Category Archives: campaign finance

Top New York Election Lawyers Cannot Recall Anyone Ever Prosecuted for the NY Election Law Being Used to Try to Turn Trump’s Hush Money Payments into a Felony

Business Insider confirms what I suspected:

Now, Manhattan prosecutors now say an old, rarely used section of the state election law is their favorite on the menu of potential underlying crimes.

“As the court is aware, falsifying business records in the first degree requires an intent to commit or conceal another crime,” prosecutor Joshua Steinglass told New York State Supreme Court Justice Juan Merchan on Tuesday.

“The primary crime that we have alleged is New York state election law section 17-152,” Steinglass told the judge, lifting into prominence an arcane measure that had previously played only a supporting role in the case.

“There is conspiracy language in the statute,” the prosecutor said, “The entire case is predicated on the idea that there was a conspiracy to influence the election in 2016.”

Business Insider asked two veteran New York election-law attorneys — one a Republican, the other a Democrat — about the law, also known as “Conspiracy to promote or prevent election.”

Neither one could recall a single time when it had been prosecuted.

“I’ve never heard of it actually being used, and I’ve practiced election law for 53 years,” Brooklyn attorney and former Democratic NY state Sen. Martin Connor said of section 17-152.

“I would be shocked — really shocked — if you could find anybody who can give you an example where this section was prosecuted,” agreed Joseph T. Burns, attorney for the Erie County Republican Committee in Buffalo, New York…

Falsifying business records requires proof of at least an attempt to commit an underlying crime to be a felony.

But what if that underlying crime is section 17-152 — conspiring to mess with an election through “unlawful means?”

Things will get “twisty,” Connor said, when prosecutors try to show that Trump’s falsified business records are felonies because of an underlying crime — 17-152 — that itself needs proof of a conspiracy to do something “unlawful.”

“You’re having an underlying crime within an underlying crime to get to that felony,” Connor told BI….

Proof of an intent to violate any of these three laws would be sufficient to satisfy Section 17-152. And once you prove 17-152, you have the underlying crime you need to raise misdemeanor falsifying business records to a felony.

It’s important to remember that Trump is only charged with 34 counts of this one crime: felony falsification of business records, said election-law scholar Jerry H. Goldfeder.

Trump is not charged with actually committing any of the underlying state and federal laws required to prove felony falsification.

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So prosecutors have no legal obligation to prove he’s guilty of any of these underlying laws, 17-152 included, said Goldfeder, senior counsel at Cozen O’Connor and author of Goldfeder’s Modern Election Law.

“They only have to prove he intended to commit these underlying crimes,” which is a far lower bar, said Goldfeder, who also directs the Fordham Law School Voting Rights and Democracy Project.

“I think it’s a very viable case,” he told BI.

“And the testimony so far demonstrates that Trump intended to pursue this catch-and-kill scheme and to falsify business records to cover it up — and did so to influence the election,” he said.

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“Scoop: DNC covered Biden legal bills in special counsel probe”

Axios:

President Biden used campaign donations to help pay his legal bills last year during the special counsel’s probe into his handling of classified documents, according to two people familiar with the matter and an Axios review of campaign finance records.

Why it matters: The payments, made through the Democratic National Committee, are at odds with the Biden campaign’s recent attacks on Donald Trump for spending his campaign funds on legal fees.

Driving the news: The DNC — which has been collecting the biggest donations to Biden’s re-election effort — paid more than $1.5 million to lawyers or firms representing Biden during the probe, according to the committee’s financial filings….

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“Super PACs keep testing the limits of campaign finance law”

Politico:

Super PACs keep pushing the boundaries of campaign finance law this cycle.

They’re using novel financial arrangements, like taking “bridge funding” in the form of undisclosed de facto loans from major donors or receiving ad revenue from a candidate’s podcast. They’re also continuing to take advantage of long standing loopholes in anti-coordination guidelines.

The willingness to push the boundaries suggests that U.S. politics has entered the Wild West campaign financing system that many observers predicted would come in the wake of the court’s weakening campaign finance laws.

It comes as super PACs are taking a more prominent role in campaigning. Total spending on independent expenditures so far this cycle is nearly 2.5 times what it was at this point in 2020. And because candidates are having more and more trouble with small-dollar fundraising, super PAC money could be even more important as the cycle continues.

“As long as super PACs remain relatively under regulated in the way that they have been, the consultants who work for them and for various campaigns are going to continue trying to push the envelope using them in creative ways,” said Saurav Ghosh, director for federal campaign finance reform at the nonprofit Campaign Legal Center. “Because there seems to be very little risk in pushing against the supposed legal limits.”

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“How Republicans texted and emailed their way into a money problem”

WaPo:

In the years after Donald Trump lost the presidency to Joe Biden, Trump sent so many emails and text messages asking for money that Republican consultants warned his mailing lists could become useless. The former president’s friends told him that they were being asked for too much, too often, and Trump himself ordered aides at one point to slow the solicitations. Some of his fans, pockets emptied, mailed handwritten letters apologizing for not being able to give more.

Now, as Trump and Biden prepare for a rematch, Trump’s vaunted small-dollar fundraising operation is not bringing in as much money as it once did.

In 2020, Trump and his fundraising committees raised a record $626.6 million from small-dollar donors, 35 percent more than Biden took in from that group.

But last year, Trump raised just $51 million from small donors, way down from the $119 million he registered in 2019 and only 18 percent more than Biden’s total. His small-dollar haul — which includes donations of $200 or less — was not nearly enough to offset Biden’s lead among major donors.

The Republican National Committee also raised much less money from small-dollar donors in 2023 than it had in 2019, contributing to budget problems for the party. Officials at the National Republican Senatorial Committee were shocked by the low returns on their investment in the strategy ahead of the last midterm elections.

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“How Trump Moved Money to Pay $100 Million in Legal Bills”

NYT:

Former President Donald J. Trump has spent more than $100 million since leaving office, on lawyers and other costs related to fending off various investigations, indictments and his coming criminal trials, according to a New York Times review of federal records.

The remarkable sum means that Mr. Trump has averaged more than $90,000 a day in legal-related costs for more than three years — none of it paid for with his own money.

Instead, the former president has relied almost entirely on donations made in an attempt to fight the results of the 2020 election.

Now, those accounts are nearly drained, and Mr. Trump faces a choice: begin to pay his own substantial legal fees or find another way to finance them….

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“Coordination in Plain Sight: The Breadth and Uses of ‘Redboxing’ in Congressional Elections”

Gabriel Foy-Sutherland and Saurav Ghosh have written this article for ELJ. Here is the abstract:

This article examines the campaign strategy known as “redboxing.” Redboxing refers to efforts by candidates and parties to bypass laws prohibiting them from coordinating campaign advertising with outside spending groups such as super PACs. This coordination takes place in plain sight—on official campaign websites and party “microsites”—with campaigns asking outside groups to fund specific campaign messages that target particular groups of voters on desired media channels. The instructions contained in a redbox typically employ coded or technical language intended to guide the resulting “independent” expenditures, and are often presented in a distinctive, red-bordered text box designed to be easily identifiable by super PAC operatives. Overall, we find that campaigns use redboxing for two purposes: to engage an allied outside group to amplify the campaign’s primary message to voters, or to delegate a given message to an allied group, often a negative or inflammatory attack on a political opponent. Complementing our legal analysis of this practice, we assess the prevalence of redboxing in the American political system, as well as the relationship between redboxing and independent expenditures in congressional races. Drawing on the first comprehensive dataset of redboxes in a single electoral cycle, we find that this strategy is far more widespread than previously understood. Over two hundred candidates for federal office employed redboxing during the 2022 electoral cycle, and these same candidates frequently benefitted from super PAC spending that was hundreds of times greater than candidates who did not redbox. We conclude by providing recommendations for legal reforms to bring redboxing under control, highlighting recent reform initiatives adopted in Philadelphia and Allegheny County, PA, to outline a workable rule that prohibits redboxing while not infringing on genuine, vital political speech.

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“Republicans Are Counting on Millionaires to Flip the Senate”

NYT:

Since his rise to the presidency, Donald J. Trump has claimed enormous wealth as proof that he is an anti-establishment ally of the working class, not beholden to corporate donors or special interests.

The Republican Party, eyeing control of the Senate next year, is trying to mimic his success with a cohort of candidates who in the past might have been attacked as a bunch of rich men but this year will be sold as successful outsiders in the Trump mold.

The decision by Ohio voters on Tuesday to nominate Bernie Moreno to take on Senator Sherrod Brown, a Democrat, is the capstone of a year that has crowned nominees — or anointed clear front-runners — with remarkable wealth in Pennsylvania, Wisconsin, West Virginia, Montana and now Ohio.

That might match the party’s presumptive nominee, Mr. Trump, but with backgrounds in banking and hedge funds, properties in Connecticut and Laguna Beach, Calif., and education credentials from Princeton and the Naval Academy, some in the 2024 class feel more like the days of Mitt Romney, worth around $174 million, and John McCain, a Naval Academy graduate who married into a beer-distributing empire, than the current moment when blue-collar credibility is the currency of the realm.

The intentional decision by Republicans in Washington, D.C., to get behind candidates with enormous personal fortunes will most likely give the party a boost as it struggles for campaign cash against the Democrats’ formidable grass-roots fund-raising operations. But the sheer affluence of the candidates — and how they made their money — is sure to be a factor in the fight for Senate control.

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“Cross-Border Influencers: Democracy and Externalities”

Saul Levmore has posted this draft on SSRN. Here is the abstract:

The United States does not allow foreigners to influence U.S. elections by giving money to political parties or candidates, but many other countries do allow cross-border influencing. Indeed, the variety of policies among countries is remarkable. Some countries, like the United States, that forbid financial contributions from outside the country, do permit cross-border contributions across domestic borders, such as those of states and cities. Meanwhile, Canadians cannot contribute to the campaigns of U.S. political candidates, and cannot even (lawfully) influence the American political process by purchasing campaign t-shirts or bumper stickers. This prohibition is in place even though, like constituents of neighboring jurisdictions within the U.S., Canadians are greatly affected by U.S. policies

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“How Trump Is Scrambling to Raise Cash”

NYT:

As many as three nights a week, Donald J. Trump has been hosting private dinners at Mar-a-Lago, schmoozing with some of the Republican Party’s biggest financiers as he races to address a sizable cash shortfall against President Biden.

There is no request for money from the attendees at these meals, which have included Larry Ellison, the billionaire co-founder of Oracle, and Pepe Fanjul, the sugar magnate, according to people familiar with the sessions. But advisers to Mr. Trump’s campaign and his super PACs hope the charm offensive will eventually pay political and financial dividends.

One of the most pressing issues facing Mr. Trump is the financial disparity he and allied groups now face with Mr. Biden and the Democratic Party. Democrats have boasted of entering February with $130 million. The Trump operation did not release a full total, but his campaign account and the Republican National Committee had around $40 million.

Mr. Trump enters the general election ahead of Mr. Biden in public polls. But Mr. Biden has taken full advantage of one of the benefits of incumbency, both socking away cash and building out a political operation earlier than his challenger.

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“Has Citizens United Undermined Democracy?”

WNYC “Open to Debate” podcast:

In a high-stakes presidential election year, in partnership with the Newt and Jo Minow Debate Series at the Northwestern Pritzker School of Law, Open to Debate is taking a look at more than a decade of the Citizens United Supreme Court case. The 2010 landmark decision that ruled the free speech clause of the First Amendment prohibits the government from restricting independent expenditures for political communications by corporations, including nonprofits, labor unions, and other associations, changed the landscape of political spending in the U.S. This gave rise to Super PACS and an increase in election campaign spending. Since then, there have been questions about whether the decision has harmed our democratic process. Those who support the decision argue it upholds free speech, allowing diverse voices in the political arena, and broadens the range of discourse by enabling groups to freely express their views and support candidates or policies. Those against it argue that it allows a disproportionate influence from corporations and special interest groups, and leaves the voices of ordinary citizens overshadowed by the financial resources of a few, eroding the principles of equality and fair representation.  With this context, we debate the question: Has Citizens United Undermined Democracy?     This debate is presented in partnership with the Northwestern Pritzker School of Law as part of the Newt and Jo Minow Debate Series. It will be recorded live in person on Wednesday, February 21, 2024, at the Thorne Auditorium at Northwestern University Pritzker School of Law in Chicago, Illinois. Arguing Yes: Francesca Procaccini, Assistant Professor of Law at Vanderbilt University Law School; Ciara Torres-Spelliscy, Professor of Law at Stetson University   Arguing No: Floyd Abrams, Senior Counsel at Cahill Gordon & Reindel; Eric Wang, Partner at The Gober Group, pro bono Senior Fellow at the Institute for Free Speech

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