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FEC Fines Swift Boat Vets $300K

Is the era of the millionaire-backed attack group coming to an end?

The Federal Election Commission hit the Swift Boat Veterans for Truth with a $299,500 fine today for playing too fast with election rules. The Swift Boat Vets were a "527" organization, which has no limits on contributions, but were acting like federal political committees, the FEC charged. 527s are allowed to work for or against certain candidates, but if they have no other "major purpose," according to FEC spokesman Bob Biersack, then they should register as a committee.

That's a huge difference. Committees can only accept $5,000 in contributions per person per year. The Swift Boat Vets, by comparison, accepted $4.4 million from GOP money man Bob Perry in 2004. Perry played the same trick in this year's election, throwing $9 million at three different 527 attack groups, which used it to target dozens of Democratic congressional candidates all over the country. Democrats have also taken advantage of 527s, and two liberal groups were fined today: MoveOn and the League of Conservation Voters.

If the FEC were to really crack down on this sort of thing (the 527 loophole has been an open secret for a number of years), as they've idly been threatening to do, then 2008 would be a remarkably different election than the past two cycles.

Update: I talked to David Donnelly, the director of Campaign Money Watch, who knows a lot about this sort of thing, and he said that these fines (and the ones rumored to follow soon), probably will have a significant deterring effect in the '08 elections.


Comments (120)

Crust wrote on December 13, 2006 12:15 PM:

Is the era of the millionaire-backed attack group coming to an end?

In a word, no. A $300K fine for a $4.4 million contribution is not my idea of deterrence.

Frank wrote on December 13, 2006 12:29 PM:

Whay cool! It only cost $300K to buy a presidential election! And it only takes 4 year to find out. So what did Moveon get fined? Where's the rest of this story? Gotta know so we can see how Drudge will spin it!

tonychilling wrote on December 13, 2006 12:40 PM:

Citizens will continue to get the best governement that money can buy... for the corporations and monied interests.
God! how stupid we are being distracted by hot botton issues the don't mean a damn in the long run, while the we have twice the people in jail than China(!), Throwing money into a war that should not have been fought. We allow the President to set policy based on beliefs instead of Science.
In reality, THIS IS the Government we deserve and its eventual, fatal consequences.

Five of Diamonds wrote on December 13, 2006 12:53 PM:

5.5 million intake for a 300K slap on the wrist, that's good business for these jokers.

GentleCritic wrote on December 13, 2006 12:59 PM:

How many sick and starving children could have been taken care of with Perry's $4.4 million trash dollars. Some people are just far too rich, and arrogant, for their own good.

Anonymous wrote on December 13, 2006 1:08 PM:

Without even looking at the balance sheets of these 527s, I can pretty safely say that if they got $4.4 million from Bob Perry, it has long since been spent, and whoever is left holding the bag for the $300K fine IS hurtin' for certain. They won't soon carry his water again. The hopeful outcome of these results should be that anytime a rich bastard like Perry wants to influence an election with his money, he won't be able to do it semi-anonymously anymore. And like cockroaches, guys like Perry scurry from that kind of sunshine.

Tamar wrote on December 13, 2006 1:08 PM:

I agree with GentleCritic. I also wonder about the fine to MoveOn -- seems to me that MoveOn gets lots of its money from small contributions on the net which would mean it would hurt a lot less to be restricted to $5000/year/person. Am I right about this?

Robert wrote on December 13, 2006 1:10 PM:

Bob Perry probably just told is sales people to bump up his new homes for sale prices by $1000 to cover the $300K

Bob wrote on December 13, 2006 1:18 PM:

MoveOn also got some big donations from Soros. We should demonize Bob Perry like the right has done to Soros. The Swifties will have no trouble raising $300k to pay off their fine, from Bob Perry or other sources.

The other two fines for MoveOn and League of Conservation Voters (seemingly even more surprising) were $150k and $180k.

If it's so clear that they violated the rules, they should raise the fines quite a bit. Otherwise, it's just the cost of doing business. Whatever, there will always be some other loophole. Now some groups are 501(c)(4)s I believe.

sig@zipa.com wrote on December 13, 2006 1:48 PM:

A $300K fine for a $4.4 million contribution is not my idea of deterrence.

Posted by: Crust

Thank you! This is just a slap on the hand. The fine should have been in the millions.

Carl Gordon wrote on December 13, 2006 1:52 PM:

You liberals have got it so wrong. The president is right, that's why he's the president. And he has surrounded himself with intelligunt people who, with their vast years of experience in the military and high office, he relies on for the most accurate assessment of the reality of Commie/Facist/Islamo plans to take over the world and take away our guns, just like you chickens want. That's why he's the decider, a do-gooder, and the MSM which is owned by liberal cut-and-runners like GE, Times/Warner, and Rupurt Mirdock are all in bed with the do-badders. He has a secret plan for total victory, so shut up, or else it won't be a secret and the traitors win! Do you want to lose? All this talk about saving lives and money and you never thought about what's good for America - Do you want to lose! I say we back him in whatever he wants to do because it's good for America. Pinheads for Bush say: Re-elect Bush in 2008!

Paul wrote on December 13, 2006 2:04 PM:

You know, I read this comment by Carl Gordon just yesterday on another blog. Is this some kind of straw-man spam bot?

Jim Edinger wrote on December 13, 2006 2:04 PM:

Yes, the fines are miniscule compared to the contributions. There is, however, the possibility that the message has been sent, that in the future, the fine will be greater than the gift given to elect business friendly politicians.
Kennedy said it best "When you raise the bottom, the top will also rise." Trickle down is foolish thinking, but appealing to the rich.

burn wrote on December 13, 2006 2:12 PM:

the balance sheet still shows a profit for swiftboating, the fine is a pittance, now throw someone in the slammer... then we're talking

Ed McClendon wrote on December 13, 2006 2:16 PM:

Why aren't all political acts of libel and slander simply tried in the courts?

J. Aguilar wrote on December 13, 2006 2:41 PM:

I wanted to respond to Carl Gordon's post, that he's glad the President has "surrounded himself with intelligunt people." We need people who are intelligent (can spell) and who know the difference between real terrorists and Iraq. We also need people who will not circumvent the American electoral system to illegal install themselves and their minions--with the purpose of destroying our Constitution and the freedoms that we hold so dear.

Anonymous wrote on December 13, 2006 2:56 PM:

I think Carl Gordon's post is meant to be ironic, based on the tone and the phrase 'pinheads for Bush.' Surely even the pinheadiest pinhead would not refer to himself in such a way. Sort of a giveaway...

I'd like to know more about Moveon's violations. They, unlike Swiftboat, do actually have a continuing and distinct purpose, and so meet the definition of a 527. But the problem, as I see it, is not really the donation levels themselves- it's more of a disclosure issue.

BD wrote on December 13, 2006 3:19 PM:

ever since the unswift boatless so-called veterns with lies came into the forefront with their sick ads, I doubt every vet's record and their medals and esp. Mccain so-called record. That is the disservice Bob Perry did to America

roy wrote on December 13, 2006 3:48 PM:

lets face it summarily -america is shit.

Bart wrote on December 13, 2006 4:01 PM:

I think the fines ought to be double of what the donation was. To make the fine only 10 per cent of the total money donated is a joke. That small a fine against such a large contribution won't hurt anybody.

Nell wrote on December 13, 2006 4:29 PM:

Justin, could you update the post to clarify what it is that MoveOn and LCV were fined for?

Since the League has been in existence and doing electoral work since before there was such a thing as 527s (okay, maybe the IRS category existed, but before McCain-Feingold and before 527s became a major recipient of political money). LCV's environmental issue focus (and connection to other environmental organizations) would seem to me to make it very hard to claim they don't have a 'major purpose' outside election activity.

So could you clarify how much MoveOn and LCV were fined, and for what offenses?

Nell wrote on December 13, 2006 4:31 PM:

Sorry, should have addressed myself to Paul. Too many windows open.

Terry wrote on December 13, 2006 5:58 PM:

Bloomberg report By Jonathan D. Salant

"Swift Boat Veterans for Truth will pay $299,500, the League of Conservation Voter Fund $180,000 and Moveon.org Voter Fund $150,000. They failed to register as political action committees as required for those campaigning for or against a particular candidate and thus should have been barred from accepting contributions greater than $5,000, the FEC said."

They were all basically fined for the same offence.

Pete Sea wrote on December 13, 2006 6:03 PM:

Can you believe there are people like Carl Gordon still ??trying?? to defend the lies, deceit and corruption of Bush and his ????? Bush, Cheney, Delay, Newt, Ashcroft and his other war hawks have cut and ran when it was their turn to serve our country, but they must get their courage by sending others. Even Bush, has confessed to his lies leading to the war with Iraq.
But, to show his stupidity he says he is changing his plan in Iraq by keeping the same plan he has had for Iraq, Stay The Course, He just no longer uses the same words. Bush will be leaving the military there forever, because there has been an article published that said we would be fighting a war on terrorist for 50 to 100 years.
I wonder how people like Bush can sleep at night. I know they are arrogant idiots, which go though life with no conscience, screwing everyone that in their way, but continually killing and wounding our soldiers for your own arrogant, and corporate control.

Ian wrote on December 13, 2006 7:56 PM:

Pete,

Your ironometer must be broken, Carl Gordon was pretty obviously attempting satire.

Cheers.

Stupid Git wrote on December 14, 2006 4:34 AM:

Not to get too off topic but while Carl Gordon's post was pretty lame by itself, it's awfully funny how a satirical post like that which is obviously trying to be outlandish actually is still believable. Says a lot about the extreme dementia we are used to dealing with for the obsessively obedient Bush loyalists. It'd be fun to create a rightwing blog parody that is done totally straight-faced but is still outlandish - see how many nutcases we could get registered before letting 'em know they're insane fools.

moranik wrote on December 14, 2006 9:50 AM:

Regarding the idea of a parody blog of the extreme right-wingnut viewpoints advocating G W Bush and his supporters may I suggest that a certain Steven Colbert be consulted. He might have some good ideas.

Nell wrote on December 14, 2006 11:19 AM:

Thanks, Terry. This sounds as if 527s are dead by FEC fiat -- or else have to budget in these levels of fines and legal expenses. Which is not going to happen if they can only take in $5000 from any one contributor.

Harry Haines wrote on December 14, 2006 12:12 PM:

Couldn't happen to a nicer group! Rove and his boys have made it clear that Vietnam vets are good targets. This Houston bunch deserved a stiffer fine and the contempt of every person who has ever worn a uniform i the U.S. military, a uniform they have disgraced. Harry Haines, San Antonio, TX

chuck wrote on December 14, 2006 12:24 PM:

They need to promise all of them no less than 5 years in a maximum security prison if any other incidents occur.

Vanna wrote on December 17, 2006 11:00 AM:

You want a real post? Here's a recent post from a childhood acquaintance, a middle-aged white divorcee from the East Coast who is "Republican, of course!":

"You have no concept of ANY of the good in all that is going on. NO war is not fun or a nice thing. We did not ask for 9ll. You have no concept of the larger picture or the LIST of attacks made on many innocent peoples not just american. There is global radical muslim plan to obliterate kill and destroy ALL judeo christians not just Americans. THEY hate the whole Western civilization and you cannot sit back and let them always be the attackers. You forget Japan and Germany. Look at these countries now. They are democratic, free and civilized because the US sacrificed for the greater good. Please do not write anymore about the radical liberal democratic way of thinking. I have my strong conservative, traditional, faith in the True God values. Unfortunately war is war and WE DID NOT ASK FOR IT AND WE WON'T BE ON THE DEFENSE ANY MORE. GIVE CREDIT TO OUR GOVT WHERE ITS DUE. All leaders whether dem or rep make mistakes. There is no perfect govt but what is important is the intent. There is also called something called Intelligence and our govt can't spill the beans to us on everything.

I have very trustworthy friends in very high places and I TRUST what our government is doing for our own security.

It is not a perfect plan. It takes years in war to find the right strategy and plan. Our govt and soldiers believe in what they are trying to do. It has not been easy and yes its time to change the strategy not pull out.

IF JESUS WAS HERE HE WOULD SAY THAT THERE IS NO GREATER LOVE THAN TO LAY DOWN YOUR LIFE FOR ANOTHER.....and that is what our soldiers are doing...laying their lives down so the Iraqi people will have a better life.

The good civilized peaceful people want us there. They and other muslim nations cannot take a stronger stance because their own muslim fanatical brothers will kill them too."

I answered, but she blocked my email address after that. She KNOWS what she KNOWS, and there's no path to discussion with her.

big dave from queens wrote on December 17, 2006 2:01 PM:

The real battle is between middle class interests and corporate interests. Gay rights, guns, abortion, religion, and immigration are simply wedge issues used by the corporate interests to obfuscate the main issue.

On one side are progressives, liberals, moderates, and populists who seek a first class public education system, a pro middle class tax code, affordable + qualitative health care Versus

the GOP and DLC Corporate interests who favor subsidies and welfare for elitists, tax cuts for the wealthy few (which means tax increases on everyone else) and built in protections which allow these corporatists to do as they please.

The survival of America depends on who wins this battle. I hope it's not the latter.

Queenie wrote on December 19, 2006 2:31 PM:

For a straight-faced, over the top parody of the far right, Bush loyalists, etc go to www.whitehouse.org They get actual hate mail from the true believers! Very therapeutic at times, especially Betty Bowers - the Best Christian in the world - at the Dept of Faith.

Grif wrote on January 31, 2007 10:11 AM:

I'm researching Bob Perry and discovered your web site. Thanks for the information, and especially the supporting documentation. Outstanding.

Stewart wrote on March 2, 2007 1:24 PM:

Hmmm. How much did Democrat money man George Soros spend on his 527s? Oh yeah, that's irrelevant, he's a Democrat.

FIVEDAYLOAN wrote on March 19, 2007 1:45 PM:

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steve wrote on March 28, 2007 11:50 PM:

As I read through the comments made. I find a good many of them actually made sense. However the one made by Vanna really stands out as what is wrong with the right wing I think it's time for those who profess to have a concept of christian beliefs to shut up until they get their facts straights. If Vanna is going to quote scripture maybe she should consider a bumper sticker I saw recently that said when Jesus said love your ememies I think he meant don't kill them. Which brings us to the question-why are they our enemies. For decards we have had policy of exploiting the world for our gain. No wonder the rest of the world hates us.

Ben Anderson wrote on April 5, 2007 1:45 PM:

We have a paid group (SBVets) who castigates other war heros (Perry)for political gain. A president who surrounds himself with good ol' boys in the name of intelligence. We attack a nation armed with sticks for either faulty intelligence received by the GOBs or doing what daddy did not finish. Then we stay long enough to allow the opposition to become educated in methods and weaponry of terrorism. Meanwhile at home all the lives we are saving by being in Araq are being wasted by illigal aliens who have no restraints. However, we may have new allies who act just as we do with our lack of negotiations. Some of them are North Korea,Cuba,Iran,Venuzuala----. Yes my vote will go for a person who negotiates with the World and does not wear a cowboy hat.

Wolver wrote on April 7, 2007 8:15 PM:

What a bunch of idiot liberal fools writing on this post. Soros and Move on.org are nothing but a cover for communism which is what the democrat party is all about. If given the chance the democrats would get us all killed and Islam would be the law of the land in no time. Democrat Socialism has been tried over and over again and it always fails but the democrats can't see this. The democrats are the true rich elite. Look at Congress, the richest people are democrats and crooks as well.

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