Sunday, June 10, 2018 10:44:14 AM
Clinton $84 million FEC laundering complaint
Filed 04/16/18 Page 1 of 101
BEFORE THE FEDERAL ELECTION COMMISSION
COMMITTEE TO DEFEND THE PRESIDENT
203 S. Union Street, Suite 300
Alexandria, VA 22314
Complainant
v. HILLARY VICTORY FUND
FEC ID Number C00586537
P.O. Box 5256 ) New York, NY 10185-5256
Elizabeth Jones, Treasurer,
ELIZABETH JONES, in her official capacity as Treasurer of Hillary Victory Fund P.O. Box 5256 New York, NY 10185-5256
HILLARY FOR AMERICA
FEC ID Number C00575795
P.O. Box 5256 New York, NY 10185-5256
Jose H. Villareal, Treasurer,
HILLARY RODHAM CLINTON in her official capacity as a Candidate for President of the United States
FEC ID Number P00003392
P.O. Box 5256
New York, NY 10185-5256
DNC SERVICES CORPORATION
DEMOCRATIC NATIONAL COMMITTEE
FEC ID Number C00010603
430 South Capitol Street SE
Washington, D.C., 20003
William Q. Derrough, Treasurer, WILLIAM Q. DERROUGH, in his official ) capacity as Treasurer of DNC Services Corporation / Democratic National Committee
399 Park Ave., 5th Floor New York, NY 10022
Case 1:18-cv-00888-RDM Document 1-1 Filed 04/16/18 Page 2 of 101
ALASKA DEMOCRATIC PARTY
FEC ID: C00191247
2602 Fairbanks St.
Anchorage, AK 99503
Carolyn Covington, Treasurer
DEMOCRATIC PARTY OF ARKANSAS
FEC ID number C00024372
1300 West Capitol Ave
Little Rock, AR 72201 Dawne Vandiver, Treasurer
COLORADO DEMOCRATIC PARTY
FEC ID number C00161786
789 Sherman Street, Suite 110
Denver, CO 80203 ) Rita Simas, Treasurer
DEMOCRATIC STATE COMMITTEE (DELAWARE)
FEC ID number C00211763
P.O. Box 2065 ) Wilmington, DE 19899
Helene Keeley, Treasurer
DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA
FEC ID number C00005561
214 South Bronough Street
Tallahassee, FL 32301
Francesca Menes, Treasurer
GEORGIA FEDERAL ELECTIONS COMMITTEE
FEC ID number C00041269 ) PO Box 89202
Atlanta, GA 30312
Kip Carr, Treasurer
IDAHO STATE DEMOCRATIC PARTY
FEC ID number C00010439
P.O. Box 445
Boise, ID 83701
A.J. Balukoff, Treasurer
Page 3
INDIANA DEMOCRATIC CONGRESSIONAL VICTORY COMMITTEE
FED ID number C00108613
115 W Washington St
Ste 1165 ) Indianapolis, IN 46204
Henry Fernandez, Treasurer
IOWA DEMOCRATIC PARTY
FEC ID number C00035600
5661 Fleur Drive
Des Moines, IA 50321
Ken Sagar, Treasurer
KANSAS DEMOCRATIC PARTY
FEC ID number C00019380
P.O. Box 1914 ) Topeka, KS 66601
Bill Hutton, Treasurer
KENTUCKY STATE DEMOCRATIC EXECUTIVE COMMITTEE
FEC ID number C00011197
PO Box 694
Frankfort, KY 40602
M. Melinda Karns, Treasurer
DEMOCRATIC STATE CENTRAL COMMITTEE OF LA
FEC ID number C00071365
PO Box 4385
Baton Rouge, LA 70821
Sean Bruno, Treasurer
MAINE DEMOCRATIC PARTY
FEC ID number C00179408
PO Box 5258
320 Water St 3rd Floor
Augusta, ME 04330-5258
Betty Johnson, Treasurer
Page 4
MASSACHUSETTS DEMOCRATIC STATE COMMITTEE EDERAL FUND
FEC ID number C00089243
11 Beacon Street, Suite 410
Boston, MA 02108
Paul G Yorkis, Treasurer
MICHIGAN DEMOCRATIC STATE CENTRAL COMMITTEE
FEC ID number C00031054
606 Townsend St.
Lansing, MI 48933
Sandy O’Brien, Treasurer
MINNESOTA DEMOCRATIC-FARMER- LABOR PARTY
FEC ID number C00025254
255 Plato Blvd E
St Paul, MN 55107
Tyler Moroles, Treasurer
MISSISSIPPI DEMOCRATIC PARTY PAC
FEC ID number C00149641
P.O. Box 1583
Jackson, MS 39215
Ryan Brown, Treasurer
MISSOURI DEMOCRATIC STATE COMMITTEE
FEC ID number C00135558
300 St James St Suite 104
Columbia, MO 65201
Lauren Arthur, Treasurer
MONTANA DEMOCRATIC PARTY
FEC ID number C00010033
P.O. Box 802
Helena, MT 59624
Sandi Luckey, Treasurer
NEVADA STATE DEMOCRATIC PARTY
FEC ID number C00208991
409 Horn Street
Las Vegas, NV 89107
Jan Churchill, Treasurer
Page 5
NEW HAMPSHIRE DEMOCRATIC PARTY
FEC ID number C00178038
105 N. State Street
Concord, NH 03301
Brian Rapp, Treasurer
NEW JERSEY DEMOCRATIC STATE COMMITTEE
FEC ID number C00104471
196 West State Street
Trenton, NJ 08608
Kelly Stewart Maer, Treasurer
DEMOCRATIC PARTY OF NEW MEXICO
FEC ID number C00161810
322 Adams St SE
Albuquerque, NM 87108
Robert Lara, Treasurer
NORTH CAROLINA DEMOCRATIC PARTY – FEDERAL
FEC ID number C00165688
220 Hillsborough Street
Raleigh, NC 27603
Anna Tilghman, Treasurer
OHIO DEMOCRATIC PARTY
FEC ID number C00016899
340 East Fulton Street
Columbus, OH 43215
Fran Alberty, Treasurer
OKLAHOMA DEMOCRATIC PARTY
FEC ID number C00190934
3700 N Classen, Suite 100
Oklahoma City, OK 73118
Rachael Hunsucker, Treasurer
DEMOCRATIC PARTY OF OREGON
FEC ID number C00188367
232 NE 9th Ave.
Portland, OR 97232
Eddy Morales, Treasurer
Page 6
PENNSYLVANIA DEMOCRATIC PARTY
FEC ID number C00167130
229 State St.
Harrisburg, PA 17101
John A. Hanna, Treasurer
RHODE ISLAND DEMOCRATIC STATE COMMITTEE
FEC ID number C00136200
P.O. Box 6004
Providence, RI 02940
Jeffrey Padwa, Treasurer
DEMOCRATIC PARTY OF SOUTH CAROLINA
FEC ID number C00007658
P.O. Box 5965
Columbia, SC 29250
Kathryn Hensley, Treasurer
SOUTH DAKOTA DEMOCRATIC PARTY FEDERAL
FEC ID number C00160937
P.O. Box 1485 ) Sioux Falls, SD 57101
Bill Nibbelink, Treasurer
TENNESSEE DEMOCRATIC PARTY
FEC ID number C00167346
1900 Church St., Suite 203
Nashville, TN 37203
Dr. Geeta McMillan, Treasurer
TEXAS DEMOCRATIC PARTY
FEC ID number C00099267
1106 Lavaca, Suite 100
Austin, TX 78701
Gilberto Hinojosa, Treasurer
UTAH STATE DEMOCRATIC COMMITTEE
FEC ID number C00105973
825 N 300 W
Suite C400 Salt Lake City, UT 84103
Peter Corroon, Treasurer
Page 7
DEMOCRATIC PARTY OF VIRGINIA
FEC ID number C00155952
919 East Main Street, Suite 2050
Richmond, VA 23219
Barbara Klear, Treasurer
WV STATE DEMOCRATIC EXECUTIVE COMMITTEE
FEC ID number C00162578
P.O. Box 11926
Charleston, WV 25339
Jerry Brookover, Treasurer
DEMOCRATIC PARTY OF WISCONSIN
FEC ID number C00019331
15 N. Pinckney St., Suite 200
Madison, WI 53703
Randy A. Udell, Treasurer
WY DEMOCRATIC STATE CENTRAL COMMITTEE
FEC ID number C00001917
P.O. Box 1972
Cheyenne, WY 82003
Chris Russell, Treasurer
And
UNNAMED CO-CONSPIRATOR
CONTRIBUTORS TO HILLARY VICTORY FUND
Respondents
Introduction
This Complaint alleges an unprecedented, massive, nationwide multi-million dollar conspiracy among the Democratic National Committee (“DNC”); Democratic presidential candidate Hillary Rodham Clinton’s joint fundraising committee (“JFC”), Hillary Victory Fund (“HVF”); Clinton’s presidential candidate committee, Hillary for America (“HFA”), 40 Democratic state parties, and an undetermined number of individual “super donors” to circumvent federal contribution limits and earmarking restrictions by effectively laundering nearly all contributions received by HVF through the state parties to the DNC, which contributed much of those funds to HFA, made coordinated expenditures with HFA, and otherwise granted control of those funds to HFA resulting in a
de facto unlawful contribution. As explained below, this scheme allowed the DNC to receive tens of millions of dollars in contributions far exceeding federal limits.
Based on publicly available FEC records, repeatedly throughout the 2016 presidential campaign, HVF would purportedly transfer funds to its constituent political committees, which included between 34 and 40 state parties. On the very same day each of these transfers supposedly occurred, or occasionally the very next day, every single one of those state parties purportedly contributed all of those funds entirely to the DNC.
The uniformity, regularity, magnitude, immediacy, and extent of these reported transfers—every single state party transferring every single disbursement it received from HVF, in its entirety, exclusively to the DNC, immediately upon receipt—inexorably leads to the compelling inference, supported by public statements, HVF’s members had an understanding or agreement to automatically funnel funds they received through HVF to the DNC. The DNC, in turn, contributed most of those funds to HFA, made coordinated expenditures with HFA and otherwise transferred control of its money to HFA, as both the DNC’s own public filings and former DNC Chairwoman Donna Brazile’s public confessions make clear.
In McCutcheon v. FEC, 134 S. Ct. 1434, 1455 (2014), the Supreme Court itself recognized this precise arrangement would flatly violate federal earmarking restrictions, 52 U.S.C. § 30116(a)(8); 11 C.F.R. § 110.6, though the Court dismissed the possibility of such a flagrantly illegal scheme as “unlikely” to occur. Not even the Supreme Court could anticipate the extent to which the Democratic Party and its elite, wealthy donor class would commit willful felonies in a futile attempt to facilitate Clinton’s election.
Because funds state parties received through HVF were apparently “earmarked” to be immediately transferred to the DNC, each contribution to HVF qualifies as a contribution from the original source of the funds to the DNC itself, 11 C.F.R. § 110.6(a), (d)(2), causing most such contributions to grossly exceed federal limits of $33,400 per person. 52 U.S.C. § 30116(a)(1)(B); FEC,
Price Index Adjustments for Contribution and Expenditure Limitations and Lobbyist Bundling Disclosure Threshold, 80 FED.REG. 5,750, 5,752 (Feb. 3, 2015).
Additionally, no contribution to HVF was properly reported to the FEC as a contribution entirely to the DNC. Any contributor to HVF who was expressly or implicitly assured contributions to HVF would be transferred to the DNC, or otherwise used for the benefit and at the direction of Clinton’s presidential campaign, would have been willful participants in the conspiracy to violate federal contribution limits, reporting requirements, and earmarking restrictions, and may be deemed unnamed co-conspirators.
On information and belief, it also reasonably appears state parties may have attempted to conceal their conspiracy by fabricating and erroneously reporting pass-through transactions. Even assuming the co-conspirators were wiring their funds across the nation, it appears extraordinarily unlikely that, on hundreds of occasions collectively involving tens of millions of dollars, HVF would have been able to transfer funds to 34-40 different state parties, each of those state parties would have received those funds and immediately transferred them to the DNC, and the DNC would have received those funds, all on the same day.
Based on the eerily precise timing of these hundreds of transactions involving dozens of entities over more than a year—and the telling absence of a few such entries—it appears far more plausible HVF did not actually transfer contributions it received to state parties, which in turn contributed them to the DNC (as the FEC filings of both the state parties themselves and the DNC contend occurred). Instead, it appears HVF may have transferred contributions it received directly to the DNC, and the entities involved falsely reported intermediate transfers that never occurred.
Even if the transfers did occur as reported, however, the virtually unbroken pattern demonstrates state parties were being used as intermediate pass-through entities to funnel over 80 million dollars in contributions HVF received to the DNC, in violation of federal contribution limits, earmarking restrictions, and reporting requirements.
Likewise, assuming such transfers did occur, then at the very least many of the Respondent state parties transferred millions of dollars over dozens of transactions without properly reporting them. On numerous occasions, state parties reported receiving transfers from HVF, and the DNC reported receiving transfers from those state parties, but the state parties never reported contributing or transferring those funds to the DNC. At the very least, Democratic state parties throughout the nation failed to provide public transparency of their byzantine and intentionally convoluted financial transactions.
An FEC investigation is likely to confirm, however, the existence of an unprecedented scheme, staggering in scale, to solicit and accept tens of millions of dollars in earmarked contributions and launder them through dozens of state parties to the DNC to be used for the benefit, and subject to the control, of Hillary Clinton’s presidential campaign, resulting in vastly excessive contributions to the DNC and HFA.
PARTIES
1. Complainant COMMITTEE TO DEFEND THE PRESIDENT is a non-connected hybrid political committee registered with the Federal Election Commission (“FEC”).
Page 10 of 101
2. Respondent HILLARY VICTORY FUND (“HVF”) is a federal joint fundraising committee (“JFC”) registered with the FEC and an authorized committee of Respondent HILLARY RODHAM CLINTON. Its Treasurer is Respondent ELIZABETH JONES.
a. On September 16, 2015, HVF filed an amended Statement of Organization with the FEC disclosing it collects contributions, pays fundraising expenses, and disburses net proceeds for 35 political committees, including HILLARY FOR AMERICA, DNC, ALASKA DEMOCRATIC PARTY, DEMOCRATIC PARTY OF ARKANSAS, COLORADO DEMOCRATIC PARTY, DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA, GEORGIA FEDERAL ELECTION COMMITTEE, IDAHO STATE DEMOCRATIC PARTY, INDIANA DEMOCRATIC CONGRESSIONAL VICTORY COMMITTEE, KENTUCKY STATE DEMOCRATIC CENTRAL EXECUTIVE COMMITTEE, DEMOCRATIC STATE CENTRAL COMMITTEE OF LA, MAINE DEMOCRATIC STATE COMMITTEE, MASSACHUSETTS DEMOCRATIC STATE COMMITTEE – FED FUND, MICHIGAN DEMOCRATIC STATE CENTRAL COMMITTEE, MINNESOTA DEMOCRATIC-FARMER-LABOR PARTY, MISSISSIPPI DEMOCRATIC PARTY PAC, MISSOURI DEMOCRATIC STATE COMMITTEE, MONTANA DEMOCRATIC PARTY, NEVADA STATE DEMOCRATIC PARTY, NEW HAMPSHIRE DEMOCRATIC PARTY, NORTH CAROLINA DEMOCRATIC PARTY – FEDERAL, OHIO DEMOCRATIC PARTY, OKLAHOMA DEMOCRATIC PARTY, DEMOCRATIC PARTY OF OREGON, PENNSYLVANIA DEMOCRATIC PARTY, Democratic Party of the Commonwealth of Puerto Rico [which is not a Respondent in this matter], RHODE ISLAND DEMOCRATIC STATE COMMITTEE, DEMOCRATIC PARTY OF SOUTH CAROLINA, TENNESSEE DEMOCRATIC PARTY, TEXAS DEMOCRATIC PARTY, UTAH STATE DEMOCRATIC COMMITTEE DEMOCRATIC PARTY OF VIRGINIA, WV STATE DEMOCRATIC EXECUTIVE COMMITTEE, DEMOCRATIC PARTY OF WISCONSIN, and WY DEMOCRATIC STATE CENTRAL COMMITTEE.
b. On November 2, 2015, HVF filed a second amended Statement of Organization with the FEC disclosing it collects contributions, pays fundraising expenses, and disburses net proceeds for only 34 political committees. The Democratic Party of the Commonwealth of Puerto Rico was no longer a member.
c. On July 1, 2016, HVF filed a third amended Statement of Organization with the FEC disclosing it collects contributions, pays fundraising expenses, and disburses net proceeds for 40 political committees. In addition to the committees identified in Paragraph 3(a)—with the exception of the Democratic Party of the Commonwealth of Puerto Rico—HVF’s constituent members also included SOUTH DAKOTA DEMOCRATIC PARTY – FEDERAL, DEMOCRATIC STATE COMMITTEE (DELAWARE), IOWA DEMOCRATIC PARTY, KANSAS DEMOCRATIC PARTY, NEW JERSEY DEMOCRATIC STATE COMMITTEE, and DEMOCRATIC PARTY OF NEW MEXICO.
3. Respondent ELIZABETH JONES is Treasurer for Respondent HVF. This Complaint is brought against her in her official capacity as HVF’s Treasurer.
4. Respondent HILLARY FOR AMERICA (“HFA”) is a presidential candidate campaign committee registered with the FEC for 2016 Democratic nominee for President, Respondent HILLARY RODHAM CLINTON. Its Treasurer is Jose H. Villareal.
5. Respondent HILLARY RODHAM CLINTON was the 2016 Democratic nominee for President. HFA was her authorized principal candidate committee and HVF was also an authorized committee of the candidate. This Complaint is brought against Clinton in her capacity as a candidate.
6. Respondent DNC SERVICES CORPORATION / DEMOCRATIC NATIONAL COMMITTEE (“DNC”) is a national political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Respondent WILLIAM Q. DERROUGH.
7. Respondent WILLIAM Q. DERROUGH is Treasurer of Respondent DNC. This Complaint is brought against him in his official capacity as the DNC’s Treasurer.
8. Respondent ALASKA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Carolyn Covington.
9. Respondent DEMOCRATIC PARTY OF ARKANSAS is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Dawne Vandiver.
10. Respondent COLORADO DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Rita Simas.
11. Respondent DEMOCRATIC STATE COMMITTEE (DELAWARE) is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Helene Keeley.
12. Respondent DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Francesca Menes.
13. Respondent GEORGIA FEDERAL ELECTIONS COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Kip Carr.
14. Respondent IDAHO STATE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is A.J. Balukoff.
15. Respondent INDIANA DEMOCRATIC CONGRESSIONAL VICTORY COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Henry Fernandez.
16. Respondent IOWA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Ken Sager.
17. Respondent KANSAS DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Bill Hutton.
18. Respondent KENTUCKY STATE DEMOCRATIC EXECUTIVE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is M. Melinda Karns.
19. Respondent DEMOCRATIC STATE CENTRAL COMMITTEE OF LA is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Sean Bruno.
20. Respondent MAINE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Betty Johnson.
21. Respondent MASSCHUSETTS DEMOCRATIC STATE COMMITTEE – FEDERAL FUND is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Paul G. Yorkis.
22. Respondent MICHIGAN DEMOCRATIC STATE CENTRAL COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Sandy O’Brien.
23. Respondent MINNESOTA DEMOCRATIC-FARMER-LABOR PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Tyler Moroles.
24. Respondent MISSISSIPPI DEMOCRATIC PARTY PAC is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Ryan Brown.
25. Respondent MISSOURI DEMOCRATIC STATE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Lauren Arthur.
26. Respondent MONTANA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Sandi Luckey.
27. Respondent NEVADA STATE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Jan Churchill.
28. Respondent NEW HAMPSHIRE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Brian Rapp.
29. Respondent NEW JERSEY DEMOCRATIC STATE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Kelly Stewart Maer.
30. Respondent DEMOCRATIC PARTY OF NEW MEXICO is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Robert Lara.
31. Respondent NORTH CAROLINA DEMOCRATIC PARTY – FEDERAL is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Anna Tilghman.
32. Respondent OHIO DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Fran Alberty.
33. Respondent OKLAHOMA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Rachael Hunsucker.
34. Respondent DEMOCRATIC PARTY OF OREGON is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Eddy Morales.
35. Respondent PENNSYLVANIA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is John A. Hanna.
36. Respondent RHODE ISLAND DEMOCRATIC STATE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Jeffrey Padwa.
37. Respondent DEMOCRATIC PARTY OF SOUTH CAROLINA is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Kathryn Hensley.
38. Respondent SOUTH DAKOTA DEMOCRATIC PARTY – FEDERAL is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Bill Nibbelink.
39. Respondent TENNESSEE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Geeta McMillan.
40. Respondent TEXAS DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Gilberto Hinojosa.
41. Respondent UTAH STATE DEMOCRATIC COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Peter Corroon.
42. Respondent DEMOCRATIC PARTY OF VIRGINIA is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Barbara Klear.
43. Respondent WV STATE DEMOCRATIC EXECUTIVE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Jerry Brookover.
44. Respondent DEMOCRATIC PARTY OF WISCONSIN is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Randy A. Udell.
45. Respondent WV DEMOCRATIC STATE CENTRAL COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Chris Russell.
RELEVANT CAMPAIGN FINANCE LAWS
46. Contribution Limits—52 U.S.C. § 30116(a)(1)(B), as adjusted for inflation by 80 FED. REG. at 5,752, permitted a person to contribute no more than $33,400 per year to a national political party committee’s principal account during the 2015-16 election cycle.
47. Reporting Requirements—52 U.S.C. § 30104(a)(4) requires “[a]ll political committees other than authorized committees of a candidate” to file periodic reports with the FEC.
a. Section 30104(b)(2)(C), (F) specify such reports must disclose the total amount of “contributions from other political committees” and “transfers from affiliated committees and, where the reporting committees is a political party committee, transfers from other political party committees, regardless of whether such committees are affiliated.”
b. Section 30104(b)(3)(B), (D) specify such reports for political party committees must disclose each transfer of funds from another political committee.
c. Section 30104(b)(4)(C) specifies such reports for political party committees must disclose “transfers to other political party committees, regardless of whether they are affiliated.”
d. Section 30104(b)(5)(C) specifies such reports for political party committees must disclose “each transfer of funds . . . to another political party committee, regardless of whether such committees are affiliated, together with the date and amount of such transfers.”
e. Section 30104(b)(6)(B)(i) specifies such reports for non-authorized committees must disclose the “date and amount” of any contribution to a political committee.
48. Earmarking Prohibitions—52 U.S.C. § 30116(a)(8) provides, “[A]ll contributions made by a person, either directly or indirectly, on behalf of a particular candidate, including contributions which are in any way earmarked or otherwise directed through an intermediary or conduit to such candidate, shall be treated as contributions from such person to such candidate. The intermediary or conduit shall report the original source and the intended recipient of such contribution to the Commission and to the intended recipient.”
Accord 11 C.F.R. § 110.6(a), (c)(1)(i).
49. Prohibition on Contributions in the Name of Another—52 U.S.C. § 30122 provides, “No person shall make a contribution in the name of another person or knowingly permit his name to be used to effect such a contribution, and no person shall knowingly accept a contribution made by one person in the name of another person."
ACCORDING TO PUBLICLY AVAILABLE FEC REPORTS, CONTRIBUTIONS WERE CONSISTENTLY FUNNELED FROM THE HILLARY VICTORY FUND THROUGH STATE PARTIES TO THE DNC
50. According to reports filed with the FEC by HVF, the DNC, and dozens of Democratic state parties, for more than a year, over 80 million dollars in contributions to HVF 20 were funneled through state parties to the DNC, which made coordinated expenditures with the Clinton campaign and was controlled by it.
51. According to reports filed with the FEC, in each series of transactions, HVF disbursed contributions it received to its state party committee members (as required for JFCs) and those state parties received the funds the same day. HVF would disburse funds to up to 40 state parties at a time. That same day, or on occasion the very next day, each and every one of those state parties immediately contributed all of the funds to the DNC.
52. It appears virtually every single disbursement from HVF to a state party resulted in an immediate transfer of the same amount of funds from the state party to the DNC. Over 99% of funds transferred through HVF to state parties wound up at the DNC (which, as explained below, made coordinated expenditures with HFA and otherwise spent its funds subject to the oversight, direction, and control of HFA).
53. The uniformity, regularity, magnitude, immediacy, and extent of these reported transfers—every single state party transferring every single disbursement it received from HVF, in its entirety, exclusively to the DNC, immediately upon receipt—unavoidably implies HVF’s members had an understanding or agreement they would automatically funnel funds they received through HVF to the DNC.
54. Exhibit 1 to this Complaint is an Excel spreadsheet derived exclusively from publicly available FEC reports filed by Respondents. Each row reflects a separate occasion on which contributions to HVF flowed through state parties directly to the DNC, usually on the same day and no later than the next day. Each row contains citations to the specific FEC reports documenting each step of each purported transaction.
55. As discussed at greater length below, several of these alleged transactions were reported incompletely. HVF reported transferring funds to a state party, but that party never reported receiving them and/or contributing them to the DNC. The DNC nevertheless reported receiving the same amount of funds from that state party on the same day. At a minimum, millions of dollars in financial transactions among these Democratic political committees were omitted from statutorily required public reports, thereby hindering public scrutiny.
56. It defies credulity to believe that, on hundreds of occasions, dozens of state parties around the country all independently received tens or hundreds of thousands of dollars from HVF, immediately decided to transfer all of those funds to the DNC, and successfully executed those transactions all on the same day.
On information and belief, it is also reasonably possible the alleged transfers of HVF’s funds to state parties never actually occurred, and all of the funds at issue were actually transferred directly from HVF to the DNC, rendering all FEC reports concerning these alleged transactions fraudulent. In the alternative, public statements indicate the JFC and/or HFA may have moved some funds in and out of participants’ accounts without the state parties’ knowledge or permission, thus never actually devolving custody or control of the funds to the state parties. Kenneth P. Vogel & Isaac Arnsdorf, Clinton Fundraising Leaves Little for State Parties, POLITICO
(May 2, 2016, 5:21 A.M.) (“While state party officials were made aware that Clinton's campaign would control the movement of the funds between participating committees, one operative who has relationships with multiple state parties said that some of their officials have complained that they weren't notified of the transfers into and out of their accounts until after the fact.”), at https://www.politico.com/story/2016/04/clinton-fundraising-leaves-little-for-state-parties-222670.
If the JFC, HFA, or either of those entities’ Treasurers retained control of the JFC’s funds even after they had been transferred into the state parties’ accounts, those 22 transfers would be shell transactions attempting to camouflage the unlawful transfer of JFC-controlled funds to the DNC.
57. Each alleged transaction followed the identical structure:
a. HVF reported transferring a certain amount of funds to its state party members on a particular day. For example, as discussed below HVF reported transferring a total of $505,000 to 17 of its state party members on November 2, 2015, including $43,500 to the Alaska Democratic Party.
See Exhibit 1, Row 15 (citing FEC Report # FEC-1180810 (amended), page 1387, Transaction ID # D22506).
b. Except as otherwise noted, each of those state party members reported receiving transfers in the identical amounts of funds from HVF on the very same day. For example, the Alaska Democratic Party reported receiving $43,500 from HVF on November 2, 2015.
See Exhibit 1, Row 15 (citing FEC Report ID # FEC-1036643, page 36, Transaction ID # VR029EM5A75).
c. Except as otherwise noted, each of those state party members then reported contributing the same amount of money they received from HVF to the DNC on the very same day (or occasionally the next day). For example, the Alaska Democratic Party reported transferring $43,500 to the DNC on November 2, 2015.
See Exhibit 1, Row 15 (citing FEC Report # FEC-1036643, page 53, Transaction ID # VQZ31A45P85).
d. Finally, the DNC reported receiving the same amount of funds, generally on the same day. For example, the DNC reported receiving $43,500 from the Alaska Democratic Party on November 1 [sic], 2015.
See Exhibit 1, Row 15 (citing FEC Report # FEC-1039017 (amended), page 6204, Transaction ID # C32017336). This particular example, which suggests the DNC received the $43,500
before
it had been transferred, shows how many of the transfers in this complex scheme were inconsistently or inaccurately reported. e.
Each transfer of funds from HVF, allegedly through a state party committee, to the DNC is recorded in a separate row of Exhibit 1. The last cell in each row cites the specific FEC reports that document—or fail to document—each step of the transaction. For example, Row 15 of Exhibit 1 sets explains the $43,500 transfer through the Alaska Democratic Party: f. Through hundreds of transactions with this identical structure outlined in Exhibit 1, HVF funneled over 80 million dollars through state parties directly to the DNC, starting in October 2015.
58. October 2015 —HVF reported transferring a total of $216,000 to 9 of its member state party committees on October 1, 2015.
See Exhibit 1, Rows 2-10. The amount of each individual transfer was $24,000.
Id. Each of those 9 state party committees reported receiving a transfer of $24,000 from HVF that same day.
Id. Each of those 9 state party committees also reported transferring precisely the same amount of funds to the DNC on the same day or the very next day, October 2, 2015.
Id. The DNC reported receiving transfers of $24,000 from each of those committees on October 2, 2015.
Id. Through these transactions, a total of $216,000 was transferred from HVF, through 9 state party committees, to the DNC on or about October 1, 2015. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
Hillary Victory Fund11/2/2015$43,500.00
Transfer to AffliateAlaska Democratic PartyTransfer from Affliate 11/2/2015 $43,500.00 Transfer to Affliate 11/2/2015 $43,500.00DNCTransfer from Affliate 11/1/2015 $43,500.001.
Report ID: FEC-1180810 (A), Page: 1387, Transaction ID: D225062.
Report ID: FEC-1036643, Page: 36, Transaction ID: VR029EM5A753. Report ID: FEC-1036643, Page: 53, Transaction ID: VQZ31A45P854.
Report ID: FEC-1039017 (A), Page: 6204, Transaction ID: C32017336
59. HVF reported transferring a total of $48,000 to two of its other member state party committees, also on October 1, 2015, including $24,000 each to the Mississippi Democratic Party and the Utah State Democratic Committee.
See Exhibit 1, Rows 12-13. Neither of those entities reported receiving any transfers from the HVF on or about that day, however.
Id. And neither of those entities reported transferring funds to the DNC on or about that day.
Id. Nevertheless, the DNC reported receiving transfers of $24,000 each from the Mississippi Democratic Party and Utah State Democratic Committee on October 2, 2015.
Id. Through these transactions, a total of $48,000 was transferred from HVF, purportedly through two additional state party committees, to the DNC on or about October 2, 2015. It is reasonably possible HVF never actually transferred funds to these or any other state parties on or about October 2, 2015, but rather transferred those funds directly to the DNC, and/or some or all of these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
60. November 2015—HVF reported transferring a total of $505,000 to 17 of its member state party committees on November 2, 2015.
See Exhibit 1, Rows 15-31. The amount of each individual transfer was between $19,500 and $45,000.
Id. Each of those 17 state party committees reported receiving a transfer from HVF that same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those 17 state party committees also reported transferring precisely the same amount of funds to the DNC on the same day.
Id. The DNC reported receiving transfers from those committees on November 1 [sic], 2015, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $505,000 was transferred from HVF, through 17 state party committees, to the DNC on or about November 2, 2015. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
61. HVF reported transferring a total of $102,000 to four of its other member state party committees, also on November 2, 2015, including $19,500 to the Mississippi Democratic Party, $19,500 to the Democratic Party of South Carolina, $43,500 to the Tennessee Democratic Party, and $19,500 to the Utah State Democratic Party.
See Exhibit 1, Rows 33-36. None of those entities reported receiving any transfers from the HVF on or about that day, however.
Id. And none of those entities reported transferring funds to the DNC on or about that day.
Id. Nevertheless, the DNC reported receiving transfers in the same amounts of money, from those same parties, on November 1 [sic], 2015.
Id. Through these transactions, a total of $102,000 was transferred from HVF, purportedly through four additional state party committees, to the DNC on or about November 2, 2015. It is reasonably possible HVF never actually transferred funds to these or any other state parties on or about November 2, 2015, but rather transferred those funds directly to the DNC, and/or these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
62. December 2015—HVF reported transferring a total of $799,400 to 26 of its member state party committees on December 1, 2015.
See Exhibit 1, Rows 38-63. The amount of each individual transfer was between $14,600 and $66,200.
Id. Each of those 26 state party committees reported receiving a transfer from HVF that same day or the next day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those 26 state party committees also reported transferring precisely the same amount of funds to the DNC on either December 1 or 2, 2015—except for the Colorado Democratic Party, which reported it transferred its funds to the DNC on December 7.
Id. The DNC nevertheless reported receiving transfers from all those committees (including Colorado) on December 2, 2015, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $799,400 was transferred from HVF, through 26 state party committees, to the DNC on or about December 1, 2015. The fact the DNC reported receiving all 26 transfers on the same date of December 2, 2015, despite the fact state party committees reported making the transfers at different times (including December 7) makes it reasonably possible HVF never actually transferred funds to these or any other state parties on or about December 1, 2015, but rather transferred those funds directly to the DNC. It is also reasonably possible some or all of these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
62. December 2015—HVF reported transferring a total of $799,400 to 26 of its member state party committees on December 1, 2015.
See Exhibit 1, Rows 38-63. The amount of each individual transfer was between $14,600 and $66,200.
Id. Each of those 26 state party committees reported receiving a transfer from HVF that same day or the next day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those 26 state party committees also reported transferring precisely the same amount of funds to the DNC on either December 1 or 2, 2015—except for the Colorado Democratic Party, which reported it transferred its funds to the DNC on December 7.
Id. The DNC nevertheless reported receiving transfers from all those committees (including Colorado) on December 2, 2015, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $799,400 was transferred from HVF, through 26 state party committees, to the DNC on or about December 1, 2015. The fact the DNC reported receiving all 26 transfers on the same date of December 2, 2015, despite the fact state party committees reported making the transfers at different times (including December 7) makes it reasonably possible HVF never actually transferred funds to these or any other state parties on or about December 1, 2015, but rather transferred those funds directly to the DNC. It is also reasonably possible some or all of these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
63. HVF reported transferring a total of $83,600 to two of its other member state party committees, also on December 1, 2015, including $63,000 to the Democratic Party of Arkansas and $20,600 to the Massachusetts Democratic State Committee.
See Exhibit 1, Rows 65-66. Both of those entities reported receiving transfers from the HVF for the same amount of funds either the same day or the next day.
Id. Neither of those entities reported transferring funds to the DNC on or about that day.
Id. Nevertheless, the DNC reported receiving $63,000 from the Democratic Party of Arkansas and $20,600 from the Massachusetts Democratic State Committee on December 2, 2015. Through these transactions, a total of $83,600 was transferred from HVF, purportedly through two additional state party committees, to the DNC on or about December 2, 2015. It is reasonably possible HVF never actually transferred funds to these or any other state parties on or about December 2, 2015, but rather transferred those funds directly to the DNC. It is also reasonably possible these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
64. January 2016 —HVF reported transferring a total of $1,527,278.19 to 16 of its member state party committees on January 4, 2016.
See Exhibit 1, Rows 68-83. The amount of each individual transfer was between $70,000 and $207,278.19.
Id. Each of those 16 state party committees reported receiving a transfer from HVF that same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those 16 state party committees also reported transferring precisely the same amount of funds to the DNC on the same day (except for the Wisconsin Democratic Party, which reported transferring $207,000 rather than $207,278.18).
Id. The DNC reported receiving transfers from all those committees, including $207,000 from the Wisconsin Democratic Party, on the same day (January 4, 2016), with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $1,527,000 was transferred from HVF, through 16 state party committees, to the DNC on January 4, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
5. HVF reported transferring $73,000 to the Kentucky State Democratic Central Executive Committee, also on January 4, 2016.
See Exhibit 1, Row 85. The Kentucky State Democratic Central Executive Committee did not report receiving any funds from HVF on or about this date.
Id. It nevertheless reported transferring $73,000 to the DNC that day, and the DNC reported receiving $73,000 from the Kentucky State Democratic Central Executive Committee that same day.
Id. Through these transactions, a total of $73,000 was transferred from HVF, purportedly through the Kentucky State Democratic Central Executive Committee, to the DNC on January 4, 2016. It is reasonably possible HVF never actually transferred funds to the Kentucky State Democratic Central Executive Committee or any other state parties on or about January 4, 2016, but rather transferred those funds directly to the DNC, and/or the Kentucky State Democratic Central Executive Committee had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
66. April 2016 —HVF reported transferring a total of $707,000 to four of its member state party committees on April 25, 2016.
See Exhibit 1, Rows 87-90. The amount of each individual transfer was between $176,000 and $179,000.
Id. Each of those four state party committees reported receiving a transfer from HVF that same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those four state party committees also reported transferring precisely the same amount of funds to the DNC on the same day.
Id. The DNC reported receiving transfers from all those committees on the same day (April 25, 2016), with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $707,000 was transferred from HVF, through four state party committees, to the DNC on April 25, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
67. May 2016 —HVF reported transferring a total of $900,000 to four of its member state party committees on May 12, 2016.
See Exhibit 1, Rows 92-95. The amount of each individual transfer was between $150,000 and $300,000.
Id. Each of those four state party committees reported receiving a transfer from HVF, corresponding to the amount of funds HVF had reported transferring to it.
Id. Oddly, even though HVF claims it transferred the funds to each committee on May 12, the Democratic State Central Committee of Louisiana claims it received its $300,000 on May 6; the Georgia Federal Election Committee claims it received its $150,000 on May 11; and the Oklahoma Democratic Party likewise claims it received its $300,000 on May 11. Each of these four state party committees also reported transferring precisely the same amounts of funds they reported having received to the DNC on dates ranging from May 6 through May 12.
Id. The DNC nevertheless reported receiving transfers from all those committees on the same day, May 12, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $900,000 was transferred from HVF, through four state party committees, to the DNC on May 12, 2016. It is reasonably possible HVF never actually transferred funds to these four state party committees on or about May 12, 2016, but rather transferred those funds directly to the DNC, and/or these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
68. HVF reported transferring $100,000 to the Idaho State Democratic Party, also on May 12, 2016.
See Exhibit 1, Row 97. The Idaho State Democratic Party did not report receiving any funds from HVF on or about this date.
Id. It also did not report transferring any funds to the DNC on or about that date.
Id. Nevertheless, the DNC reported receiving a transfer of $100,000
from the Idaho State Democratic Party on May 12, 2016.
Id. Through these transactions, a total of $100,000 was transferred from HVF, purportedly through the Idaho State Democratic Party, to the DNC on May 12, 2016. It is reasonably possible HVF never actually transferred funds to the Idaho State Democratic Party or any other state parties on or about May 12, 2016, but rather transferred those funds directly to the DNC. It is also reasonably possible the Idaho State Democratic Party had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
from the Idaho State Democratic Party on May 12, 2016.
Id. Through these transactions, a total of $100,000 was transferred from HVF, purportedly through the Idaho State Democratic Party, to the DNC on May 12, 2016. It is reasonably possible HVF never actually transferred funds to the Idaho State Democratic Party or any other state parties on or about May 12, 2016, but rather transferred those funds directly to the DNC. It is also reasonably possible the Idaho State Democratic Party had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
69. Early July 2016 —HVF reported transferring a total of $5,000,000 to 8 of its member state party committees on July 13, 2016.
See Exhibit 1, Rows 99-106. The amount of each individual transfer was between $600,000 and $740,000.
Id. Each of those eight state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these eight state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, July 13, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $5,000,000 was transferred from HVF, through 8 state party committees, to the DNC on July 13, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
70. Late July 2016 —HVF reported transferring a total of $5,438,000 to 13 of its member state party committees on July 26, 2016.
See Exhibit 1, Rows 108-120. The amount of each individual transfer was between $150,000 and $800,000.
Id. Each of those 13 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 13 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, July 26, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $5,438,000 was transferred from HVF, through 13 state party committees, to the DNC on July 26, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
71. Early August 2016 —HVF reported transferring a total of $4,795,000 to 17 of its member state party committees on August 11, 2016.
See Exhibit 1, Rows 122-138. The amount of each individual transfer was between $100,000 and $875,000.
Id. Each of those 17 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 17 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, August 11, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $4,795,000 was transferred from HVF, through 17 state party committees, to the DNC on August 11, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
72. HVF also reported transferring $700,000 to the Democratic Party of Arkansas on August 13, 2016.
See Exhibit 1, Row 140. The Democratic Party of Arkansas reported receiving those funds on August 11, 2016, however.
Id. It also reported transferring $700,000 to the DNC on August 11, 2016, and the DNC reported receiving those funds the same day.
Id. Through these transactions, a total of $700,000 was transferred from HVF, purportedly through the Democratic Party of Arkansas, to the DNC on August 13, 2016. It is reasonably possible HVF never actually transferred funds to the Democratic Party of Arkansas or any other state parties on or about August 11 or 13, 2016, but rather transferred those funds directly to the DNC, and/or the Democratic Party or Arkansas had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
73. Late August 2016 —HVF reported transferring a total of $5,500,000 to 16 of its member state party committees on August 26, 2016.
See Exhibit 1, Rows 142-157. The amount of each individual transfer was between $300,000 and $600,000.
Id. Each of those 16 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 16 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, August 26, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $5,500,000 was transferred from HVF, through 16 state party committees, to the DNC on August 26, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
74. Early September 2016 —HVF reported transferring a total of $3,200,000 to 8 of its member state party committees on September 12, 2016.
See Exhibit 1, Rows 159-166. The amount of each individual transfer was between $300,000 and $700,000.
Id. Each of those 8 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 8 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, September 12, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $3,200,000 was transferred from HVF, through 8 state party committees, to the DNC on September 12, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
75. HVF reported transferring $350,000 to the WV State Democratic Executive Committee, also on September 12, 2016.
See Exhibit 1, Row 168. The WV State Democratic Executive Committee did not report receiving any funds from HVF on or about this date.
Id. It also did not report transferring any funds to the DNC on or about that date.
Id. Nevertheless, the DNC reported receiving a transfer of $350,000 from the WV State Democratic Executive Committee on September 12, 2016.
Id. Through this transaction, $350,000 was transferred from HVF, purportedly through the WV State Democratic Executive Committee, to the DNC on September 12, 2016. It is reasonably possible HVF never actually transferred funds to the WV State Democratic Executive Committee or any other state parties on or about September 12, 2016, but rather transferred those funds directly to the DNC, and/or the WV State Democratic Executive Committee had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
76. Late September 2016 —HVF reported transferring a total of $2,850,000 to 7 of its member state party committees on September 26, 2016.
See Exhibit 1, Rows 170-176. The amount of each individual transfer was between $300,000 and $1,000,000.
Id. Each of those 7 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 7 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, September 26, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $2,850,000 was transferred from HVF, through 7 state party committees, to the DNC on September 26, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers/.
The case is 101 pages and I stopped at page 40 but you get the idea.
https://www.scribd.com/document/377270716/Clinton-84-million-FEC-laundering-complaint
Filed 04/16/18 Page 1 of 101
BEFORE THE FEDERAL ELECTION COMMISSION
COMMITTEE TO DEFEND THE PRESIDENT
203 S. Union Street, Suite 300
Alexandria, VA 22314
Complainant
v. HILLARY VICTORY FUND
FEC ID Number C00586537
P.O. Box 5256 ) New York, NY 10185-5256
Elizabeth Jones, Treasurer,
ELIZABETH JONES, in her official capacity as Treasurer of Hillary Victory Fund P.O. Box 5256 New York, NY 10185-5256
HILLARY FOR AMERICA
FEC ID Number C00575795
P.O. Box 5256 New York, NY 10185-5256
Jose H. Villareal, Treasurer,
HILLARY RODHAM CLINTON in her official capacity as a Candidate for President of the United States
FEC ID Number P00003392
P.O. Box 5256
New York, NY 10185-5256
DNC SERVICES CORPORATION
DEMOCRATIC NATIONAL COMMITTEE
FEC ID Number C00010603
430 South Capitol Street SE
Washington, D.C., 20003
William Q. Derrough, Treasurer, WILLIAM Q. DERROUGH, in his official ) capacity as Treasurer of DNC Services Corporation / Democratic National Committee
399 Park Ave., 5th Floor New York, NY 10022
Case 1:18-cv-00888-RDM Document 1-1 Filed 04/16/18 Page 2 of 101
ALASKA DEMOCRATIC PARTY
FEC ID: C00191247
2602 Fairbanks St.
Anchorage, AK 99503
Carolyn Covington, Treasurer
DEMOCRATIC PARTY OF ARKANSAS
FEC ID number C00024372
1300 West Capitol Ave
Little Rock, AR 72201 Dawne Vandiver, Treasurer
COLORADO DEMOCRATIC PARTY
FEC ID number C00161786
789 Sherman Street, Suite 110
Denver, CO 80203 ) Rita Simas, Treasurer
DEMOCRATIC STATE COMMITTEE (DELAWARE)
FEC ID number C00211763
P.O. Box 2065 ) Wilmington, DE 19899
Helene Keeley, Treasurer
DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA
FEC ID number C00005561
214 South Bronough Street
Tallahassee, FL 32301
Francesca Menes, Treasurer
GEORGIA FEDERAL ELECTIONS COMMITTEE
FEC ID number C00041269 ) PO Box 89202
Atlanta, GA 30312
Kip Carr, Treasurer
IDAHO STATE DEMOCRATIC PARTY
FEC ID number C00010439
P.O. Box 445
Boise, ID 83701
A.J. Balukoff, Treasurer
Page 3
INDIANA DEMOCRATIC CONGRESSIONAL VICTORY COMMITTEE
FED ID number C00108613
115 W Washington St
Ste 1165 ) Indianapolis, IN 46204
Henry Fernandez, Treasurer
IOWA DEMOCRATIC PARTY
FEC ID number C00035600
5661 Fleur Drive
Des Moines, IA 50321
Ken Sagar, Treasurer
KANSAS DEMOCRATIC PARTY
FEC ID number C00019380
P.O. Box 1914 ) Topeka, KS 66601
Bill Hutton, Treasurer
KENTUCKY STATE DEMOCRATIC EXECUTIVE COMMITTEE
FEC ID number C00011197
PO Box 694
Frankfort, KY 40602
M. Melinda Karns, Treasurer
DEMOCRATIC STATE CENTRAL COMMITTEE OF LA
FEC ID number C00071365
PO Box 4385
Baton Rouge, LA 70821
Sean Bruno, Treasurer
MAINE DEMOCRATIC PARTY
FEC ID number C00179408
PO Box 5258
320 Water St 3rd Floor
Augusta, ME 04330-5258
Betty Johnson, Treasurer
Page 4
MASSACHUSETTS DEMOCRATIC STATE COMMITTEE EDERAL FUND
FEC ID number C00089243
11 Beacon Street, Suite 410
Boston, MA 02108
Paul G Yorkis, Treasurer
MICHIGAN DEMOCRATIC STATE CENTRAL COMMITTEE
FEC ID number C00031054
606 Townsend St.
Lansing, MI 48933
Sandy O’Brien, Treasurer
MINNESOTA DEMOCRATIC-FARMER- LABOR PARTY
FEC ID number C00025254
255 Plato Blvd E
St Paul, MN 55107
Tyler Moroles, Treasurer
MISSISSIPPI DEMOCRATIC PARTY PAC
FEC ID number C00149641
P.O. Box 1583
Jackson, MS 39215
Ryan Brown, Treasurer
MISSOURI DEMOCRATIC STATE COMMITTEE
FEC ID number C00135558
300 St James St Suite 104
Columbia, MO 65201
Lauren Arthur, Treasurer
MONTANA DEMOCRATIC PARTY
FEC ID number C00010033
P.O. Box 802
Helena, MT 59624
Sandi Luckey, Treasurer
NEVADA STATE DEMOCRATIC PARTY
FEC ID number C00208991
409 Horn Street
Las Vegas, NV 89107
Jan Churchill, Treasurer
Page 5
NEW HAMPSHIRE DEMOCRATIC PARTY
FEC ID number C00178038
105 N. State Street
Concord, NH 03301
Brian Rapp, Treasurer
NEW JERSEY DEMOCRATIC STATE COMMITTEE
FEC ID number C00104471
196 West State Street
Trenton, NJ 08608
Kelly Stewart Maer, Treasurer
DEMOCRATIC PARTY OF NEW MEXICO
FEC ID number C00161810
322 Adams St SE
Albuquerque, NM 87108
Robert Lara, Treasurer
NORTH CAROLINA DEMOCRATIC PARTY – FEDERAL
FEC ID number C00165688
220 Hillsborough Street
Raleigh, NC 27603
Anna Tilghman, Treasurer
OHIO DEMOCRATIC PARTY
FEC ID number C00016899
340 East Fulton Street
Columbus, OH 43215
Fran Alberty, Treasurer
OKLAHOMA DEMOCRATIC PARTY
FEC ID number C00190934
3700 N Classen, Suite 100
Oklahoma City, OK 73118
Rachael Hunsucker, Treasurer
DEMOCRATIC PARTY OF OREGON
FEC ID number C00188367
232 NE 9th Ave.
Portland, OR 97232
Eddy Morales, Treasurer
Page 6
PENNSYLVANIA DEMOCRATIC PARTY
FEC ID number C00167130
229 State St.
Harrisburg, PA 17101
John A. Hanna, Treasurer
RHODE ISLAND DEMOCRATIC STATE COMMITTEE
FEC ID number C00136200
P.O. Box 6004
Providence, RI 02940
Jeffrey Padwa, Treasurer
DEMOCRATIC PARTY OF SOUTH CAROLINA
FEC ID number C00007658
P.O. Box 5965
Columbia, SC 29250
Kathryn Hensley, Treasurer
SOUTH DAKOTA DEMOCRATIC PARTY FEDERAL
FEC ID number C00160937
P.O. Box 1485 ) Sioux Falls, SD 57101
Bill Nibbelink, Treasurer
TENNESSEE DEMOCRATIC PARTY
FEC ID number C00167346
1900 Church St., Suite 203
Nashville, TN 37203
Dr. Geeta McMillan, Treasurer
TEXAS DEMOCRATIC PARTY
FEC ID number C00099267
1106 Lavaca, Suite 100
Austin, TX 78701
Gilberto Hinojosa, Treasurer
UTAH STATE DEMOCRATIC COMMITTEE
FEC ID number C00105973
825 N 300 W
Suite C400 Salt Lake City, UT 84103
Peter Corroon, Treasurer
Page 7
DEMOCRATIC PARTY OF VIRGINIA
FEC ID number C00155952
919 East Main Street, Suite 2050
Richmond, VA 23219
Barbara Klear, Treasurer
WV STATE DEMOCRATIC EXECUTIVE COMMITTEE
FEC ID number C00162578
P.O. Box 11926
Charleston, WV 25339
Jerry Brookover, Treasurer
DEMOCRATIC PARTY OF WISCONSIN
FEC ID number C00019331
15 N. Pinckney St., Suite 200
Madison, WI 53703
Randy A. Udell, Treasurer
WY DEMOCRATIC STATE CENTRAL COMMITTEE
FEC ID number C00001917
P.O. Box 1972
Cheyenne, WY 82003
Chris Russell, Treasurer
And
UNNAMED CO-CONSPIRATOR
CONTRIBUTORS TO HILLARY VICTORY FUND
Respondents
Introduction
This Complaint alleges an unprecedented, massive, nationwide multi-million dollar conspiracy among the Democratic National Committee (“DNC”); Democratic presidential candidate Hillary Rodham Clinton’s joint fundraising committee (“JFC”), Hillary Victory Fund (“HVF”); Clinton’s presidential candidate committee, Hillary for America (“HFA”), 40 Democratic state parties, and an undetermined number of individual “super donors” to circumvent federal contribution limits and earmarking restrictions by effectively laundering nearly all contributions received by HVF through the state parties to the DNC, which contributed much of those funds to HFA, made coordinated expenditures with HFA, and otherwise granted control of those funds to HFA resulting in a
de facto unlawful contribution. As explained below, this scheme allowed the DNC to receive tens of millions of dollars in contributions far exceeding federal limits.
Based on publicly available FEC records, repeatedly throughout the 2016 presidential campaign, HVF would purportedly transfer funds to its constituent political committees, which included between 34 and 40 state parties. On the very same day each of these transfers supposedly occurred, or occasionally the very next day, every single one of those state parties purportedly contributed all of those funds entirely to the DNC.
The uniformity, regularity, magnitude, immediacy, and extent of these reported transfers—every single state party transferring every single disbursement it received from HVF, in its entirety, exclusively to the DNC, immediately upon receipt—inexorably leads to the compelling inference, supported by public statements, HVF’s members had an understanding or agreement to automatically funnel funds they received through HVF to the DNC. The DNC, in turn, contributed most of those funds to HFA, made coordinated expenditures with HFA and otherwise transferred control of its money to HFA, as both the DNC’s own public filings and former DNC Chairwoman Donna Brazile’s public confessions make clear.
In McCutcheon v. FEC, 134 S. Ct. 1434, 1455 (2014), the Supreme Court itself recognized this precise arrangement would flatly violate federal earmarking restrictions, 52 U.S.C. § 30116(a)(8); 11 C.F.R. § 110.6, though the Court dismissed the possibility of such a flagrantly illegal scheme as “unlikely” to occur. Not even the Supreme Court could anticipate the extent to which the Democratic Party and its elite, wealthy donor class would commit willful felonies in a futile attempt to facilitate Clinton’s election.
Because funds state parties received through HVF were apparently “earmarked” to be immediately transferred to the DNC, each contribution to HVF qualifies as a contribution from the original source of the funds to the DNC itself, 11 C.F.R. § 110.6(a), (d)(2), causing most such contributions to grossly exceed federal limits of $33,400 per person. 52 U.S.C. § 30116(a)(1)(B); FEC,
Price Index Adjustments for Contribution and Expenditure Limitations and Lobbyist Bundling Disclosure Threshold, 80 FED.REG. 5,750, 5,752 (Feb. 3, 2015).
Additionally, no contribution to HVF was properly reported to the FEC as a contribution entirely to the DNC. Any contributor to HVF who was expressly or implicitly assured contributions to HVF would be transferred to the DNC, or otherwise used for the benefit and at the direction of Clinton’s presidential campaign, would have been willful participants in the conspiracy to violate federal contribution limits, reporting requirements, and earmarking restrictions, and may be deemed unnamed co-conspirators.
On information and belief, it also reasonably appears state parties may have attempted to conceal their conspiracy by fabricating and erroneously reporting pass-through transactions. Even assuming the co-conspirators were wiring their funds across the nation, it appears extraordinarily unlikely that, on hundreds of occasions collectively involving tens of millions of dollars, HVF would have been able to transfer funds to 34-40 different state parties, each of those state parties would have received those funds and immediately transferred them to the DNC, and the DNC would have received those funds, all on the same day.
Based on the eerily precise timing of these hundreds of transactions involving dozens of entities over more than a year—and the telling absence of a few such entries—it appears far more plausible HVF did not actually transfer contributions it received to state parties, which in turn contributed them to the DNC (as the FEC filings of both the state parties themselves and the DNC contend occurred). Instead, it appears HVF may have transferred contributions it received directly to the DNC, and the entities involved falsely reported intermediate transfers that never occurred.
Even if the transfers did occur as reported, however, the virtually unbroken pattern demonstrates state parties were being used as intermediate pass-through entities to funnel over 80 million dollars in contributions HVF received to the DNC, in violation of federal contribution limits, earmarking restrictions, and reporting requirements.
Likewise, assuming such transfers did occur, then at the very least many of the Respondent state parties transferred millions of dollars over dozens of transactions without properly reporting them. On numerous occasions, state parties reported receiving transfers from HVF, and the DNC reported receiving transfers from those state parties, but the state parties never reported contributing or transferring those funds to the DNC. At the very least, Democratic state parties throughout the nation failed to provide public transparency of their byzantine and intentionally convoluted financial transactions.
An FEC investigation is likely to confirm, however, the existence of an unprecedented scheme, staggering in scale, to solicit and accept tens of millions of dollars in earmarked contributions and launder them through dozens of state parties to the DNC to be used for the benefit, and subject to the control, of Hillary Clinton’s presidential campaign, resulting in vastly excessive contributions to the DNC and HFA.
PARTIES
1. Complainant COMMITTEE TO DEFEND THE PRESIDENT is a non-connected hybrid political committee registered with the Federal Election Commission (“FEC”).
Page 10 of 101
2. Respondent HILLARY VICTORY FUND (“HVF”) is a federal joint fundraising committee (“JFC”) registered with the FEC and an authorized committee of Respondent HILLARY RODHAM CLINTON. Its Treasurer is Respondent ELIZABETH JONES.
a. On September 16, 2015, HVF filed an amended Statement of Organization with the FEC disclosing it collects contributions, pays fundraising expenses, and disburses net proceeds for 35 political committees, including HILLARY FOR AMERICA, DNC, ALASKA DEMOCRATIC PARTY, DEMOCRATIC PARTY OF ARKANSAS, COLORADO DEMOCRATIC PARTY, DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA, GEORGIA FEDERAL ELECTION COMMITTEE, IDAHO STATE DEMOCRATIC PARTY, INDIANA DEMOCRATIC CONGRESSIONAL VICTORY COMMITTEE, KENTUCKY STATE DEMOCRATIC CENTRAL EXECUTIVE COMMITTEE, DEMOCRATIC STATE CENTRAL COMMITTEE OF LA, MAINE DEMOCRATIC STATE COMMITTEE, MASSACHUSETTS DEMOCRATIC STATE COMMITTEE – FED FUND, MICHIGAN DEMOCRATIC STATE CENTRAL COMMITTEE, MINNESOTA DEMOCRATIC-FARMER-LABOR PARTY, MISSISSIPPI DEMOCRATIC PARTY PAC, MISSOURI DEMOCRATIC STATE COMMITTEE, MONTANA DEMOCRATIC PARTY, NEVADA STATE DEMOCRATIC PARTY, NEW HAMPSHIRE DEMOCRATIC PARTY, NORTH CAROLINA DEMOCRATIC PARTY – FEDERAL, OHIO DEMOCRATIC PARTY, OKLAHOMA DEMOCRATIC PARTY, DEMOCRATIC PARTY OF OREGON, PENNSYLVANIA DEMOCRATIC PARTY, Democratic Party of the Commonwealth of Puerto Rico [which is not a Respondent in this matter], RHODE ISLAND DEMOCRATIC STATE COMMITTEE, DEMOCRATIC PARTY OF SOUTH CAROLINA, TENNESSEE DEMOCRATIC PARTY, TEXAS DEMOCRATIC PARTY, UTAH STATE DEMOCRATIC COMMITTEE DEMOCRATIC PARTY OF VIRGINIA, WV STATE DEMOCRATIC EXECUTIVE COMMITTEE, DEMOCRATIC PARTY OF WISCONSIN, and WY DEMOCRATIC STATE CENTRAL COMMITTEE.
b. On November 2, 2015, HVF filed a second amended Statement of Organization with the FEC disclosing it collects contributions, pays fundraising expenses, and disburses net proceeds for only 34 political committees. The Democratic Party of the Commonwealth of Puerto Rico was no longer a member.
c. On July 1, 2016, HVF filed a third amended Statement of Organization with the FEC disclosing it collects contributions, pays fundraising expenses, and disburses net proceeds for 40 political committees. In addition to the committees identified in Paragraph 3(a)—with the exception of the Democratic Party of the Commonwealth of Puerto Rico—HVF’s constituent members also included SOUTH DAKOTA DEMOCRATIC PARTY – FEDERAL, DEMOCRATIC STATE COMMITTEE (DELAWARE), IOWA DEMOCRATIC PARTY, KANSAS DEMOCRATIC PARTY, NEW JERSEY DEMOCRATIC STATE COMMITTEE, and DEMOCRATIC PARTY OF NEW MEXICO.
3. Respondent ELIZABETH JONES is Treasurer for Respondent HVF. This Complaint is brought against her in her official capacity as HVF’s Treasurer.
4. Respondent HILLARY FOR AMERICA (“HFA”) is a presidential candidate campaign committee registered with the FEC for 2016 Democratic nominee for President, Respondent HILLARY RODHAM CLINTON. Its Treasurer is Jose H. Villareal.
5. Respondent HILLARY RODHAM CLINTON was the 2016 Democratic nominee for President. HFA was her authorized principal candidate committee and HVF was also an authorized committee of the candidate. This Complaint is brought against Clinton in her capacity as a candidate.
6. Respondent DNC SERVICES CORPORATION / DEMOCRATIC NATIONAL COMMITTEE (“DNC”) is a national political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Respondent WILLIAM Q. DERROUGH.
7. Respondent WILLIAM Q. DERROUGH is Treasurer of Respondent DNC. This Complaint is brought against him in his official capacity as the DNC’s Treasurer.
8. Respondent ALASKA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Carolyn Covington.
9. Respondent DEMOCRATIC PARTY OF ARKANSAS is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Dawne Vandiver.
10. Respondent COLORADO DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Rita Simas.
11. Respondent DEMOCRATIC STATE COMMITTEE (DELAWARE) is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Helene Keeley.
12. Respondent DEMOCRATIC EXECUTIVE COMMITTEE OF FLORIDA is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Francesca Menes.
13. Respondent GEORGIA FEDERAL ELECTIONS COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Kip Carr.
14. Respondent IDAHO STATE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is A.J. Balukoff.
15. Respondent INDIANA DEMOCRATIC CONGRESSIONAL VICTORY COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Henry Fernandez.
16. Respondent IOWA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Ken Sager.
17. Respondent KANSAS DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Bill Hutton.
18. Respondent KENTUCKY STATE DEMOCRATIC EXECUTIVE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is M. Melinda Karns.
19. Respondent DEMOCRATIC STATE CENTRAL COMMITTEE OF LA is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Sean Bruno.
20. Respondent MAINE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Betty Johnson.
21. Respondent MASSCHUSETTS DEMOCRATIC STATE COMMITTEE – FEDERAL FUND is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Paul G. Yorkis.
22. Respondent MICHIGAN DEMOCRATIC STATE CENTRAL COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Sandy O’Brien.
23. Respondent MINNESOTA DEMOCRATIC-FARMER-LABOR PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Tyler Moroles.
24. Respondent MISSISSIPPI DEMOCRATIC PARTY PAC is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Ryan Brown.
25. Respondent MISSOURI DEMOCRATIC STATE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Lauren Arthur.
26. Respondent MONTANA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Sandi Luckey.
27. Respondent NEVADA STATE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Jan Churchill.
28. Respondent NEW HAMPSHIRE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Brian Rapp.
29. Respondent NEW JERSEY DEMOCRATIC STATE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Kelly Stewart Maer.
30. Respondent DEMOCRATIC PARTY OF NEW MEXICO is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Robert Lara.
31. Respondent NORTH CAROLINA DEMOCRATIC PARTY – FEDERAL is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Anna Tilghman.
32. Respondent OHIO DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Fran Alberty.
33. Respondent OKLAHOMA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Rachael Hunsucker.
34. Respondent DEMOCRATIC PARTY OF OREGON is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Eddy Morales.
35. Respondent PENNSYLVANIA DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is John A. Hanna.
36. Respondent RHODE ISLAND DEMOCRATIC STATE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Jeffrey Padwa.
37. Respondent DEMOCRATIC PARTY OF SOUTH CAROLINA is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Kathryn Hensley.
38. Respondent SOUTH DAKOTA DEMOCRATIC PARTY – FEDERAL is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Bill Nibbelink.
39. Respondent TENNESSEE DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Geeta McMillan.
40. Respondent TEXAS DEMOCRATIC PARTY is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Gilberto Hinojosa.
41. Respondent UTAH STATE DEMOCRATIC COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Peter Corroon.
42. Respondent DEMOCRATIC PARTY OF VIRGINIA is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Barbara Klear.
43. Respondent WV STATE DEMOCRATIC EXECUTIVE COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Jerry Brookover.
44. Respondent DEMOCRATIC PARTY OF WISCONSIN is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Randy A. Udell.
45. Respondent WV DEMOCRATIC STATE CENTRAL COMMITTEE is a state political party committee affiliated with the Democratic Party and registered with the FEC. Its Treasurer is Chris Russell.
RELEVANT CAMPAIGN FINANCE LAWS
46. Contribution Limits—52 U.S.C. § 30116(a)(1)(B), as adjusted for inflation by 80 FED. REG. at 5,752, permitted a person to contribute no more than $33,400 per year to a national political party committee’s principal account during the 2015-16 election cycle.
47. Reporting Requirements—52 U.S.C. § 30104(a)(4) requires “[a]ll political committees other than authorized committees of a candidate” to file periodic reports with the FEC.
a. Section 30104(b)(2)(C), (F) specify such reports must disclose the total amount of “contributions from other political committees” and “transfers from affiliated committees and, where the reporting committees is a political party committee, transfers from other political party committees, regardless of whether such committees are affiliated.”
b. Section 30104(b)(3)(B), (D) specify such reports for political party committees must disclose each transfer of funds from another political committee.
c. Section 30104(b)(4)(C) specifies such reports for political party committees must disclose “transfers to other political party committees, regardless of whether they are affiliated.”
d. Section 30104(b)(5)(C) specifies such reports for political party committees must disclose “each transfer of funds . . . to another political party committee, regardless of whether such committees are affiliated, together with the date and amount of such transfers.”
e. Section 30104(b)(6)(B)(i) specifies such reports for non-authorized committees must disclose the “date and amount” of any contribution to a political committee.
48. Earmarking Prohibitions—52 U.S.C. § 30116(a)(8) provides, “[A]ll contributions made by a person, either directly or indirectly, on behalf of a particular candidate, including contributions which are in any way earmarked or otherwise directed through an intermediary or conduit to such candidate, shall be treated as contributions from such person to such candidate. The intermediary or conduit shall report the original source and the intended recipient of such contribution to the Commission and to the intended recipient.”
Accord 11 C.F.R. § 110.6(a), (c)(1)(i).
49. Prohibition on Contributions in the Name of Another—52 U.S.C. § 30122 provides, “No person shall make a contribution in the name of another person or knowingly permit his name to be used to effect such a contribution, and no person shall knowingly accept a contribution made by one person in the name of another person."
ACCORDING TO PUBLICLY AVAILABLE FEC REPORTS, CONTRIBUTIONS WERE CONSISTENTLY FUNNELED FROM THE HILLARY VICTORY FUND THROUGH STATE PARTIES TO THE DNC
50. According to reports filed with the FEC by HVF, the DNC, and dozens of Democratic state parties, for more than a year, over 80 million dollars in contributions to HVF 20 were funneled through state parties to the DNC, which made coordinated expenditures with the Clinton campaign and was controlled by it.
51. According to reports filed with the FEC, in each series of transactions, HVF disbursed contributions it received to its state party committee members (as required for JFCs) and those state parties received the funds the same day. HVF would disburse funds to up to 40 state parties at a time. That same day, or on occasion the very next day, each and every one of those state parties immediately contributed all of the funds to the DNC.
52. It appears virtually every single disbursement from HVF to a state party resulted in an immediate transfer of the same amount of funds from the state party to the DNC. Over 99% of funds transferred through HVF to state parties wound up at the DNC (which, as explained below, made coordinated expenditures with HFA and otherwise spent its funds subject to the oversight, direction, and control of HFA).
53. The uniformity, regularity, magnitude, immediacy, and extent of these reported transfers—every single state party transferring every single disbursement it received from HVF, in its entirety, exclusively to the DNC, immediately upon receipt—unavoidably implies HVF’s members had an understanding or agreement they would automatically funnel funds they received through HVF to the DNC.
54. Exhibit 1 to this Complaint is an Excel spreadsheet derived exclusively from publicly available FEC reports filed by Respondents. Each row reflects a separate occasion on which contributions to HVF flowed through state parties directly to the DNC, usually on the same day and no later than the next day. Each row contains citations to the specific FEC reports documenting each step of each purported transaction.
55. As discussed at greater length below, several of these alleged transactions were reported incompletely. HVF reported transferring funds to a state party, but that party never reported receiving them and/or contributing them to the DNC. The DNC nevertheless reported receiving the same amount of funds from that state party on the same day. At a minimum, millions of dollars in financial transactions among these Democratic political committees were omitted from statutorily required public reports, thereby hindering public scrutiny.
56. It defies credulity to believe that, on hundreds of occasions, dozens of state parties around the country all independently received tens or hundreds of thousands of dollars from HVF, immediately decided to transfer all of those funds to the DNC, and successfully executed those transactions all on the same day.
On information and belief, it is also reasonably possible the alleged transfers of HVF’s funds to state parties never actually occurred, and all of the funds at issue were actually transferred directly from HVF to the DNC, rendering all FEC reports concerning these alleged transactions fraudulent. In the alternative, public statements indicate the JFC and/or HFA may have moved some funds in and out of participants’ accounts without the state parties’ knowledge or permission, thus never actually devolving custody or control of the funds to the state parties. Kenneth P. Vogel & Isaac Arnsdorf, Clinton Fundraising Leaves Little for State Parties, POLITICO
(May 2, 2016, 5:21 A.M.) (“While state party officials were made aware that Clinton's campaign would control the movement of the funds between participating committees, one operative who has relationships with multiple state parties said that some of their officials have complained that they weren't notified of the transfers into and out of their accounts until after the fact.”), at https://www.politico.com/story/2016/04/clinton-fundraising-leaves-little-for-state-parties-222670.
If the JFC, HFA, or either of those entities’ Treasurers retained control of the JFC’s funds even after they had been transferred into the state parties’ accounts, those 22 transfers would be shell transactions attempting to camouflage the unlawful transfer of JFC-controlled funds to the DNC.
57. Each alleged transaction followed the identical structure:
a. HVF reported transferring a certain amount of funds to its state party members on a particular day. For example, as discussed below HVF reported transferring a total of $505,000 to 17 of its state party members on November 2, 2015, including $43,500 to the Alaska Democratic Party.
See Exhibit 1, Row 15 (citing FEC Report # FEC-1180810 (amended), page 1387, Transaction ID # D22506).
b. Except as otherwise noted, each of those state party members reported receiving transfers in the identical amounts of funds from HVF on the very same day. For example, the Alaska Democratic Party reported receiving $43,500 from HVF on November 2, 2015.
See Exhibit 1, Row 15 (citing FEC Report ID # FEC-1036643, page 36, Transaction ID # VR029EM5A75).
c. Except as otherwise noted, each of those state party members then reported contributing the same amount of money they received from HVF to the DNC on the very same day (or occasionally the next day). For example, the Alaska Democratic Party reported transferring $43,500 to the DNC on November 2, 2015.
See Exhibit 1, Row 15 (citing FEC Report # FEC-1036643, page 53, Transaction ID # VQZ31A45P85).
d. Finally, the DNC reported receiving the same amount of funds, generally on the same day. For example, the DNC reported receiving $43,500 from the Alaska Democratic Party on November 1 [sic], 2015.
See Exhibit 1, Row 15 (citing FEC Report # FEC-1039017 (amended), page 6204, Transaction ID # C32017336). This particular example, which suggests the DNC received the $43,500
before
it had been transferred, shows how many of the transfers in this complex scheme were inconsistently or inaccurately reported. e.
Each transfer of funds from HVF, allegedly through a state party committee, to the DNC is recorded in a separate row of Exhibit 1. The last cell in each row cites the specific FEC reports that document—or fail to document—each step of the transaction. For example, Row 15 of Exhibit 1 sets explains the $43,500 transfer through the Alaska Democratic Party: f. Through hundreds of transactions with this identical structure outlined in Exhibit 1, HVF funneled over 80 million dollars through state parties directly to the DNC, starting in October 2015.
58. October 2015 —HVF reported transferring a total of $216,000 to 9 of its member state party committees on October 1, 2015.
See Exhibit 1, Rows 2-10. The amount of each individual transfer was $24,000.
Id. Each of those 9 state party committees reported receiving a transfer of $24,000 from HVF that same day.
Id. Each of those 9 state party committees also reported transferring precisely the same amount of funds to the DNC on the same day or the very next day, October 2, 2015.
Id. The DNC reported receiving transfers of $24,000 from each of those committees on October 2, 2015.
Id. Through these transactions, a total of $216,000 was transferred from HVF, through 9 state party committees, to the DNC on or about October 1, 2015. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
Hillary Victory Fund11/2/2015$43,500.00
Transfer to AffliateAlaska Democratic PartyTransfer from Affliate 11/2/2015 $43,500.00 Transfer to Affliate 11/2/2015 $43,500.00DNCTransfer from Affliate 11/1/2015 $43,500.001.
Report ID: FEC-1180810 (A), Page: 1387, Transaction ID: D225062.
Report ID: FEC-1036643, Page: 36, Transaction ID: VR029EM5A753. Report ID: FEC-1036643, Page: 53, Transaction ID: VQZ31A45P854.
Report ID: FEC-1039017 (A), Page: 6204, Transaction ID: C32017336
59. HVF reported transferring a total of $48,000 to two of its other member state party committees, also on October 1, 2015, including $24,000 each to the Mississippi Democratic Party and the Utah State Democratic Committee.
See Exhibit 1, Rows 12-13. Neither of those entities reported receiving any transfers from the HVF on or about that day, however.
Id. And neither of those entities reported transferring funds to the DNC on or about that day.
Id. Nevertheless, the DNC reported receiving transfers of $24,000 each from the Mississippi Democratic Party and Utah State Democratic Committee on October 2, 2015.
Id. Through these transactions, a total of $48,000 was transferred from HVF, purportedly through two additional state party committees, to the DNC on or about October 2, 2015. It is reasonably possible HVF never actually transferred funds to these or any other state parties on or about October 2, 2015, but rather transferred those funds directly to the DNC, and/or some or all of these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
60. November 2015—HVF reported transferring a total of $505,000 to 17 of its member state party committees on November 2, 2015.
See Exhibit 1, Rows 15-31. The amount of each individual transfer was between $19,500 and $45,000.
Id. Each of those 17 state party committees reported receiving a transfer from HVF that same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those 17 state party committees also reported transferring precisely the same amount of funds to the DNC on the same day.
Id. The DNC reported receiving transfers from those committees on November 1 [sic], 2015, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $505,000 was transferred from HVF, through 17 state party committees, to the DNC on or about November 2, 2015. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
61. HVF reported transferring a total of $102,000 to four of its other member state party committees, also on November 2, 2015, including $19,500 to the Mississippi Democratic Party, $19,500 to the Democratic Party of South Carolina, $43,500 to the Tennessee Democratic Party, and $19,500 to the Utah State Democratic Party.
See Exhibit 1, Rows 33-36. None of those entities reported receiving any transfers from the HVF on or about that day, however.
Id. And none of those entities reported transferring funds to the DNC on or about that day.
Id. Nevertheless, the DNC reported receiving transfers in the same amounts of money, from those same parties, on November 1 [sic], 2015.
Id. Through these transactions, a total of $102,000 was transferred from HVF, purportedly through four additional state party committees, to the DNC on or about November 2, 2015. It is reasonably possible HVF never actually transferred funds to these or any other state parties on or about November 2, 2015, but rather transferred those funds directly to the DNC, and/or these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
62. December 2015—HVF reported transferring a total of $799,400 to 26 of its member state party committees on December 1, 2015.
See Exhibit 1, Rows 38-63. The amount of each individual transfer was between $14,600 and $66,200.
Id. Each of those 26 state party committees reported receiving a transfer from HVF that same day or the next day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those 26 state party committees also reported transferring precisely the same amount of funds to the DNC on either December 1 or 2, 2015—except for the Colorado Democratic Party, which reported it transferred its funds to the DNC on December 7.
Id. The DNC nevertheless reported receiving transfers from all those committees (including Colorado) on December 2, 2015, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $799,400 was transferred from HVF, through 26 state party committees, to the DNC on or about December 1, 2015. The fact the DNC reported receiving all 26 transfers on the same date of December 2, 2015, despite the fact state party committees reported making the transfers at different times (including December 7) makes it reasonably possible HVF never actually transferred funds to these or any other state parties on or about December 1, 2015, but rather transferred those funds directly to the DNC. It is also reasonably possible some or all of these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
62. December 2015—HVF reported transferring a total of $799,400 to 26 of its member state party committees on December 1, 2015.
See Exhibit 1, Rows 38-63. The amount of each individual transfer was between $14,600 and $66,200.
Id. Each of those 26 state party committees reported receiving a transfer from HVF that same day or the next day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those 26 state party committees also reported transferring precisely the same amount of funds to the DNC on either December 1 or 2, 2015—except for the Colorado Democratic Party, which reported it transferred its funds to the DNC on December 7.
Id. The DNC nevertheless reported receiving transfers from all those committees (including Colorado) on December 2, 2015, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $799,400 was transferred from HVF, through 26 state party committees, to the DNC on or about December 1, 2015. The fact the DNC reported receiving all 26 transfers on the same date of December 2, 2015, despite the fact state party committees reported making the transfers at different times (including December 7) makes it reasonably possible HVF never actually transferred funds to these or any other state parties on or about December 1, 2015, but rather transferred those funds directly to the DNC. It is also reasonably possible some or all of these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
63. HVF reported transferring a total of $83,600 to two of its other member state party committees, also on December 1, 2015, including $63,000 to the Democratic Party of Arkansas and $20,600 to the Massachusetts Democratic State Committee.
See Exhibit 1, Rows 65-66. Both of those entities reported receiving transfers from the HVF for the same amount of funds either the same day or the next day.
Id. Neither of those entities reported transferring funds to the DNC on or about that day.
Id. Nevertheless, the DNC reported receiving $63,000 from the Democratic Party of Arkansas and $20,600 from the Massachusetts Democratic State Committee on December 2, 2015. Through these transactions, a total of $83,600 was transferred from HVF, purportedly through two additional state party committees, to the DNC on or about December 2, 2015. It is reasonably possible HVF never actually transferred funds to these or any other state parties on or about December 2, 2015, but rather transferred those funds directly to the DNC. It is also reasonably possible these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
64. January 2016 —HVF reported transferring a total of $1,527,278.19 to 16 of its member state party committees on January 4, 2016.
See Exhibit 1, Rows 68-83. The amount of each individual transfer was between $70,000 and $207,278.19.
Id. Each of those 16 state party committees reported receiving a transfer from HVF that same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those 16 state party committees also reported transferring precisely the same amount of funds to the DNC on the same day (except for the Wisconsin Democratic Party, which reported transferring $207,000 rather than $207,278.18).
Id. The DNC reported receiving transfers from all those committees, including $207,000 from the Wisconsin Democratic Party, on the same day (January 4, 2016), with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $1,527,000 was transferred from HVF, through 16 state party committees, to the DNC on January 4, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
5. HVF reported transferring $73,000 to the Kentucky State Democratic Central Executive Committee, also on January 4, 2016.
See Exhibit 1, Row 85. The Kentucky State Democratic Central Executive Committee did not report receiving any funds from HVF on or about this date.
Id. It nevertheless reported transferring $73,000 to the DNC that day, and the DNC reported receiving $73,000 from the Kentucky State Democratic Central Executive Committee that same day.
Id. Through these transactions, a total of $73,000 was transferred from HVF, purportedly through the Kentucky State Democratic Central Executive Committee, to the DNC on January 4, 2016. It is reasonably possible HVF never actually transferred funds to the Kentucky State Democratic Central Executive Committee or any other state parties on or about January 4, 2016, but rather transferred those funds directly to the DNC, and/or the Kentucky State Democratic Central Executive Committee had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
66. April 2016 —HVF reported transferring a total of $707,000 to four of its member state party committees on April 25, 2016.
See Exhibit 1, Rows 87-90. The amount of each individual transfer was between $176,000 and $179,000.
Id. Each of those four state party committees reported receiving a transfer from HVF that same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of those four state party committees also reported transferring precisely the same amount of funds to the DNC on the same day.
Id. The DNC reported receiving transfers from all those committees on the same day (April 25, 2016), with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $707,000 was transferred from HVF, through four state party committees, to the DNC on April 25, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
67. May 2016 —HVF reported transferring a total of $900,000 to four of its member state party committees on May 12, 2016.
See Exhibit 1, Rows 92-95. The amount of each individual transfer was between $150,000 and $300,000.
Id. Each of those four state party committees reported receiving a transfer from HVF, corresponding to the amount of funds HVF had reported transferring to it.
Id. Oddly, even though HVF claims it transferred the funds to each committee on May 12, the Democratic State Central Committee of Louisiana claims it received its $300,000 on May 6; the Georgia Federal Election Committee claims it received its $150,000 on May 11; and the Oklahoma Democratic Party likewise claims it received its $300,000 on May 11. Each of these four state party committees also reported transferring precisely the same amounts of funds they reported having received to the DNC on dates ranging from May 6 through May 12.
Id. The DNC nevertheless reported receiving transfers from all those committees on the same day, May 12, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $900,000 was transferred from HVF, through four state party committees, to the DNC on May 12, 2016. It is reasonably possible HVF never actually transferred funds to these four state party committees on or about May 12, 2016, but rather transferred those funds directly to the DNC, and/or these state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
68. HVF reported transferring $100,000 to the Idaho State Democratic Party, also on May 12, 2016.
See Exhibit 1, Row 97. The Idaho State Democratic Party did not report receiving any funds from HVF on or about this date.
Id. It also did not report transferring any funds to the DNC on or about that date.
Id. Nevertheless, the DNC reported receiving a transfer of $100,000
from the Idaho State Democratic Party on May 12, 2016.
Id. Through these transactions, a total of $100,000 was transferred from HVF, purportedly through the Idaho State Democratic Party, to the DNC on May 12, 2016. It is reasonably possible HVF never actually transferred funds to the Idaho State Democratic Party or any other state parties on or about May 12, 2016, but rather transferred those funds directly to the DNC. It is also reasonably possible the Idaho State Democratic Party had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
from the Idaho State Democratic Party on May 12, 2016.
Id. Through these transactions, a total of $100,000 was transferred from HVF, purportedly through the Idaho State Democratic Party, to the DNC on May 12, 2016. It is reasonably possible HVF never actually transferred funds to the Idaho State Democratic Party or any other state parties on or about May 12, 2016, but rather transferred those funds directly to the DNC. It is also reasonably possible the Idaho State Democratic Party had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
69. Early July 2016 —HVF reported transferring a total of $5,000,000 to 8 of its member state party committees on July 13, 2016.
See Exhibit 1, Rows 99-106. The amount of each individual transfer was between $600,000 and $740,000.
Id. Each of those eight state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these eight state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, July 13, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $5,000,000 was transferred from HVF, through 8 state party committees, to the DNC on July 13, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
70. Late July 2016 —HVF reported transferring a total of $5,438,000 to 13 of its member state party committees on July 26, 2016.
See Exhibit 1, Rows 108-120. The amount of each individual transfer was between $150,000 and $800,000.
Id. Each of those 13 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 13 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, July 26, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $5,438,000 was transferred from HVF, through 13 state party committees, to the DNC on July 26, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
71. Early August 2016 —HVF reported transferring a total of $4,795,000 to 17 of its member state party committees on August 11, 2016.
See Exhibit 1, Rows 122-138. The amount of each individual transfer was between $100,000 and $875,000.
Id. Each of those 17 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 17 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, August 11, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $4,795,000 was transferred from HVF, through 17 state party committees, to the DNC on August 11, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
72. HVF also reported transferring $700,000 to the Democratic Party of Arkansas on August 13, 2016.
See Exhibit 1, Row 140. The Democratic Party of Arkansas reported receiving those funds on August 11, 2016, however.
Id. It also reported transferring $700,000 to the DNC on August 11, 2016, and the DNC reported receiving those funds the same day.
Id. Through these transactions, a total of $700,000 was transferred from HVF, purportedly through the Democratic Party of Arkansas, to the DNC on August 13, 2016. It is reasonably possible HVF never actually transferred funds to the Democratic Party of Arkansas or any other state parties on or about August 11 or 13, 2016, but rather transferred those funds directly to the DNC, and/or the Democratic Party or Arkansas had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
73. Late August 2016 —HVF reported transferring a total of $5,500,000 to 16 of its member state party committees on August 26, 2016.
See Exhibit 1, Rows 142-157. The amount of each individual transfer was between $300,000 and $600,000.
Id. Each of those 16 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 16 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, August 26, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $5,500,000 was transferred from HVF, through 16 state party committees, to the DNC on August 26, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
74. Early September 2016 —HVF reported transferring a total of $3,200,000 to 8 of its member state party committees on September 12, 2016.
See Exhibit 1, Rows 159-166. The amount of each individual transfer was between $300,000 and $700,000.
Id. Each of those 8 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 8 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, September 12, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $3,200,000 was transferred from HVF, through 8 state party committees, to the DNC on September 12, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
75. HVF reported transferring $350,000 to the WV State Democratic Executive Committee, also on September 12, 2016.
See Exhibit 1, Row 168. The WV State Democratic Executive Committee did not report receiving any funds from HVF on or about this date.
Id. It also did not report transferring any funds to the DNC on or about that date.
Id. Nevertheless, the DNC reported receiving a transfer of $350,000 from the WV State Democratic Executive Committee on September 12, 2016.
Id. Through this transaction, $350,000 was transferred from HVF, purportedly through the WV State Democratic Executive Committee, to the DNC on September 12, 2016. It is reasonably possible HVF never actually transferred funds to the WV State Democratic Executive Committee or any other state parties on or about September 12, 2016, but rather transferred those funds directly to the DNC, and/or the WV State Democratic Executive Committee had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers.
76. Late September 2016 —HVF reported transferring a total of $2,850,000 to 7 of its member state party committees on September 26, 2016.
See Exhibit 1, Rows 170-176. The amount of each individual transfer was between $300,000 and $1,000,000.
Id. Each of those 7 state party committees reported receiving a transfer from HVF on the same day, corresponding to the amount of funds HVF had reported transferring to it.
Id. Each of these 7 state party committees also reported transferring precisely the same amounts of funds they received to the DNC that same day. The DNC reported receiving transfers from all those committees on the same day, September 26, 2016, with each transfer equaling the amount of funds the state party committee had reported it was sending to the DNC.
Id. Through these transactions, a total of $2,850,000 was transferred from HVF, through 7 state party committees, to the DNC on September 26, 2016. It is reasonably possible some or all of the state parties had no prior knowledge of, or control over, these transfers because they were handled entirely by HVF, the DNC, HFA, and/or their Treasurers/.
The case is 101 pages and I stopped at page 40 but you get the idea.
https://www.scribd.com/document/377270716/Clinton-84-million-FEC-laundering-complaint
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