TOPLINE
The Campaign Legal Center, a nonpartisan campaign finance watchdog group, filed a complaint Tuesday with the Federal Election Commission accusing the Trump campaign of “laundering” $ 170 million through numerous companies, some with connections to former Trump campaign manager Brad Parscale.
LEXINGTON, KY – NOVEMBER 4: Brad Parscale, campaign manager for the President of the United States, Donald Trump, … [+]
KEY FACTS
“The Trump campaign and the Trump Make America Great Again Committee disguised nearly $ 170 million of campaign spending by laundering funds through companies,” the complaint states.
He adds that the firms are “spearheaded by recent Trump campaign manager Brad Parscale and / or created by Trump campaign attorneys.”
The complaint alleges that the Trump campaign paid millions of dollars to providers connected to the campaign without reporting those payments to the FEC, specifically targeting American Made Media Consultants (AMMC), a company created by Parscale, which has paid more than $ 106. millions, making it the largest campaign marketer.
AMMC was apparently created to elude media buyers, but the complaint points to FCC records showing that the campaign has used media buying company Harris Sikes to place some of its ads, alleging that the campaign ” it does not report payments to companies and is instead using AMMC as a conduit for its payments to companies. “
The complaint also points to an app called Phunware, which Parscale has said was created and is “direct ownership” of the campaign, but which never appeared in campaign spending reports because, as the complaint alleges, it was paid through from AMMC.
Trump campaign communications director Tim Murtaugh denied the charges made in the complaint and said Forbes “The campaign reports all payments to AMMC as required by the FEC. The campaign complies with all campaign finance laws and FEC regulations. “
Crucial quote
By failing to report payments to true campaign sellers and employees, the Trump campaign and the Trump Make America Great Again Committee have violated and continue to violate the transparency requirements of federal law, “the complaint states, adding that such Activities “undermine the public’s vital reporting function that the reports are intended to serve.”
Key background
Parscale was named Trump’s campaign manager in February 2018, but Bill Stepien replaced him in that role earlier this month. Parscale companies have long been the subject of media scrutiny for receiving large sums of money from the Trump campaign and for maintaining a lavish lifestyle beyond the means of most presidential campaign managers. .
Critical boss
“Voters have a right to know how campaigns spend money to influence elections,” CLC founder and president Trevor Potter, a former Republican president and former FEC president, told CNN. “This scheme runs counter to the transparency requirements of federal law, and leaves voters and donors in the dark about where the campaign funds are actually going.”
News Peg
The indictment comes amid reports that the Trump campaign has also moved millions in campaign funds to Trump’s private business interests. ForbesDan Alexander and Michela Tindera reported earlier this month that the Trump campaign has pushed nearly $ 7 million into Trump’s business since the president took office.
What to look
The complaint asks the FEC, which regulates campaign financing, to “carry out an immediate investigation” and “seek appropriate sanctions for each and every violation, including sufficient civil penalties to deter future violations.”
