Watchdog Groups file FEC Complaints Against Shell Companies Hiding Super PAC Donors

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Democracy 21 joined the Campaign Legal Center recently in filing two complaints with the Federal Election Commission, calling on the agency to investigate campaign donors who are skirting disclosure laws by hiding behind corporations to anonymously fund elections.

The first complaint asks the FEC to investigate whether DE First Holdings, which came into existence just one day before it gave $1 million to the liberal Super PAC Coalition for Progress, and the person who was the true source of the funds, violated the Federal Election Campaign Act. Based on a report by Politico New Jersey, it appears this company was set up for the purpose of laundering money to a political committee while hiding the true source of the funds.

The second complaint asks the FEC to investigate Andrew Duncan and IGX, LLC for also violating the same sections of the FECA that prohibit the use of straw donors. Duncan admitted in an AP story that he had used the company, IGX, to make a secret donation of $500,000 to the Super PAC supporting Marco Rubio, Conservative Solutions PAC.

“The law is clear that conduits cannot be used by donors to mask the true source of funds given to Super PACs or other political committees,” said Donald Simon, counsel for Democracy 21. “Yet that appears to be precisely what happened here. The FEC should ensure that reporting requirements are met and that citizens know who is behind the money being spent to influence their votes.”

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