Bungling Bundlers
Some of Obama’s fundraisers have questionable associations.

Mexican casino mogul Pepe Cardona in 2001


John Fund

Other campaigns have stumbled in more spectacular ways. In 2007, it was found that Norman Hsu, a prodigious fundraiser for Hillary Clinton, had pleaded no contest to grand theft and was illegally reimbursing donors for campaign checks they wrote to Clinton. Geoffrey Fieger, a flamboyant trial lawyer from Michigan, was indicted on charges that he similarly reimbursed his firm’s employees for donations they made to the 2004 campaign of John Edwards. He was subsequently acquitted, but no one has been eager to use his services since.

After the Norman Hsu debacle, Hillary Clinton’s campaign vowed to conduct background checks on all of its bundlers, as did the John Edwards campaign. But the Obama campaign was more circumspect. U.S. News & World Report said campaign officials promised to be “as diligent as possible in vetting donors and bundlers but will not elaborate.”

In the aftermath of the Cardona brothers scandal, Obama strategist David Axelrod had to admit to MSNBC that “the vet[ting] didn’t go deep enough, obviously. . . . There are going to be holes and when there are, you know, we’re going to act quickly and that’s what we did here.” He also continues to insist that Team Obama “believes deeply in disclosure,” noting that the Obama campaign has released the names of all its bundlers.

But the Cardona incident should remind the media that Team Obama’s commitment to disclosure goes only so far. In 2008, John McCain’s campaign publicly identified its entire donor base, including those contributing under $200, whose names are not legally required to be disclosed. But it was a different story with Team Obama. “We asked both campaigns for more information on small donors,” Massie Ritsch, a spokesman for the liberal Center for Responsive Politics, told Newsmax. “The Obama campaign never responded.”

Perhaps the campaign was worried that some of those “holes” Axelrod mentioned this month would turn up. Because of its large number of small donations, the Obama campaign wound up not disclosing the givers of about half of the $800 million it raised in 2008. Indeed, the Washington Post reported that it went so far has to turn off the Address Verification System at its website. That program should have stopped the campaign from accepting contributions from citizens of foreign countries — a violation of federal law. The decision to abandon filters had consequences — the campaign was forced to refund $33,000 to two Palestinian brothers in the Gaza Strip who had bought T-shirts from the campaign’s online stores in small increments.

It was the Federal Election Commission, which did receive a complete list of Obama donors, that flagged the egregious case of the Palestinian brothers. At the time, FEC officials privately conceded that the full list might include many more small donors contributing illegally from foreign countries. The FEC declined to make a federal case out of the smaller fry in the Obama net, but at least one FEC auditor expressed concern about the “sloppiness” of Team Obama’s approach.

The Cardona scandal should serve as a reminder to the media that for all their fixation on campaign-finance issues, they largely gave the 2008 Obama campaign a pass. Now the Cardona red flag from Obama’s 2012 campaign has already been submerged by other news. The media can’t depend on the FEC catching any lapses. It will have to do the job itself.

The FEC usually takes three to four years to finish any probe. If there are irregularities in the 2012 Obama campaign, or that of any other candidate, the full extent of them will be known about the time whoever is elected this year finishes their term. Here’s hoping the media learns from the Cardona case that any campaign can say they believe in “disclosure” and “vetting,” but it doesn’t mean they always practice it.

— John Fund is a columnist and writer based in New York. He is the author of Stealing Elections: How Voter Fraud Threatens Our Democracy.


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