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political action committees
Watchdog Urges FEC to Investigate Trump Campaign Over Scheme for Legal Fees
"By not disclosing the vendors that actually provided legal services, the Trump-affiliated committees effectively blocked the public from knowing which attorneys and firms are being paid—and how much."
Apr 24, 2024
A campaign finance watchdog on Wednesday filed a Federal Election Commission complaint accusing former President Donald Trump's 2024 campaign, affiliated political groups, and an accounting firm of violating U.S. law in a scheme "seemingly designed to obscure the true recipients of a noteworthy portion of Trump's legal bills."
The Washington, D.C.-based Campaign Legal Center (CLC) said that "evidence appears to show an illegal arrangement between several Trump-affiliated committees and a compliance firm named Red Curve Solutions that is designed to obscure the identities of those providing legal services and how much they are being paid."
"Voters have a right to know how the presidential campaigns and other committees supporting presidential candidates spend their money."
CLC alleges that the Trump campaign, Trump's political action committee (PAC) Save America, and three affiliated organizations "violated federal reporting requirements based on a scheme in which the committees reportedly paid over $7.2 million—described as 'reimbursement for legal' costs or expenses"—to Red Curve.
The watchdog also said that Red Curve appears to be "making or facilitating illegal contributions that violate either federal contribution limits or the prohibition on corporate contributions."
According to CLC:
Red Curve is a domestic limited liability company that offers compliance and FEC reporting services but does not appear to offer any legal services. It is managed by Bradley Crate, who also serves as the treasurer for each of the five Trump-affiliated committees concerned in this complaint, as well as over 200 other federal committees.
According to filings with the FEC, Red Curve appears to have been fronting legal costs for Trump since at least December 2022, with Trump-affiliated committees repaying the company later. This arrangement appears to violate FEC rules that require campaigns to disclose not only the entity being reimbursed (here, Red Curve) but also the underlying vendor. By not disclosing the vendors that actually provided legal services, the Trump-affiliated committees effectively blocked the public from knowing which attorneys and firms are being paid—and how much they are being paid—through this arrangement.
"Voters have a right to know how the presidential campaigns and other committees supporting presidential candidates spend their money," CLC senior director of campaign finance Erin Chlopak said in a statement. "When campaigns and committees obscure that information from the public, not only do they make it difficult to determine if the law has been violated, but they deny voters the ability to make an informed choice when casting a ballot."
"The steps taken by the Trump campaign, its affiliated committees, and Red Curve Solutions concealed information about how campaign funds were used to pay former President Trump's legal expenditures, including the amounts and ultimate recipients of these expenditures—and the FEC must investigate immediately," Chlopak added.
Trump—who is the presumptive 2024 GOP presidential nominee—faces 88 federal and state felony charges related to his role in the January 6 insurrection and his organization's business practices. He is currently on trial in New York for allegedly falsifying business records related to hush money payments to cover up sex scandals during the 2016 election cycle. The twice-impeached former president has been open about his use of campaign donations to pay his legal costs.
The new CLC filing comes a day after the watchdog filed separate FEC complaints urging investigations into a pair of Trump-affiliated "scam PACs," which "pretend to fundraise for major candidates or issues while secretly diverting almost all of their donors' money back into fundraising or the fraudsters' own pockets."
Correction: This article originally said Trump faces 91 federal and state felony charges. The correct number is 88.
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Big Business Gave Over $36 Million to GOP 'Sedition Caucus' in 2022 Election Cycle: Report
"With many of the same MAGA election deniers now holding powerful positions that could threaten democracy and fundamental voting rights, it's critical that corporations finally stand up to their extremism—not encourage more."
Feb 10, 2023
Since the January 6, 2021 attack on the U.S. Capitol by supporters of former President Donald Trump, Fortune 500 companies and industry trade groups have given over $36 million to Republican members of Congress—the so-called "Sedition Caucus"—who attempted to overturn the results of the 2020 presidential election, an analysis published Friday by the watchdog group Accountable.US revealed.
"The deadly insurrection at the U.S. Capitol on January 6, 2021 was the result of months of election fraud lies spread far and wide by twice-impeached former President Trump and his allies. Even after all the violence that day, 147 members of Congress and eight U.S. senators kept the 'Big Lie' alive by voting against certifying the presidential election results in some states," Accountable.US noted in its report, which analyzed year-end Federal Election Commission filings for the 2022 election cycle.
"Many corporations publicly condemned the insurrection and those lawmakers who voted against certification, and some pledged to no longer donate to their campaigns. But as time has passed, the condemnation from corporate America over January 6 and the Big Lie appears to be abating," the group added. "Some of the corporations that pledged to stop funding the members who objected to certifying the election are quietly finding ways to give again."
\u201cNEW REPORT: Year-end filings revealed that major companies and trade groups donated at least $164,000 to the Sedition Caucus since Election Day \u2014 bringing the total to $36.3 million since the insurrection. \n\n\ud83e\uddf5 1/2\n\nhttps://t.co/vo4h8oR9gb\u201d— Accountable.US (@Accountable.US) 1676041373
According to the analysis, the top five donors to election objectors were the National Beer Wholesalers Association Political Action Committee ($894,500); National Automobile Dealers Association Political Action Committee ($829,500); American Bankers Association PAC ($779,000); Build Political Action Committee of The National Association of Home Builders ($663,500); and AT&T Inc. ($629,900).
Among corporations, after AT&T the biggest donors were Home Depot ($478,000); Lockheed Martin ($440,000); Boeing ($392,000); and Comcast ($382,000).
The top five election-objecting recipients were House Speaker Kevin McCarthy (R-Calif.); House Majority Leader Steve Scalise (R-La.); House Transportation Committee Chair Sam Graves (R-Mo.); House Ways and Means Committee Chair Jason Smith (R-Mo.); and National Republican Congressional Committee Chair Richard Hudson (R-N.C.).
The analysis also found that over two-thirds of the final lot of donations, amounting to $113,500, went to Sens. Ted Budd (R-N.C.) and Markwayne Mullin (R-Okla.), who both objected to certifying President Joe Biden's Electoral College victory while they served in the House.
Corporate America's largesse toward Big Lie supporters stands in stark contrast with public proclamations from numerous company leaders in the wake of the January 6 insurrection. AT&T and Comcast even went so far as suspending donations to elected officials who voted against certifying the Electoral College votes, while announcing reviews of their campaign contribution policies and practices.
"Many corporations risked their reputations to reward millions to MAGA extremists in Congress that obstructed the democratic process even after a violent insurrection."
"Workers, customers, and shareholders want to work for, buy from, and invest in companies that share their values and democratic ideals," Accountable.US spokesperson Jeremy Funk said in a statement. "So many corporations risked their reputations to reward millions to MAGA extremists in Congress that obstructed the democratic process even after a violent insurrection. With many of the same MAGA election deniers now holding powerful positions that could threaten democracy and fundamental voting rights, it's critical that corporations finally stand up to their extremism—not encourage more."
Last month, a report by the government transparency watchdog showed that corporate PACs and industry trade groups have given more than $66 million to election objectors since the January 6 attack. The OpenSecrets analysis, which included more companies and PACs than the Accountable.US report, named most of the same industry groups and corporations in the top five donors—the National Association of Realtors ($909,000) topped its list—and congressional recipients as Accountable.US' list.
Also last month, Citizens for Responsibility and Ethics in Washington issued its own analysis which found that just 65 of the more than 230 corporations and industry groups that "pledged to stop, pause, or re-evaluate their political giving to the 147 members of the so-called Sedition Caucus... have kept their promises not to give, while the rest have resumed giving."
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