FOR IMMEDIATE RELEASE
Election Fairness Institute Uncovers NEW Nationwide “Magic Mortgage” Money Laundering Scheme Linked to ActBlue & “Donors.”
The years-long research product has been referred to the U.S. Department of Justice.
Phoenix, AZ – July 28, 2025 – The Election Fairness Institute (EFI) has identified a money laundering scheme, known as “magic mortgages,” involving ActBlue, a major political fundraising platform. This goes far beyond “smurfing.” Senior Research Analyst Shawn Taylor discovered 422 identical contributions made on June 30, 2023, to a Tennessee State Representative via ActBlue, with many donor addresses and phone numbers found to be invalid. This led to identifying the potential source of the money.
Key Findings:
- ActBlue’s Origins: Established on May 1, 2005, ActBlue appears to have generated significant funds through fictitious real estate transactions involving off-the-books cash.
- Suspicious Transactions: Public records reveal inflated property sales linked to several multimillion-dollar transactions across multiple properties in California and Texas. Transactions often involved multiple “sales” on the same day with private cash lenders, raising red flags for money laundering.
- Timing and Impact: These transactions coincide with major election cycles, potentially channeling funds to influence federal elections and circumventing McCain-Feingold Act safeguards against soft money contributions.
- Data Sources: Research utilized professional data services like LexisNexis and Experian, alongside public records from county offices, to confirm findings with high confidence.
- Implications: The scale and pattern of these transactions suggest potential violations of the Bank Secrecy Act and Anti-Money Laundering Act of 2020, warranting further investigation by the Department of Justice for campaign finance violations, tax evasion, and possible ties to bulk cash smuggling.
EFI, a 501(c)(3) nonprofit, continues to investigate and has garnered interest from U.S. Attorneys for its findings, which highlight vulnerabilities in election finance transparency and integrity.
Contact:
Hon. Mark Finchem, Executive Director
The Election Fairness Institute, Inc.
P.O. Box 44836, Phoenix, AZ 85064
(520) 808-7340
info@electionfairnessinstitute.org