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House Republicans Launch Probe Into ActBlue Over Potential Campaign Fraud

 September 23, 2024

Republican lawmakers have launched an investigation into ActBlue, the Democratic National Committee's primary donor platform, over concerns of questionable financial activity.

This investigation, spearheaded by GOP members of the House Oversight Committee, seeks to uncover whether ActBlue has played a role in evading federal campaign finance laws and engaging in identity fraud related to donations to candidates such as Kamala Harris, as Breitbart reports.

The investigation follows growing concerns over suspicious contributions made to Democratic Party hopefuls.

Led by prominent lawmakers, including Rep. James Comer of Kentucky, Rep. Nick Langworthy of New York, Rep. Jim Jordan of Ohio, and Rep. Marjorie Taylor Greene of Georgia, the House Oversight Committee has taken steps to address these concerns.

A letter has been sent to Treasury Secretary Janet Yellen, requesting access to certain Suspicious Activity Reports (SARs) relevant to the investigation.

Concerns Over Fraud and Identity Theft

The core issue centers on whether ActBlue has been used to facilitate illicit financial activities or to bypass federal campaign finance laws. Reports suggest that individuals may have exploited the platform by making donations in other people's names, a violation of federal law. Such activity raises the possibility of large-scale fraud affecting political campaigns.

Critics of ActBlue have pointed out that the platform did not implement standard security procedures, such as requiring a Card Verification Value (CVV) for online donations, until it faced external pressure. The absence of such safeguards raised concerns that ActBlue could be vulnerable to identity theft and fraudulent contributions.

State Investigations Echo Federal Concerns

The federal investigation is not the only probe into ActBlue's practices. Several state officials have also launched their own inquiries into the platform's handling of donations. Virginia Attorney General Jason Miyares, Wyoming Secretary of State Chuck Gray, and Missouri Attorney General Andrew Bailey are among those leading investigations into "suspicious" and "implausible" donations made through ActBlue.

Miyares, in particular, has raised alarms over the volume of seemingly questionable contributions, which have prompted further scrutiny from state and federal officials alike. Meanwhile, in Texas, Attorney General Ken Paxton began his own investigation in December 2023 to ensure that ActBlue complies with state laws regarding campaign finance.

Calls for Greater Oversight of Online Fundraising

The growing number of investigations into ActBlue underscores the broader issue of online fundraising transparency. Republicans argue that without stricter oversight, platforms like ActBlue could become vulnerable to abuse, allowing individuals to manipulate the system in ways that undermine election integrity.

In their letter to Treasury Secretary Yellen, the Republican lawmakers emphasized the need for financial transparency in campaign fundraising. "The Committee on Oversight and Accountability is investigating reports of potentially fraudulent and illicit financial activity related to contributions to campaigns of candidates for federal offices mediated by online fundraising platforms like ActBlue," the letter stated.

ActBlue's Response and Public Criticism

While ActBlue has not yet responded directly to the ongoing investigations, the platform has faced mounting criticism from political opponents who argue that its lax security measures have opened the door to potential fraud. One point of contention is ActBlue's previous lack of a requirement for CVVs on donations, a basic security feature that many credit card processors mandate.

Despite the criticism, ActBlue remains a dominant force in Democratic fundraising efforts. The platform is widely used to collect small-dollar donations, which have fueled numerous Democratic campaigns over the years.

Federal Law and Campaign Contributions

Under federal law, it is illegal for individuals to make contributions in someone else's name in order to evade campaign finance limits. Such practices are seen as a direct violation of election laws and can lead to serious legal consequences for both the donor and the recipient.

The House Oversight Committee's investigation seeks to determine whether ActBlue has been complicit in facilitating such illegal contributions or whether it has taken adequate measures to prevent fraud. The outcome of this investigation could have significant implications for how online fundraising platforms are regulated in the future.

Potential Consequences of the Investigation

If the investigation uncovers evidence of widespread fraud or violations of federal law, ActBlue could face serious legal challenges, potentially affecting its ability to continue operating as the primary fundraising platform for the Democratic Party. Additionally, the results of the state investigations could lead to tighter regulations on how online fundraising platforms handle contributions.

As the investigation unfolds, both Republicans and Democrats are watching closely, recognizing the potential impact this case could have on future campaign finance reform efforts. ActBlue's critics argue that reforms are necessary to ensure transparency, while its defenders maintain that the platform is vital to grassroots fundraising efforts.

Conclusion

House Republicans have launched a significant investigation into the Democratic National Committee's donor platform, ActBlue, raising concerns over potential fraud and campaign finance law violations.

The investigation, led by prominent GOP lawmakers, focuses on alleged illicit financial activities and the platform's vulnerability to identity theft and fraudulent donations.

Similar investigations are underway in Virginia, Wyoming, Missouri, and Texas, signaling broader concerns about the transparency of online fundraising platforms like ActBlue.