CREW sues FEC for information on John Doe trust
On December 22, 2017, CREW filed a lawsuit against the FEC challenging its dismissal of an administrative complaint filed by CREW in February 2015 against Unknown Respondent(s) for violating the Federal Election Campaign Act’s (FECA) ban on making political contributions in the name of another. On February 27, 2015, CREW filed a complaint with the Federal Election Commission requesting that it investigate the American Conservative Union (ACU) and Now or Never PAC for a $1.71 million conduit contribution the ACU funneled to Now or Never in 2012. The ACU amended its tax return in 2014 to reveal it acted as a conduit for an unknown donor in making the contribution, a violation of federal law.
The FEC’s Office of General Counsel (OGC) filed its report on the case in September 2017, finding that funds that were originally reported by Now or Never as a contribution from ACU actually originated from an unknown source and a previously undisclosed LLC, Government Integrity LLC, before they reached their ultimate destination, Now or Never PAC, which used the funds to pay for political ads. The use of these pass-throughs and the wrongful attribution of the contribution as originating with ACU had the effect of hiding the true sources of the funds Now or Never PAC used to pay for its political ads.
In late October, the FEC entered into a conciliation agreement with ACU, Government Integrity, Now or Never, and James C. Thomas III (treasurer for Now or Never and counsel for Government Integrity) and fined them $350,000. The conciliation agreement marked the closing of the file.
However, by split decision, the FEC failed to adopt the OGC’s recommendation to find reason to believe the two additional participants in the pass-through scheme – an as yet unidentified trust and its trustee – violated FECA. The FEC also split on whether to adopt the OGC’s recommendation to enforce outstanding subpoenas, meaning that the FEC did not ascertain whether trust was the true source of the contribution to Now or Never or was itself just another pass-through conspiring with another as yet unidentified donor.
As stated in FEC Commissioner Ellen Weintraub’s Statement of Reasons, published December 19, 2017, the case serves as “an egregious example of someone using a web of organizations to hide the true source of a $1.7 million contribution to a super PAC – and getting away with it.”
This lawsuit seeks to remedy injuries to CREW and the public resulting from such a brazen disregard for the rule of law.
Lawsuit Documents
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Complaints and ExhibitsDecember 22, 2017
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Plaintiff's Motion for ClarificationFebruary 27, 2018
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Motion to Intervene by John 1 and John 2March 1, 2018
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Defendant's Proposed Motion to Dismiss and MemoMarch 1, 2018 - Defendant's Proposed Motion to Dismiss and Memorandum
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Exhibit AMarch 1, 2018
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Defendant's Motion to To Proceed Under PseudonymMarch 1, 2018
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Doe's Opposition to Motion to ClarifyMarch 13, 2018
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FEC's Opposition to Motion to ClarifyMarch 13 2018
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FEC's Motion to To Proposed IntervenorsMarch 15, 2018 - FEC's Motion to To Proposed Intervenors-Defendants’ Motion To Proceed Under Pseudonym
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Plaintiff's Opposition to Proposed IntervenorsMarch 15, 2018 - Plaintiff's Opposition to Proposed Intervenors-Defendants’ Motion to Intervene
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Plaintiff's Opposition to Proposed IntervenorsMarch 15, 2018 - Plaintiff's Opposition to Proposed Intervenors-Defendants’ Motion to To Proceed Under Pseudonym
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Plaintiff's Reply In Support of Their MotionMarch 15 2018 - Plaintiff's Reply In Support of Their Motion for Clarification
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Exhibit #1 in Plaintiff's Reply Supporting MotionMarch 15, 2018 - Exhibit #1 in Plaintiff's Reply In Support of Their Motion for Clarification
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Exhibit #2 in Plaintiff's Reply Supporting MotionMarch 15, 2018 - Exhibit #2 in Plaintiff's Reply In Support of Their Motion for Clarification
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Defendant's Motion to Defer Filing Certified ListMarch 30, 2018 - Defendant's Motion to Defer Filing Certified List of Record
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FEC's Motion to Dismiss For Lack of JurisdictionMarch 30, 2018
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Plaintiff's Opposition to Defendant's MotionApril 6, 2018 - Plaintiff's Opposition to Defendant's Motion to Defer Filing Certified List of Admin. Record
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Exhibit #1 - Plaintiff's OppositionApril 6, 2018
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Exhibit #2 - Plaintiff's OppositionApril 6, 2018
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Exhibit #3 - Plaintiff's OppositionApril 6, 2018
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Exhibit #4 - Plaintiff's OppositionApril 6, 2018
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Exhibit #5 - Plaintiff's OppositionApril 6, 2018
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Exhibit #6 - Plaintiff's OppositionApril 6, 2018
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Exhibit #7 - Plaintiff's OppositionApril 6, 2018
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Exhibit #8 - Plaintiff's OppositionApril 6, 2018
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Plaintiff's Opposition to FEC's Dismissal MotionMay 4, 2018 - Plaintiff's Opposition to FEC's Motion to Dismiss
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Declaration Supporting Plaintiff Motion to DismissMay 4, 2018 - Declaration of Stuart McPhail in Support of Plaintiff's Motion to Dismiss
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Exhibit A - Plaintiff's Motion to DismissMay 4, 2018
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Exhibit B - Plaintiff's Motion to DismissMay 4, 2018
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Exhibit C - Plaintiff's Motion to DismissMay 4, 2018
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Exhibit D - Plaintiff's Motion to DismissMay 4, 2018
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Exhibit E - Plaintiff's Motion to DismissMay 4, 2018
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Exhibit F - Plaintiff's Motion to DismissMay 4, 2018
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FEC's Reply in Support of Motion to DismissMay 25, 2018
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FEC's Memo in Support of Its Motion For JudgementSeptember 7, 2018 - FEC's Memorandum in Support of Its Motion For Judgement on the Pleadings
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Plaintiff's Opposition to Defendant's MotionOctober 5, 2018 - Plaintiff's Opposition to Defendant's Motion for Judgement on the Pleadings
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Defendant's Reply in Support of JudgementOctober 26, 2018 - Defendant's Reply in Support of Judgement on Pleadings
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Order and Memorandum Dismissing CaseDecember 27, 2018
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Plaintiff's Petition to Rehear En BancMay 28, 2019
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FEC's Response to Petition for Rehearing En BancJune 17, 2019
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Order Denying Appellants' PetitionJuly 11, 2019 - Order Denying Appellants' Petition for Rehearing En Banc
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Plaintiffs-Appellant's Unopposed MotionJuly 17, 2019 - Plaintiffs-Appellant's Unopposed Motion For a Stay of The Mandate