The FBI released the below information:
After a failed run for U.S.
Congress in 2016, Harold Russell Taub turned his energy to political
fundraising. Namely, soliciting donations to two political action committees
(PACs) he created.
Using
a list of donors who had given to similar causes and attaching the name and
image of a former secretary of the Navy to his efforts, Taub successfully
solicited more than $1.6 million in donations. Department of Justice charges
show there were several problems with his PACs, however.
First,
Taub never registered them. PACs pool contributions from donors and then
contribute that money to support or defeat a candidate for office or further a
cause or policy position. Election laws mandate that they be registered with
the Federal Election Commission (FEC).
Second,
the former Navy secretary wasn’t even part of the PAC. “Taub was using his name
and likeness without the official’s permission,” said FBI Special Agent Eric
Miller, who investigated the Taub case and now supervises a federal public
corruption squad out of the Washington Field Office.
There
was still another element to Taub’s scheme. “He told donors that 100% of their
contributions were going to the cause when, in fact, he was spending that money
on personal expenditures—things like excessive travel, wine, cigars, trips to
Las Vegas, gambling,” Miller said.
After
pleading guilty to wire fraud and willfully violating the Federal Election
Campaign Act by operating fraudulent and unregistered political action
committees, Taub was sentenced to 36 months in federal prison. He was also
ordered to pay more than $1.1 million in restitution to the victims.
There
are many reputable, well established PACs that are properly supporting causes
and candidates. But Miller warns that it is easy for a fraudster to establish a
group, create a website, and begin asking for contributions.
“It’s
fairly easy to start reaching out to potential donors to say, ‘We are backing
this candidate or this political issue—please donate,’” Miller said. “The
groups can look and sound legitimate, and that’s one of the tough parts of
keeping people from being victimized. The red flags aren’t always obvious.”
The FBI is seeing an increase
in reports of potentially fraudulent PACs, and Miller said donors should be on
high alert if approached by a new group. He also recommends people take these
steps to make sure their donation is going where they intend it to go:
- Visit the
FEC’s website and
search the organization’s name to see if the PAC is registered. If it is
not registered, it is not legal.
- Check where the PAC
is spending its money. If the PAC is registered and filing its quarterly
reports as PACs are mandated to, a donor can search their “disbursements”
on the FEC website. Look to see what vendors it is using. Often, in a scam
PAC, you will see the vendors are also associated with the operators.
That should be a red flag. Similarly, if you see the same operator
running multiple PACs, that can be an indicator of a scam.
- Be wary of groups
with names that are similar to more established organizations. Check to
see how long the PAC has been around. It is, of course, normal for a group
supporting a new candidate for office to be recently formed, but the
candidate’s official website will have the best information on how to give.
- Taking money from
another person and donating it to a candidate or PAC in your name is
illegal. Any contributions must come from you.
“If
you feel strongly about a political issue or candidate, it’s worth the time and
effort to do the research to make sure your money is going to the cause you
believe in.” Miller said. “If something doesn’t look right, it’s not worth
writing that check.”
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