The U.S. Department of Justice today announced the arrest of an alleged agent of the Iranian government, who has been charged with violating the Foreign Agents Registration Act (“FARA”). The defendant is an Iranian political scientist, living in the United States as a permanent resident. The Justice Department alleges that for years he has engaged … Continue Reading
An opinion by Chief Judge Beryl Howell of the U.S. District Court for the District of Columbia unsealed yesterday has generated much attention for its discussion of contributions-for-pardons allegations in a case that is still largely obscured from public view. But the underlying offenses at issue in the case also include an alleged “secret lobbying … Continue Reading
Over the past 10 days, the FEC has been quietly exercising authority reserved for when at least four Commissioners vote in favor of an action. Since July 3, however, the FEC has only had three Commissioners. This activity raises consequential questions about the FEC’s ability to act without a quorum, and presents important concerns about … Continue Reading
Every four years, prosecutors at the Department of Justice (“DOJ”) train their sights on money spent to influence the outcome of the presidential election—and those who spend it. While the Federal Election Commission (FEC) has exclusive jurisdiction to penalize and enforce civil violations of the Federal Election Campaign Act (FECA), 52 U.S.C. § 30101 et … Continue Reading
Nearly a decade after his release from prison, having served nearly four years on corruption charges, disgraced lobbyist Jack Abramoff may be heading back behind bars, this time as the first person ever charged and convicted for criminal violations of the Lobbying Disclosure Act (“LDA”). Yesterday the Justice Department announced that notorious lobbyist Jack Abramoff … Continue Reading
In one of the most watched campaign finance disclosure enforcement cases, last week, the Washington State Supreme Court upheld a trial court’s finding that a trade association intentionally failed to register and report contributions and expenditures in opposition to a ballot initiative that would have required labeling of genetically modified organisms (GMOs) in food. In … Continue Reading
On December 13, the Federal Communications Commission (“FCC”) issued a Notice of Apparent Liability (“NAL”) against Kenneth Moser and his telemarketing company, Marketing Support Systems (“MSS”), proposing a fine of $9,997,750 for allegedly transmitting more than 47,000 unlawful spoofed robocalls. The calls were made over a two-day period in May 2018, one week before California’s … Continue Reading
In a rare case, a so-called “dark money” group has now publicly released the names of its donors. Under federal law, if an organization has as its “major purpose” the nomination or election of federal candidates, the organization may be a “political committee” required to report its receipts and disbursements with the Federal Election Committee. … Continue Reading
In December, the Securities and Exchange Commission (“SEC”) fined an investment adviser $100,000 for violating the SEC’s pay-to-play rule. The SEC’s rule effectively prohibits investment adviser executives and other “covered associates” of an investment adviser from making political contributions in excess of de minimis amounts ($350 per election if the contributor is eligible to vote … Continue Reading
Just one week ago, a federal court in Colorado held that the state’s system for enforcing its campaign finance laws was unconstitutional. Moving quickly, the Colorado Secretary of state has enacted temporary enforcement rules, effective immediately. Under the new rules, any person may file a complaint, just like under the old system. However, the rules … Continue Reading
In a case with interesting ramifications, a federal court this week struck down major parts of Colorado’s campaign finance enforcement system as unconstitutional. The system at issue, which was created through a ballot initiative, generally allowed any person who believed there had been a violation of the state’s campaign finance laws to file a written … Continue Reading
In a 2014 blog post about the Dinesh D’Souza case, we speculated that it might have been one of the first “straw donor” cases identified based on automated analysis of campaign finance disclosure reports. It’s not clear that was actually the case, though the Department of Justice did say at the time that “the indictment … Continue Reading
Covington today issued the third edition of its Chiefs of Staff manual on handling investigations of Members of Congress and Congressional staff. The manual was originally published in 2014, but has been updated twice since then. The new third edition includes some of the latest available statistics and examples. This manual is intended to advise … Continue Reading
Covington today released an updated version of its manual for Chiefs of Staff to Members of Congress concerning best practices for responding to government investigations of Members and their staff. Titled “A How-To Guide for Chiefs of Staff,” the manual describes how government investigations unfold and the steps that Chiefs of Staff need to take … Continue Reading
The Ferrari carrying former Virginia Governor Bob McDonnell appears to have made a U-turn this week on its way to the federal penitentiary. Covington released today a Client Alert on the Supreme Court’s decision in McDonnell v. United States, a decision which vacated Governor McDonnell’s conviction and redraws the lines for corruption prosecutions. The Court held a public … Continue Reading
A recent settlement between the Massachusetts Office of Campaign and Political Finance (OCPF) and Massachusetts Republican Party may highlight an emerging trend: state parties using federal preemption to avoid strict state campaign finance laws. At issue was whether the Massachusetts Republican Party could use funds from its federal campaign account to pay for staff and … Continue Reading
The Securities and Exchange Commission announced Tuesday that it will allow further comment on a pay-to-play rule proposed by the Financial Industry Regulatory Authority (FINRA). As we discussed previously, if the SEC approves FINRA’s pay-to-play rule, it would clarify that investment advisers are allowed to hire third party solicitors if they are subject to FINRA … Continue Reading
On Friday, the Government Accountability Office (GAO) issued its ninth annual report on compliance with the federal Lobbying Disclosure Act (LDA), covering from mid-2014 through mid-2015. As in the past, the report is based on random audits of lobbyists’ filings and analysis of enforcement by the U.S. Attorney’s Office for the District of Columbia. We … Continue Reading
Yesterday, the FCC released an Enforcement Advisory to remind political campaigns about their obligations under the Telephone Consumer Protection Act (“TCPA”). The Advisory did not set forth any new rules for calls and texts; rather, it confirmed existing rules and reminded political campaigns that they are subject to them. The Advisory first confirmed that prerecorded … Continue Reading
A $12 million settlement announced last week by the Securities & Exchange Commission suggests that the SEC will aggressively pursue alleged schemes connecting political contributions to government contracts even if the political contributions do not violate its 2010 pay-to-play rule. According to the settlement order, in 2010, the head of Public Funds at State Street … Continue Reading
In a rare move, the Securities & Exchange Commission has assessed penalties against a political intelligence firm for failing to adopt adequate policies to prevent the flow of inside governmental information to the firm’s clients. The enforcement action is particularly noteworthy because all the factual allegations took place in 2010, before Congress passed the STOCK … Continue Reading
As Super PACs and campaigns continue to edge closer to the legal line between “independence” and “coordination,” it has become common to hear calls for the FEC to take a stricter role in enforcing the law. Yet as recently reported by BNA, the FEC has not found a single violation of its coordination rules in … Continue Reading
The Wagner case, decided today by the D.C. Circuit, is important because of its analysis of the constitutionality of federal campaign contribution restrictions and, by extension, of pay-to-play laws generally. Covington has been monitoring this case since the district court decision in 2012, to the argument before the D.C. Circuit in 2013, and the decision … Continue Reading
In our discussion of the Securities & Exchange Commission’s (SEC) actions over the past year, we described how the SEC is ramping up enforcement of its pay-to-play restrictions. We also pointed out an acknowledgment by an agency enforcement official that the agency is “actively looking” for violations and that the agency does its own “surveillance.” What kind … Continue Reading
