Dem Donors Not Jumping For Joy Over Idea Of Kamala Harris Comeback
'she's going to have very difficult problems'
House Committees Hand Out Subpoenas As ActBlue Clams Up
The Democratic Party’s suspect online fundraising platform powerhouse is facing tough questions about foreign and fraudulent donations.House Committees, DOJ Turn Up The Heat On Dems’ ActBlue
The chairmen of the three committees investigating the troubled online fundraising platform have sent their finding to AG Pam Bondi.The New York Times Downplays ActBlue’s Suspect Behavior To Run Cover For Democrats
'NYT and other outlets of left-wing opinion ... used to care about campaign finance violations, especially if foreign money may be involved.'Senior staff jumping ship at Dem fundraising platform ActBlue amid congressional probe
The major Democratic fundraising platform ActBlue, which has raised over $16.5 billion for left-wing candidates since 2004, has in recent months faced intense scrutiny over whether it has complied with federal campaign finance laws and prevented illegal contributions.
This pressure and threat of corrective legislation appears to have created cracks in the organization — likely bad news for Democratic candidates and incumbents counting on ActBlue to raise money ahead of the midterm elections.
Several top officials, including the highest-ranking legal officer at ActBlue, have reportedly jumped ship in recent weeks, while those who remain are allegedly stuck dealing with a culture of "volatility and toxicity," and in at least one instance, retaliatory measures.
In a letter to ActBlue's board of directors obtained by the New York Times, unions representing the group's workers identified seven officials who recently quit and stressed that the "alarming pattern" of high-level exits was "eroding our confidence in the stability of the organization."
The senior staff departures reportedly began on Feb. 21, two weeks after the organization reportedly provided congressional investigators with an "update regarding ActBlue's security, fraud prevention measures, and related procedures."
Alyssa Twomey, who went to work for ActBlue in 2010 and has served as the organization's vice president of customer service for the past two years, was among those racing for the exit. She noted in a lengthy LinkedIn post last week that "after 14+ years of living and breathing all things ActBlue, it's time for a reset."
The Times indicated that the organization's associate general counsel, its assistant research director, its chief revenue officer, its partnerships director, a senior engineer, and a human resources official have similarly quit but would not go on the record to detail precisely why.
'This is ILLEGAL.'
Rep. Bryan Steil (R-Wis.), chairman of the Committee on House Administration, issued a subpoena to ActBlue on Oct. 30 for documents related to its donor verification policies and to the potential for foreign actors to use the platform to launder illicit money into American political campaigns.
In December, Steil revealed that the organization had admitted in documents under subpoena that prior to a policy change in September, it had not automatically rejected donations made with foreign gift cards.
Rep. Marc Molinaro (N.Y.) was among the Republican lawmakers who lambasted ActBlue over the revelation, noting that "as Congressional candidates were reporting millions of dollars in donations, they didn't require the CVV code verification and allowed foreign gift card donations! This is illegal and outrageous."
House Speaker Mike Johnson (R-La.) similarly stressed that "this is ILLEGAL."
Despite such accusations of illegal dealings, the organization managed to avoid an immediate reckoning; however, congressional Republicans sought to ensure there would be no reversion to bad habits.
'Part of a growing pattern of volatility and toxicity stemming from current leadership.'
The House passed Steil's Secure Handling of Internet Electronic Donations Act in December, which would have required political committees to collect the credit or debit card's verification value when accepting corresponding contributions over the internet. The legislation would have also required that the card's billing address be located in the United States unless the contributor is an American national living abroad or lawfully admitted for permanent residence.
The so-called SHIELD Act was not, however, passed by the Senate by the end of the 118th Congress. Nevertheless, the Times indicated Democrats fear such legislation could be used to paralyze their top fundraising operation.
While the prospect of the other shoe dropping may have prompted some ActBlue workers to leave, the unions intimated in their letter that the organization's leadership might also be a factor.
The last remaining lawyer in the general counsel's office at ActBlue, Zain Ahmad, alleged that his access to email and other platforms was suspended after the departures, possibly as a form of retaliation.
The unions suggested that Ahmad's allegations were "unsettling and disturbing, and part of a growing pattern of volatility and toxicity stemming from current leadership."
The Times indicated that the unions implored the board to bring in outside counsel and take "investigatory actions to better understand the current state of the organization and evaluate if our C.E.O. is doing her job in an appropriate, competent, and responsible manner."
ActBlue CEO Regina Wallace-Jones reportedly elected not to comment on the matter.
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'ILLEGAL': Dem fundraising platform ActBlue makes stunning admission about what it did before policy change
The GOP-led Committee on House Administration has spent over a year investigating whether the major Democratic fundraising platform ActBlue has complied with federal campaign finance laws and prevented illegal contributions.
Committee Chairman Bryan Steil (R-Wis.) issued a subpoena to ActBlue on Oct. 30 for documents related to its donor verification policies and to the potential for foreign actors — particularly from China, Iran, Russia, and Venezuela — to use the platform to launder illicit money into American political campaigns.
Steil announced Tuesday that ActBlue admitted in documents under subpoena that it did not automatically reject donations made with foreign gift cards prior to a policy change in September.
House Speaker Mike Johnson (R-La.) responded to the revelation, stating, "This is ILLEGAL."
Sen. Mike Lee (R-Utah) tweeted, "Federal campaign-finance laws apparently apply only to Republicans and exist to help Democrats."
Rep. Marc Molinaro (R-N.Y.) wrote, "Into the 3rd quarter of campaign fundraising Democrats were accepting foreign gift card donations through their Act Blue platform. As Congressional candidates were reporting millions of dollars in donations, they didn't require the CVV code verification and allowed foreign gift card donations! This is illegal and outrageous."
Joe Lonsdale, the American entrepreneur who co-founded Palantir Technologies, noted, "Those accusing the other side of collaborating with foreign powers to meddle in our elections were projecting."
The platform has since updated its donor verification policies to "automatically reject donations that use foreign prepaid/gift cards, domestic gift cards, are from high-risk/sanctioned countries, and have the highest level of risk as determined" by its anti-fraud solution provider, Sift.
'We must keep working to ensure that no foreign funds were illegally funneled into US political campaigns during this election cycle.'
Just the News reported that the policy change took place three days after Steil introduced the Secure Handling of Internet Electronic Donations Act on Sept. 6.
The bill would require political committees to collect the credit or debit card's verification value when accepting corresponding contributions over the internet.
ActBlue indicated in a Nov. 27, 2023, letter to Steil that the platform required and used card verification values on "many" but not all transactions across the site.
Furthermore, the so-called SHIELD Act would require that the card's billing address be located in the United States unless the contributor is an American national living abroad or lawfully admitted for permanent residence. In such cases, the contributor must provide the political committee with his registration address or identification document. The bill would also prohibit political committees from accepting contributions made via general-use prepaid cards, gift certificates, or store gift cards.
Steil noted in a statement that while ActBlue's policy change "is a positive step forward, there is still more work to be done to ensure our campaign finance system is fully protected from fraud and unlawful foreign interference."
"The documents provided to the Committee also confirm that ActBlue still accepted these concerning payment methods in July, a period when Democrats raised a record number of campaign money [sic] before implementing these safeguards," continued the Wisconsin congressman. "We must keep working to ensure that no foreign funds were illegally funneled into U.S. political campaigns during this election cycle. It is also critical that we enact lasting reforms to prevent illicit contributions in future election cycles."
Rep. Jim Jordan (R-Ohio), chairman of the House Judiciary Committee, penned a letter with Steil Monday to the CEO of Sift, Kris Nagel, requesting documents pertaining to the company's efforts to deter fraudulent transactions on ActBlue and related communications.
The Republican lawmakers noted that a recent data analysis of Federal Election Commission records "uncovered suspicious transactions made using ActBlue, including donations larger than the named donor could afford, 'uncharacteristic donations from registered voters suddenly contributing to candidates of the opposing party,' and 'unusually frequent' donations from vulnerable individuals, including senior citizens and first-time donors."
Jordan and Steil appear keen to know more about the security measures provided to ActBlue by Sift, given that the measures may have been exploited by bad actors at home and abroad.
The House Administration Committee is likely to explore these and other concerns about the platform at its Dec. 18 hearing on foreign interference in American elections.
ActBlue told its users in an Oct. 30 statement that it "holds itself to the highest legal and ethical standards, and all contributions made through ActBlue are disclosed in full compliance with federal, state, and local laws."
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