FEC fines Koch groups for illegal dark money

The Federal Election Commission (FEC) announced today that it will fine three dark money groups a total of $233,000 for concealing the sources of funds spent on political ads in 2010. Three groups — the American Future Fund, 60 Plus Association and Americans for Job Security — received money from the Center to Protect Patient […]

The Federal Election Commission (FEC) announced today that it will fine three dark money groups a total of $233,000 for concealing the sources of funds spent on political ads in 2010.

Three groups — the American Future Fund, 60 Plus Association and Americans for Job Security — received money from the Center to Protect Patient Rights (CPPR), now American Encore. CPPR is linked to the Koch brothers — it was founded by Sean Noble, who was, at the time, central to the Kochs’ dark money efforts. As head of CPPR, he “handed out almost $137 million in 2012 alone — all of it so-called dark money from unnamed donors.” The American Future Fund spent millions during the Republican presidential primary this year to oppose Donald Trump and John Kasich. In 2013, CPPR admitted to failing to properly disclose money spent on a California ballot proposition that year.

Note: This story originally appeared on the Sunlight Foundation website. The story is republished through a Creative Commons license.

The FEC found that CPPR’s money was intended to be spent on independent expenditures (like TV ads), and therefore should have been disclosed to them. 501(c)(4)s like these groups are allowed to spend money on political advertising as long as it isn’t their “primary activity,” which is widely interpreted to mean that they must spend less than 50 percent of their funds on political ads. (Though some 501(c)(4)s spend more anyway and, so far, get away with it.) But if a donor explicitly gives them money for the purpose of spending it on elections, they must disclose that to the FEC.

Citizens for Responsibility and Ethics in Washington (CREW), who brought the complaint to the FEC,explained:

The groups claimed the money was for general expenses and not specific ads, so they were not required to disclose their donors. However, Sean Noble, who was the central figure in distributing Koch money in 2010 and 2012, told the National Review in 2014 that he was deeply involved with producing the ads and selecting their targets—meaning the groups were required to disclose the source of the funds. The FEC’s investigation found that Noble’s consulting firm even helped produce and place the ads for the groups.

While CREW described the fines as “massive,” the amount is tiny compared to the amount these groups doled out on elections. The American Future Fund spent a total of $7,448,096 in 2014, the most recent year for which records are available; its $140,000 fine represents just 1.8 percent of the group’s total spending in 2014. The 60 Plus Association spent $10,031,215 in 2013 (and $18,279,532 in 2012); its $50,000 fine represents less than half of 1 percent of its 2013 spending. Americans for Job Security, which spent more than $15 million in the 2012 cycle, is the only group whose records show that the fine could significantly hurt it: In 2013 the group spent $1,571,753, with only $930,784 in revenue.

CREW is right to note that the $233,000 total is large in the context of other FEC fines — “the FEC gave out $273,000 in conciliation agreement civil penalties for an average penalty of $15,000.” But that’s nothing compared to the kinds of funds these groups have. Fines this small can easily be seen as the cost of doing business for a well-funded group that wants to spend on elections — and obscure the source of such spending — until years after voters have had their say.

We're ad free

That means that we rely on support from readers like you. Help us keep reporting on the most important New Mexico Stories by donating today.

Related

Lujan Grisham pocket vetoes two bills

Lujan Grisham pocket vetoes two bills

Gov. Michelle Lujan Grisham pocket vetoed two bills the legislature passed this legislative session: one changing the Cybersecurity Act and the other concerning law…
Gov signs bills with some vetoes 

Gov signs bills with some vetoes 

Gov. Michelle Lujan Grisham signed 69 bills that the legislature passed during the 2024 legislative session. These included the General Appropriations Act which contains…
Guv signs state budget

Guv signs state budget

Gov. Michelle Lujan Grisham signed the budget bill for Fiscal Year 2025 and the Capital Outlay spending bill. The FY25 state budget bill passed…
Advocates travel to D.C. to push for additional protections for the Gila River

Advocates travel to D.C. to push for additional protections for the Gila River

New Mexico advocates seeking to have the Gila River designated as a Wild and Scenic River will travel to Washington D.C. this week to…

NM Supreme Court annuls $10,000 penalty in PNM/Avangrid merger case

The New Mexico Supreme Court ruled on Monday that a penalty the New Mexico Public Regulation Commission levied against the state’s largest utility was…
State fines oil company more than $2 million after spill

State fines oil company more than $2 million after spill

The Energy, Minerals and Natural Resources Department fined an oil and gas company operating in the Permian Basin more than $2 million over produced…
Amid new graduation requirements, what do high schoolers want to learn?

Amid new graduation requirements, what do high schoolers want to learn?

By Margaret O’Hara, The Santa Fe New Mexican The main things that bring Brayan Chavez to school every day: Seeing, talking to and engaging with…
Special ed teachers hope lawmakers OK pay raises, admin changes

Special ed teachers hope lawmakers OK pay raises, admin changes

By Margaret O’Hara, The Santa Fe New Mexican Brittany Behenna Griffith has a laundry list of adjectives to describe the ideal special education teacher:…
Lawmakers must find consensus on competing education spending plans

Lawmakers must find consensus on competing education spending plans

By Margaret O’Hara, The Santa Fe New Mexican A challenging task awaits New Mexico lawmakers in the next 30 days: Reconciling three very different…
Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Lujan Grisham, Biden admin announce $10 million in federal funds for tribes, pueblos

Gov. Michelle Lujan Grisham announced Friday $10 million in funding from the federal American Rescue Plan Act was awarded to six tribal nations and…
Proposal to curb executive powers moves to House Judiciary

Proposal to curb executive powers moves to House Judiciary

The House Government, Elections and Indian Affairs Committee discussed a potential constitutional amendment that seeks to limit the governor’s executive powers. The committee approved…
Supreme Court censures attorney over conduct in anti-COVID policy suits

Supreme Court censures attorney over conduct in anti-COVID policy suits

The New Mexico State Supreme Court censured a New Mexico attorney because of her “misconduct” in two unsuccessful cases pushing back on COVID-19 regulations…
Supreme Court to hear two abortion cases this spring

Supreme Court to hear two abortion cases this spring

Later this month, the U.S. Supreme Court will hear oral arguments on the case against the abortion medication mifepristone. It will hear a second…
How Biden, others highlighted reproductive rights at the State of the Union

How Biden, others highlighted reproductive rights at the State of the Union

President Joe Biden highlighted reproductive rights issues as part of his State of the Union speech Thursday. Biden delivered his 2024 State of the…
Stansbury invites OB-GYN doctor as her state of the union guest 

Stansbury invites OB-GYN doctor as her state of the union guest 

U.S. House of Rep. Melanie Stansbury has invited an OB-GYN doctor from Roswell as her guest for President Joe Biden’s State of the Union…
Supreme Court to hear two abortion cases this spring

Supreme Court to hear two abortion cases this spring

Later this month, the U.S. Supreme Court will hear oral arguments on the case against the abortion medication mifepristone. It will hear a second…
How Biden, others highlighted reproductive rights at the State of the Union

How Biden, others highlighted reproductive rights at the State of the Union

President Joe Biden highlighted reproductive rights issues as part of his State of the Union speech Thursday. Biden delivered his 2024 State of the…
Stansbury invites OB-GYN doctor as her state of the union guest 

Stansbury invites OB-GYN doctor as her state of the union guest 

U.S. House of Rep. Melanie Stansbury has invited an OB-GYN doctor from Roswell as her guest for President Joe Biden’s State of the Union…
See who’s going to be on your primary ballot in June

See who’s going to be on your primary ballot in June

Tuesday marked the official beginning of the 2024 New Mexico primary season for the legislature, with candidates officially filing for candidacy. This is the…

Bill to require disclosure of use of AI in campaign materials goes to governor

The Senate approved a bill aiming to require the disclosure of the use of artificial intelligence or other changes made by computers to campaign…
House amends, passes bill banning firearms near polling places

House amends, passes bill banning firearms near polling places

The House narrowly approved a bill that would ban firearms near polling places. The House voted 35-34 to pass the bill following an extensive…
Advocates travel to D.C. to push for additional protections for the Gila River

Advocates travel to D.C. to push for additional protections for the Gila River

New Mexico advocates seeking to have the Gila River designated as a Wild and Scenic River will travel to Washington D.C. this week to…
U.S. Supreme Court lets ban on Couy Griffin from holding office stand

U.S. Supreme Court lets ban on Couy Griffin from holding office stand

The U.S. Supreme Court declined to hear an appeal of a Republican official who was barred from holding office after being convicted for a…
Politics Newsletter: legislative leaders not running for reelection

Politics Newsletter: legislative leaders not running for reelection

Hello fellow political junkies! Candidate filing day has come and gone, and members of House and Senate leadership opted to either not seek reelection…

GET INVOLVED

© 2023 New Mexico Political Report