zerohedge | Is the Hillary Victory Fund using state democratic committees
to launder donations from wealthy individuals to the Democratic
National Committee? Evidence gathered by Bloomberg would certainly seem to suggest so.
So how does it work? Campaign finance laws specifically restrict the amount of money any single person can give to individual candidates ($2,700), a party's various state committees ($10,000) as well as a party's national committee ($33,400).
In theory, therefore, that would imply a person would be capped out at
$46,100 if he contributed the max his Presidential candidate, his
party's national committee and his party's state committee. But,
that's just a narrow "interpretation" of the "intent" of the campaign
finance laws and Hillary isn't really all about "intent"...just ask FBI
Director Comey.
So, the Hillary Victory Fund has come up with a clever way to use state democratic committees (of which there are 33) as money-laundering tools to effectively increase the amount that can be contributed to the Democratic National Committee from $33,400 to $363,400 (it's only like 1,000% more than intended).
How do they do it? Well, the rules say that a single person can only contribute $10,000 to any one State. That said, they don't restrict people from contributing $10,000 to multiple states. Moreover, there are no restrictions on transfers of funds from Democratic State Committees to the Democratic National Committee. See where we're going with this?
Effectively the Hillary Victory Fund acts as a "bundler" which
collects large donations from wealthy investors. Per the diagram below,
contributions are then maxed out to "Hillary For President" and the
"Democratic National Committee." Any remaining funds are then spliced up and sent in $10,000 increments to the 33 different State Democratic Committees. That said, the state committees simply act as flow through entities which subsequently pass the contributions from the Hillary Victory Fund along to the Democratic National Committee. Isn't that neat?
The beauty of this system, of course, is that once the money is
aggregated at the Democratic National Committee it becomes very
"flexible." The DNC can then use that money to support Hillary and/or
any of a number of contentious races in any state it wants (e.g.
battleground states).
