Attorney General Ken Paxton announced on Thursday that he scored a victory in his investigation into allegations of fraud involving a Democratic Party PAC and fundraising tool.
ActBlue, which hosts donations for Democratic candidates, is facing allegations of fraud stemming from a casual verification process. Paxton said his office began investigating ActBlue in December, which led the group to tighten its system by requiring card verification values (CVV) on electronic payments.
“ActBlue has cooperated with our ongoing investigation,” Paxton said in a news release. “They have changed their requirements to now include ‘CVV’ codes for donations on their platform. This is a critical change that can help prevent fraudulent donations.”
ActBlue’s decision to require CVV codes comes days after the U.S. Committee on House Administration sent a letter to the Federal Election Commission (FEC) about the subject. Rep. Bryan Steil (R-WI), chair of the committee, demanded in the letter that the FEC require CVV codes for political donations made with credit cards.
“Following widespread allegations of fraudulent donations being reported to the FEC by ActBlue, one of the largest fundraising platforms in the country, this emergency rulemaking is necessary to reassure the American people that ActBlue is taking the necessary steps to protect its donors,” he wrote, according to Fox News.
Independent journalist James O’Keefe released his latest investigation into ActBlue on Wednesday. He revealed that several Texas residents were allegedly unaware of how many donations they made to ActBlue, with some suggesting fraud may have occurred. One woman reportedly donated $33,000 over 484 days despite claiming she only meant to donate a few dollars.
ActBlue did not respond to a request for comment.
The attorneys general of Virginia and Missouri, along with Wyoming’s secretary of state, launched investigations into ActBlue’s finances earlier this month, as reported by YourNews.
“The widespread allegations against ActBlue are deeply troubling, and we must ensure that political action committees are following the Wyoming Election Code,” Wyoming Secretary of State Chuck Gray said.
“The citizens of the Commonwealth of Virginia deserve to know that nonprofit and political entities are financed in a legal manner and that entities operating in Virginia are legitimately and legally raising funds,” Virginia Attorney General Jason Miyares said.
Paxton tied the concerns about ActBlue to the issue-at-large of campaign finance laws.
“But it is most important that we enforce the law and protect the integrity of our elections,” he said. “Certain features of campaign finance law may incentivize bad actors to use platforms like ActBlue to covertly move money to political campaigns to evade legal requirements. While campaign finance is protected by the First Amendment, suspicious activity on fundraising platforms must be fully investigated to determine if any laws have been broken.”