Campaign Legal Center and Democracy 21 send IRS letter criticizing decision

WASHINGTON – Campaign Legal Center joined Democracy 21 in a letter sent today to the Internal Revenue Service Commissioner, criticizing the IRS’ decision, made without explanation, to grant recognition to Crossroads GPS as a “social welfare” organization under section 501(c)(4) of the Internal Revenue Code.

“By allowing an organization like Crossroads GPS to spend in our elections secretly and with impunity, the IRS has all but guaranteed that similar ‘dark money’ groups will proliferate,” CLC General Counsel Larry Noble said in an earlier statement. “It is impossible to defend depriving the public of the true sources of the funding behind the flood of political ads seeking to influence election outcomes as ‘promoting social welfare.’ The public has the right to know who is funding our elections.”

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New complaint highlights more and more Super PAC donors are hiding behind LLCs as the FEC fails to enforce the law

WASHINGTON – The Campaign Legal Center, a leading campaign finance watchdog, along with Democracy 21, today filed a complaint with the Federal Election Commission (FEC), calling on the agency to investigate contributions funneled through “Decor Services LLC” to a pro-Chris Christie Super PAC, just 16 days after the corporation’s formation.

According to a report by the Center for Public Integrity, it appears this company was set up for the purpose of laundering money to a political committee while hiding the true source of the funds, a clear violation of campaign finance laws.

 “Thanks to the FEC’s inaction, we’re seeing a growing trend of campaign donors skirting disclosure laws by hiding behind corporations to anonymously fund elections,” said Paul S. Ryan, deputy executive director of the Campaign Legal Center. “We call on the FEC to enforce the law. Otherwise, big Super PAC donors face no consequences, while Americans have no way of knowing who is funding and influencing elections, including whether illegal foreign money is creeping into American elections.” 

In a letter sent today, reform groups urged Senators to cosponsor the Federal Election Administration Act being introduced today by Senator Tom Udall (D-NM). The Act provides a framework and the basis for developing a new legislative approach for properly enforcing and interpreting the campaign finance laws and creates a new independent agency to replace the FEC.

The groups included Campaign Legal Center, Common Cause, Democracy 21, Issue One, People for the American Way, Public Citizen, Rootstrikers and U.S. PIRG.

The letter stated:

The Federal Election Commission is a failed, dysfunctional agency that does not enforce or properly interpret the nation’s campaign finance laws.

As a result, campaigns, political operatives, parties and independent spenders know they can operate with impunity and without consequences for campaign finance violations. This has created the modern political equivalent of the Wild West without a sheriff. It also means that any new campaign finance laws that are enacted will face the same problem of being undermined by the FEC’s failure to enforce the laws as the current laws.

The letter continued:

The five-member FEA will consist of a chairman and four other members, all of whom are to be appointed by the president, with the advice and consent of the Senate. (Currently the FEC consists of six members.)

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The FEA chairman will serve a term of ten years and will have broad powers to manage and administer the agency. The four other members will serve staggered six year terms. No more than two members of the agency can be from the same political party.

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The legislation would establish a blue ribbon advisory panel to recommend to the president at least one, but not more than three individuals for appointment to the FEA. The panel would consist of an odd number of individuals selected by the president from retired Federal judges, former law enforcement officials, or individuals with experience in election law.

The new agency would use impartial administrative law judges to hear and decide campaign finance enforcement proceedings, an approach currently used by a number of other enforcement agencies to help provide for independent, impartial decisions, but not currently used by the FEC.

The new agency would have real enforcement powers, including the power to find that violations of law have occurred and to directly impose civil penalties. These are enforcement powers available to other federal agencies, but not available to the FEC.

The letter concluded:

The legislation addresses major reasons for the failure of the current FEC, including the ineffectual structure and cumbersome procedures of the Commission, the politicization of the appointment of commissioners, the lack of effective enforcement powers and the denial of adequate resources for the agency.

We urge you to support and cosponsor the Act and begin the process of establishing a new, effective enforcement body to oversee the nation’s campaign finance laws.

To read the letter: click here. 

WASHINGTON – The Campaign Legal Center filled several new staff positions this quarter, building the organization’s capacity to effectively strengthen and protect our democracy during Election 2016 and beyond. 

“The narrative of the 2016 election cycle so far has been dominated by two themes – voter anger with the status quo, and the enormous amounts of money raised by candidates and their super PACs and related dark money entities,” said Trevor Potter, founding president of the Campaign Legal Center. “We are at a point in American history where our political process is characterized by division, disagreement and polarization. Americans – both Republicans and Democrats – overwhelmingly agree our democracy is broken. Americans do not like where we are and there has never been more demand for the expertise and strategic thinking that the Campaign Legal Center provides. We are extremely pleased to welcome these talented new team members who will help us become even more effective in achieving our mission.” 

Campaign Legal Center is pleased to announce the following changes and additions to its staff:

Catherine Hinckley Kelley, State and Local Reform Program Director

Catie Kelley has been promoted to lead CLC’s State and Local Reform Program. Catie joined CLC as a Legal Fellow in March 2014. Recognizing that the federal government continuously fails to act on issues of campaign finance, government ethics and voting rights, CLC is building a program under Catie’s leadership to help state and local partners draft effective reform measures, provide comments in regulatory proceedings and defend pro-democracy laws and policies in court. Catie has litigated a wide range of campaign finance and voting rights matters before state and federal courts and agencies. She previously worked as a staff attorney at the Federal Election Commission from 2010 to 2014. Read full bio.

Yasmin Khan, Chief Development Officer

Yasmin Khan joined CLC in January 2016 to lead and elevate the organization’s outreach and fundraising. She will connect a wide range of audiences to inspire and expand support for CLC's mission and enable the organization to meet the growing demands for its work. Yasmin brings more than 20 years of fundraising, non-profit management and communications experience to CLC and has held senior positions at a variety of nonprofit organizations and institutions. Most recently, she served as Director of Development and Communications at Tahirih Justice Center, providing the overall direction and coordination of the organization’s national fundraising and communications operations. She also served as the Director of Foundations at Human Rights First, where she managed a sizable portfolio of grants and prior to that served as Managing Director of KARAMAH: Muslim Women Lawyers for Human Rights in Washington, D.C. Read full bio.

Sandhya Bathija, Director of Strategic Communications 

Sandhya Bathija joined CLC in February 2016. She will build and implement an integrated press and digital strategy for the organization, and increase CLC’s public education and strategic media outreach efforts. Sandhya has an extensive background in nonprofit communications, advocacy and political and grassroots communications and campaigns. Most recently, Sandhya developed and implemented an integrated press and digital communications vision for Asian Americans Advancing Justice | AAJC, and previously served as the campaign manager for Legal Progress, the legal policy project at the Center for American Progress, where she led a communications and grassroots campaign on the federal courts.  Read full bio.

David Kolker, Legal Counsel

David Kolker joined CLC in January 2016. He brings decades of litigation experience and expertise to the organization. David has litigated cases in both the public and private sectors. He worked for nearly 20 years at the Federal Election Commission, where he litigated cases before federal courts on federal campaign finance laws, advised the Commission and its General Counsel and for several years led the agency’s Litigation Division. David joins CLC from the Federal Communications Commission where he served as the Deputy Bureau Chief, Enforcement Bureau. Read full bio.

Brendan Fischer, Associate Counsel

Brendan Fischer will join CLC on March 14, 2016. Brendan has expertise in campaign finance and government transparency issues and will litigate a broad range of election and campaign finance cases. Mr. Fischer was previously General Counsel with the Center for Media and Democracy, where he led the watchdog group’s legal research and advocacy efforts. He is also a writer whose work has appeared in outlets such as The Nation, the Milwaukee Journal Sentinel and the Washington Times, and has been a frequent commentator for national and state television, radio and print outlets.

Campaign Legal Center and Democracy 21 file complaints against shell companies hiding donors to Super PACS supporting Rubio and the liberal Coalition for Progress  

WASHINGTON – The Campaign Legal Center, a leading campaign finance watchdog, along with Democracy 21, today filed two complaints with the Federal Election Commission (FEC), calling on the agency to investigate campaign donors who are skirting disclosure laws by hiding behind corporations to anonymously fund elections.

The first complaint asks the FEC to investigate whether DE First Holdings, which came into existence just one day before it gave $1 million to the Super PAC Coalition for Progress, and the person who was the true source of the funds, violated the Federal Election Campaign Act (FECA). Based on a report by Politico New Jersey, it appears this company was set up for the purpose of laundering money to a political committee while hiding the true source of the funds.

The second complaint asks the FEC to investigate Andrew Duncan and IGX, LLC for also violating the same sections of the FECA that prohibit the use of straw donors. Duncan admitted in an AP story that he had used the company, IGX, to make a secret donation of $500,000 to the Super PAC supporting Marco Rubio, Conservative Solutions PAC.

“Americans need to be aware of the sources of political money so they can understand if and how public officials could be influenced,” said Paul S. Ryan, deputy executive director of the Campaign Legal Center. “We call on the FEC to enforce the law and ensure our elections are transparent and fair by investigating and sanctioning companies and individuals who mask campaign donations.”