effect as the case proceeds once again in the 5th Circuit, where it has languished since October 2014.

“Seven federal judges have ruled that Texas’ voter ID law discriminates against minority voters, but the law is still in effect,” said Gerry Hebert, executive director of the Campaign Legal Center. “The 5th Circuit has set up a schedule that likely forecloses our ability to obtain relief in time for the presidential election. We are asking the U.S. Supreme Court to ensure that that no one is prevented from casting a ballot because this discriminatory law is in place.” 

The D.C. District Court, a Texas district court, and a three-judge panel of the 5th Circuit have all found that the law discriminates against minority voters. The 5th Circuit’s stay of the district court’s decision in 2014 is the only reason the law is in effect.

“The stay was only granted because the District Court’s order was handed down days before the 2014 election and the 5th Circuit was concerned about changing procedures so close to the election. It should never have extended past 2014,” said Danielle Lang, legal fellow of the Campaign Legal Center. “The dangers identified by the court of appeals have passed, so there is no reason eligible Texas voters should once again be denied the right to vote.”

Our application to the U.S. Supreme Court was filed on behalf of Congressman Marc Veasey and other plaintiffs.

Read our application.