US News

Clinton campaign finds legal loophole to collect big donations

Hillary Clinton’s campaign has found a work-around for the Democratic Party to accept donations beyond the $33,400 legal limit — despite the presidential candidate’s pledge to reform the campaign finance structure.

The scheme works like this: The Hillary Victory Fund — a joint Democratic fundraising arm — accepts the money, allocates the maximum allowed by law to the national party ($33,400), and then routes additional money to various state Democratic parties that in turn return the same amount to the national party.

Bloomberg Politics cites as one example S. Donald Sussman, who donated $343,400 to the Hillary Victory Fund in March. The next month, the maximum donation — $33,400 — was transferred directly to the Democratic Party.

Later that month, on April 25, the fund transferred $179,000 to the Democratic Party of South Carolina. Included in that transfer was $10,000, which had been given by Sussman.

On April 25, exactly $179,000 was transferred by the Democratic Party of South Carolina to the Democratic National Committee. The donation back to the national party in Washington did not include a disclosure of donors.

Bloomberg found Sussman’s donation was similarly distributed to 10 other states — and, likewise, similarly redistributed to the national party.

“I’m not aware of any case law or regulations that would prohibit a state party from transferring to a national party committee funds raised through a joint fundraising committee,” election lawyer Robert Kelner told Bloomberg.

“But as a practical matter, it does appear that the DNC may be using Hillary Victory Fund as a mechanism for allowing donors to give more to the DNC indirectly than would otherwise be permitted directly.”

Clinton has previously advocated campaign finance reform.

Campaign spokesman Josh Schwerin told Bloomberg: “Hillary Clinton has fought for campaign finance reform her entire career and, as president, will make it a priority to overturn Citizens United and restore the role of everyday voters in elections.”