Millionaires and billionaires find another loophole to keep campaign donations secret

If the Citizens United decision was all about free speech and democracy, why does all the big money going to candidates—particularly Republican ones—have to be shrouded in so much secrecy? Another loophole—this one that allows the super rich to spend unlimited amounts directly to candidates—has emerged this cycle: the limited liability company, or LLC.

When the Supreme Court ruled in 2010 to end a ban on corporate spending to influence elections, detractors envisioned an era when huge companies like Wal-Mart Stores or ExxonMobil would dominate politics in pursuit of profits. The reality is proving far different. Most business donations are coming from little-known LLCs whose founders and officers often don’t have to be disclosed anywhere. In a few cases, it’s so difficult to identify the source that the donations might as well be anonymous.

That alarms groups worried about the influence of money in politics. “When we’re talking about these huge contributions, it’s a way to buy corrupting influence without any public accountability at all,” says Fred Wertheimer of Democracy 21, a Washington nonprofit. Since 2012, Democracy 21 and the Campaign Legal Center have filed four complaints with the Federal Election Commission challenging big donations through LLCs. The commission is deadlocked along party lines and has yet to take any action.

With enough digging, the principle officers of these LLCS can be identified. But it takes a lot of digging, which makes this loophole a handy way to give secretly. Of course, under Citizens United, anonymous donors can give to nonprofit "advocacy" groups, known as 501(c)4s, but those groups still have some rules. They can't spend directly for candidates, just issues. The LLC however, can pump money directly into candidates' PACs. Like Jasper Reserves did for Jeb! Bush's Right to Rise PAC, with a donation of $1 million. The person behind that LLC turned out to be Christopher Cline, "a coal baron whose 164-foot yacht, Mine Games, has its own two-person submarine." Now he has his own personal presidential candidate, too. Bush's PAC has done pretty well by these donations: the LLCs Fulton Street, DFX, Jasper Reserves, and Tread Standard have donated a total of $1.3 million to Right to Rise PAC. Another $500,000 has gone to John Kasich from an LLC called MMWP12. The Center for Public Integrity believes this came from Mark Kvamme, "a venture capitalist and off-road-truck enthusiast who used to work in the Ohio governor’s administration." Kvamme won't confirm or deny that he was behind the donation. A Super PAC supporting Ted Cruz got $250,000 from an LLC called V3 231, headed by Ben Nash who made his fortune reselling used or surplus cell phones.

It would likely take legislation to close this secrecy loophole, something that's not likely to happen with a Republican Congress. But again, you have to wonder how proponents of unlimited spending by the super-rich in campaigns can explain why it's pro-democracy when they're working so damned hard to keep it all away from the public eye.