The recent conviction of a California man for a major fraud against the United States has caused a slew of questions about the government’s role in the superfraud scandal. Although the charges stem from a purely business-related matter, the allegations have significant social and legal implications. One question – should a religious organization be held liable for a superfraud case? – is particularly pertinent. The federal government has an interest in investigating potential fraud cases to prevent such scams from happening again.
The first issue to consider is whether or not a super PAC can reach your personal assets. While some super PACs have a cozy relationship with candidates, others aren’t so sure about that. Virginia gubernatorial candidate Ken Cuccinelli sued a super PAC in 2013 for taking campaign donations. In that case, it was the PAC that was being investigated. The lawsuit was dismissed, but it was still important to note that it could still lead to a lawsuit if it is successful.
While the FTC and state Attorneys General have said that super PACs can’t coordinate with candidates, others are worried that they could violate state laws and take their own donors’ money. In the 2013 Virginia gubernatorial race, a candidate sued a super PAC because the PAC used his campaign funds to promote his campaign. He claims that the suit is a “false claim” and that he did not receive the funds.
The FTC and state Attorneys General have sued some acai berry companies for promoting their product without proper approval. The lawsuit cited false and misleading health claims, consumer fraud and fraudulent marketing. The plaintiffs settled for $1.5 million instead of the original judgment of $8 million. The case has implications for PACs and individuals. So, it’s important to keep an eye out for such practices. It’s a shame that some people have gotten involved in this illegal business.