What Actually Happened with those Joint Funds

The Clinton campaign and the DNC persisted that the JFC was being used to help support 40 state parties, but in reality, that seems to be a little suspect. A recent analysis shows that, in actuality, only a fraction of a percent of the JFC’s funds were being kept by those state parties.[1] Instead, filings with the FEC suggest that the money being distributed to the state parties were being sent right back to the DNC, which was doing all it could to help the Clinton campaign. Since the Hillary Victory Fund was created in September, state parties received approximately $7.7 million from the JFC, but within a few days of receiving those funds, $6.9 million was transferred by those state parties to the DNC.

  Gober Group

That does sound a lot like money laundering.

This may seem a little odd, but state parties and national parties can transfer funds between each other without limitation at any time. So, it is not illegal for the state parties to receive funds from the JFC and then send them to the DNC. What is problematic is that the allocation formula, which donors must be shown, was seemingly just a pretext. What is worse is that what the Clinton campaign and the DNC were saying publicly about their JFC’s activities did not line up with how the funds were ultimately being treated.

Yeah, I think the former is worse, but, whatever.

The DNC was claiming that the JFC was going to be used to help state parties, and presumably the allocation formula suggested as much, but in actuality all the funds eventually ended up in the coffers of the DNC. Though not illegal, it is certainly very embarrassing.

I'm still trying to get at just what the actual allocation formula was. If they were telling states it was one thing when in fact that's not what they got, then that is illegal. Or I would think it would be, since that would amount to fraud. And, essentially, be a con job.

In addition, these emails suggest that even more egregious and possibly illegal activity may have been occurring between the DNC and the Clinton campaign. Beyond normal interactions between a primary candidate and the national party, it appears the DNC had already become an arm of the Clinton campaign. That being true, it is possible that the DNC was already making coordinating expenditures on behalf of the Clinton campaign, which have so far gone unreported. Unlike the JFC issue, that would be a violation of FEC regulations. Future email leaks from the hack might show more on this subject, and thus be even more damaging.

Two lessons: First, although a JFC’s allocation formula does not have to be released to the public at large, a curious press will discover how JFC funds are treated. So, it is a good idea to have statements about the JFC jive with FEC filings. Second, you can never spend too much money on cybersecurity.

...but hey, do what you want...you will anyway.