State attorneys general from 19 states are investigating the Democratic fundraising platform ActBlue for alleged illegal fundraising practices. The investigation, which began in Texas, centers on whether ActBlue facilitated fraudulent donations using “straw donors” to violate campaign finance laws.
The probe initially focused on suspicious donation patterns, where individuals with a low net worth were reported to have made large contributions.
Investigators are concerned that these donors may not have been aware their names were being used. The practice of “smurfing,” which involves splitting large donations into smaller amounts under different names, has also been flagged as a potential tactic to evade donation limits.
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ActBlue has denied any wrongdoing, describing the allegations as disinformation, and claims it complies with campaign finance laws.
The platform has implemented new security measures, including requiring credit card verification codes for all donations. Despite this, the attorneys general have requested further details from ActBlue on its security protocols, with the company expected to respond by Oct. 23.
The multistate investigation is expected to continue expanding, with the attorneys general warning that this case could have broader implications for how political donations are monitored in the future.
Lauren Taylor
AN REPUBLICAN-LED INVESTIGATION INTO POPULAR DEMOCRATIC FUNDRAISING PLATFORM ACTBLUE, FOR ALLEGED ILLEGAL FUNDRAISING PRACTICES, IS NOW EXPANDING TO 19 OTHER STATES. THE PLATFORM IS ACCUSED OF USING FRAUDULENT METHODS, POTENTIALLY VIOLATING CAMPAIGN FINANCE LAWS. THIS PROBE HAS DRAWN ATTENTION NATIONWIDE, WITH G-O-P LAWMAKERS CLAIMING POSSIBLE MONEY LAUNDERING.
THE INVESTIGATION CENTERS ON ACCUSATIONS THAT ACTBLUE, WHICH HAS RAISED MORE THAN 15-BILLION DOLLARS IN THE LAST 20 YEARS, WAS USED TO SKIRT CAMPAIGN FINANCE LAWS, AND POTENTIALLY LAUNDER DONATIONS TO AVOID CONTRIBUTION LIMITS.
THE CONCERNS STEM FROM THE PRACTICE KNOWN AS ‘SMURFING,’ WHERE LARGE DONATIONS ARE BROKEN DOWN INTO SMALLER CONTRIBUTIONS UNDER DIFFERENT NAMES TO CONCEAL THEIR TRUE ORIGIN. ACCORDING TO A COALITION OF REPUBLICAN STATE ATTORNEYS GENERAL, ACTBLUE MAY HAVE PROCESSED DONATIONS FROM INDIVIDUALS WHO WERE UNAWARE THEIR NAMES WERE BEING USED.
THE PROBE BEGAN IN TEXAS LATE LAST YEAR BUT HAS SINCE EXPANDED ACROSS THE COUNTRY. IT NOW INVOLVES 19 OTHER STATES.
IN A LETTER SENT TO THE CEO OF ACTBLUE… ATTORNEYS GENERAL IN THESE STATES RAISED CONCERNS OVER A PATTERN OF SUSPICIOUS DONATIONS, PARTICULARLY FROM INDIVIDUALS WITH LOW NET WORTHS WHO ARE UNLIKELY TO HAVE MADE LARGE CONTRIBUTIONS, AS SEEN IN ACTBLUE’S FILINGS WITH THE FEDERAL ELECTION COMMISSION.
AS PART OF THE INVESTIGATION, ACTBLUE HAS BEEN ASKED TO PROVIDE DETAILS ON ITS SECURITY PROTOCOLS. THE PLATFORM HAS SINCE IMPLEMENTED ADDITIONAL MEASURES, SUCH AS REQUIRING CVV CODES FOR ALL CREDIT CARD DONATIONS, TO PREVENT FRAUDULENT ACTIVITY.
IN A STATEMENT… ACTBLUE SAYS IT HAS A LONG-STANDING RECORD OF COMPLIANCE WITH CAMPAIGN FINANCE LAWS, AND IT CALLS THE ALLEGATIONS A POLITICALLY MOTIVATED ATTEMPT TO SPREAD MISINFORMATION BEFORE THE ELECTION. THE COMPANY HAS BEEN ASKED TO RESPOND TO THE A-G’S INQUIRY BY OCTOBER 23RD.
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