‘Straw Donor’ Case Involving John Edwards’ Presidential Campaign Is Revived By Ninth Circuit

Pierce O’Donnell allegedly contributed $26,000 of his money in 2003 to the John Edwards for President campaign through 13 individuals – primarily employees of his law firm as well as some of his relatives. According to an indictment, O’Donnell arranged for these individuals to donate $2,000 ostensibly in their own names but with the understanding that he would either advance them funds or reimburse them after the donation was made. In accord with these allegations, a grand jury charged O’Donnell with contributing in the names of others in violation of 2 U.S.C. § 441f.  The district court dismissed the § 441f counts, and the government appealed. The U.S. Court of Appeals for the Ninth Circuit has just reversed.

In its decision, the circuit court found that § 441f proscribes not only “false name” contributions, but also “straw donor” contributions, whether accomplished through the advancement or reimbursement of funds. The circuit court concluded that “the text, purpose and structure of § 441f all support the conclusion that the statute applies not only to false name but also to straw donor contributions.” The Ninth Circuit therefore held that “§ 441f unambiguously applies to a defendant who solicits others to donate to a candidate for federal office in their own names and either advances the money or promises to — and does — reimburse them for the gifts.” The appellate court therefore reversed the district court’s order dismissing counts one and two of the indictment, and remanded the case. 

The case is US v. O’Donnell, No. 09-50296 (9th Cir. June 14, 2010).
 
Attorneys involved include George S. Cardona, Christine C. Ewell, and Erik M. Silber, U.S. Attorney’s Office; George J. Terwilliger III, Daniel B. Levin, Darryl S. Lew and Michael H. Huneke, White & Case; Thomasenia P. Duncan, David Kolker, Kevin Deeley, Erin Chlopak and Steve Hajjar, Federal Election Commission; Peter Ferrara, American Civil Rights Union; J. Gerald Hebert, Paul S. Ryan and Tara Malloy, Campaign Legal Center; Donald J. Simon, Sonosky, Chambers, Sachse, Endreson & Perry; Fred Wertheimer, Democracy 21; and Melanie Sloan, Citizens for Responsibility and Ethics in Washington.