by Natalia Mittelstadt and John Solomon
Large-scale investigation into online fundraising platform ActBlue has expanded to 19 states as attorneys general across the country press the company over its security practices and whether Democrats may be using the platform to cheat on election contributions.
The investigation that began in several states and by a House committee has now spread to nearly half the country as state chief investigators seek to determine whether Democrats used ActBlue to launder foreign money or make donations on people’s behalf without their consent, a practice called ” donations of straw.
In letter sent last week ActBlue CEO and president Regina Wallace-Jones, the attorney general highlighted potential security issues with the online fundraising platform, which could allow donations to be made on behalf of people who have not done so.
“Recent reports indicate this [sic] There may be donors across the country identified in their filings with the Federal Election Commission as having made contributions to candidates through ActBlue (and other affiliated entities) but did not actually make those donations.” – wrote the prosecutors general.
“Smurfing”
“This raises many concerns about whether the ActBlue platform is being used to facilitate ‘smurfing’ – a type of money laundering in which donors split large donations and donate them under different names to disguise where the money comes from and thus avoid donating restrictions in violation of state and federal law,” letter further.
“Independent investigations have found that there are donors across the country who indicate in FEC filings that they made contributions to candidates through ActBlue (and other affiliated entities) but deny that they made those donations. Given the significant role it plays in our elections, it is ActBlue’s responsibility to address the sedate questions raised by the apparent irregularities in ActBlue’s FEC filings,” the attorney general added. in addition.
“ActBlue is one of the largest platforms for collecting election-related donations. Already during the 2024 election cycle, ActBlue has raised billions of dollars. However, there are questions about where these dollars come from. It is critical that we know whether political contributions – especially in such large quantities – are solicited, transferred and processed in compliance with campaign finance, consumer protection and other state and federal laws.”
ActBlue it denied any irregularities but assured that it was cooperating with investigators.
The attorney general’s letter came as other investigations continue to unfold, both on the civil and criminal sides. Only News confirmed that some Americans who believe their names have been used to make donations to others are considering filing a private lawsuit as Congress tries to determine whether federally regulated financial institutions have reported any suspicious transactions going through the ActBlue platform or its customers.
Security protocols
Top state law enforcement officials have asked Wallace-Jones to review ActBlue’s security protocols and ensure donors are who they say they are.
The letter was led by the attorneys general of Iowa and Indiana, and also included the attorneys general of Alabama, Arkansas, Florida, Idaho, Kansas, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Carolina, South Dakota, Utah and Virginia. Panhandle and Wyoming. The attorney general asked Wallace-Jones to respond by October 23.
After the letter was published, an ActBlue spokesperson he said Des Moines Register that it has been a trusted digital fundraising platform for twenty years and legally donates to candidates and organizations.
“We rigorously protect donor information by maintaining a robust security program and stringent fraud prevention measures – often going beyond what is required by law.” – says the spokesperson’s statement. “We are aware of recent attempts to spread disinformation about our platform. Facts are significant to ensure that voters and donors are not misled. For detailed information please visit the website actblue.com“
During the ActBlue investigation, House Administration Committee Chairman Bryan Steil, R-Wis., made a decision referred the case to the attorney general last month in Arkansas, Missouri, Texas, Virginia and Florida for a fundraising platform. Steil said his committee’s massive computer analysis revealed a suspicious pattern of donations from individuals whose net worth is too compact to match the amount assigned to them in ActBlue’s reports to the Federal Election Commission.
“This investigation focused on the potential unlawful use of unwitting ‘straw donors’ whose identities may have been used to funnel illegal campaign funds in your state.” Steep wrote government officials.
“The final analysis produced a set of atypical donor profiles, ranked by the severity of the inconsistency. As we reviewed this analysis, it became clear that there was suspicious activity taking place that required further analysis.” he added.
“Straw donors” are donors who either receive money from others to give to federal candidates or whose identities are misused by others to make donations to circumvent federal campaign contribution limits.
Last December, Texas Attorney General Ken Paxton (R) opened an investigation into ActBlue after accusing the organization of conducting a fraudulent donation business. This August, Virginia Attorney General Jason Miyares (R) also demanded answers from ActBlue after fraud allegations hit Virginia.
in August Paxton announced reached an agreement in which ActBlue will begin using CVV codes to accept all donations. CVV is a three-digit security number found on the back of credit and debit cards and is a key safeguard against fraud.
Steil pressed on H.R. 9488called the SHIELD Act, which would require disclosure of card verification values and boost protections for online campaign donations.
The legislation also prohibits “aiding or abetting” campaign contributions on behalf of another person.
Steil said on the TV show “Just the News, No Noise.” in August: “The really substantial problem is that because donations are made online, they can come from anywhere in the world. Gone are the days when people engaged in illegal activities using cash. Now we can do it online.
“I am concerned that those who may be involved are outside the jurisdiction of the United States,” he added.
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Natalia Mittelstadt is a reporter for Just the News. John Solomon is an award-winning investigative journalist, author and digital media entrepreneur who serves as CEO and Editor-in-Chief of Just the News. Before founding Just the News, Solomon played key reporting and leadership roles at some of America’s most significant journalism institutions, including The Associated Press, The Washington Post, The Washington Times, Newsweek, The Daily Beast and The Hill.
Photo “ActBlue App” by Blue Act.
