Thursday, June 01, 2017

A small Boston law firm became a top funder of the national Democratic Party by paying lawyers “bonuses” for their political donations.

The Boston Globe reports:
From 2010 through 2014, Strouss and Bradley, along with founding partner Michael Thornton and his wife, donated nearly $1.6 million to Democratic Party fund-raising committees and a parade of politicians — from Senate minority leader Harry Reid of Nevada to Hawaii gubernatorial candidate David Ige to Senator Elizabeth Warren of Massachusetts. Over the same span, the lawyers received $1.4 million listed as “bonuses” in Thornton Law Firm records; more than 280 of the contributions precisely matched bonuses that were paid within 10 days.

That payback system, which involved other partners as well, helped make Thornton the 11th-ranked law firm nationally for political contributions in 2014, according to data analyzed by the center, even though it is not among the 100 largest in Massachusetts.

Thornton, through a spokesman, said its donation reimbursement program was reviewed by outside lawyers and complied with applicable laws. Campaign finance experts said that without reviewing the firm’s records, they cannot say the payback system breaks the law, but that it raises numerous red flags.


That’s because reimbursing people for their political donations is generally illegal, several experts said. When political donors are repaid for their donations, it can conceal the real source of contributions, and enable the unnamed source of the funds to exceed state and federal contribution limits. And in some states — Massachusetts among them — political donations to state candidates from corporations and partnerships such as Thornton Law Firm are flatly illegal.

Reimbursing donors is “among the most serious campaign violations, in the view of both the Federal Election Commission and the Department of Justice,” said Daniel Petalas, an attorney who served as acting general counsel of the FEC until September.
Is this a RICO enterprise to violate federal campaign donation laws?