Lawsuit Claims FEC Ignored Money Laundering by Clinton Campaign in 2016

US Democratic presidential nominee Hillary Clinton speaks during a campaign rally in Raleigh, North Carolina, on November 3, 2016. / AFP / JEWEL SAMAD (Photo credit should read JEWEL SAMAD/AFP/Getty Images)

A lawsuit alleges that the Federal Election Commission (FEC) ignored the Democrat National Committee (DNC) and the Clinton campaign’s laundering of $84 million in campaign donations to get around legal donation limits.

The suit, filed by a group called the Committee to Defend the President (CDP), alleges that the Hillary Victory Fund (HVF) solicited donations from big-name, deep-pocketed donors and instructed them to send the money to local Democrat Party groups; those donations were then funneled to the DNC which, in turn, sent them to Team Hillary.

CDP, formerly known as the Stop Hillary PAC, claims in its suit that the FEC acknowledged the Clinton camp had initiated the scheme and even noted that an investigation needed to be launched to review the donations, but it has yet to take any action, Fox News reports.

“The Clinton machine has escaped accountability for its illegal practices for far too long,” CDP chairman Ted Harvey tells Fox News. “After months of review, the FEC has refused to address the Clintons’ $84 million money laundering scheme that violated several campaign finance laws.”

The suit alleges that the FEC is violating the Federal Election Campaign Act and called the lack of action “arbitrary, capricious, contrary to law, and an abuse of discretion.”

“We urge the Court to step in and demand action from the FEC. The American people demand that our most corrupt political figures answer for their transgressions,” the group insists.

The filing reveals evidence that large donations were made ostensibly to the state Parties, but on the same day, the same amount was abruptly transferred from those local organizations to the national Party apparatus.

The scheme would help large donors get around federal campaign donation limits by sending their money to local organizations instead of directly to the Clinton campaign, even as those same donations ended up with Hillary Clinton anyway.

Citing confidentiality rules, the FEC would not comment on the case.

Follow Warner Todd Huston on Twitter @warnerthuston.


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