Feds: Mexican Tycoon Exploited Super PACs to Influence U.S. Elections

[mota bhai 2,675]

Feds: Mexican Tycoon Exploited Super PACs to Influence U.S. Elections
BY JOHN HUDSON

FEBRUARY 11, 2014

In a first of its kind case, federal prosecutors say a Mexican businessman funnelled more than $500,000 into U.S. political races through Super PACs and various shell companies. The alleged financial scheme is the first known instance of a foreign national exploiting the Supreme Court's Citizens United decision in order to influence U.S. elections.

...

Until now, allegations surrounding Jose Susumo Azano Matsura, the owner of multiple construction companies in Mexico, have not spread beyond local news outlets in San Diego, where he's accused of bankrolling a handful of southern California candidates. But the scandal is beginning to attract national interest as it ensnares a U.S. congressman, a Washington, D.C.-based campaign firm and the legacy of one of the most important Supreme Court decisions in a generation.

...

On January 21, the U.S. Attorney's Office accused Ravneet Singh, proprietor of the Washington campaign firm ElectionMall, and Ernesto Encinas, a former San Diego police detective, of using Azano's money to support three Democratic politicians and the city's Republican district attorney. Azano wanted to turn the San Diego bayfront into a West Coast version of Miami's bustling waterfront, but lacked the political clout to do so, according to prosecutors. In order to buy support for the project, he's accused of doling out illegal contributions to politicians.

...

[in] 2010 ... President Obama used his State of the Union address to lament that Citizens United would "open the floodgates" for foreigners and special interest groups to "spend without limit in our elections."

The remark famously prompted Justice Samuel Alito to shake his head and mouth the words "not true" during the address. It also led the non-partisan fact-checking site PolitiFact to label Obama's warning "mostly false" because the legality of foreign contributions was "outside the scope of the opinion" made by the court. Politifact cited the court's majority opinion, which stated that "We need not reach the question" of foreign contributions.

...
"Before Citizens United, in order for a foreign national to try and do this, they'd have to set up a pretty complex system of shell corporations," said Brett Kappel, a campaign finance expert at the law firm Arent Fox. "And even then, there were dollar limits in place. After Citizens United, there are no limits on independent expenditures."

That's an important point given the massive size of Azano's alleged donations: Half a million dollars. According to the complaint, Azano's money traveled through a U.S.-based shell company before arriving at the Super PAC. Because the Super PAC was only required to disclose the name of the U.S. shell company, the contributions appeared to be U.S.-based.

...

If there's something to be learned from the San Diego case more broadly, campaign reform advocates say it's the need for stricter reporting requirements from the Federal Election Commission ... The goal would be to require the disclosure of the original contributor, rather than the shell companies and Super PACs that sometimes conceal the source.

http://thecable.foreignpolicy.com/posts/2014/02/11/feds_mexican_tycoon_used_super_pacs_to_influence_us_elections

[The Nature Boy 4,224]

Feds: Mexican Tycoon Exploited Super PACs to Influence U.S. Elections

BY JOHN HUDSON

FEBRUARY 11, 2014

In a first of its kind case, federal prosecutors say a Mexican businessman funnelled more than $500,000 into U.S. political races through Super PACs and various shell companies. The alleged financial scheme is the first known instance of a foreign national exploiting the Supreme Court's Citizens United decision in order to influence U.S. elections.

...

Until now, allegations surrounding Jose Susumo Azano Matsura, the owner of multiple construction companies in Mexico, have not spread beyond local news outlets in San Diego, where he's accused of bankrolling a handful of southern California candidates. But the scandal is beginning to attract national interest as it ensnares a U.S. congressman, a Washington, D.C.-based campaign firm and the legacy of one of the most important Supreme Court decisions in a generation.

...

On January 21, the U.S. Attorney's Office accused Ravneet Singh, proprietor of the Washington campaign firm ElectionMall, and Ernesto Encinas, a former San Diego police detective, of using Azano's money to support three Democratic politicians and the city's Republican district attorney. Azano wanted to turn the San Diego bayfront into a West Coast version of Miami's bustling waterfront, but lacked the political clout to do so, according to prosecutors. In order to buy support for the project, he's accused of doling out illegal contributions to politicians.

...

[in] 2010 ... President Obama used his State of the Union address to lament that Citizens United would "open the floodgates" for foreigners and special interest groups to "spend without limit in our elections."

The remark famously prompted Justice Samuel Alito to shake his head and mouth the words "not true" during the address. It also led the non-partisan fact-checking site PolitiFact to label Obama's warning "mostly false" because the legality of foreign contributions was "outside the scope of the opinion" made by the court. Politifact cited the court's majority opinion, which stated that "We need not reach the question" of foreign contributions.

...

"Before Citizens United, in order for a foreign national to try and do this, they'd have to set up a pretty complex system of shell corporations," said Brett Kappel, a campaign finance expert at the law firm Arent Fox. "And even then, there were dollar limits in place. After Citizens United, there are no limits on independent expenditures."

That's an important point given the massive size of Azano's alleged donations: Half a million dollars. According to the complaint, Azano's money traveled through a U.S.-based shell company before arriving at the Super PAC. Because the Super PAC was only required to disclose the name of the U.S. shell company, the contributions appeared to be U.S.-based.

...

If there's something to be learned from the San Diego case more broadly, campaign reform advocates say it's the need for stricter reporting requirements from the Federal Election Commission ... The goal would be to require the disclosure of the original contributor, rather than the shell companies and Super PACs that sometimes conceal the source.

http://thecable.foreignpolicy.com/posts/2014/02/11/feds_mexican_tycoon_used_super_pacs_to_influence_us_elections

I thought we caught the Chinese giving Clinton Money?

[I AM NOT THAT GUY 5,715]

And we caught everybody giving money to Obama. So what?

[mota bhai 2,675]

I thought we caught the Chinese giving Clinton Money?

I believe they are referring to the use of Super PACs by foreign citizens in the post Citizens United era.

[Darnell 8,478]

Meanwhile back at post #1 -

so what? That's how it's done here,

with the difference really being -

he not engage the right Lobbyist group.

See, the right Lobbyist Group knows how to cover tracks.

This Singh fella seems to be a slacktard, since he got caught.

[Pooky 3,807]

Meanwhile back at post #1 -

so what? That's how it's done here,

with the difference really being -

he not engage the right Lobbyist group.

See, the right Lobbyist Group knows how to cover tracks.

This Singh fella seems to be a slacktard, since he got caught.

Everyone involved needs to take lessons from George Soros.

[luckytxn 2,264]

Racists. Mexicans are people too.

[Darnell 8,478]

but are Mexican-Japanese businessmen really Mexicans?

Still, he took a 'low-bid' approach to this.

[luckytxn 2,264]

They are what we say they are.

but are Mexican-Japanese businessmen really Mexicans?

Still, he took a 'low-bid' approach to this.