18 May 2021
A little-noticed line in a recent criminal filing suggests federal prosecutors consider a popular political fundraising tactic to be legally questionable.
Why it matters: Fundraisers often boast of "5x" or other contribution matches to coax small-dollar donations. The Justice Department indicated in a court filing Monday this could amount to "material misrepresentations" if, as critics often contend, there's no evidence the match ever occurs.
- The tactic has become more prominent in recent years.
- Both parties have used it. Donald Trump's re-election campaign and its allies at the Republican National Committee exploited it to extreme degrees last year — promising up to 900% matches. The Democratic Congressional Campaign Committee has also been a frequent fan of the tactic.
- A campaign that enlisted donors to put up five times the funds raised through one such matching offer would almost certainly be inducing those donors to exceed the federal limits on their own campaign contributions.
What's happening: DOJ's comment was just a brief aside in a Statement of Offense. It accompanied a guilty plea Monday by the operator of a number of groups that raked in small-dollar donations last year with fraudulent fundraising appeals.
- One of the groups, Keep America Great Committee, sent fundraising emails that "contained material misrepresentations including promising '5x' matching of any donation to KAGC," DOJ wrote.
- It was a throwaway line in a 12-page legal filing, but one that could have major consequences for the political fundraising industry.
What they're saying: Political compliance attorney Brett Kappel called DOJ's comments about KAGC's fundraising practices"very significant."
- "This prosecution puts fundraisers on notice that the continued use of this very popular fundraising pitch will be treated as a possible violation of the mail and wire fraud statutes," Kappel wrote.
The big picture: The KAGC case caught DOJ's eye due to widespread fraud in virtually every aspect of the group's operations.
- The scrutiny of its donation-matching claims specifically, though, suggests DOJ considers such offers problematic when donations are not actually being matched.
- All indications suggest little-to-no such matching actually takes place, even among legitimate political groups.
Between the lines: Grassroots fundraising has surged for both parties, and the incentives to woo small-dollar donors are more intense than ever.
- "In many cases, email fundraisers are reaching a point of diminishing returns and are given very high goals to hit. They're doing anything and everything to reach and beat them," said Patrick O'Keefe, director of customer success at the payment processing firm Andeot.
- O'Keefe, the former executive director of the Maryland Republican Party, said tactics can include "fake matches and sketchy pre-checked recurring asks."
- He was referring to recent scrutiny of the Trump campaign and others over efforts to subtly enlist small-dollar donors into giving multiple recurring contributions.
Transcripts show George Floyd told police "I can't breathe" over 20 times
Section2Newly released transcripts of bodycam footage from the Minneapolis Police Department show that George Floyd told officers he could not breathe more than 20 times in the moments leading up to his death.
Why it matters: Floyd's killing sparked a national wave of Black Lives Matter protests and an ongoing reckoning over systemic racism in the United States. The transcripts "offer one the most thorough and dramatic accounts" before Floyd's death, The New York Times writes.
The state of play: The transcripts were released as former officer Thomas Lane seeks to have the charges that he aided in Floyd's death thrown out in court, per the Times. He is one of four officers who have been charged.
- The filings also include a 60-page transcript of an interview with Lane. He said he "felt maybe that something was going on" when asked if he believed that Floyd was having a medical emergency at the time.
What the transcripts say:
- Floyd told the officers he was claustrophobic as they tried to get him into the squad car.
- The transcripts also show Floyd saying, "Momma, I love you. Tell my kids I love them. I'm dead."
- Former officer Derek Chauvin, who had his knee on Floyd's neck for over eight minutes, told Floyd, "Then stop talking, stop yelling, it takes a heck of a lot of oxygen to talk."
Read the transcripts via DocumentCloud.