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November 2, 2018

PAC donations: Beware of Rip-Offs

By Peter Gemma

Some political-action committees are cashing in on unsuspecting donors.

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More than 7,000 political-action committees (PACs) operate on the election playing field, and most are diligent, effective, and transparent. But as in any industry, from auto repairs to wedding photographers, there are operatives out to make a fast buck.

The business of a PAC is to invest monies from contributors directly to campaigns, and some conduct independent expenditure efforts to oppose candidates or advocate issues that impact voters.

Some slick players are evidently running PACs to simply line their own pockets. For instance, meet Jack Daly. From January 2017 to July 2018, Daly, who serves as chairman and treasurer of the Draft Sheriff David Clarke for Senate PAC, was paid over $585,000 for his services. That's about 30 percent of the organization's total income, but there was even more spent on fundraising expenses. One hitch, however: Clarke, the Wisconsin sheriff and conservative activist, has called the PAC "a scam." He explained to the Milwaukee Journal Sentinel that, "they don't need my permission to [fundraise]. Every time I talk to people and say, 'No, I'm not running for Senate, hang onto your money.'"

So, what does the Clarke for Senate PAC actually do? In 2016, Daly's group spent $5,000 on tickets and expenses for President Trump's inauguration. His PAC also paid $12,000 to be a sponsor of the 2017 Conservative Political Action Conference, incurring another $10,000 or more in expenses, including $1,000 for meals and lodging at the Trump International Hotel.

Political profiteers are not just fleecing donors from one side of the spectrum. In the last four years, 21st-century Democrats have raised $7.1 million from donors, and blew through $5.2 million of it on salaries, overhead, and fundraising expenses. The group asserts that it funds "a diverse array of candidates who show unusual promise to advance our progressive goals," and contributes "in some of the most competitive races." However, it gave $11,847 to candidates (.0015 percent of its gross) but spent more than 30 times that amount on promoting itself in the media.

One of the most notorious political profiteers is Scott Mackenzie. In the 2016 election cycle, he served as the treasurer of no less than 22 political-action committees. Some of the organizations affiliated with Mackenzie include the Black Republican PAC that, since 2012, has raised $2,512,759, while donating $134,605 to candidates. Over the last four years, his Conservative Strikeforce PAC raked in a whopping $11,114,614 but dedicated less than seven percent of those profits on political action.