Before the recent elections, the House Committee on Oversight and Accountability requested then-Treasury Secretary Janet Yellen to provide Suspicious Activity Reports (SARs) related to ActBlue. SARs are documents that banks file when they suspect fraudulent or illegal financial activity. Yellen’s response was slow, possibly hoping for a Democratic victory that would end the investigation. However, with the change in administration, new Treasury Secretary Scott Bessent is cooperating with the inquiry, which focuses on ActBlue’s financial practices.
Concerns surrounding ActBlue have intensified, especially following the sudden resignation of seven senior officials from the organization in February. Reports indicate that the departures included key figures such as the associate general counsel and the chief revenue officer. This exodus has raised eyebrows, particularly among lawmakers investigating potential fraud in campaign financing.
Rep. James Comer, the chairman of the Oversight Committee, has expressed worries about possible fraud and violations of campaign finance laws involving online contribution platforms like ActBlue. He highlighted that ActBlue had previously failed to implement basic security measures, such as requiring a Card Verification Value (CVV) for online donations, until it faced criticism.
One alarming practice under scrutiny is known as "smurfing." This involves using the names of small donors without their knowledge to disguise larger contributions, which must be reported to the Federal Election Commission (FEC). Investigations have revealed shocking patterns, such as one Colorado resident allegedly making over 57,000 contributions totaling more than $234,000, and another from Florida with over 52,000 contributions totaling nearly $388,000. These examples are not isolated, with many cases showing implausibly high donation frequencies.
Nineteen states are now investigating ActBlue, prompted by reports suggesting that numerous individuals listed as donors may not have actually made those contributions. This raises serious questions about the integrity of ActBlue’s fundraising practices and whether they are facilitating money laundering.
The source of the large sums raised by ActBlue, which has collected around $16 billion since its founding in 2004, is also under scrutiny. Critics suggest that the organization may be receiving significant backing from wealthy individuals and groups, potentially masking the true origins of its funding. As the investigations continue, the future of ActBlue hangs in the balance, with many wondering how the Democratic Party would adapt if it were to collapse under the weight of these allegations.