By:  Benyamin Davidsons

Federal prosecutors have recently issued two subpoenas, to probe at least 10 political nonprofit groups, alleging the groups may have defrauded donors.

As reported by the NY Times, one of the subpoenas, signed May 15, sought recordings of fund-raising calls from five nonprofits.  The groups included, namely, the American Police Officers Alliance, the National Police Support Fund, the American Veterans Honor Fund, the Firefighters and EMS Fund and the Veterans Action Network. The subpoena signed by prosecutors in the Southern District of New York said the groups were being investigated for suspicion of wire fraud and conspiracy to commit fraud.  The five groups are categorized as “527s,” which is the section of the tax code for nonprofits which are supposed to mainly focus on helping candidates in their bids for office.

In total, these five groups have raised a collective $89 million since 2014– mostly from small donors who responded to fund-raising robocalls. The biggest of the five groups, the American Police Officers Alliance, made promises in its solicitous calls, including to “support legislators whose goals are to keep our communities safer,” and to help the families of first responders killed in the line of duty.  Per the Times, however, an astounding 90 percent of the funds raised were just poured right back in to pay for more robocalls.

Another 3% of the donations was paid to three political operatives from Wisconsin, who seem to be the force behind all five groups.  Just 1% of all the funds raised was actually spent to help candidates, in the form of donations, advertisements or targeted get-out-the-vote activities. The American Police Officers Alliance did not seem to give money to families of fallen first responders, as per records.  Another of the five groups, the Veterans Action Network, closed down in 2019. Its former president did not respond to a request for comment.  A lawyer for the other four nonprofits, James Skyles, said in an email on Wednesday that the groups “are aware” of a Justice Department investigation, but declined share any details.  Mr. Skyles said the groups had “absolutely not” committed wire fraud.

Per the Times, in the second subpoena, federal prosecutors similarly sought access to recordings of fund-raising calls from a separate network of five related political groups. These groups were not 527’s, but political action committees overseen primarily by the Federal Election Commission, rather than the I.R.S.  In this subpoena, prosecutors said they were investigating allegations of wire fraud, in addition to an added charge of money laundering.

The five groups mentioned in the subpoena include: Standing by Veterans PAC, which is still active; Americans for the Cure of Breast Cancer PAC, and Traditional American Values PAC, bother of which have already shuttered down; and the remaining two the Association for Emergency Responders and Firefighters PAC and the U.S. Veterans Assistance Foundation PAC, are seeking permission to close.