Allegations of ‘smurfing,’ a form of money laundering for campaign contributions, have emerged, raising concerns about the integrity of U.S. elections. Republican lawmakers, including Senator Marco Rubio and Virginia Attorney General Jason Miyares, have accused the Democratic fundraising platform ActBlue of facilitating this practice, potentially funneling millions of dollars into Democratic candidates’ campaign coffers.
Smurfing involves breaking down large donations into smaller contributions, obscuring the true source of the funds and allowing individuals to circumvent campaign finance limits. It often involves using the identities of unsuspecting individuals as straw donors, potentially engaging in mail and wire fraud and violating federal and state campaign finance laws.
The Federal Election Campaign Act (FECA) governs campaign finance, imposing strict rules on donations to congressional and presidential candidates. Corporations and unions cannot directly contribute, and foreign nationals are prohibited from donating. Individual contributions are capped at $3,300 per election cycle, with separate limits for political action committees (PACs) and party organizations.
The Federal Election Commission (FEC) and the U.S. Department of Justice have the authority to investigate and prosecute FECA violations. In cases of smurfing, the Justice Department investigates potential criminal violations. One example of a criminal violation, as described by a former FEC commissioner, involves a law firm partner reimbursing employees who made maximum donations to a candidate. This ‘conduit contribution’ circumvents contribution limits by making donations in another person’s name.
The allegations against ActBlue involve individuals allegedly making multiple daily contributions, totaling tens of thousands of dollars, despite being listed as unemployed or retired. Many of these contributions seem to originate from ‘fictional donors or dummy accounts,’ raising concerns about their authenticity and the consent of the individuals involved.
Sen. Rubio has questioned ActBlue’s lack of a requirement for CVV numbers, which are used to verify credit card transactions, citing it as a potential security flaw that could facilitate fraudulent donations. ActBlue has vehemently denied these accusations, calling them a partisan attack aimed at undermining small-dollar donations.
To address these concerns, the FEC, the Justice Department, and state attorneys general must thoroughly investigate these questionable donations. This includes verifying the identities of listed donors and confirming their actual participation in the contributions. Law enforcement agencies have a responsibility to determine if illegal activities, such as money laundering, are being used to interfere with U.S. elections.
