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Obama Campaign: Pro-Hillary 527 Is Blatantly Illegal

The Obama campaign has some very strong words for the American Leadership Project, the 527 that was set up to run ads on Hillary Clinton's behalf. In a conference call with reporters today, campaign general counsel Bob Bauer asserted quite confidently that the ALP is an illegal group, set up as a "rescue operation" to circumvent campaign finance statutes and FEC regulations by raising unlimited amounts of money to run ads for Hillary.

In a move that suggests he might be trying to frighten donors away from even contributing to the effort, Bauer went so far as to say that the donors to the ALP, by helping to organize this group with contributions of as much as $100,000 each, were also going to be legally liable and subject to civil and criminal investigation by the government.

"This is not a case where there's room for argument. This is not a case where they'll be spared by some version of Philadelphia lawyering," Bauer said. "This is absolutely a cold, calculated move to violate the law for the benefit of the candidate, and to assume that any penalty will be so deferred into the future that the immediate benefits can be gained now without consequence."


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But Obama plagiarized!

The debate should be interesting tonight...

Indeed. Capt. Tool (Blitzer) will no doubt delight in asking questions that give candidates an opportunity to tweak one another.

Remember California?

Capt. Tool: "Senator Clinton, is it fair to say that you were naive in trusting President Bush?"

I hope the candidates slap Blitzer around instead of each other.

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Now that I would love to see.

I am no lawyer, but this looks like a bluff to me. I am hard pressed to believe that the contributors to this effort face any realistic likelihood of legal sanction.

Incidentally, then, I hope that the folks who say that Obama is too nicey-nice (read weak) to compete in the political big leagues are taking note of the rather brass-knuckle approach being employed here.

I am a lawyer, and it is a bluff. This is an open warning to the 527 and HRC's campaign that BHO is lawyered up and watching very closely the actions of this 527.

It also helps with fundraising.

However, also note that a strong reaction to a 527 right now provides a shot across the bow to Republican 527s. So I completely concur with your point of view.

Again, I think this is all about the GE and not about HRC.

I'm a mind reader, and it's not a bluff.

I read about this on Daily Kos, and their take was that swift boat type 527's were fined on the order of half a million dollars.

They also said that legally 527's are meant to promote issues and are on the wrong side of the law in either of these 2 cases:
1. if they appear too close to an election to have a history of promoting an issue
2. if they obviously promote a candidate (e.g. Hillary in ALP's ad)

My understanding from that article was that ALP is aware of the penalties they face, but as seen before, half a million fines are just spare change when the presidency is in play.

So it might not be a bluff, after all, even if it sure looks like one.

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This is absolutely a cold, calculated move to violate the law for the benefit of the candidate, and to assume that any penalty will be so deferred into the future that the immediate benefits can be gained now without consequence."

Love the choice of language here. "cold", "calculating" used to describe what supporters of Clinton are trying to do? Bet that wasn't an accident.

Wonder if this will be brought up tonight.

This is a very interesting statement.

Oh, hell, I'm guessing this is all a bluff to try to plant some tough questions aimed at Hillary in tonight's debate.

527s have an unpleasant aroma about them, but they're legal.

And is the wildest Obamite naive enough to think there won't be all sorts of 527s in support of their guy?

Well, I think ALP is quite blatantly a candidate advocacy 527, which is ILLEGAL. Issue advocacy isn't.

Have you seen the ads they plan to run? I haven't.
It seems to me that their content will determine their legality, not what Obama says is or isn't lawful.

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Uh, there was one on tpm yesterday I think, or maybe the day before. Also, I think that you were commenting on the thread. You sure do have a short memory.

nope, sorry, I don't watch the videos on tpm. i'll try youtube.
i think you might be confusing the new clinton campaign ads which tpm did feature with the 527 efforts.

I think that you are wrong. I don't watch the videos on tpm, but I remember them featuring new HRC ads, not the 527 efforts.
I'll look on youtube.

I found it on youtube and nowhere does it say vote HRC for president; it doesn't even mention her campaign.
It pretty clearly skirts the intent of the law but I'll bet you it's legal.
Besides, the FEC can't rule on anything now can it?

I don't understand modern election law. Could someone please explain to me: If this (a 527 with the specific purpose of electing a specific candidate) is illegal, then why wasn't Swift Boat Veterans for Truth illegal? For that matter, why is MoveOn endorsing / campaigning on behalf of Obama legal? Where is the line?

Swift boat was illegal, and was fined.

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How is it illegal? I mean, what is the legal justification? There is no link, so there is no way for us to see what their argument is.

527s have an unpleasant aroma about them, but they're legal.

This is what appears to be the basis of their legal argument from a fundraising email sent out earlier today:

"Groups like this are forbidden from working primarily for the purpose of electing or defeating a candidate.

Yet here we have a committee that springs up on the eve of an election, promotes a specific candidate, and has no history or apparent purpose of lobbying specific issues outside the benefit to the candidate of these communications."

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Groups like this are forbidden from working primarily for the purpose of electing or defeating a candidate.

Really? What happened with the swift boaters then? I'm pretty sure that 527 existed only to sink Kerry. They did exist for a long time, however.

Maybe it has to do with the timing of the formation of the group.

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Yep, totally illegal. Me thinks that the clintons have a big problem. 13 million in debt and no money coming in. Maybe she doesn't make it to 3/4. Wouldn't that be a hoot.

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Pretty obscure stuff, but this opinion gives you an idea of the rules:

http://www.fec.gov/agenda/2008/mtgdoc08-04.pdf

Apparently the SwiftBoaters and MoveOn and others were fined after the 2004 election on this grounds. (Don't ask me how much).

delmoi,

I believe some legislation was passed between 2004 and now that limits 527's further than they were previously. Check out this interesting post at The Field related to the new HRC 527 not filing with the FEC as it is apparently required to do:

http://ruralvotes.com/thefield/?p=706

You cannot lawfully use a 527 as an end-run around campaign donation limits, which is basically what is being done here.

Obama's campaign is right to take a hard line against this, because if the Clintons' friends got away with this, it would set an extremely bad precedent; indeed, it would be the exception that swallowed the rule in terms of limits on donations.

It's not like Obama's supporters couldn't do the same thing and more than keep pace with the Clinton 527, so this isn't a case of sour grapes--it's a case of legality and fair play.

Is Obama the American Mandela? Obama brings a message of hope and change to a country at the crossroads. It is choice between the past and the future. But is Obama the American Mandela who could inspire Americans to a better future at home? And a future where America takes it rightful place at the global table? Is he the one? The question of whether Obama is the American Mandela is discussed in my blog Angry African on the Loose at http://angryafrican.wordpress.com/2008/02/20/is-obama-the-american-mandela/

stop spamming your garbage

If you see the ad, they talk a lot about Hillary's positions on things and end it with 'Ask Hillary to continue her work on this' or something like that. I think the problem is that this comes a little too close to promotion of Hillary in a campaign ad type way.

The swiftboat ads & moveon ads were more aimed at a specific 'issue'. Also these ads are planned to run specifically in Ohio just before the election. Instead of nationally a month or so before. It is probably splitting hairs a bit but that is kind of what these 527s do and if they don't do that just right then they are breaking the law.

One other point, MoveOn is helping Obama with volunteers and fund-raising but are NOT running ads on his behalf. This is entirely legal and nothing different than what unions and other groups do.

Well, in theory, the SwiftBoaters for Truth weren't formed exclusively to defeat Sen. Kerry (Cough! Cough! Cough!) but is an organization of "former military officers and enlisted men who served in Vietnam on U.S. Navy "Swift Boats" or in affiliated commands" to promote/protect the history, honor of that command .... or some such thing(Cough! Cough!). So it was in pursuing THAT goal, they just happened to decide their history/honor was being besmirched by Kerry's claims ...

And it probably is just that easy to come up with a (Cough! Cough!) 'legitimate' reason for any 527's existence ....... but the timing and probably the amount of planning that went into this 527 does make it highly suspicious. So rather than bluffing, I think Obama's team is calling *their* bluff: saying, in effect, "Yeah, SURE you have some other purpose. Good luck convincing the IRS" (or whoever it is they have to convince).

And it looks like those who are forming the ALP are being so clumsy about it that they might well get zinged. I've about decided that the HRC campaign (mainly Penn?) is a Karl Rove "wannabe" -- same methods and goals but not nearly as successful in execution.

MoveOn.org (which was founded in 1998 and so certainly wasn't created to support Obama's candidacy) states that its mission is to "bring real Americans back into the political process" and in fact it does a number of things toward that goal in addition to endorsing certain candidates toward that goal. (I'm not saying for sure that it's a 527 because I don't know but its in that general area.) -- And unions can endorse and spend money in support of a candidate ... but supporting those candidates isn't the sole purpose or function of the union.

What it seems Obama's lawyers are going to claim (with some justification, it appears) is that this ALP came into being for the sole and exclusive purpose of promoting Clinton's candidacy - in other words, as a way for her and her maxxed-out major contributors to get around the direct political contribution limitations. If they can't prove other purpose, then they would be sanctioned (don't know about donors but possibly losing some partial tax credit?). Even if ALP can come up with another reason for existance, they'll have to *work* for it.

When every day counts ...... plus the ruckus will have perhaps discouraged donors and have make the public aware of what is going on. It's not a 'faked' objection at all.

No way around it -- the Obama campaign's organization and effectiveness is quite something! (And, the best part, it's nothing to be ashamed of, unlike other campaigns called 'effective'.)

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Huh?

I thought that it was "lunacy" that Hillary could win at this time.

So why all the threats?

The objection isn't to her losing, it's to her bringing down the democratic nominee while doing so.

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Oh, I forgot that no one is allowed to criticize The One.

Of course The One will always win, because he is The One. No criticism can bring down The One. But The One will be duly angry at criticism, because it offends his majesty and dignity and utter perfection. The One will therefore sue the pants off anyone who doubts The One. The righteous wrath of The One, along with a rapacious pack of his hired sharks, will address all disturbances in the cosmic force as is right and true.

So it has been written.

LOL, It is a little sad that even HRC's 527's are bad campaigners. Is anything associated or 'not associated' with her campaign competent??
Ready on Day One my a**!

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Who's going to do the fining, if this is illegal?

The FEC, which doesn't have a quorum right now?

This statement seems like a warning to the supporters of this 527, rather than a prediction about what's going to happen, because the FEC isn't able to do anything, is it?

Here's some information on the Swift Boaters fine:

http://tpmmuckraker.talkingpointsmemo.com/archives/002141.php

I think the Kos point is interesting, that these fines might just be seen as a tax, sort of. After all, if you can raise 10 mil, what's a 300K fine?

527s have tended to skirt the bounds of propriety for years now; but ALP is transparently obvious in a league of fairly obvious pro-candiate organizations. How is it possible that her campaign didn't have a well-established 527 waiting in the wings for a similar (and less blatant) purpose?

Waa, waa, waa. BO and his campaign are a bunch of whiners. If the 527 needs any material, I hope they give me a call. Raise the money, run the ads, pay the fine.

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So you think this is just fine, right?

WOW...this Obama response had to be a serious shot across the bow of the republicans, because there is nothing those guys fear more than the idea that they might get sued!

As bush joked about the terrorsts: "They probably thought we were going to sue them."

Che posters in offices, threatening lawsuits because someone says something bad about you, Michele's professed lack of pride in the US...can these guys give the republicans any more talking points to use against them?

No matter what happens with Hillary over the next few weeks, I am glad to see her attacking Obama if, for no other reason, than to see how absolutely LAME his responses are!

P.S. Are you sure these lawsuit threats aren't just copycats of some Edwards courtroom speech? He seems to like stealing lines from Edwards just as much as he likes to steal them from Hillary.

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Not very intelligent.

I don't think there is any implicit threat to sue in Obama's campaign's statement: I think they are merely predicting that the ALP will be fined by the FEC once the FEC has a quorum again.

I don't think there is any implicit threat to sue in Obama's campaign's statement: I think they are merely predicting that the ALP will be fined by the FEC once the FEC has a quorum again.

I don't think there is any implicit threat to sue in Obama's campaign's statement: I think they are merely predicting that the ALP will be fined by the FEC once the FEC has a quorum again.

Waa, waa, waa. BO and his campaign are a bunch of whiners. If the 527 needs any material, I hope they give me a call. Raise the money, run the ads, pay the fine.
Posted by leighb

Interesting. So you like people who can make $100K donations having a disproportionate infulence on an elecltion? Nothing like creating a 527 at the last minute to get around those pesky indivudual donor limits of $2300 a person. I guess I can see why you're not behind a grassroots candidate then.

This is NOT a bluff, it's for real. Here's the problem:
1. It's illegal for a 527 to have as a primary goal the election or defeat of any candidate.
2. The 527 in question, the American Leadership Project, was apparently formed on February 18, 2008. Nobody ever heard of them before then, and that's when their website was registered for the first time.
3. The only thing ALP has done in its glorious 3-day history is to run a TV ad in Ohio, in the run-up to the Ohio primary. That TV ad is blatantly pro-Hillary, putting her name and her image on the screen throughout most of the commercial's length, while the voiceover fawns over her goals and accomplishments. Here's the link:
http://www.youtube.com/watch?v=nvRhZ4Wpq9s

So this is more than a prima-facie case, folks. It's about as open-and-shut a violation of the law that you will ever see. It's really a shame that Bush's political hacks, er, I mean, Justice Department, won't lift a finger to prosecute anybody. Fortunately, the statute of limitations will still be running when Obama's in office, and I'm sure Attorney General Napolitano will take a dimmer view of this.

I am a lawyer, although I have never done work with campaign financing. I don't think that this 527 is in fact illegal, or that the individual donors can be held responsible for violations of campaign financing laws. Obama is simply trying to highlight that Hiliary is so desperate for money that she now must circumvent financing laws with a 527 group. It may not be illegal, but it violates the spirit of limits on campaign contributions. These 100 or so rich folks, who can donate $100,000 each, are having as much influence on the Texas voters as the nearly one million donors to the Obama campaign - who give small donations. (An individual donor may only give $2300 in the primary phase and $2300 in the general election to any one candidate - the idea is to level out the influence of money on campaigns. Hillary's donor's are "maxed out" - they cannot give more to the campaign legally, so they create a 527 that is "independent" of the campaign.) This group was created to circumvent the law, and it may cost Hillary more in public condemnation that it gains her in free ads. At least, that's what Obama's people hope. One caveat - Hillary's campaign can't be seen as managing this 527 or it is illegal.

you mean like the line about how if you can track videos from Blockbuster you can track immigrants? Or that whole "this is very personal for me" thing?

Oh, wait, I'm sorry. That was Hillary stealing from Edwards.

Commence outrage!

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I am not a lawyer, but I do have an opinion of this as an American.

The moral and legal decline which the Republicans, jumpstarted by Ronald Reagan, pushed upon our nation was the dismantling of regulatory power which had been instituted to protect all citizens. That dismantling of regulatory oversight negatively affected clean air, clean water, wholesome food, fair taxation, predatory business practices, dishonest advertising, interstate commerce, price fixing, union strength to countervail against unfair labor practices, legal recourse for the unmonied, public service fair doctrine requirements for media giants, as well as equality of voting rights, and probably a slew of areas I have not listed.

In short, the Republicans took our government out of the role of stewardship of 'the common good' and set the government into the role of serving those wielding money, power and connections.

One outcome of deregulation is the lock which special interests have enjoyed in Washington, to the absurd extent that lobbyists have been writing legislation for years, and industry faithful are blatantly put in to head up the 'regulatory agencies' which oversee their buddies.
this is beyond a case of the foxes watching the hen house..... it is more the case of the hen house being replaced by a fox-raising enterprise.

Because this has been developing and growing for nearly 30 years, we have politicians in Washington who adapted to live and thrive and get re-elected in this system and we have a public that has become dispirited about ever changing the system back to one which considers and promotes the common good.

Hillary's wealthy 527 friends are obviously folks who have learned to adapt and make use of what the Republicans have wrought for more than two decades. I can see that even her lowly supporters on this site are aligned with 'well adjusted' Republicans in feeling ok about trashing the letter of and spirit of the FEC regulations.

After all, somebody needs to fight against Obama amassing of a grassroots movement which could end the 'business as usual' power in Washington. Never thought I'd see a Clinton used as a symbol against the common good, though. Life is stranger than fiction sometimes.

Please go to :
donatebarackobama.com and GIVE, I have twice in the last two days. HRC, who I respected, has lost all good faith with me. PLEASE GIVE, even $10. Thank you.

What's with the "reposting" of this entry? Has something new happened on this front?

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