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Home»Spreely News

ActBlue Faces Scrutiny Over Alleged Campaign Money Laundering

Erica CarlinBy Erica CarlinDecember 18, 2024Updated:December 18, 2024 Spreely News 1 Comment4 Mins Read
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ActBlue, a prominent political donation platform, is under intense scrutiny as at least 20 state attorneys general and the House Administration Committee launch investigations into an alleged campaign money-laundering operation. This investigation, which includes a lawsuit in Waukesha County, Wisconsin, has raised questions about whether foreign and fraudulent contributions are being funneled through the platform to political campaigns.

The suspected scheme, known as “smurfing,” was first brought to light by a team led by Peter Bernegger, Chris Gleason, and Phil Allison. In 2023, investigative journalist James O’Keefe’s media outlet, OMG, published videos featuring interviews with individuals whose identities were allegedly stolen to facilitate these donations.

According to Bernegger and his team, Federal Election Commission (FEC) data points to thousands of small-dollar donations—often under $5—linked to stolen identities. These donations allegedly funnel millions of dollars into campaigns and political action committees (PACs). Anyone can verify this by accessing FEC data and searching for contributions directed to ActBlue under specific filters, such as occupation (“retired”) and location.

Bernegger’s team has revealed alarming patterns of contributions, including numerous donations from a single individual, “Sonia,” who resides in an assisted living facility. According to their findings, Sonia has made 69,433 donations totaling over $27.8 million since 2017. This averages 7.5 donations per day for seven years—a virtually impossible scenario.

Similarly, Bernegger highlighted an anomaly involving 12 individuals named “Robert,” who each made exactly 1,786 donations totaling $200,963.87. These donations occurred at the same times and in the same amounts, suggesting the use of automated systems to generate fraudulent contributions.

In response to the growing scrutiny, ActBlue updated its policies on September 9, 2024, to automatically reject donations using foreign prepaid cards, domestic gift cards, and other high-risk payment methods. However, Bernegger criticized this change as superficial, arguing it applies only to new accounts created after the policy update, leaving existing accounts unaffected.

According to Bernegger, there has been no noticeable decrease in suspicious donations since the policy was implemented. He has made these concerns known to the 20 attorneys general investigating ActBlue.

The investigation has also shone a spotlight on prominent Democratic Senator Tammy Baldwin (D-WI). Bernegger accused Baldwin of benefiting from the alleged money-laundering scheme, claiming her campaign received over $27.8 million in illegal funds since 2017. Baldwin’s campaign raised $59.6 million for the 2024 election cycle, nearly double the $30.9 million she raised in 2018.

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By comparison, Baldwin’s Republican opponent, Eric Hovde, raised $29.3 million, with $20 million coming from a personal loan. Baldwin reportedly received 60% of her campaign contributions from out-of-state donors, raising questions about the origin of these funds.

Rep. Bryan Steil (R-WI), chair of the House Administration Committee, has disclosed that Congress is investigating potential foreign interference through ActBlue. Nations under scrutiny include Iran, China, Russia, and Venezuela. However, Bernegger speculated that Ukraine might also be involved, alleging that U.S. funds sent to Ukraine could be laundered back into U.S. campaigns via offshore accounts and dark-money PACs.

Bernegger accused prominent political figures, including Sen. Lindsey Graham (R-SC), of enabling such activities. He suggested that bipartisan support for Ukraine funding could be tied to concerns over exposing these operations.

As the investigation unfolds, Bernegger believes that a Trump administration could take decisive action against ActBlue. He claimed that Rep. Steil intends to refer the investigation to former Florida Attorney General Pam Bondi, who is expected to serve in Trump’s administration. Bondi has a history of investigating election-related irregularities and has supported Trump’s claims of election fraud.

Bernegger suggested that the Federal Election Commission (FEC) has some awareness of the scheme but has been slow to act. He cryptically hinted at one honest member on the FEC board who might push for accountability.

The alleged scheme has far-reaching implications for campaign finance transparency and the integrity of political donations. Small-dollar contributions are often portrayed as a reflection of grassroots support, but these revelations cast doubt on the authenticity of such narratives.

ActBlue has denied any wrongdoing, but critics argue that the platform’s lack of transparency and delayed policy changes have allowed suspicious activities to continue unchecked.

With investigations by state attorneys general, Congress, and independent watchdogs gaining momentum, ActBlue faces increasing pressure to address these allegations. The results of these inquiries could have significant consequences for campaign finance regulations and the broader political landscape.

As Bernegger stated, “This isn’t just about one party or one platform. It’s about protecting the integrity of our elections and ensuring accountability at every level.”

The coming months will likely bring more revelations, leaving voters and policymakers to grapple with the consequences of these alleged actions.

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Erica Carlin

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1 Comment

  1. BC on December 18, 2024 8:40 pm

    Please, Keep digging Erica. Great article and Americans need to know if their elections have been tampered with. Many people believe that foreign and dirty money have long been funneled to political campaigns and from schemes where taxpayer funds were “laundered” back to elected officials. If this turns out to be true, it would be an incredible story to “break”.

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