The Federalist – Last week a  lawsuit was filed in a DC district court, summarizing the DNC-Clinton conspiracy and providing detailed evidence from Federal Election Commission (FEC) filings confirming the complaint’s allegations that Democrats undertook an extensive scheme to violate federal campaign limits.

From Bundling To Money Laundering

Dan Backer, a campaign-finance lawyer and attorney-of-record in the lawsuit, explained the underlying law in an article for Investor’s Business Daily: Under federal law, “an individual donor can contribute $2,700 to any candidate, $10,000 to any state party committee, and (during the 2016 cycle) $33,400 to a national party’s main account. These groups can all get together and take a single check from a donor for the sum of those contribution limits—it’s legal because the donor cannot exceed the base limit for any one recipient. And state parties can make unlimited transfer to their national party.”

This legal loophole allows “bundlers” to raise large sums of money from wealthy donors—more than $400,000 at a time—filtering the funds to the national committees. Democrats and Republicans alike exploit this tactic. But once the money reaches the national committees, other limits apply.

Suspecting the DNC had exceeded those limits, a client of Backer’s, the Committee to Defend the President, began reviewing FEC filings to determine whether there was excessive coordination between the DNC and Clinton. What Backer discovered, as he explained in an interview, was much worse. There was “extensive evidence in the Democrats’ own FEC reports, when coupled with their own public statements that demonstrated massive straw man contributions papered through the state parties, to the DNC, and then directly to Clinton’s campaign—in clear violation of federal campaign-finance law.”

On behalf of his clients, on December 15, 2017 Backer filed an 86-page complaintwith the FEC, asking the FEC to commence enforcement proceedings against Hillary Clinton, her campaign and its treasurer, the DNC and its treasurer, and the participating state Democratic committees. The complaint, and an attached exhibit consisting of nearly 20 pages of Excel spreadsheets, detailed the misconduct and provided concrete evidence supporting the allegations. In short, here’s what happened and what the evidence establishes.

Think Of It Like A Shell Game With Millions Of Dollars

During the 2016 presidential election, Hillary Clinton, the DNC, and participating state Democratic committees established the Hillary Victory Fund (HVF) as a joint fundraising committee to accept contributions from large donors, some exceeding $400,000. So far, so good. To comply with campaign finance law, the HVF needed to transfer the donations to the specified recipients, whether the Clinton campaign, down-ticket Democrats, the DNC, or state committees.

FEC records, however, show several large contributions reported as received by the HVF and the same amount on the same day (or occasionally the following day) recorded as received by the DNC from a state Democratic committee, but without the state Democratic committee ever reporting the contribution.

For instance, the HVF reported transferring $19,500 to the Mississippi Democratic Party on November 2, 2015, and the Democratic National Committee reported receiving $19,500 from the Mississippi Democratic Party on November 2, 2015. But the Mississippi Democratic Party never recorded the receipt or the disbursement of the $19,500, and without the Mississippi Democratic Party controlling the funds, the HVF’s contribution to the DNC violated campaign finance law.

Over a 13-month period, FEC records show some 30 separate occasions when the HVF transferred contributions totaling more than $10 million to the DNC without any corresponding record of the receipt or disbursement from the state parties, thus illegally leap-frogging the state Democratic parties.

On the other hand, of the contributions state parties reported as received from the HVF, 99 percent wound up at the DNC. They were transferred immediately or within a day or two, raising questions of whether the state Democratic committees truly exercised control over the money—something necessary under campaign finance law to allow a later-legal transfer to the DNC.

Again, the evidence is damning. According to Politico, “[w]hile state party officials were made aware that Clinton’s campaign would control the movement of the funds between participating committees, one operative who has relationships with multiple state parties said that some of their officials have complained that they weren’t notified of the transfers into and out of their accounts until after the fact.”

‘Using The Party As A Fundraising Clearinghouse’

But the Clinton campaign’s control of the contributions did not end once the funds reached the DNC, as the complaint filed with the FEC detailed. Rather, public statements by former DNC chairwoman Donna Brazile acknowledged that “[a]s Hillary’s campaign gained momentum, she resolved the party’s debt and put it on a starvation diet. It had become dependent on her campaign for survival, for which she expected to wield control of its operations.”

Gary Gensler, the chief financial officer of the Clinton campaign, which operated as Hillary For America “HFA,” out of Brooklyn, New York, likewise stated that the Democratic Party was “fully under the control of the Clinton campaign . . . . The campaign had the DNC on life support, giving it money every month to meet its basic expenses, while the campaign was using the party as a fund-raising clearinghouse.”

By excercising control over the DNC’s funds, including funds transferred from the HVF through the state parties, the contributions qualified as donations to the Clinton campaign for purposes of federal campaign finance law, and when properly accounted for exceeded the legal contribution limits.

The Supreme Court Made It Clear This Is Illegal

The illegality of this scheme isn’t a matter of debate. The Supreme Court made clear in 2014 in McCutcheon v. FEC that this exact scenario would violate the law. Here’s how the court laid it out: “[A] donor gives a $500,000 check to a joint fundraising committee composed of a candidate, a national party committee, and most of the party’s state party committees. The committees divide up the money so that each one receives the maximum contribution permissible under the base limits, but then each transfers its allocated portion to the same single committee. That committee uses the money for coordinated expenditures on behalf of a particular candidate.”

The Supreme Court then declared: “Lest there be any confusion, a joint fundraising committee is simply a mechanism for individual committees to raise funds collectively, not to circumvent base limits or earmarking rules. Under no circumstances may a contribution to a joint fundraising committee result in an allocation that exceeds the contribution limits applicable to its constituent parts; the committee is in fact required to return any excess funds to the contributor.” And “the earmarking provision prohibits an individual from directing funds ‘through an intermediary or conduit to a particular candidate.”

This “scenario could not succeed,” the Supreme Court explained, “without assuming that nearly 50 separate party committees would engage in a transparent violation of the earmarking rules (and that they would not be caught if they did).” Caught Clinton was. Yet the FEC failed to act on Backer’s complaint, even though federal law authorizes any person to file “a complaint with the FEC alleging a violation of federal campaign finance law.”