$200 million has been laundered using "smurfs"

The Gateway Pundit alleges a large-scale money laundering operation involving Democratic political campaigns, primarily through the fundraising platform ActBlue. It claims that over $200 million has been laundered using "smurfs" or straw donors—often unwitting individuals, typically elderly, retired, liberal seniors—who make thousands of small donations to funnel larger sums from potentially foreign or undisclosed sources into campaigns, bypassing federal contribution limits and disclosure laws. The piece estimates that billions of dollars may have been illegally laundered by ActBlue over the past two decades, involving fraud, money laundering, and the conversion of "soft money" to "hard money" for advertising advantages.

The article cites violations of U.S. Code related to straw donors and conduits, and suggests complicity or inaction by the Federal Election Commission (FEC).Key politicians named as recipients include Michigan Governor Gretchen Whitmer, Senators Jon Ossoff, Cory Booker, Mark Kelly, Raphael Warnock, Adam Schiff, Elizabeth Warren, and Amy Klobuchar, as well as Congress members Elissa Slotkin, Jason Crow, Chris Deluzio, Chrissy Houlahan, and Maggie Goodlander. The article highlights specific examples, such as 42 alleged smurfs donating over $7.4 million in more than 321,000 contributions to eight senators, and 20 smurfs contributing $2.6 million in nearly 188,000 donations to Cory Booker. It also mentions posthumous donations, like those attributed to deceased individuals Linda Luna and Joan Wofford. The scheme is said to involve out-of-state donations (e.g., 75% for three Michigan Congresswomen in 2019) and consulting firms like GMMB, which allegedly facilitated a surge in Whitmer's donations.

Supporting details come from investigative reports by Bob Cushman of The Freedom Press, Peter Bernegger of Election Watch, and James O'Keefe, including FEC data analyses, letters to officials like former Attorney General William Barr and FBI Director Christopher Wray, and a 2024 report from the Gibson Group. It references a podcast discussion with strategist Jason Roe describing the activity as fraud and money laundering, potentially involving foreign funds. The article notes that in April 2025, the Department of Justice under Trump ordered an investigation into ActBlue. It calls for further probes by figures like House Oversight Chair James Comer and criticizes the lack of prior action.

Sources across the spectrum (e.g., NYT, Politico, Fox News, Gateway Pundit) note that while ActBlue has faced intense GOP-led investigations (state AGs, congressional subpoenas, Trump memo in 2025) for straw donors and foreign funds, WinRed has been criticized more for donor deception than laundering. Experts argue both platforms can have reporting quirks (e.g., double-counting via conduits), and allegations of massive fraud on either side often stem from partisan interpretations of FEC data. No equivalent "smurfing" probe has targeted WinRed at scale, though Democrats have pushed for scrutiny of its practices in response.

The 3.95% fee both assess covers operational costs (e.g., credit card processing); it does not benefit candidates. Some reports noted ActBlue waived or adjusted fees for these wildfire donations. Direct donations to charities often incur similar processing fees (e.g., ~3% via their own sites). ActBlue's cumulative total since its founding in 2004 has reached over $16 billion as of 2025. This would equate to approximately $151 million in fees (mostly from 2024 activity).

Republicans have faced other campaign finance violations in recent years, though not mirroring the straw donor/money laundering claims:

• George Santos (R-NY, 2023): Convicted on federal charges including wire fraud and identity theft related to campaign funds; he falsely reported loans and used donor money for personal expenses.
• Duncan Hunter (R-CA, 2019-2020): Pleaded guilty to misusing over $150,000 in campaign funds for personal use (e.g., vacations, affairs).
• Chris Collins (R-NY, 2019-2020): Convicted of insider trading and lying to the FBI; also involved campaign-related issues.
• Ohio House Bill 6 Bribery Scandal (2020s): Involved GOP figures like former House Speaker Larry Householder (convicted of racketeering in a $60 million bribery scheme tied to energy bailouts, with dark money funding).

The Trump campaign and WinRed used pre-checked boxes for recurring weekly donations and aggressive tactics (e.g., fake "money bomb" matches and urgent deadlines). This tricked many supporters—often elderly—into unintended repeat charges, leading to over $64 million in refunds in late 2020 alone (10.7% refund rate on WinRed vs. 2.2% on ActBlue). The New York Times reported cases of donors, including retirees, being billed thousands unknowingly. WinRed received far more consumer complaints (over 800 to the FTC from 2022-2024) than ActBlue for these "dark pattern" tactics.

In January 2025, amid devastating wildfires in the Los Angeles area (including the Eaton and Palisades fires), Senator Elizabeth Warren (D-MA) posted on X (formerly Twitter) urging donations to support affected communities. She encouraged followers to "split a donation" between two nonprofits: the Los Angeles Fire Department Foundation and the United Way of Greater Los Angeles. Warren stated: "100% of your donation will go directly to these organizations."The link she shared directed to a fundraising page hosted on ActBlue, the primary online fundraising platform for Democratic candidates and causes.