Money Laundering Investigations into ActBlue, “Smurfing” Schemes Gain Momentum in Wisconsin

Allegations of money laundering, identity theft, and elder abuse have all emerged as investigations into a leftist multi-pronged fundraising entity known as ActBlue gain momentum. 

The spike in suspected “smurfing” via ActBlue has created some eye-popping numbers, according to an analysis by Restoration News. FEC records show some individuals with thousands of small dollar donations over short time periods, causing investigators to question their legitimacy. The questionable donations could total tens of millions, or even hundreds of millions of dollars.

Just last week, Texas Attorney General Ken Paxton petitioned the Federal Elections Commission (FEC) “to close loopholes that jeopardize American election integrity” after finding that  ActBlue could serve as a conduit for making illegal campaign donations. 

Paxton’s petition fits into a larger criminal investigation on the part of 19 state attorneys general who are working to unwind “smurfing” techniques that involve the repackaging of large sums of money into smaller, individual transactions so as to avoid legal scrutiny. 

A “smurf” is an individual whose name and identity is used without their permission or consent. They have no idea that hundreds or thousands of donations are being made in their name.

Restoration News has obtained FEC records that reveal the nature of a typical smurf: generally elderly, often retired, of modest financial means, who has made small donations to Democrats.

This smurfing scheme on behalf of Democrats concentrates on close elections in swing states like Wisconsin. These close elections could determine the outcome of this year’s presidential race and which party controls the U.S. Senate. Restoration News has identified 10 smurfs in Wisconsin whose identities were used to make more than 1600 contributions to U.S. Sen. Tammy Baldwin, the far-left incumbent Democrat, who is in a tight race with Republican businessman Eric Hovde. In total, these smurfs contributed more than $2 million to Democrat candidates and Democrat organizations. 

Wisconsin Baldwin Smurfs by tips on Scribd

Polls show Baldwin and Hovde essentially tied, but Hovde is being heavily outspent. The last two elections in Wisconsin were decided by a margin of less than 1%.

(READ MORE: Are ActBlue’s Donors Even Real?)

How High Up Does the Fundraising Scheme Go?

Vice President Harris has also benefitted from smurfing. FEC records reveal 24 smurfs in Wisconsin making more than 3500 donations to Harris, according to a Restoration News analysis. But that’s just for the current election cycle and for these smurfs. Multiple sources told Restoration News, on the condition of anonymity, that there are hundreds, or perhaps even thousands of smurfs; that these donations have been made over several years; and that the total amount money laundering could be to the tune of several hundred million dollars.

Harris Wisconsin Smurfs by tips on Scribd

The methodology used to determine if a campaign contributor is really a smurf is based on the amount, frequency, and age of the contributor. 

When, for example, Restoration News come across figures that show the largest contribution is $1,000, and the person in question has made 5,000 donations, which include multiple donations the same day to the same entity, and the person in question is 78 years old, then it is reasonable to conclude that the person is a smurf. 

Another red flag is the presence of ActBlue, which was founded in 2009 for the benefit of the Democratic Party, Democratic candidates, and left-wing causes. The  ActBlue networks includes a political action committee, a 501(c)(3) nonprofit called  ActBlue Charities, and 501(c)(4) nonprofit called  ActBlue Civics. The  ActBlue PAC received almost 170,000 donations totaling more than $1 million just from the 24 smurfs Restoration News identified. 

Foreign Funding and ActBlue

On the federal level, Rep. Bryan Steil of Wisconsin, the Republican chairman of the Committee on House Administration, has led the charge against political donations to ActBlue. Steil is also the lead sponsor of legislation known as the SHIELD Act, which would impose stricter requirements on campaign donations made through credit or debit cards. 

Steil is not alone. He recently joined forces with Sen. Ron Johnson, R-Wis., to probe into money laundering exercises from countries that make use of  ActBlue to benefit the Democratic Party. Steil and Johnson have sent letters to Treasury Secretary Janet Yellen, FBI Director Christopher Wray, and Director of National Intelligence Avril Haines expressing concern specifically about the specter of China, Iran, Russia, and Venezuela, making use of ActBlue to influence the U.S. election.

More Problems in Wisconsin

Meanwhile, back in Wisconsin, Milwaukee residents have filed suit against the city demanding that it clean up voter rolls. The suit alleges that there are over 30,000 voters on the Active voting list whose addresses are illegal because they do not match current Post Office records. 

In Wisconsin numerous money laundering and voter fraud lawsuits have been filed including smurfs, illegal addresses, non-citizen voting, modems connected to voting machines, and lack of security relating to the state’s MyVote system. In every case Democrat group, left-wing groups or the Democratic Party have filed suit on behalf of the defendants. Restoration News will be following up on these lawsuits. 

(READ MORE: Meet Eric Hovde, the Republican Taking On Tammy Baldwin)