BY Benjamin ClarkOctober 22, 2024
2 weeks ago
BY 
 | October 22, 2024
2 weeks ago

Congressional Probe into Democrat Fundraising Expands, Seeks Foreign Funding Evidence

A major development in political finance investigations has emerged, shaking the foundations of campaign fundraising practices.

Just the News reported that congressional investigators are widening their probe into Democratic fundraising methods, specifically focusing on the potential involvement of foreign funding through the ActBlue online donation platform.

The investigation has taken a serious turn as House and Senate investigators join forces to demand access to classified intelligence and confidential banking reports from the Biden administration.

The expanded inquiry centers on concerns that adversarial nations, including Iran, China, Russia, and Venezuela, may be attempting to funnel money into Democratic campaigns during the 2024 election cycle. This alarming development has prompted lawmakers to seek urgent briefings and access to sensitive financial documents.

Congressional Leaders Demand Immediate Action

House Administration Committee Chairman Bryan Steil (R-Wis.) and Senator Ron Johnson (R-Wis.) have taken the lead in this investigation.

They have sent letters to key figures in the Biden administration, including Treasury Secretary Janet Yellen, FBI Director Christopher Wray, and Director of National Intelligence Avril Haines, expressing their urgent concerns about potential illicit election funding by foreign actors.

The lawmakers are specifically requesting access to Suspicious Activity Reports (SARs) related to ActBlue transactions. These reports, filed by U.S. financial institutions as part of their money-laundering monitoring activities, are considered highly sensitive documents that could provide crucial insights into potentially fraudulent activities.

In their letters, Steil and Johnson highlighted the possibility of foreign actors exploiting existing U.S. donors by making straw donations without their knowledge. This practice, known as "smurfing," involves breaking illegal donations into smaller amounts under the names of legitimate donors.

Concerns Over ActBlue's Security Measures

The investigation has also brought to light concerns about ActBlue's security practices. According to the congressional letters, ActBlue informed Congress months ago that it was not requiring donors to use the three-digit CVV code on the back of credit cards for verification purposes. This omission has raised alarms about the potential for fraudulent activities.

Texas Attorney General Ken Paxton has also been involved in the investigation, revealing that ActBlue made a similar admission to his investigators. As a result, the platform reportedly agreed to implement CVV verification for donations collected in Texas moving forward.

Potential Impact on 2024 Elections

The implications of this investigation could be far-reaching, potentially affecting the integrity of the 2024 elections. The lawmakers have expressed frustration with what they perceive as a lack of engagement from Biden administration officials on this issue despite several oversight letters and public allegations of misconduct.

Bryan Steil shared his concerns on the John Solomon Reports podcast, stating:

The great concern is that people would be unwitting straw donors, meaning an individual is simply typing in their information and then using a financial payment not associated with that individual.

Historical Context and Ongoing Investigations

The current investigation draws parallels to the "Chinagate" scandal of the 1990s, where Chinese-tied businessmen made millions in straw donations to assist Bill Clinton's 1996 re-election campaign. However, the digital era has potentially made such schemes easier to execute and harder to detect.

In addition to the congressional probe, attorneys general in 19 states have launched their own investigations into ActBlue's practices. These state-level inquiries were triggered by a computer analysis of hundreds of thousands of small donations passing through ActBlue, which raised suspicions about donors in low-income areas making contributions beyond their apparent financial means.

Calls for Transparency and Security Measures

As the investigation unfolds, there are growing calls for increased transparency and security measures in online political fundraising. The potential involvement of foreign adversaries in U.S. elections has heightened concerns about national security and the integrity of the democratic process.

ActBlue, for its part, has denied any wrongdoing and claims to be cooperating with ongoing investigations. However, the platform's response to these allegations and its willingness to implement stricter security measures will likely be closely scrutinized in the coming months.

Implications for Campaign Finance Regulations

This widening probe into ActBlue and Democratic fundraising practices could have significant implications for campaign finance regulations in the digital age. As online donations become increasingly prevalent, the need for robust security measures and transparent reporting mechanisms becomes more critical than ever.

The outcome of this investigation may lead to new legislation or regulatory changes aimed at preventing foreign interference in U.S. elections and ensuring the integrity of online political donations. As the 2024 election cycle approaches, the findings of this probe could play a crucial role in shaping the landscape of campaign finance and election security.

Written by: Benjamin Clark

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