Article by Bryan Howard
April 3, 2019
Fox News broke a story that exposes Alexandria Ocasio-Cortez and her campaign manager Saikat Chakrabarti were potentially involved in a ‘subsidy scheme’ that broke campaign finance laws.
Fox News reported the filing, “accused Ocasio-Cortez and her campaign manager, Saikat Chakrabarti, of overseeing a “shadowy web” of political action committees (PACs) that allowed them to raise more cash than they could have legally. It also alleged that a limited liability company (LLC) was created to avoid federal expenditure requirements by offering Ocasio-Cortez and other Democratic candidates political consulting services at a price so low that the company apparently shut down before the election was even over.”
Fox News noted the scheme was used to illegally give services contributions illegally to hand picked politicians.
Fox News wrote, “The complaint named Ocasio-Cortez, Chakrabarti (now her chief of staff), the Justice Democrats PAC, the Brand New Congress PAC and Brand New Congress LLC as the overlapping entities that aimed to “subsidize cheap assistance for Ocasio-Cortez and other candidates at rates far below market value.””
The attorney that filed the suit Dan Backer claimed, “Chakrabarti was trying to create the Uber for politics. Uber functions because of a massive subsidy from venture capital. Here, it’s subsidized by these PACs to deliver a valuable service that people need and want, but can’t be delivered at the real cost of it.”
Backer stated the organization’s scheme was not created in order to make a profit, but to provide a service that people could not normally afford for their handpicked candidates.
According to FEC law political campaigns must pay fair market price for services or they will be treated as in-kind contributions.
Fox News noted, It was unclear what Chakrabarti and Brand New Congress charged for their services — and Backer said this was another part of the problem. He said the private company wouldn’t be subject to the same disclosure and transparency laws that PACs are.
Alexandria Ocasio-Cortez has had multiple FEC complaints laid against her over the last month and one would assume that there may be some illegal transactions that occurred. However, it is fair to note that she is ignorant enough not to understand the laws and could have unknowingly broke the laws because her campaign manager told her it was safe to do so.