Obama's Campaign Finance: Legal Or Unlawful?

In 2018, former US President Donald Trump accused his predecessor, Barack Obama, of breaking campaign finance law. Trump was referring to the $375,000 fine the Obama campaign received from the Federal Election Commission (FEC) in 2012 for reporting violations during the 2008 election. However, legal experts argue that there is no equivalence between Obama's civil violations and the criminal infractions admitted by Trump's former lawyer, Michael Cohen. While Obama's campaign failed to report certain contributions, Cohen admitted to paying off porn star Stormy Daniels with the intention of influencing the 2016 election and at the direction of Trump. Cohen's violation was handled in criminal court, while Obama's was addressed with civil fines.

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

In January 2013, Barack Obama's 2008 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. The fine was detailed in a conciliation agreement sent to Sean Cairncross, chief counsel for the Republican National Committee.

The fines are among the largest ever levied on a presidential campaign by the FEC. They stem from a series of missing notices for nearly 1,200 contributions totalling nearly $1.9 million. Campaigns are required to file reports within 48 hours on donations of $1,000 or more received during the final 20 days of the campaign.

Obama campaign spokeswoman Katie Hogan said the 2008 campaign had more than 3 million donors and "the very few outstanding questions have now all been resolved." Obama's campaign raised nearly $750 million from 2007 to 2008.

The fine followed an FEC audit of the campaign in the aftermath of complaints by the Republican National Committee and other groups. The Obama campaign paid $230,000 in fines and the Democratic National Committee, which ran a joint fundraising committee with the campaign, paid the remainder.

Obama's campaign failed to report contributions over $1,000 to the FEC

In 2013, Barack Obama's 2008 presidential campaign was fined $375,000 by the Federal Election Commission (FEC) for failing to report contributions over $1,000. This was one of the largest fees ever charged to a presidential campaign by the FEC. The fine was the result of an FEC audit of the campaign, which was published in April 2013. The audit revealed that the Obama campaign had failed to submit 48-hour notices for nearly 1,300 contributions totalling more than $1.8 million in the 20 days before the election.

The FEC requires official notice of contributions exceeding $1,000 to be submitted no more than 48 hours after receipt of those donations. This is a serious issue that the FEC takes seriously, according to lawyers familiar with the commission's work. The Obama campaign's failure to report these contributions was a violation of campaign finance law.

In addition to the failure to report contributions over $1,000, the Obama campaign was also cited for other violations, including erroneous contribution dates on some campaign reports and late returns of contributions that exceeded the legal limit. The fine was paid by both the Obama campaign and the Democratic National Committee (DNC), which had a joint fundraising committee with the campaign.

While the fine was significant, it was proportional to the size of the campaign, which raised nearly $750 million from 2007 to 2008 and had over 3 million donors. The infractions were also considered relatively minor given the scope of the campaign, and the FEC did not consider them to be intentional or "serious" enough to warrant criminal charges.

Obama's campaign was late returning excessive contributions

In 2012, Barack Obama's 2008 campaign was fined $375,000 by the Federal Election Commission (FEC) for various reporting violations. One of the violations pertained to the late return of excessive contributions. The FEC requires that official notice of contributions exceeding $1,000 be submitted no later than 48 hours after receipt. The Obama campaign failed to meet this deadline for nearly 1,300 contributions totalling more than $1.8 million.

The fines levied against the Obama campaign were among the largest in the FEC's history. However, the amount of the fine was proportional to the unprecedented amount of money raised by the campaign. According to Republican election lawyer Jason Torchinsky, the infractions were relatively minor given the scope of the campaign. Ann Ravel, a former FEC commissioner, stated that the FEC does not handle criminal cases, and that a violation must be considered both intentional and serious to be prosecuted by the Department of Justice. The Obama campaign's documentation lapses were not considered to be intentional nor serious enough to warrant criminal charges.

Obama's campaign had erroneous contribution dates on reports

In 2012, Barack Obama's 2008 campaign was fined $375,000 by the Federal Election Commission (FEC) for reporting violations. The Obama campaign had failed to document donations made in the 20 days prior to the election within 48 hours of receiving them, as mandated by the FEC. This pertained to nearly 1,300 contributions totalling over $1.8 million.

The Obama campaign also listed erroneous contribution dates on some reports and was late in returning some contributions that exceeded the legal limit. These infractions were deemed to be minor, unintentional, and not serious enough to be prosecuted by the Department of Justice.

While the $375,000 fine was one of the largest in FEC history, it was proportional to the amount of money raised by the campaign, which was the first billion-dollar presidential campaign.

Obama's administration was accused of violating the Hatch Act

The Obama administration was accused of violating the Hatch Act of 1939, a federal law that prohibits civil-service employees in the executive branch of the US federal government (excluding the president and vice president) from engaging in certain forms of political activity. The Act was passed to prevent the intimidation or bribery of voters and restrict political campaign activities by federal employees.

There were three high-profile violations during Obama's presidency. Firstly, in 2012, Kathleen Sebelius, the Secretary of Health and Human Services, was found to have violated the Hatch Act when she delivered a keynote speech at a gala calling for the reelection of President Obama. Secondly, in 2016, Julian Castro, the Secretary of Housing and Urban Development, was found to have violated the Act when he openly endorsed Hillary Clinton's candidacy during a Yahoo News interview. Lastly, Hilda Solis, the former Secretary of Labor, resigned after it was revealed that she had solicited campaign contributions from a subordinate employee.

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