Federal lawsuit claims Delaware Democratic Party laundered money for Hillary Clinton

Delaware Democratic Party; Hillary Clinton

The Delaware Democratic Party along with 32 other state parties are implicated in a federal lawsuit that claims they took part in an massive money laundering scheme to benefit Hillary Clinton during the 2016 election.

Dan Backer, an attorney with the Committee to Defend the President, brought the lawsuit forth and filed a complaint with the Federal Elections Commission (FEC) alleging the Hillary Victory Fund illegally laundered $84 million by funneling the money through the state parties.

The Hillary Victory Fund, a joint fundraising committee for Hillary for America, (the Hillary Clinton presidential campaign organization), the Democratic National Committee (DNC), and the 33 state Democratic committees, took part in the alleged laundering between August 2016 and November 2016. 

Over the course of 11 transactions, $2,478,000 was reportedly transferred from the Hillary Victory Fund to the Delaware Democratic Party, which was then transferred to the DNC on the same date. 

"There were 11 transactions where the Democratic State Committee of Delaware (Delaware Democratic Party) forwarded $2.5 million to the Democratic National Committee, and so these funds were raised, transferred to the Delaware Democratic Party and then transferred to the DNC on the exact same day, or at least that's what was reported," said Backer. "For example, November 2, 2016, $59,000 was reported transferred from the Hillary Victory Fund to the State Committee, and then the Delaware State Committee reports receiving it and then reports sending it to the DNC who also reports receiving that exact same amount." 

Backer said it's illegal because "the Supreme Court has said that we can impose a contribution limit on how much any one individual can give to any one candidate, state party, or political action committee. It doesn't pass the sniff test. If I give you a million dollars for your campaign, I may not have bought anything, but it looks that way. The Supreme Court has widely upheld these base limits." 

Delaware 105.9 reached out to Jesse Chadderdon, executive director for the Delaware Democratic Party, who said called the lawsuit "yet another blatant example of hypocrisy from Donald Trump and his cronies."

"Let's be clear, this is nothing more than a Beltway political stunt led by the pro-Trump PAC 'The Committee to Defend the President,' one that's simply designed to distract Delaware voters from the real challenges impacting GOP-controlled Sussex County: ensuring clean water, preserving open space, and combating the opioid epidemic," explained Chadderdon who said a google search would show Trump did the same thing with 21 state parties. 

Chadderdon couldn't comment on any of the specifics of the lawsuit, but did say that "we are beyond confident our fundraising agreement with the Hillary Victory Fund was well within the law."

Under law, there are no limit to contributions between party committees and party committees are free to transfer money between them, according to Chadderdon who said the process has been repeatedly upheld by the FEC as black letter law, which he argued is not controversial. 

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