New FEC Complaint: Hillary Clinton Campaign, DNC Accused in ‘Corrupt’ Money Scheme

A political action committee filed a complaint with the Federal Election Commission on Monday naming Hillary Clinton’s 2016 presidential campaign and the Democratic National Committee in what is being called a “corrupt” scheme to bypass campaign finance rules.

The Committee to Defend the President alleges that the Clinton campaign and the DNC utilized state chapters of the party to funnel money to the DNC, and eventually the Clinton campaign, Fox News reported.

According to the complaint, roughly $84 million was illegally sent by the Hillary Victory Fund to the state chapters. Then, it was allegedly transferred back to the DNC before making it to the campaign.

“Based on publicly available FEC records, repeatedly throughout the 2016 presidential campaign, HVF would purportedly transfer funds to its constituent political committees, which included between 34 and 40 state parties,” the complaint reads.

“On the very same day each of these transfers supposedly occurred, or occasionally the very next day, every single one of those state parties purportedly contributed all of those funds to the DNC.”

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A significant portion of the money reportedly came from well-known donors like Calvin Klein and Seth MacFarlane, who created the animated sitcom “Family Guy.”

Officials with the CDP, which arose out of the Stop Hillary PAC, said they discovered this scheme after studying FEC reports. They found that “HVF either never transferred the money to state chapters and back to the DNC, or did so without the state chapters having actual control,” according to Fox.

CDP Chairman Ted Harvey emphasized the importance of the find, noting that it shows how “corrupt” the campaign system really is.

“What we have found, people need to see,” Harvey told Fox. “I think it’s important that the American public has an understanding of how corrupt this campaign system was and that they were doing anything they could to secure the nomination in her favor.”

CDP counsel Dan Backer said he thinks the scheme was legally questionable on two counts — it went against a Supreme Court ruling and also broke FEC rules limiting campaign donations to $2,700 per person.

He said the scheme violated a Supreme Court decision ruling that such practices are illegal. The donations in question, Backer noted, were “specifically earmarked for the DNC and the campaign committee.”

“It’s not entirely clear if they transferred the money to the state parties to begin with, and if they never had control of the money, it’s not a contribution. It’s an earmark. If the money is in control of the candidate, then it is a contribution to them,” he explained.

The CDP’s complaint says the HVF would send contributions to the state party chapters, then get the money back within a day.

“It appears virtually every single disbursement from HVF to a state party resulted in an immediate transfer of the same amount of funds from the state party to the DNC,” another part of the of the filing reads.

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“Over 99% of funds transferred through HVF to state parties wound up at the DNC.”

As Fox pointed out, former interim DNC chair Donna Brazile might have been alluding to such a scheme in her book “Hacks: The Inside Story of the Break-ins and Breakdowns that Put Donald Trump in the White House.”

“Individuals who had maxed out their $2,700 contribution limit to the campaign could write an additional check for $353,400 to the Hillary Victory Fund—that figure represented $10,000 to each of the 32 states’ parties who were part of the Victory Fund agreement — $320,000 — and $33,400 to the DNC,” she wrote.

“The money would be deposited in the states first, and transferred to the DNC shortly after that. Money in the battleground states usually stayed in that state, but all the other states funneled that money directly to the DNC, which quickly transferred the money to (Clinton campaign headquarters in) Brooklyn.”

Brazile believed this showed the victory fund was essentially being directed to the Clinton campaign, even before she received the Democrat nomination.

Backer, meanwhile, wants the DOJ to investigate what happened.

“It’s really cut and dry,” he said, “but it shouldn’t matter that it was Hillary Clinton and the DNC that did this. The law was broken. It doesn’t matter who did it.”