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What is 'smurfing'? What every American needs to know about illegal money in elections
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Allegations have been raised by Sen. Marco Rubio, R-Fla., and Republican Virginia Attorney General Jason Miyares (among others) that millions of dollars may be being funneled into candidate campaign coffers through a process known as “smurfing.” We’re not talking about donations being made by small, blue comic-book characters—although we might as well be if the allegations are true.
What is campaign finance smurfing? It is a form of money laundering for campaign contributions. It involves breaking up large-scale donations in a way that disguises who the money is actually coming from, so the contribution limits on how much money can be donated to a particular candidate can be skirted. It may involve widespread mail and wire fraud and the fraudulent use of the identities of unwitting members of the public to violate federal and state campaign finance laws.
Several important rules apply to the funding of congressional and presidential campaigns under the Federal Election Campaign Act or FECA.
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First, federal law strictly prohibits corporations and unions from making any direct contributions to federal candidates. Second, the FECA bans foreign nationals foreign nationals from making contributions. Only U.S. citizens and permanent resident aliens can give money to the campaigns of individuals running for Congress and the presidency (as well as state and local offices).
Third, federal law limits the amount that an individual can contribute to a candidate. In the current 2023-24 election cycle, individuals cannot contribute more than $3,300 for the primary election and the same amount for the general election. Other limits apply for contributions to PACs and party organizations.
The Federal Election Commission, where I once served as a commissioner, has civil enforcement authority for FECA violations, while the U.S. Justice Department has criminal enforcement authority for intentional and knowing violations of the law. For an example of a criminal violation relevant to smurfing, consider a case I saw when I was a commissioner.
The senior partner of a law firm told his employees that if they made the maximum contribution to a presidential candidate, he would reimburse them. This is called a conduit contribution and was an attempt to get around the contribution limit by the lawyer – making a campaign contribution in the name of another person is illegal.
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One of the clues for the Justice Department was that the law firm staff had never made political contributions before. Yet they were all suddenly giving the maximum amount despite their much lower salaries than the firm’s senior partner.
So how does all of this apply to smurfing? Assume that an unknown perpetrator deposits a large sum of money into a bank account. He ties it to a corporate payment credit-card system, which is often used by companies to generate unique credit-card account numbers for their employees to use for transactions. He then generates credit-card account numbers for members of the public without their knowledge and uses those individuals as straw donors to make political contributions, perhaps through an aggregator like ActBlue, a Democratic fundraising website.
Where does this criminal get the names and addresses? There are all sorts of potential sources, including the lists of reported donors to campaigns listed on the FEC’s website. He can then generate thousands of donations, mostly small ones to avoid raising any red flags, to multiple candidates, using real names and addresses of individuals without their knowledge.
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Miyares’s letter to ActBlue claims that “hundreds of thousands of dollars” in contributions have been made through ActBlue in Virginia “that are facially implausible and appear suspicious.” “Virginia donors,” says Miyares, “are reported as making multiple daily contributions…amounting to tens of thousands of dollars in aggregate.” Yet many list their occupation as “not employed” or “retired,” and circumstances make it appear as if they “are being made from fictional donors or dummy accounts” and “without the reported donors’ consent or awareness.”
Sen. Rubio has also questioned these transactions in a complaint letter to the FEC; specifically, the fact that ActBlue does not “require CVV numbers as part of making an online transaction.” CVV numbers are the three-digit “card verification value” numbers we all have on the back side of our credit cards that are used to verify the legitimacy of credit-card transactions. Rubio says that not requiring a CVV number amounts to “an intentional lack of security engrained within” ActBlue’s donation process.
ActBlue has strenuously denied these charges both in a response to an investigation by the U.S. House Committee on Administration and to Jason Miyares, who ActBlue says is engaging is “a partisan attack and scare tactic” intended to undermine “small-dollar” Democrat donors.
The only way to get to the truth is for these questionable donations to be investigated. That means both the FEC and the Justice Department – and state attorneys general under applicable state fraud laws – need to get busy, including talking to the donors listed in the filed reports to see if they actually made these donations and were not barred from making them.
All of these law-enforcement agencies have an obligation to determine if there are “Smurfs” out there using money laundering to illegally interfere in our elections.
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A Georgia high school teacher was arrested Wednesday after allegations of inappropriate contact between a teacher and a minor student surfaced at Lee County High School.
Danielle Weaver, 29, of Leesburg, is charged with child molestation and improper sexual contact by an employee, agent or foster parent, according to the Georgia Bureau of Investigations (GBI).
Lee County High School requested the Leesburg Police Department investigate the allegations on Feb. 3, and the GBI was called to assist the following day.
Danielle Weaver, 29, of Leesburg, Ga., is charged with child molestation and improper sexual contact by an employee. (Lee County Sheriff’s Office)
Investigators identified Weaver as the “subject,” and identified the victim as a student under 18 years old at Lee County High School, according to officials.
GBI agents continued the investigation along with the Leesburg Police Department, and arrest warrants were obtained for Weaver on Tuesday.
A Google Maps street view photo of Lee County High School in Leesburg, Ga. (Google Maps)
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Weaver turned herself in to the Lee County Sheriff’s Office on Wednesday, and was later released on bond, according to a report from WALB News.
This investigation is active and ongoing, according to the GBI.
The incident allegedly happened at a high school in Georgia. (Jeffrey Greenberg/Universal Images Group via Getty Images)
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Once complete, the case file will be given to the Southwestern Judicial Circuit District Attorney’s Office for prosecution.
Leesburg is located in South Georgia, and is about an hour and a half north of Tallahassee, Florida.
Lee County High School’s communications team did not immediately respond to Fox News Digital’s request for comment.
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Southeast
Federal court clears way for Ten Commandments to be displayed in Louisiana public school classrooms
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A federal appeals court cleared the way Friday for a Louisiana law requiring the Ten Commandments to be displayed in public school classrooms, lifting a lower court block and reigniting debate over religion in public education.
The U.S. Court of Appeals for the Fifth Circuit voted 12-6 to lift a block first imposed in 2024, finding it was too early to determine the constitutionality of the law. Critics argue the requirement violates the separation of church and state, while supporters say the Ten Commandments are historical and foundational to U.S. law.
The court said in the majority opinion that it was unclear how schools would display the poster-sized materials, noting that the law allows additional content, like the Mayflower Compact or the Declaration of Independence, to appear alongside the Ten Commandments.
The majority wrote that there were not enough facts to “permit judicial judgment rather than speculation” when evaluating potential First Amendment concerns.
A federal appeals court on Friday lifted a lower court block on Louisiana’s Ten Commandments classroom law, bringing the measure closer to taking effect. (John Bazemore/AP)
In a concurring opinion, Circuit Judge James Ho, who was appointed by President Donald Trump, wrote that the law was constitutional and “consistent with our founding traditions.”
“It is fully consistent with the Constitution, and what’s more, it reinforces our Founders’ firm belief that the children of America should be educated about the religious foundations and traditions of our country,” Ho said, adding that the law “affirms our Nation’s highest and most noble traditions.”
Circuit Judge James L. Dennis, an appointee of former President Bill Clinton, wrote in a dissenting opinion that displaying the Ten Commandments in classrooms would amount to “exposing children to government‑endorsed religion in a setting of compulsory attendance.”
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A federal appeals court ruling on Feb. 20 allows Louisiana’s Ten Commandments classroom mandate to proceed for now. (Jay Janner/Austin American-Statesman via Getty Images)
“That is precisely the kind of establishment the Framers anticipated and sought to prevent,” he added.
The ACLU of Louisiana and other groups representing the plaintiffs said they would pursue additional legal challenges to block the law.
“Today’s ruling is extremely disappointing and would unnecessarily force Louisiana’s public school families into a game of constitutional whack-a-mole in every school district,” the groups wrote in a joint-statement. “Longstanding judicial precedent makes clear that our clients need not submit to the very harms they are seeking to prevent before taking legal action to protect their rights.”
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Louisiana Gov. Jeff Landry praised the appeals court decision on Feb. 20 allowing the Ten Commandments classroom law to move forward. (AP Photo/Mark Schiefelbein, file)
Republican Gov. Jeff Landry on Friday praised the court’s decision, writing on Facebook, “Common sense is making a comeback!”
Louisiana Attorney General Liz Murrill issued a statement following the ruling, saying schools “should follow the law.”
“Don’t kill or steal shouldn’t be controversial. My office has issued clear guidance to our public schools on how to comply with the law, and we have created multiple examples of posters demonstrating how it can be applied constitutionally,” she said.
Louisiana Attorney General Liz Murrill said schools should follow the Ten Commandments display law after a federal appeals court lifted a lower court block on Feb. 20. (Chris Graythen/Getty Images)
Joseph Davis, an attorney representing Louisiana in the case, celebrated the court’s decision.
“If the ACLU had its way, every trace of religion would be scrubbed from the fabric of our public life,” he said in a statement. “That position is at odds with our nation’s traditions and our Constitution. We’re glad the Fifth Circuit has allowed Louisiana to display the Ten Commandments in its public school classrooms.”
Friday’s ruling came after the full court agreed to reconsider the case, months after a three-judge panel ruled the Louisiana law unconstitutional.
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A similar law in Arkansas faces a federal court challenge, while Texas implemented its own Ten Commandments classroom requirement last year.
The Associated Press contributed to this report.
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Southeast
Guy Fieri once had ‘nothing else to sign’ on the beach but postcards; now, he’s built a food TV empire
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MIAMI BEACH – Twenty years ago, a contestant named Guy Fieri on the second season of what was then “The Next Food Network Star” showed up at the South Beach Wine & Food Festival with little more than spiked hair and ambition.
“He came to that festival that year and was walking around signing postcards because he had nothing else to sign,” recalled Lee Brian Schrager, founder of the South Beach Wine & Food Festival and its New York City counterpart.
Today, Fieri is one of the most recognizable faces in food on television. But, in 2006, he was just another up-and-comer working a crowd on the sand.
Speaking to “Fox & Friends” from Miami Beach, Florida, Friday morning, Fieri said he wasn’t chasing TV fame.
“I was doing what I wanted to do,” he told Steve Doocy while walking the beach. “I wanted to be a great dad. I wanted to be a great husband. I wanted to be a chef. I wanted to own my own restaurant. So, I had accomplished the things I wanted in life and never really saw the other side of it.”
South Beach Wine & Food Festival founder Lee Brian Schrager and celebrity chef Guy Fieri pose for a photograph back in 2009. (South Beach Wine & Food Festival)
Two decades later, Fieri still comes back.
“He’s been part of our festival every year since he won ‘Food Network Star,’” Schrager told Fox News Digital.
The knack for spotting and elevating talent is part of the festival’s legacy as it marks its 25th year in Miami Beach.
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Schrager recalled a similar instinct with Giada De Laurentiis. When her agent suggested she might be ready the following year, Schrager pushed back.
“I said, ‘I don’t want her next year. I want her this year so she’ll remember where she got her big start,’” Schrager said.
Giada De Laurentiis, pictured here in 2015, was another celebrity chef who got her start at the South Beach Wine & Food Festival. (Manny Hernandez/Getty Images)
Yet the festival doesn’t claim to have created celebrity chefs.
“We don’t take responsibility for turning anyone into a superstar,” Schrager told Fox News Digital. “We do take some credit for giving them a platform and putting them in front of their fans.”
“Rock stars became chefs and chefs became rock stars.”
Over the past 20 years, the platform has grown alongside the broader transformation of food culture.
“Rock stars became chefs and chefs became rock stars,” Schrager said.
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What began as a one-day wine event on the campus of Florida International University evolved after Schrager was tasked with reimagining it. His directive was to “make it better — not bigger, but better.”
Schrager had a solution.
The South Beach Wine & Food Festival is where chefs like Fieri “became rock stars,” said Schrager, founder of the South Beach Wine & Food Festival. (Jason Koerner/Getty Images)
“Move it to the beach, partner with the Food Network, get all their celebrities and make it more than just local,” Schrager said.
Today, the festival draws marquee names from the culinary world as well as from music and entertainment. Among those who showed up for Thursday night’s Burger Bash event were comedian Bert Kreischer and Cloud 23 hot sauce founder Brooklyn Peltz Beckham.
Chefs don’t get paid for appearances at the festival.
“If it’s somebody new, the first question out of their agent’s mouth is, ‘Oh, what’s the honorarium? What’s the fee?’ I’m like, ‘Zero,’” Schrager said.
Brooklyn Peltz Beckham is among the celebrities to attend the food festival for free. (Scott Roth/Invision/AP)
The model works, Schrager said, because the festival operates as a nonprofit benefiting FIU’s Chaplin School of Hospitality & Tourism Management.
“Everyone’s doing it to support the cause, or they’re doing it because they want to do it,” Schrager said. “It’s not a bad place to be in the middle of winter.”
Schrager, left, appears along with Rachael Ray and Brooklyn Peltz Beckham onstage at the South Beach Wine & Food Festival’s Burger Bash. (Scott Roth/Invision/AP)
The festival has raised more than $50 million for student scholarships.
“To me, that’s why we do it,” Schrager said.
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Along the way, the festival has outlasted many imitators and weathered shifting food trends by staying nimble.
“We listened to the consumers,” Schrager said.
Fieri, left, and a shirtless Bert Kreischer share a moment onstage at the South Beach Wine & Food Festival. (Jason Koerner/Getty Images)
“There was never any ego involved in this festival.”
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He added, “Our goal was never to be the biggest.”
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“It happens that we turned out to be the biggest, but being the best, or at least doing our best, has always been the most important to me.”
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