SBOE Enforcement Counsel Files Lawsuit, Targets LLC Donations (Updated)

In today‘s Times Union, Chris Bragg reports that the State Board of Elections Chief Enforcement Counsel quietly filed a lawsuit last month targeting an Assembly candidate’s campaign committee and some of its donors.

The lawsuit, which seeks civil penalties and fines from the Assembly candidate and her campaign treasurer, alleges that several donors exceeded the $4,100 donation limit in the race.

But the more interesting allegation made in the lawsuit is that the candidate knowingly accepting donations from a “limited liability company” (LLC) that exceeded the state’s donation limits, and which were not in the “true name” of donors. In pursuing this allegation, the lawsuit asks the court to reveal the identities of the people who control the LLC to determine whether the companies exist for a legitimate business purpose, or if they merely exist to avoid campaign contribution limits.

(Read background on the ‘LLC loophole’ here, and on the SBOE’s Independent Enforcement Unit here.)

While this lawsuit is going after some entities that (based on the SBOE contributor database) appear to be relatively small political players, the claims being advanced in this lawsuit could also be used against some of the state’s larger political donors as well.

Update:  Bill Mahoney of Politico NY provides some additional analysis and perspective on the lawsuit and its potential impacts here.