CREW alleges new conduit scheme in FEC complaint

Stop China Now appears to have violated federal campaign finance law when it was reported as the source of a donation to a related super PAC that was made just weeks after the two groups were formed, which allowed for the true source of the donation to remain secret, according to a new complaint filed today with the Federal Election Commission by Citizens for Responsibility and Ethics in Washington.

Stop China Now was the sole contributor to Save Western Culture with a $1.6 million donation, which came just two weeks after Stop China Now was formed. Both groups share a mailing address at a UPS store in Massachusetts and Stop China Now appears to have been incorporated by Save Western Culture’s treasurer. The seven-figure donation allowed Save Western Culture to fund independent expenditures in 20 federal elections across 14 states. The super PAC’s expenditures primarily opposed Republican candidates and supported Libertarian candidates. Save Western Culture’s’s spending was viewed in the press as a “mysterious” and “shadowy” effort to potentially benefit Democratic candidates in the various races.

Given the short time between the creation and incorporation of Stop China Now and its large donation to Save Western Culture, it is likely that the actual source of the funds used Stop China Now to make a contribution in the name of another, Stop China Now knowingly allowed its name to be used to make a contribution in the name of another, and Save Western Culture knowingly accepted a contribution in the name of another, in violation of federal campaign finance law. 

The FEC should investigate whether funds were passed through Stop China Now to Save Western Culture and reveal their true source. Voters deserve to know who is behind the groups that are attempting to influence their elections. The FEC should act quickly on CREW’s complaint to deter dark money groups from illegally hiding their funders in the future.