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Texas AG Ken Paxton Gives Bombshell Update On ActBlue Fraud Investigation

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2 months ago

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In a press release, Texas Attorney General Ken Paxton announced troubling findings in his office’s investigation into left-wing fundraising arm ActBlue. Several states have opened investigations into ActBlue after James O’Keefe and other independent investigators uncovered highly questionable donations across the country.

On Monday, Paxton announced that he will sent a Petition for Rulemaking to the Federal Election Commission (FEC) “detailing how suspicious actors appear to be using ActBlue’s political fundraising platform to make a large number of straw political donations.”

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In December 2023, Paxton opened an investigation after a number of reporters uncovered dozens of highly suspicious donations. Investigative researcher Parker Thayer, who works with the Capital Research Center, shared a screenshot showing tens-of-thousands of donations allegedly sent by the same Michigan individual.

“A single donor in the small town of Monroe has supposedly donated over 20,000 times since 2019, totaling >$40,000,” Thayer wrote. “They live in a 1,000 sqft house built in 1956.”

“There are dozens more donors like the examples above, and there are two explanations,” Thayer wrote. “1. [ActBlue] is preying on seniors with poor memory by repeatedly sending them requests to sign up for stacking monthly contributions. 2. Some sort of straw-donor scheme is happening.”

O’Keefe Media Group founder James O’Keefe has also reported on a number of instances of alleged fraud generally targeted at senior citizens. Gerda Henderson, a Texas resident, was found to have donated $33,000 to ActBlue, something she denied when approached by O’Keefe.

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In August 2024, Paxton announced that, as a result of the investigation, ActBlue is now requiring donors using credit cards to provide “CVV” codes, a common security measure aimed at fraud prevention.

“But this is not a full solution to the problems that Attorney General Paxton’s team has identified on ActBlue. Namely, it appears that straw donations are systematically being made using false identities, through untraceable payment methods,” Paxton’s press release continued.

On Monday, the Texas attorney general transferred partially redacted findings to the FEC through a Petition for Rulemaking. “The petition recommends regulations that would close fundraising loopholes that jeopardize American election integrity. The FEC previously considered rules on the loopholes that the Attorney General has found here. But ActBlue was a vocal opponent of such rules. That opposition is no longer tenable in light of the Attorney General’s findings,” the press release continues.

“If not corrected by the FEC, bad actors can—with trivial ease—illegally funnel foreign money into American elections, exceed political contribution limits, and more.”

“Our investigation into ActBlue has uncovered facts indicating that bad actors can illegally interfere in American elections by disguising political donations. It is imperative that the FEC close off the avenues we have identified by which foreign contributions or contributions in excess of legal limits could be unlawfully funneled to political campaigns, bypassing campaign finance regulations and compromising our electoral system,” said Attorney General Paxton. “I am calling on the FEC to immediately begin rulemaking to secure our elections from any criminal actors exploiting these vulnerabilities.”

In addition to the Lodestar State’s investigation, Republican attorneys general and secretaries of state in Virginia, Wyoming, Missouri and a handful of additional states have opened their own investigations into ActBlue.

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