Big trouble managing funds for Managed Funds Association PAC

Fraudsters keep coming for big bucks from political action committees and politicians — and repeatedly.

This time, it’s the Managed Funds Association PAC, which thieves targeted more than 20 times between Jan. 1 and March 31, according to a Raw Story analysis of federal campaign finance data.

In all, the Managed Funds Association PAC reported initially losing $147,000 in fraudulent check payments, although it appears to have since recouped the money, according to filings with the Federal Election Commission.

The Managed Funds Association did not respond to Raw Story’s several requests for comment.

The largest fraudulent check that the PAC reported to the FEC was for $49,750 on January 17, which was preceded by a $20,000 fraudulent check a week before.

Another 19 fake checks were reported by the Managed Funds Association PAC this year, ranging from $2,980.55 to $9,500 each. It is unclear who the thieves are or whether law enforcement authorities are now involved, as has been the case in other high-profile political thefts of late.

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The Managed Funds Association, calls itself “the voice of the global alternative asset management industry,” according to its website, and spent nearly $5 million in 2022 lobbying the federal government, according to federal data compiled by nonpartisan research group OpenSecrets.

The PAC has reported to the FEC $177,150.49 in disbursements this year through March 31; however, the majority of the disbursements reported appear to be from the fake checks.

During the 2021-2022 election cycle, the Managed Funds Association PAC spread about $75,000 among about 30 federal political candidates, slightly favoring Democrats, according to federal data compiled by OpenSecrets.

So far in 2023, it’s contributed $30,000 to 13 federal political committees total, ranging from the New Democrat Coalition Action Fund ($5,000) to the Tim Scott Presidential Exploratory Committee ($2,500).

Campaign fraud isn’t a new problem for PACs and politicians.

Michael Toner, a partner at Wiley Rein and former Republican FEC chairman who served on the commission from 2002 to 2007, said the FEC saw a wave a fraudulent activity in the 2000s, prompting the FEC to approve a policy statement in 2007 offering a safe harbor to committees who put safeguards into place, which would prevent them from being hit with civil penalties if they still encountered embezzlement or misappropriation of funds.

“In the last year or two, there's been a new burst of this and a number of different committees, not just campaign committees, but also corporate political action committees, trade association political action committees, have been the victims of embezzlement,” Toner said. “Sometimes you're always fighting the last war and someone really innovates in terms of the money they're trying to steal, and so we definitely have seen an uptick in this in the last couple of years.”

Political theft epidemic

Raw Story in recent weeks has identified several members of Congress and PACs who’ve been victimized by fraudsters in what’s become open season on politicians’ campaign accounts.

The Retired Americans PAC, a super PAC that supports Democrats, recouped more than $150,000 it lost in late 2022 after paying fraudulent bills sent to the committee, according to an April 21 letter to the Federal Election Commission, Raw Story reported.

The FBI got involved when Sen. Jerry Moran (R-KS) was the victim of a cybertheft incident late last year that initially cost the campaign $690,000. Other current and former Republican members of Congress targeted by thieves include Rep. Troy Nehls of Texas ($157,626), former Rep. John Katko of New York ($14,000), Rep. Neal Dunn of Florida ($10,855), Rep. Russell Fry of South Carolina ($2,607.98) and Rep. Matt Gaetz of Florida ($362.04).

The Republican National Committee and Rep. Diana Harshbarger (R-TN) also experienced recent campaign cash thefts.

The problem isn’t unique to Republicans, either: In November, Senate Majority Leader Chuck Schumer’s campaign fell victim to check fraud worth $10,085, and President Joe Biden’s 2020 Democratic presidential campaign committee lost at least $71,000.

One-time Democratic presidential candidate and congresswoman Tulsi Gabbard and rapper-turned-2020 presidential candidate Ye, formerly Kanye West, are among others who reported money stolen from their political accounts.

At the end of February, the Business Industry Political Action Committee — the nation's oldest federal business — reported losing $14,156 to thieves, while the federal PAC of State Farm Insurance lost $12,220 to thieves, Raw Story first reported. In March, the Energy Marketers of America Small Business Committee PAC reported to the FEC $5,000 in check fraud supporting Senator Kevin Cramer (R-ND), and thieves went on a $195 shopping spree at Chick-fil-A with funds for Rep. Larry Bucshon (R-IN), according to a March FEC filing.

The McKesson Corporation, a pharmaceutical and medical supplies company, informed the FEC that it, too, had fallen victim to someone who "created, forged and cashed a fictitious PAC check for $12,000" on Nov. 7.

The McKesson Company Employees Political Fund notified its bank "immediately upon discovery of the fraudulent activity" and attempted to secure return of the lost funds.

"To date," the committee added, "the bank has not returned the stolen funds."

The political action committees of Google, National Association of Manufacturers, Consumer Technology Association, National Association of Home Builders, National Air Traffic Controllers Association, International Brotherhood of Teamsters, MoveOn.org, and law firms Akerman LLP and Blank Rome LLP have also experienced theft of various kinds, be it cyber theft, forgeries or check tampering, according to Insider.