The New York Times, earlier this month, reported that “secret ledgers” in Ukraine show $12.7 million in cash payments designated for former Donald Trump campaign chairman Paul Manafort from Ukraine’s pro-Russian political party. Days later, the Associated Press reported that Manafort helped the pro-Russian party “secretly route at least $2.2 million in
enforcement
The Supreme Court Redraws the Lines for Corruption Prosecutions
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…
Coercing Contributions at Work: The FEC’s Latest Decision
By Robert Lenhard on
Posted in Campaign Finance
On Friday, three Federal Election Commission (FEC) Commissioners provided a clear description of their understanding of the facts and law that led them to oppose opening an investigation into whether Murray Energy coerced its employees into making political contributions. Statement of Reasons of Chairman Petersen and Commissioners Hunter and Goodman, FEC MUR 6661. While clarity…
“When One Door Closes . . .”: McCain-Feingold Opens “Soft Money” Loophole In the States
By Matthew Shapanka on
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…
Enforcement, Clarity Delayed for FINRA Pay-to-Play and Third Party Solicitation Rules
By Kevin Glandon on
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…
SEC Fines Should Prompt Firms Engaged in Political Intelligence To Revisit Insider Trading Policies
By Zachary G. Parks on
Posted in Enforcement
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 …
California Penalizes Campaign, Committee for Coordination Violation
By Robert Lenhard & Andrew Garrahan on
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…
Highlights from Wagner; D.C. Circuit Upholds Contributions Restrictions But Limits Ruling
By Kevin Glandon on
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…
The SEC & Big Data
By Kevin Glandon on
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.”…
Ethics Enforcement in the 114th Congress
By Kevin Glandon on
The notion that the House and Senate Ethics Committees are inactive bodies, often implied in media coverage, is far from the truth.
During the previous Congress, the House Ethics Committee issued more than 900 formal advisory opinions and addressed more than 40,000 informal requests for guidance. In the first half of the 113th Congress alone,…