Attorney General Ken Paxton made a criminal referral to the Department of Justice (“DOJ”) detailing the results of an investigation that revealed how suspicious actors seemingly use ActBlue’s political fundraising platform to make illegal straw donations.
The investigation into ActBlue began in December 2023 following allegations that the company could be facilitating illegal campaign contributions. As a result, in August 2024 ActBlue began requiring donors using credit cards to provide “CVV” codes, a common security measure. That does not prevent all the abuses that Attorney General Paxton’s team has identified on ActBlue, including that straw donations apparently are being made on a large scale using false identities, through untraceable payment methods.
On Monday, Attorney General Paxton sent a petition for rulemaking to the Federal Election Commission (“FEC”) urging changes that would close loopholes that can be exploited to illegally funnel money into American elections. When the FEC previously considered adopting rules that could prevent straw donation schemes like those uncovered by the investigation, ActBlue opposed such changes.
“I have made a criminal referral to the U.S. Department of Justice based on the findings from our investigation into ActBlue. My investigation uncovered evidence showing that bad actors are likely using ActBlue’s platform to make illegal campaign contributions,” said Attorney General Paxton. “It is illegal to engage in election fraud and it is illegal to obscure one’s identity to flout election rules. The Department of Justice must take immediate action to prevent illegal conduct in our elections.”
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