RNC to File FEC Complaint on Obama Fundraising Practices

At the heart of the RNC complaint is a federal fundraising rule that lets campaigns accept donations under $200 without itemizing the names and addresses of the donors on its campaign finance reports. The rule was intended as a matter of practicality -- it did not seem reasonable to ask a campaign to gather that information from every five-dollar donor.

But the Obama campaign has raised more than $200 million this way, a staggering sum for donations that will not be subjected to outside scrutiny.

http://voices.washingtonpost.com/the-trail/2008/10/05/rnc_to_file_fec_complaint_on_o.html?hpid=topnews


The Obama campaign could face fines if found guilty of violations by the FEC, but any decision would likely come after he faces Republican John McCain in the November 4 presidential election.

Obama spokesman Bill Burton said the McCain campaign has had to return over $1.2 million to donors who potentially violated the law with their contributions, including money from foreign nationals.

"Our campaign has shattered fund-raising records with donations from more than 2.5 million Americans. We have gone above and beyond the transparency requirements," Burton said.

"While no organization is completely protected from Internet fraud, we will continue to review our fund-raising procedures to ensure that we are taking every available to step to root-out improper contributions," he said.


http://www.reuters.com/article/politicsNews/idUSTRE4942Z720081005?feedType=RSS&feedName=politicsNews&rpc=22&sp=true

To critics, though, it can be an invitation for fraud and illegal foreign cash because donors giving individual sums of $200 or less don't have to be publicly reported. Consider the cases of Obama donors "Doodad Pro" of Nunda, N.Y., who gave $17,130, and "Good Will" of Austin, Texas, who gave more than $11,000"both in excess of the $2,300-per-person federal limit. In two recent letters to the Obama campaign, Federal Election Commission auditors flagged those (and other) donors and informed the campaign that the sums had to be returned. Neither name had ever been publicly reported because both individuals made online donations in $10 and $25 increments. "Good Will" listed his employer as "Loving" and his occupation as "You," while supplying as his address 1015 Norwood Park Boulevard, which is shared by the Austin nonprofit Goodwill Industries. Suzanha Burmeister, marketing director for Goodwill, said the group had "no clue" who the donor was. She added, however, that the group had received five puzzling thank-you letters from the Obama campaign this year, prompting it to send the campaign an e-mail in September pointing out the apparent fraudulent use of its name.

"Doodad Pro" listed no occupation or employer; the contributor's listed address is shared by Lloyd and Lynn's Liquor Store in Nunda. "I have never heard of such an individual," says Diane Beardsley, who works at the store and is the mother of one of the owners. "Nobody at this store has that much money to contribute." (She added that a Doodad's Boutique, located next door, had closed a year ago, before the donations were made.)

http://www.newsweek.com/id/162403