Washington, DC — In a major breaking development, the Republican Attorneys General Association’s aligned group in Minnesota is potentially facing at least $6.6 million in fines, and GOP AG nominee Jim Schultz’s campaign is facing a potential fine of at least $3.3 million.

Statement from Geoff Burgan, DAGA Communications Director:

“Jim Schultz and RAGA should be ashamed of themselves for illegally coordinating on their  racist, fearmongering ads. Minnesotans can’t trust Jim Schultz, a hedge fund lawyer who thinks he can play by his own rules, as their next Attorney General.”

Read more from the Minnesota DFL Party here:

Yesterday, the State of Minnesota Campaign Finance Board determined that there is prima facie evidence that Jim Schultz’s campaign violated campaign finance laws by illegally coordinating with the independent expenditure group Minnesota for Freedom.

This determination resulted from a complaint filed by the DFL Party alleging that Schultz’s campaign and Minnesota for Freedom both bought ads using Steve Syckes as an agent, which is expressly prohibited by Minnesota campaign finance law.

In addition to finding a prima facie violation of the law prohibiting coordinated activity, the CFB also found that Schultz dramatically exceeded his contribution limit of $2,500, once Minnesota For Freedom’s at least $847,000 ad buy was properly counted as a contribution to Schultz.

Schultz’s lawbreaking could result in the largest fine in Minnesota history.

The Numbers

Schultz’s campaign faces a potential fine of at least $3.3 million.

This is because Minnesota for Freedom’s $847,000 worth of illegally coordinated ads count as contributions to Schultz’s campaign, which exceeds Schultz’s contribution limit of just $2,500. Schultz’s maximum penalty, pursuant to section 10A.28, subd. 2(4) is up to four times the amount by which the contribution exceeded the limit which is $844,500. The maximum penalty is $3.3 million.

The potential penalty is only increasing, however, as Minnesota For Freedom is continuing to pour corporate money into its coordinated efforts to support Schultz.

Minnesota for Freedom faces a possible fine of at least $6.6 million.

The first piece of that fine comes from their excess donation to Schultz, which just like Schultz is subject to a penalty of up to four times the amount of the excess contribution. The second, much larger piece, comes from their illegal coordination. As the CFB notes on page 3 of their determination:

Given that Minnesota for Freedom spent at least $847,000 on illegally coordinated ads for Schultz, their possible penalty is upwards of $3,388,000. Combined with their penalty for exceeding Schultz’s contribution limit, Minnesota for Freedom could be on the hook for as much as $6.6 million.

In 2002, Tim Pawlenty received $600,000 in fines and penalties for illegally coordinating on $600,000 worth of ads. This was called “unprecedented” at the time. The fines for Schultz and his cronies could be dramatically higher.

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