- Texas AG Ken Paxton mandates ActBlue overhaul its security system after uncovering “magic mortgage” money laundering schemes.
- Election Fairness Institute identifies 422 identical $200K mortgage?based donations tied to ActBlue officers, allegedly laundering $200M across U.S. states.
- Sen. Mark Finchem alleges ActBlue’s flawed systems enable fraud, with forged mortgages and “smurfing” tactics to funnel dark money into Democratic campaigns.
- U.S. Attorneys, IRS and FBI investigate evidence transferred by EFI, citing evasion of federal lender disclosures and violation of FEC rules.
- This scandal deepens scrutiny of political fundraising transparency amid bipartisan demands to reform campaign finance laws.
(Natural News)—On August 7, Texas Attorney General Ken Paxton announced a landmark victory: ActBlue, the Democratic fundraising giant, had been forced to upgrade its security protocols after revelations of a massive money laundering network. The scandal, uncovered by the Election Fairness Institute (EFI), traces back to a brazen scheme in which ActBlue’s officers allegedly orchestrated $200 million in fraudulent donations through elaborate “magic mortgages.” Over 422 suspicious transactions, all dated June 30, 2023, and targeting junior Senator Maxwell Frost, were found to involve identical donation amounts, fabricated addresses and phone numbers of contributors who had recently moved or changed contact details. The evidence, now under investigation by the FBI and Department of Justice (DOJ), has intensified calls for federal oversight of political funding and transparency amid accusations of systemic corruption.
The money laundering mechanism: “Magic mortgages” explained
The EFI’s investigation into ActBlue’s “smurfing” operation reveals a sophisticated process in which small-scale donations are laundered through fictitious real estate transactions.