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Prosecute 2010 Secret Money Campaign Finance Violators

I am writing to request that you urge the Department of Justice to criminally prosecute those groups that violated campaign finance laws during the 2010 election and that you conduct investigations into such violations. Specifically, groups such as Crossroads GPS and American Future Fund violated the law by raising and spending significant amounts of money to influence the 2010 congressional elections without (1) registering as a political committee, as required by 2 U.S.C. 433, (2) filing political committee financial disclosure reports required by 2 U.S.C. 434, and (3) complying with the political committee organizational requirements of 2 U.S.C. 432. The US Chamber of Commerce violated the law by using money solicited from foreign sources in federal elections in violation of 2 U.S.C. 441(i(a) and using its trade association 501c6 status to launder money for the benefit of contributors.

Under the Federal Election Campaign Act (FECA), 2 U.S.C. 431 et seq., the Department of Justice has its own independent and exclusive jurisdiction to bring criminal enforcement proceedings for violations of these laws. Because these groups also engaged in misuse of tax-exempt status, money laundering, fraud and racketeering, those violations should also be prosecuted by the DOJ and investigated by Congress.

Many groups that spent millions in 2010 have thumbed their noses at the laws governing elections because they believe, based on past precedent, that the FEC will merely slap them on the wrist with a cost of business fine. Experts in the field have called the FEC ineffective and toothless, and new Commissioners have been blocked for partisan purposes. Therefore, it is imperative that the DOJ send a strong message that people who violate election laws will go to prison. This includes not only the organizations but also the individuals who established, manage, solicit funds for, and donate to the groups. From published reports it is clear that donors to these organizations have colluded with the fundraisers and managers of these organizations to violate federal election laws as well as the tax laws in order to protect their anonymity and information about how much money they have donated. Published reports also indicate that individuals who are personally well-versed in federal campaign finance laws are intimately involved in management, fundraising and funding of these groups, which provides powerful evidence that they are engaged in "knowing and willful" actions.

The DISCLOSE Act was not passed last year because partisans wanted an electoral advantage from hundreds of millions in secret money. But many of the groups that provided that advantage did so by breaking the law. If they are now held accountable with criminal prosecutions, we will see bi-partisan moves for real campaign finance reform along with calls for an effective FEC.

As President Obama and others said during the election, the use of secret money laundered through 501c groups is a "threat to our democracy." The Department of Justice is responsible for removing such threats and can do so now by ensuring that actual "knowing and willful" violations of election law are fully prosecuted. Congress is authorized to investigate such violations. These prosecutions and investigations will not only hold violators accountable and deter others, but will also serve to reduce campaign finance abuses and ensure strict compliance with the law in the next election.

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