CREW requests investigation into Ohio conduit contribution scheme
CREW has filed an amendment to its complaint against LZP LLC after receiving Independence and Freedom Network’s 2018 tax returns which showed LZP LLC used 99% of the money it took in to make contributions to Honor and Principles PAC, adding additional evidence of a conduit contribution scheme. Read the amendment below or click here to read further analysis.
CREW filed a complaint with the Federal Election Commission (FEC) seeking an immediate investigation on LZP, LLC, Honor and Principles PAC as well as its treasurer Lisa Lisker for serious violations of the Federal Election Campaign Act (FECA).
In late March 2018 a conduit contribution scheme appears to have started with the formation of the Honor and Principles PAC. The day after the PAC was founded, LZP, LLC an Ohio based nonprofit limited liability company was formed. LZP then contributed $175,000 to Honors and Principles PAC, despite having no business activity. It is virtually impossible for them to have earned the income to pay for such a contribution in just one day of operation. This was the only contribution that Honor and Principles PAC ever reported.
After receiving the contribution, Honors and Principles PAC spent $163,838 on a political advertisement attacking Ohio state Representative Larry Householder (R-72) and endorsing his opponent Kevin Black in the race for the Ohio House of Representatives seat.
The entire process of forming these groups and using them to make the independent expenditure took only four consecutive days.
The forming of Honors Principles PAC and LZP appears to be a textbook example of a conduit contribution scheme, designed to keep the public in the dark about who paid for the political advertisement. The potentially illegal transfer of money should be immediately investigated, and the FECA should be enforced.