In the aftermath of the 2020 election, former President Donald Trump’s campaign and related groups raised many millions of dollars with appeals trumpeting the lie that the election was stolen via massive voter fraud. Those lies, which helped light the powder keg that erupted into a violent insurrection on Jan. 6, 2021, are an illustration of so much of what is wrong with our political system right now.
But a serious investigation from special counsel Jack Smith as part of his probe into the attempt to overturn the 2020 election could offer some relief. Although Smith ultimately did not indict Trump today specifically related to campaign fraud, the fact that he reportedly spent so much time investigating and issuing subpoenas, and may indict others in the future, should hopefully send a message to those hoping to manipulate donors.
The fact that Smith reportedly spent so much time investigating and issuing subpoenas, and may indict others in the future, should hopefully send a message to those hoping to manipulate donors.
Money in U.S. politics is totally out of control. The Supreme Court’s dismantling of crucial campaign finance restrictions, including in decisions like Citizens United that allowed for unlimited corporate political giving and for political spending by “dark money” nonprofits that don’t disclose their donors, means that vast sums of money infiltrate our politics, often from the very wealthy and frequently in secret. Partisan stonewalling and dysfunction within the Federal Election Commission have further eroded meaningful enforcement of those laws and restrictions that do survive.
This has led to a situation where campaigns believe that they need vast amounts of money to compete. And, in the absence of meaningful laws or enforcement, anything goes. Lies and sleight of hand in campaign fundraising and spending have become all too common.
Into this void came Trump and his operation, which time and time again has exploited loopholes in our system to benefit Trump’s interests, his wealth and his power, at the expense of our democratic system of checks and balances. Trump innovated steering campaign and political organization cash into his businesses and shell companies. It’s no surprise that his team spread brazen falsehoods to bring in campaign money while recklessly pushing dangerous untruths about the 2020 election that could and did lead to violence.
With regulatory enforcement almost nonexistent, it has often fallen to the Justice Department to police the worst excesses. The DOJ has in the past prosecuted “scam PACs,” purported political organizations set up entirely to make money for their creators that rely on misrepresentations and false statements to dupe citizens and bring in money. But Jack Smith’s investigation brought these campaign finance issues front and center.
Federal investigators reportedly looked into whether those involved with the Trump campaign and related organizations like Save America PAC knowingly used false statements about purported election fraud to raise money. Press accounts indicate that investigators zeroed in on the question of whether Trump knew the truth — that there was no widespread fraud in the election — and blasted lies to supporters anyway to bring in money. (We know entities related to Trump funded two private investigations into supposed election fraud, both of which independently found and reported that there was no significant fraud.)
Reporting and the findings of the Jan. 6 House select committee also suggest that the money may not have been used as the solicitations claimed it would be.
Campaigns often use hyperbole and general statements that are difficult to prove to be knowingly false. This possible campaign finance fraud is not the most egregious conduct alleged by prosecutors and investigators. And clearly it was challenging to connect Trump personally to this financial scheme in terms of intent and criminal liability. Campaigns often use hyperbole and general statements that are difficult to prove to be knowingly false. But it is hard to imagine a more compelling case, in terms of the volume of evidence and the degree of harm. The investigation, and any possible future charges for those connected to the scheme and schemes like it, are nonetheless extremely significant. Perhaps most importantly, the very fact of this investigation may help curb the worst excesses in our system. Hopefully, those running campaigns and political organizations will operate with a little more caution before spreading lies to raise money, knowing that brazenly false fundraising solicitations could lead to federal investigations. Jack Smith could still charge others, which would be even further deterrent. And Congress could even be inspired to tighten some of the rules around campaign fundraising. We don’t have to accept that money in politics is the Wild West. Jack Smith’s investigation could help us begin to tame it.
Noah Bookbinder
Noah Bookbinder is the executive director of Citizens for Responsibility and Ethics in Washington. He is a former federal corruption prosecutor. 
