Blumenthal plans motion on political, charitable telemarketing scams
Sen. Richard Blumenthal declares a bipartisan settlement on Turkey sanctions throughout a information convention on Capitol Hill in Washington, Oct. 17, 2019.
Erin Scott | Reuters
Sen. Richard Blumenthal is shifting forward with new legislative efforts to fight telemarketing scams which have raised thousands and thousands of {dollars} whereas pretending to signify political and charitable causes.
Blumenthal introduced on Monday a brand new oversight and legislative struggle to tackle people who use telemarketing calls, on-line scams and different schemes to successfully steal thousands and thousands of {dollars} from donors. Contributors assume they’re donating to actual causes, however they’re tricked into giving to pretend organizations, with their leaders ending up retaining the cash for themselves.
The Connecticut Democrat’s first step was to ship letters to the chairs of the Federal Election Fee and the Federal Commerce Fee as a part of his bigger inquiry.
“I’m writing on the steps the Federal Election Fee and its companions are taking to crack down on fraudulent schemes that use political and charitable causes for personal enrichment, and solicit crucial adjustments to the regulation to carry these scammers accountable,” Blumenthal wrote to Dara Lindenbaum, the chair of the FEC. He wrote an analogous letter to FTC Chair Lina Khan.
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The transfer by Blumenthal on fundraising scams comes amid a rising variety of instances of so-called “rip-off PACs,” which elevate cash for made-up political efforts. These making the solicitations then hold the contributions for themselves.
Blumenthal was featured in HBO’s new docuseries “Telemarketers,” the place he urged Congress may deal with these kinds of schemes.
Prosecutors from the Southern District of New York charged two folks in August with operating such schemes. Two males had been arrested final month for utilizing telemarketing and different schemes to defraud donors whereas soliciting cash for pretend political motion committees.
One of many males charged raised funds by means of 4 pretend PACs, together with a committee that had a title hinting it advocated for curing breast most cancers. These PACs alone raised greater than $28 million, based on prosecutors.
The New York Occasions reported earlier this yr {that a} group of conservative political operatives used “rip-off PACs” to lift $89 million, whereas the teams spent little or no on precise operational actions.
