ActBlue is a self-proclaimed grassroots fundraising platform for the Democratic Occasion. The Democrats need the general public to consider that the on a regular basis American totally helps them, however the reality has come to mild after an ongoing investigation discovered that the group has been upheld by darkish cash from each “international and home fraudulent actors.”
The Home Judiciary Committee, the Committee on Home Administration, and the Home Committee on Oversight and Authorities Reform launched a joint interim employees report titled, “Fraud on ActBlue: How the Democrats’ High Fundraising Platform Opens the Door for Unlawful Election Contributions.” When the investigation started, seven senior employees members resigned from their positions. Each lawyer affiliated with the group stepped away, additional elevating suspicions. ActBlue’s chief fraud-prevention specialist said he was solely centered on DEI work whilst he listed his high aim as “not permitting greater than 10 [percent] extra missed fraud.”
Inner paperwork revealed that ActBlue lowered its requirements for fraudulent donations twice forward of the 2024 US elections. As an alternative of actively on the lookout for fraud, staff had been inspired to be “extra lenient” and actively “search for causes to just accept contributions.”
“Inner paperwork additionally point out that there have been situations during which dangerous actors have fraudulently taken management of consumer accounts, giving them the flexibility to make straw donations showing to be from common donors,” the report famous. There have been over 22 ongoing fraud campaigns to Democratic candidates, 9 of which obtained donations from international actors.
“Inner paperwork additionally point out that there have been situations during which dangerous actors have fraudulently taken management of consumer accounts, giving them the flexibility to make straw donations showing to be from common donors,” the report said. In a separate case, a Wisconsin Republican strategist claims ActBlue stole his identification to make 385 fraudulent donations on his behalf. “ ActBlue has even seen brazen situations of fraud during which a number of folks have made donations utilizing the identical bank card info, and has internally acknowledged a number of incidents during which fraudulent donations evaded ActBlue’s computerized fraud evaluate processes,” the report discovered.
One tactic used was accumulating and saving card verification values (CVVs) for the primary donation and utilizing that info for recurring contributions. These contributions had been discovered to quantity to almost half of all funding to ActBlue.
ActBlue violated the Federal Election Marketing campaign Act of 1971 (FECA). Enacted by President Nixon, FECA established rules for marketing campaign fundraising, spending, disclosures, and penalties for these in violation. The act has been amended quite a few occasions, with the final modification occurring in 2002 generally known as the McCain-Feingold Act. FECA bans international nationwide from donating to US elections to stop international interference. We heard the rumors of Russian collusion, however ActBlue brazenly accepted donations from international nations like Iraq, Saudi Arabia, India, Brazil, and Colombia.
ActBlue used straw donor schemes, additionally unlawful beneath FECA, that permitted contributions beneath false names. There have been even situations of similar small fonations occurring from the identical day beneath completely different names, which factors to bundling or automated donations that the person could not have accredited of.
FECA additionally establishes contribution caps and limits to stop undue affect. The investigation discovered that donors bypassed this regulation by utilizing pay as you go playing cards or various billing particulars. “Smurfing” practices, breaking giant donations right into a sequence of smaller donations, additionally occurred.
Transparency went out the window because the company processed 1,900 flagged fraudulent transactions between 2020 and 2024. Workers had been inspired to just accept each and any donation even when that meant turning a blind eye to fraud.
ActBlue is the Democratic Occasion’s principal fundraising platform. These allegations severely undermine the ethics of the Democratic Occasion normally. Fees haven’t been filed on the time of this writing however the company might face a DOJ case, however since issues are (D)ifferent, they might get a slap on the wrist with FEC fines.