by John Alford
Alabama Legislatures are trying to clean up the state’s political landscape. The problem at hand is that money is being shifted around without a clear understanding of where the funds originated. Political action committees (“PACs“) are, essentially, groups that take in funds and redistribute contributions to candidates or to advocate particular issues. Prior to 2011, a PAC in Alabama could receive money from a donor and then transfer the funds to another PAC. The second PAC can then put funds into half a dozen other PACs, which use the money to help advocate issues. The identity of the individuals who originally donated the funds is lost in the mix. This means that people trying to influence, or even corrupt, politicians, can play this “shell game” and hide the money trail. Keep in mind, there are 859 PACs in Alabama.
An attempt to hide the money trail is exactly what happened when gambling interest groups began trying to increase their odds of success. The U.S. Justice Department wiretapped a session where this statement came to light: “We’re gonna support who supports democracy. And the (expletive deleted) who doesn’t support democracy [should] get ready to get their (expletive deleted) (expletive deleted) busted.” Certainly this crass statement could be taken admirably, but chances are the gambling tycoon was not strictly supporting democracy given that statement is taken in the context of extortion, bribery, fraud, and conspiracy charges. Shifting money from PAC-to-PAC to hide the connection to gambling money, however, was perfectly legal. This confusion of contributions was an integral means of getting support for the gambling agenda since politicians did not need to fear disclosure. Continue reading