The Daily Beast

‘Scam’ Political Groups Try New Tricks—and Rake In Millions

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A network of shady political groups at the center of a new class action lawsuit for bilking donors out of tens of millions of dollars appears to be attempting a legal work-around in order to continue pulling in the money and evading government scrutiny.

The 17 groups in the network bear the tell-tale signs of “scam PACs”—entities which present themselves to donors as nonprofit charities but register as political groups with the government. The loophole allows the groups to operate in a gray zone outside the reach of the different federal agencies that regulate nonprofits and political groups.

Rep. Katie Porter (R-CA), who has taken steps to hold these groups liable, offered a brief definition of what she calls a “disgusting” scheme.

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