Ken Paxyon Demands FEC Action

Texas Attorney General Ken Paxton sent a Petition for Rulemaking to the Federal Election Commission (“FEC”) detailing how suspicious actors appear to be using ActBlue’s political fundraising platform to make a large number of straw political donations.

In December 2023, Attorney General Paxton opened an investigation into ActBlue to determine whether the platform’s operations were compliant with all applicable laws.

In August 2024, Attorney General Paxton announced that due to the investigation, ActBlue began requiring donors using credit cards to provide “CVV” codes, a common security measure. But this is not a full solution to the problems that Attorney General Paxton’s team has identified on ActBlue.

The investigation of the left’s online fundraising platform ActBlue has expanded into 19 states, as attorneys general across the country press the company on its security practices indicating  Democrats could be using the platform to cheat on election donations.

An investigation that began with a few states and a House committee has now spread across nearly half the country as chief state investigators are endeavoring to determine whether Democrats have used the ActBlue to launder foreign money or craft donations in people’s names without their permission, a practice known as “straw donations.”

Namely, it appears that straw donations are systematically being made using false identities, through untraceable payment methods.

On Monday, Attorney General Paxton transmitted partially redacted findings to the FEC through a Petition for Rulemaking.

The petition recommends regulations that would close fundraising loopholes that jeopardize American election integrity.

The FEC previously considered rules on the loopholes that the Attorney General has found here. But ActBlue was a vocal opponent of such rules.

That opposition is no longer tenable in light of the Attorney General’s findings. If not corrected by the FEC, bad actors can—with trivial ease—illegally funnel foreign money into American elections, exceed political contribution limits, and more.

“Our investigation into ActBlue has uncovered facts indicating that bad actors can illegally interfere in American elections by disguising political donations,” Paxton said. “It is imperative that the FEC close off the avenues we have identified by which foreign contributions or contributions in excess of legal limits could be unlawfully funneled to political campaigns, bypassing campaign finance regulations and compromising our electoral system.”

By funneling individual donations under $200, they do not have to be reported to the FEC.

Paxton announced he is “calling on the FEC to immediately begin rulemaking to secure our elections from any criminal actors exploiting these vulnerabilities.”

“Certain platforms appear to facilitate straw donor transactions, where a contributor disguises his identity by attributing his contribution to another, unaware person,” the petition to the FEC states.

These straw donations are being made through the use of prepaid credit cards, which he says “are a favorite tool of fraudsters.”

Mark Block, former chief of staff to Republican 2012 presidential candidate Herman Cain, reports that a total of $884.38 given in his name and without his knowledge between May and October was designed to circumvent federal election law and may be part of a larger scam involving tens of thousands of unwitting donors.

“I’m not rich. I don’t give that kind of money,” said Janice Bosco of Horseshoe Bay, TX, after discovering that ActBlue recorded 648 donations totaling $16,000 in her name.

Karen Roberton’s husband from Killeen, TX, was shocked when he learned of over $12,000 in donations to ActBlue attributed to his wife, spread across 600 transactions.

In Marble Falls, TX, Margaret Caylor’s husband was stunned to learn that over 5,000 donations, totaling around $136,000, were made in his wife’s name to ActBlue. 

ActBlue was founded in 2004 by Benjamin Rahn and Matt Debergalis. It is considered a political action committee. 

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