Democracy 21 joined with the Campaign Legal Center in filing a complaint with the Federal Election Commission (FEC) that called on the agency to investigate contributions to “the ghost corporation” “Children of Israel LLC,” which funneled $400,000 to two super PACs.

According to an article by The Washington Post, the mysterious California-based LLC contributed $50,000 to Pursuing America’s Greatness, a super PAC supporting Mike Huckabee’s previous presidential run, and gave another $100,000 in November. And in January, it donated $250,000 to Stand for Truth, a pro-Ted Cruz super PAC. These donations made “Children of Israel LLC” the fourth-biggest donor to each of these groups, although the true source of the funding was never disclosed to the public.

Additionally, Shaofen “Lisa” Gao, the founder of the LLC, filed paperwork with the California’s secretary of state’s office in September listing “donations” as her company’s type of business, an apparent admission that the company was created to act as a conduit for secret money.  

According to Democracy 21 President Fred Wertheimer:

The 2016 national elections have seen the growing use of LLCs to launder secret, large contributions through Super PACs into federal elections. If these laundering activities are not stopped by the FEC or the Justice Department, the use of LLCs to hide the real donors of contributions to Super PACs to be spent in our elections will become common place. If the FEC follows its usual practice of doing nothing, the Campaign Legal Center and Democracy 21 will consider going to court to challenge the FEC on its failure to enforce the law.

This is the fourth complaint this year that the Campaign Legal Center and Democracy 21 have filed with the FEC against donors funneling money through LLCs to avoid disclosure laws. The Campaign Legal Center and Democracy 21 await FEC action. 

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