Ninth Circuit Rules Against “Straw Donations”

On June 14, the 9th circuit rejected an attempt to open up a loophole in campaign finance, concerning individuals who want to give more than the maximum donation permitted under federal law. The defendant in a criminal case was charged with arranging for his friends and associates to give campaign contributions to a particular federal candidate, at the maximum limit permitted. Then, the instigator of the idea promised to reimburse those friends and associates.

The 17-page decision is called USA v Pierce O’Donnell, 09-50296. The 9th circuit interpreted federal campaign restrictions to mean that the behavior is illegal. Thanks to Rick Hasen for the link. In this particular case, the defendant had caused the 2004 John Edwards for President campaign to be the beneficiary of $26,000, because the Defendant had arranged for 13 of his associates to each contribute $2,000 to that campaign.


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