Obama's Campaign Finance: Legal Or Unlawful?

In 2018, former US President Donald Trump accused his predecessor, Barack Obama, of a big campaign finance violation during the 2008 election. Obama's campaign was fined $375,000 by the Federal Election Commission (FEC) for failing to report nearly 1,300 contributions totalling $1.8 million within 48 hours as required by law. However, legal experts noted that the violation was handled civilly, with fines, and was not a criminal matter, unlike the campaign finance violations of Trump's former lawyer Michael Cohen. Obama's campaign spokeswoman said that the 2008 campaign had over 3 million donors and that all outstanding questions had been resolved.

Obama's 2008 campaign was fined $375,000 for reporting violations

In 2008, Barack Obama's presidential campaign was fined $375,000 by the Federal Election Commission (FEC) for reporting violations. The fine was issued in relation to a set of donations received during the final days of the campaign.

Campaigns are required to file reports within 48 hours of receiving donations of $1,000 or more during the final 20 days of the campaign. The Obama campaign failed to meet this deadline for nearly 1,300 contributions totalling $1.8 million. As a result, the FEC fined the campaign $375,000, one of the largest fines ever levied on a presidential campaign. The fine was detailed in a conciliation agreement sent to Sean Cairncross, chief counsel for the Republican National Committee.

The Obama campaign's violation was handled civilly, with the campaign paying the fine without any criminal charges. This is in contrast to the campaign finance violation of President Donald Trump's former lawyer, Michael Cohen, who pleaded guilty to criminal charges of campaign finance violations. Cohen's violation involved paying off porn star Stormy Daniels, with whom Trump allegedly had a romantic relationship in 2006. Cohen admitted to making the payment with the intention of influencing the election and under the direction of "the candidate".

While conservatives attempted to draw equivalence between the campaign finance violations of Obama and Trump, legal experts noted that there was no comparison between the two cases. The Obama campaign's violation was a result of missing filing deadlines, while Cohen's violation involved intentional fraud and an attempt to influence the election.

The Obama 2008 campaign fine highlights the complexities of campaign finance laws and the potential consequences for non-compliance. It also underscores the importance of transparency and accountability in political fundraising, with the FEC taking action to enforce the reporting requirements.

Obama's campaign failed to report $1.8 million in contributions

In 2008, Barack Obama's campaign failed to report $1.8 million in contributions. This was a result of an alleged criminal conspiracy to funnel foreign money into his campaign and conceal its true source.

Committees working on behalf of Obama's 2012 re-election campaign unknowingly received approximately $1.87 million in foreign contributions. The foreign funds were funnelled through a series of shell bank accounts and straw donors, set up by American entertainer Prakazrel "Pras" Michel and Malaysian financier Low Taek Jho. Michel and Jho were charged with conspiracy to make and conceal foreign campaign contributions.

Obama's campaign was fined $375,000 for the violation but no one in the campaign was implicated in the conspiracy or charged with a crime. U.S. law prohibits foreign nationals from contributing to federal, state, or local election campaigns. It also prohibits donors from making campaign contributions in anyone else's name.

The failure to report contributions was not the only campaign finance violation during Obama's presidency. In his first term, Obama turned to bankers and industrialists for financial support, and was unable to clear the suspicion of a quid pro quo exchange with E.H. Harriman for an eventually unfulfilled ambassador nomination. Despite this, there was no public protest, as the campaign finance system was already broken and in need of more money.

In addition, Obama's decision not to take public financing for his campaign incentivised parties and candidates to seek out smaller donors. This was made possible by the McCain-Feingold law, which restricted corporate campaign spending.

Obama's campaign had over 3 million donors

Barack Obama's 2008 presidential campaign was a significant milestone in US political history, not least because it resulted in him becoming the first African American president. But it also made waves for its extensive donor base, which played a pivotal role in his election victory.

Obama's campaign committee raised over $650 million, and that's not counting the money raised in conjunction with the Democratic National Committee (DNC) and various state-level Democratic committees. This war chest was filled by individual donors, with the campaign notably rejecting public funding. This decision was justified by Obama as a necessary move to counter opponents "who've become masters at gaming [the] broken system."

The campaign's ability to raise such vast sums of money was underpinned by its extensive use of the internet and social media. Through platforms like MySpace, Facebook, and Twitter, Obama was able to connect with his supporters and would-be supporters, giving his campaign an air of approachability and trust. This online presence also allowed the campaign to target individuals with tailored messages based on their predicted interests and beliefs.

Obama's campaign also made effective use of logos, slogans, and imagery. The now-iconic "hope" poster, designed by artist Shepard Fairey, became a widely recognised symbol of Obama's campaign message. The campaign also made clever use of specific typefaces, with the signature typeface, Gotham, using capital letters with occasional use of the script Snell Roundhand.

The extensive donor base of over 3 million people was a key factor in Obama's election victory, demonstrating the power of individual donors in US politics.

The Obama campaign's violations were handled with civil fines

In 2008, Barack Obama's presidential campaign was fined $375,000 by the Federal Election Commission (FEC) for reporting violations. The Obama campaign failed to report nearly 1,300 contributions, totalling $1.8 million, to the FEC within 48 hours as required by law. This was the largest fine ever levied on a presidential campaign by the FEC at the time.

Legal experts have emphasised the distinction between the Obama campaign's violations and those committed by Cohen. Professor Michael Kang of Northwestern Pritzker School of Law noted that "as long as you correct [the violations] and you didn’t intend them, there’s not really a problem". He further explained that criminal liability arises when "someone does something with the intent to defraud the government" or when the violation is committed "on purpose".

Obama's campaign was fined by the Federal Election Commission (FEC)

In 2008, Barack Obama's presidential campaign was fined $375,000 by the Federal Election Commission (FEC) for reporting violations related to a set of donations received during the final days of the campaign. This was one of the largest fines ever levied on a presidential campaign by the FEC. The fine was a result of a series of missing notices for nearly 1,300 contributions totalling $1.8 million. Campaigns are required to file reports within 48 hours of donations of $1,000 or more received during the final 20 days of the campaign.

The Obama campaign's violation was handled civilly, with fines, and was not a criminal matter. This is in contrast to violations by other campaigns, such as that of Donald Trump, which were handled in criminal court.

Obama's campaign was not the only one to be fined by the FEC. Al Sharpton's 2004 campaign was fined over $200,000, and Bob Dole's 1988 presidential campaign paid a $100,000 fine. Liberal group America Coming Together was also fined $775,000 in 2007.

While Obama's campaign was fined for reporting violations, there have been other instances where US presidents have been accused or found to have broken campaign finance laws more broadly. For example, in 2018, Trump's former lawyer Michael Cohen pleaded guilty to two counts of campaign finance violations.

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