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What is 'smurfing'? What every American needs to know about illegal money in elections

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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.

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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.

HOUSE GOP DEMANDS FEC PROBE ‘POTENTIALLY ILLEGAL’ ACTBLUE FUNDRAISING AS DEM PLATFORM HAULS HARRIS MILLIONS

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.

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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.

‘SERIOUS LOOPHOLE’: GOP WIDENS PROBE INTO ACTBLUE, DEM FUNDRAISING PLATFORM HELPING HARRIS RAISE MILLIONS

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.

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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.

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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.

CLICK HERE TO READ MORE FROM HANS VON SPAKOVSKY

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Bronze statue of Congressman John Lewis replaces more than 100-year-old Confederate monument

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Bronze statue of Congressman John Lewis replaces more than 100-year-old Confederate monument
  • A large bronze statue of Congressman John Lewis, the late civil rights leader, was installed in Decatur, Georgia, where a monument to the Confederacy was removed in 2020.
  • The confederate monument was a stone obelisk erected by the United Daughters of the Confederacy in 1908. It became the subject of protests over police violence following the death of George Floyd.
  • John Lewis was known for his participation on the front lines of the civil rights movement. His statue will be officially unveiled on Aug. 24.

A large bronze statue of the late civil rights icon and Georgia congressman John Lewis was installed Friday, at the very spot where a contentious monument to the Confederacy stood for more than 110 years in the town square before it was dismantled in 2020.

Work crews gently rested the 12-foot-tall statue into place as the internationally acclaimed sculptor, Basil Watson, looked on carefully.

“It’s exciting to see it going up and exciting for the city because of what he represents and what it’s replacing,” Watson said, as he assisted with the installation process.

LIFE-SIZE SCULPTURE OF ‘FIGHTING’ TRUMP MADE FROM NAILS UNVEILED AT ASSASSINATION ATTEMPT SITE

Lewis was known for his role at the front lines of the civil rights movement and urged others to get in “good trouble” for a cause he saw as vital and necessary. In DeKalb County, where the Confederate monument stood for more than a century, protesters have invoked “good trouble” in calling for the swift removal of the obelisk.

A large bronze statue of the late civil rights leader and politician, Congressman John Lewis, is installed where a monument to the Confederacy was brought down in 2020, on Aug. 16, 2024, in Decatur, Georgia. (AP Photo/Ron Harris)

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Back in 2020, the stone obelisk was lifted from its base with straps amid jeers and chants of “Just drop it!” from onlookers in Decatur, Georgia, who were kept at a safe distance by sheriff’s deputies. The obelisk was erected by the United Daughters of the Confederacy in 1908.

Groups like the Beacon Hill Black Alliance for Human Rights and Hate Free Decatur had been pushing for the monument to be removed since the deadly 2017 white nationalist rally in Charlottesville, Virginia.

The monument was among those around the country that became flashpoints for protests over police brutality and racial injustice, following the death of George Floyd at the hands of police in Minneapolis. The city of Decatur then asked a Georgia judge to order the removal of the monument, which was often vandalized and marked by graffiti, saying it had become a threat to public safety.

The statue of Lewis will be officially unveiled on Aug. 24.

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UNC Chapel Hill's new school hailed as 'bright spot' for free exchange of ideas

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UNC Chapel Hill's new school hailed as 'bright spot' for free exchange of ideas

The University of North Carolina at Chapel Hill’s School of Civic Life and Leadership (SCiLL) aims to encourage its students to engage in civil public discourse and, in the words of Dean Jed Atkins, “learn how to disagree better,” despite a national culture increasingly mired by ideological division and censorship.

“SCiLL prepares students for the responsibilities of citizenship and civic leadership by fostering a free-speech culture and providing an education grounded in encouraging the human search for meaning and developing the capacities for civil discourse and wise decision-making,” Atkins, who formerly served at the helm of a similar program at Duke University, said, per the school’s website.

Its focus appears to deviate from schools that feed into the increasingly common concern that colleges and universities are becoming less welcoming of the free exchange of ideas.

UNC CHAPEL HILL BOARD VOTES TO DISMANTLE DEI PROGRAMS, USE FUNDS ON CAMPUS POLICE AFTER ANTI-ISRAEL PROTESTS

A photo of the University of North Carolina at Chapel Hill’s campus.  (Eros Hoagland/Getty Images)

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The Wall Street Journal’s editorial board hailed SCiLL as a “new bright spot for traditional liberal thought” in a piece published Tuesday, adding that its existence is a “victory over the progressive monolith that tried to prevent it.”

When the school was announced last year, UNC faculty members voiced their distaste for the board of trustees’ resolution to “accelerate” its creation.

One faculty member, quoted in the university’s newspaper, The Daily Tar Heel, said he was “surprised” to find out about that resolution at the time.

Another was “flabbergasted,” with several faculty members arguing they should have been consulted for input.

CONSERVATIVE COLLEGE STUDENTS SAY GROWING LIBERAL BIAS HAS FORCED THEM TO HIDE BELIEFS: ‘CAN’T SPEAK FREELY’

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David Boliek, then-chairman of UNC’s board of trustees, spoke to “Fox & Friends” about the school’s creation in January 2023, saying there’s “no shortage of faculty with progressive, left-wing views [at UNC], like many campuses across the nation.”

“The same really can’t be said of right-of-center views,” he added, “So this is an effort to try to remedy that with the School of Civic Life and Leadership, which will provide equal opportunity for both views to be taught at the university.”

The WSJ piece quoted current UNC board of trustees Chairman John Preyer as saying he hopes the experimental program can “become the nation’s model for what academic freedom can do for higher education, and change the entire landscape.”

UNIVERSITY OF NORTH CAROLINA MOVES TO BAN ‘DIVERSITY, EQUITY AND INCLUSION’ STATEMENTS IN ANTI-WOKE BACKLASH

Stock photos of UNC campus

University of North Carolina at Chapel Hill campus.  (Eros Hoagland/Getty Images)

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SCiLL will offer courses in philosophy, politics, history, policy and more, according to a course breakdown on its site.

Some topics of study, according to the Wall Street Journal, will be the Lincoln-Douglas debates, the Federalist Papers, and the philosophies of rhetoricians like Aristotle and Montesquieu.

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Too cute: Zoo Atlanta welcomes adorable baby two-toed sloth

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Too cute: Zoo Atlanta welcomes adorable baby two-toed sloth

Georgia’s Zoo Atlanta is celebrating the birth of a Hoffmann’s two-toed sloth earlier this month.

The sloth infant, which has not yet been publicly named, was born Aug. 9 to its mother, Nutella, 7, and father Cocoa, 31, Zoo Atlanta said in an Aug. 14 press release. 

It is Nutella’s second child. Her first, a female named Olivia, was born in June 2023, the zoo said.

4 ENDANGERED AMERICAN RED WOLF PUPS BORN AT ST. LOUIS ZOO IN HISTORIC FIRST

“We are very excited about the birth of Nutella’s infant,” said Gina Ferrie, vice president of collections and conservation at Zoo Atlanta. 

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Sloths, she said, “have so many fascinating adaptations and behaviors that we can share with our members and guests.” 

A baby Hoffmann’s two-toed sloth was born this month at Zoo Atlanta. The zoo said it’s “very excited” about the infant’s arrival.  (Zoo Atlanta/TMX)

Sloth pregnancies last for approximately 11 months to a year, something the zoo said is “unusually long for the animal kingdom.” 

These pregnancies, the zoo added, “are not easily confirmed,” adding to the excitement over the new sloth baby’s arrival. 

GORILLA, JUST 4 MONTHS OLD, DELIGHTS ZOO VISITORS WITH FUNNY FACES: ‘VERY HAPPY’

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Although sloth pregnancies are very long, “sloth infants develop at a notably more rapid pace than do most other mammal babies,” said Zoo Atlanta.

Sloth infants are “born fully furred, with their eyes open and teeth already present and have fully developed claws for clinging to their mothers.” 

A baby sloth sticking its tongue out.

Sloths, said Zoo Atlanta, are born with their eyes open and are “fully furred.”  (Zoo Atlanta/TMX)

While Hoffmann’s two-toed sloths are “not currently classified as endangered,” Ferrie said, “they have an emerging conservation story that can help us appreciate the impact of human activities on wild animals and ecosystems.” 

Hoffmann’s two-toed sloths are native to Central and South America, according to Zoo Atlanta, and “face mounting threats in the wild” due to illegal logging practices and other human activities. 

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A fully grown Hoffmann's tow-toed sloth.

The Hoffmann’s two-toed sloth is native to South and Central America. (Getty Images)

“Hundreds of sloths are electrocuted each year while attempting to use power lines to travel among fragmented forest patches,” Zoo Atlanta said.

Zoo Atlanta works with the Sloth Conservation Project, a Costa Rica-based organization that rescues, rehabilitates and releases sloths.

For more Lifestyle articles, visit www.foxnews.com/lifestyle

Nutella and her newest offspring can be seen at the Summer Sloth Habitat. 

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