CREW Praises 9th Circuit Decision Upholding Prohibition on Straw Donors in Federal Elections
Washington, D.C. - The Ninth Circuit Court of Appeals today unanimously reversed a lower court decision that would have a created a massive loophole in the Federal Election Campaign Act (FECA) and allowed wealthy individuals to contribute unlimited amounts to the candidates of their choice through straw donors.
The Justice Department had prosecuted prominent California trial attorney Pierce O’Donnell for violating FECA by reimbursing thirteen employees of his law firm for making a total of $26,000 in contributions to the presidential campaign of former Senator John Edwards (D-NC). A federal district court in California had dismissed the indictment on the grounds that the Act only prohibited “making a contribution and providing a false name, not asking others to make contributions in their names and reimbursing them for it.” The Ninth Circuit explicitly rejected that interpretation today, holding specifically that 2 U.S.C. 441f "prohibits a person from providing money to others to donate to a candidate for federal office in their own names, when in reality they are merely 'straw donors.'"
Citizens for Responsibility and Ethics in Washington filed an amicus brief in the case supporting the Justice Department's long-standing interpretation of the law in September 2009.
CREW’s Executive Director Melanie Sloan said today, “By reversing the lower court’s decision, the Ninth Circuit has helped ensure that our elections are not bought and sold by the wealthy. Mr. O’Donnell’s scheme was a brazen violation of election law – and CREW praises the Ninth Circuit for recognizing this fact.”
Click here to read the Ninth Circuit's decision.
Citizens for Responsibility and Ethics in Washington (CREW) is a non-profit legal watchdog group dedicated to holding public officials accountable for their actions. For more information, please visit www.citizensforethics.org or contact David Merchant at 202.408.5565 or dmerchant@citizensforethics.org
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