CLC Files Complaint Against Former Missouri Gov. Turned Senate Hopeful Eric Greitens, Alleging Illegal Spending
Former Missouri governor and current Senate candidate Eric Greitens illegally spent more than $100,000 from his gubernatorial campaign to help launch his Senate campaign and falsely described some of that spending as a personal contribution from himself.
Washington, D.C. - Today, Campaign Legal Center (CLC) filed a complaint with the Federal Election Commission (FEC) against former Missouri Gov. Eric Greitens (R) for the allegedly illegal spending of over $100,000 of leftover funds from a state-level gubernatorial campaign account to finance the startup costs of his ongoing U.S. Senate campaign.
This unlawful spending included payments to his Senate campaign manager, as well as to public relations firms and media consulting firms, and for digital costs.
Federal law prohibits Senate candidates from using state campaign funds to support their run for federal office because state-level contributions are subject to different rules than federal-level contributions. When a Senate candidate uses funds raised under state rules, they evade federal laws designed to guard against corruption and gain an unfair advantage over their opponents.
"While Greitens’ 2022 Senate campaign may only accept contributions of up to $2,900 per individual and, importantly, cannot receive corporate funds, his gubernatorial campaign raised dozens of contributions far exceeding that amount — some as much as $100,000 and above," said Brendan Fischer, director of federal reform for Campaign Legal Center. "Senate candidates cannot quietly finance their campaign with six-figure and corporate contributions.”
Additionally, it appears that Greitens violated federal transparency requirements by falsely describing some of that spending as a personal contribution from himself to his Senate campaign.
The FEC is the only government agency whose sole responsibility is overseeing the integrity of our political campaigns. The agency needs to take action against Eric Greitens and his campaigns for this blatantly illegal spending. Missouri voters have a right to know where the money being spent to influence their votes is coming from. Like all Americans, they have a right to a fair and transparent electoral process.
At Campaign Legal Center, we are advancing democracy through law. Learn more about our work.
OCE Moves on First True Enforcement of the STOCK Act, Months After Complaint Filed by CLC
On March 8, 2021, Campaign Legal Center filed a complaint against Rep. Malinowski for apparent violation of the STOCK Act. Newly released documents show the Office of Congressional Ethics also sees, "substantial reason to believe" there was a violation.
Washington, D.C. - Just over seven months after the Campaign Legal Center (CLC) filed a complaint against Rep. Tom Malinowski (D-NJ) for allegedly violating the Stop Trading on Congressional Knowledge (STOCK) Act, the independent Office of Congressional Ethics has also found, "substantial reason to believe" that he violated a law designed to promote transparency.
The law at hand, the Stop Trading on Congressional Knowledge (STOCK) Act, was signed into law in 2012 with the goals of preventing insider trading and increasing transparency in regard to stock trading activity by members of Congress.
This law is tied to legitimate concerns over conflicts of interest that arise when members of Congress take official actions related to their financial interests.
In the ten years since the law was enacted, enforcement has been lax and penalties have been tantamount to a slap on the wrist – leading to a widespread trend of violations that crosses ideological and geographic lines. The complaint against Malinowski was just the first of 13 such complaints filed so far in 2021 against sitting members of Congress (including five Democrats and eight Republicans) to be acted upon.
“Proper STOCK ACT enforcement is a critical step for holding members of Congress accountable to the public," said Delaney Marsco, senior legal counsel for ethics at Campaign Legal Center. “Elected officials craft laws that directly impact the lives of Americans, so voters have a right to know whether their representatives are acting in the public’s interest or for their own financial gain.”
If elected officials are not held accountable for failing to promptly and properly disclose stock trades, and the penalties for such violations remain inadequate, this trend of members failing to comply may continue and worsen – enforcement needs to become the norm.
It is important that the OCE has taken the rare step of referring this matter to the House Committee on Ethics, which now has the power to recommend to the full House an appropriate repercussion for the Rep. Malinowski. But this step being taken does not mean that this matter is over – the committee must take action to ensure that the STOCK Act is being truly and strongly enforced.
At Campaign Legal Center, we are advancing democracy through law. Learn more about our work.