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https://scmp.com/news/world/united-states-canada/article/3001167/pro-jeb-bush-super-pac-fined-taking-us13-million
World/ United States & Canada

Pro-Jeb Bush Super PAC fined for taking US$1.3 million from Chinese-owned company

  • The Right to Rise super political action committee was fined US$390,000 for soliciting the foreign contributions during the 2016 campaign
  • American Pacific International Capital, a Chinese-owned company, was fined US$550,000 for giving the donation
The Campaign Legal Centre do not implicate Jeb Bush, who spent months before formally launching his campaign fundraising for the Right to Rise PAC. Photo: AFP

The election oversight agency in the United States has levied a record fine against the Super PAC that backed former presidential hopeful Jeb Bush, who ran as a Republican in 2016, and a Chinese-owned corporation.

The Campaign Legal Centre had asked the Federal Election Commission to impose sanctions in 2016, after The Intercept reported that American Pacific International Capital, Inc (APIC) had made US$1.3 million in contribution to the Right to Rise PAC.

The federal agency hasn’t publicly announced the decision. But the Campaign Legal Centre, which brought the FEC complaint, released agency documents announcing the fine on Monday.

APIC released a statement saying it is a US company and voluntarily agreed to the settlement with the FEC.

“The Commission expressly acknowledged that the company did not knowingly or wilfully violate any US campaign finance laws,” APIC said in a statement.

“American Pacific International Capital remains committed to compliance with all campaign finance laws and regulations.”

Jeb Bush ultimately lost the Republican nominating contest to Donald Trump. File photo: Reuters
Jeb Bush ultimately lost the Republican nominating contest to Donald Trump. File photo: Reuters

A lawyer representing the PAC said the political group also agreed to comply with the election commission.

“Right to Rise conciliated this matter to avoid costly litigation and appreciates the commission’s recognition of its extensive compliance efforts,” Charlie Spies, counsel to Right to Rise, said in a statement.

The Campaign Legal Centre called it a victory for transparency.

“Today’s action is a rare and remarkable step by the FEC, and a reminder that safeguarding our elections against foreign interference is in America’s vital national security interests,” said Campaign Legal Centre President Trevor Potter.

FEC Chair Ellen Weintraub tweeted Monday about the agreement: “Foreign interference in our elections is a direct attack on our democracy. I am deadly serious when it comes to tracking down & punishing foreign spending in our elections. The @FEC *will* hold committees to account. And a letter from your lawyer will *not* get you off the hook.”


Foreign interference in our elections is a direct attack on our democracy. I am deadly serious when it comes to tracking down & punishing foreign spending in our elections. The @FEC *will* hold committees to account. And a letter from your lawyer will *not* get you off the hook. https://t.co/Xy34hnJslg

— Ellen L Weintraub (@EllenLWeintraub) March 11, 2019

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The FEC alleges that two Chinese citizens, Gordon Tang and Huaidan Chen, who are prohibited from making campaign donations, funnelled their contributions through APIC to avoid detection.

APIC was fined US$550,000 for making the contributions and Right to Rise was fined US$390,000 for soliciting a foreign national contribution.

US federal law prohibits foreign nationals or foreign companies from contributing to US political campaigns or candidates.

The documents released by the Campaign Legal Centre do not implicate Bush, who spent months before formally launching his campaign fundraising for the Right to Rise PAC.

Right to Rise spent millions trying to help elect Bush president. He ultimately lost the Republican nominating contest to Donald Trump.

Additional reporting by Associated Press and The Washington Post