'Scam PACs' rake in millions under guise of charity
Source: Politico
A POLITICO investigation finds operators under scrutiny for suspicious charity practices moving into politics, where election regulators have little power over them.
By MAGGIE SEVERNS and SCOTT BLAND 05/04/2018 05:04 AM EDT
A web of new political action committees raised nearly $6 million in recent months under the guise of supporting police, veterans and cancer research. But nearly all the money has gone to their own vendors and staff, as opposed to those causes — hallmarks of so-called scam PACs.
Several of the people and entities involved in the new PACs have been investigated for alleged fraud and other illegal practices in the charity sphere. But after coming under scrutiny, they have shifted recently into the much less regulated realm of politics, a POLITICO investigation has found.
The new PACs have feel-good names like Cops and Kids Together and Americans for the Cure of Breast Cancer. They have succeeded in raising millions of dollars from small donors in a matter of months — and spent most of it just as quickly, without supporting political candidates or making a mark on a policy issue. Their activities highlight an unpleasant truth: Political groups often receive less oversight and get more leeway than charities, even though they have to disclose more details about their donations and spending. Indeed, the Federal Election Commission has said it is all but powerless to crack down on scam PACs.
“A lot of money can be collected without a lot of regulation,” said FEC Commissioner Ellen Weintraub. “It’s like when they asked Willie Sutton, ‘Why do you rob banks?’ He said, ‘Because that’s where the money is.’”
Read more: https://www.politico.com/story/2018/05/04/scam-pacs-political-action-committees-charity-investigation-568491
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