DNC Money Laundering Scheme?
After ignoring an official complaint registered last year, a new lawsuit against the Federal Elections Commission wants answers on Hillary Clinton’s campaign money laundering scheme that allegedly allowed top donors to go way beyond individual donation limits while starving state-level groups.
Let’s take a closer look at the filings provided by the Trump-friendly Committee to Defend the President, which show very suspicious transfers of funds between multiple groups during the election.
We first reported on this back in February of 2016 [Hillary’s Campaign Uses States to do her Dirty Work] and so we’re very happy to see this move to a lawsuit.
Committee to Defend the President
The Committee to Defend the President, or CDP was first founded in 2013 as the Stop Hillary PAC. After the election of Donald Trump, the organization changed their name. The group is chaired by Ted Harvey, a Republican and former member of the Senate from Colorado. At the age of 22, he worked in the Reagan White House.
According to their website, the CDP is a grassroots effort to help to defend Trump from the “radical left as he sets about undoing the progressive policies that are destroying our nation.”
Hillary Victory Fund, Hillary For America
The Hillary Victory Fund was a fundraising committee that aimed to raise money for Hillary for America, the Democratic National Committee and 33 state Democratic committees.
Hillary For America was the name of Clinton’s presidential campaign organization.
By donating to both the Hillary Victory Fund and Hillary For America, an individual donor could exceed the personal maximum donation to one campaign. This lawsuit alleges that the Hillary Victory Fund was not just primarily a way to skirt elections rules, but built with the knowledge of state level organizations that all of the month raised for the Hillary Victory Fund would indeed go to Hillary for America.
In December 2017, the CDP filed a complaint with the FEC claiming that the Hillary Victory Fun had been begging for cash from deep-pocketed donors, and that the HVF would allegedly appear as if they were throwing the money around to several organizations, but it all landed back in the pocket of the official Hillary For America fund.
CDP v. Hillary Victory Fund
According to the legal filings released by the CDP, the lawsuit lists the following as defendants:
- The Hillary Victory Fund
- Elizabeth Jones, Treasurer of the HVF
- Hillary for America
- Hillary Rodham Clinton
- Democratic National Committee
- William Q. Derrough, Treasurer of the DNC
- The treasurers of 37 state level Democratic Parties
- And “Unnamed co-conspirator contributors to Hillary Victory Fund.”
Lawsuit Submitted After FEC Ignored Complaint
According to a press release published today by the CDP, the following lawsuit was launched because the Federal Elections Commission has not appeared to have done investigating into the “laundering” effort.”
“Based on publicly available FEC records, repeatedly throughout the 2016 presidential campaign, HVF would purportedly transfer funds to its constituent political committees, which included between 34 and 40 state parties. On the very same day each of these transfers supposedly occurred, or occasionally the very next day, every single one of those state parties purportedly contributed all of those funds entirely to the DNC…. [the implication is that] HVF’s members had an understanding or agreement to automatically funnel funds they received through HVF to the DNC.”
The lawsuit is 101 pages long and is almost entirely a list of money transfers, showing the funds that were bounced back to Hillary’s campaign war chest after being loaned to state committees for the span of a few hours.
Let’s Examine One Day of Activity For An Example
There are hundreds of examples in the lawsuit showing the funny business with the money, so let’s follow what happened on one day — let’s choose October 7th, 2016 — to see what was happening.
- Hillary Victory Fund transferred $550,000 to the Texas Democratic Party
- Texas Democratic Party reports receiving $550,000 from the Hillary Victory Fund
- Texas Democratic Party reports transferring $550,000 to the Democratic National Committee
- Democratic National Committee reports receiving $550,000 from the Texas Democratic Party
It’s possible that the rest of the Texas Democratic Party was unaware of these transfers, because only the Treasurer would have access to these exchanges.
Democrats Out Of Money
With a scheme like this, which saw vast amounts of money allegedly for other causes to end up with Hillary, state-level groups had difficulty fundraising for their own efforts. Even the Bernie Sanders campaign called this behavior out, saying that Hillary was “looting funds meant for the states parties [in order for her] to skirt fundraising limits on her presidential campaign.”
Sources: Committee to Defend the President, Fox News, Wikipedia