The $190,000 Swap

A senior congressional leader helped found a state political committee aimed at winning his party control of his state's House of Representatives, which would then redraw congressional districts. The committee raised corporate donations, and state law barred corporate money from going to candidates. The committee sent $190,000 of corporate funds to a national party committee, which then contributed $190,000 from its account of individual donations to seven state House candidates. Prosecutors said the swap turned illegal corporate contributions into clean money, and a jury convicted him of money laundering and conspiracy to commit money laundering. The defence argued that no corporate money ever reached the candidates, that the arrangement was lawful, and that he believed it complied with the election code.