Friday, August 27, 2010
Campaign contributors' loophole
An article published in the Albany Government Law Review in 2008, describes how the use of LLCs rendered New York State's campaign finance meaningless: "If one were rich enough, one could establish a string of LLCs and each could give a maximum ($150,000) contribution. The LLC contribution loophole is another boon for the rich who can circumvent contribution limits by making multiple contributions through LLCs."
Susan Lerner, Executive Director of Common Cause New York, concedes it is legal for candidates running for attorney general to take the real estate industry-linked LLC cash. But, she notes that the public should take note because the attorney general in New York is the major regulator and watchdog over the real estate industry.