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BEFORE the FEDERAL ELECTION COMMISSION American BEFORE THE FEDERAL ELECTION COMMISSION American Democracy Legal Fund 455 Massachusetts Avenue, N.W. Washington, DC 20001 rtUR Complainant, V. o ro -n c:.:; "ri 21 -C" r'M Republican National Committee D CD r?."r' Opi 310 First Street, SE """ 1 a ,, "i ro i *. .1 ' • Washington, DC 20003 1 CO "*• * * J • ^ COr-i T'-r 4 n"; ... -. r' • American Crossroads i— • ;' : ns .» 4 !"• 1 P.O. Box 34414 i.,o• • — —1 I ITJ Washington, DC 2O043 X" 1— o Crossroads GPS P.O. Box 34413 8 Washington, DC 20043 Americans for Prosperity 2111 Wilson Blvd, Suite #350 Arlington, V A 22201 GOP Data Trust LLC 735 8th Street SE, Suite #200 Washington, DC 20003 i360, LLC 2300 Clarendon Blvd, Suite #800 Arlington, VA 22201 Respondents. COMPLAINT Complainant files this complaint with the Federal Election Commission (the "FEC" or "Commission") under 2 U.S.C. § 437g(a)(l) against the Republican National Committee, Anthony Parker, Treasurer, (the "RNC"); American Crossroads, Caleb Crosby, Treasurer ("American Crossroads"); Crossroads Grassroots Policy Strategies ("Crossroads GPS"); -1- Americans for Prosperity ("AFP"); the GOP Data Trust LLC ("Data Trust"); and i360, LLC ("1360") (collectively "Respondents") for numerous violations of the Federal Election Campaign Act of 1971, as amended (the "Act"). Based on numerous recent press reports and public admissions, Respondents appear to be illegally coordinating through the ongoing exchange of non-public strategic campaign and party data resulting in millions of dollars in prohibited contributions from Super PACs and corporations to Republican campaigns and parties in the form of "coordinated communications." In sum, the RNC has created a for-profit entity, the Data Trust, charged with maintaining, sharing, and operating the RNC's vast database of information concerning hundreds of millions of Americans. The Data Trust not only operates the RNC's voter file, but also apparently provides the same data to American Crossroads, Crossroads GPS, and presumably numerous other outside organizations that are legally required to operate independently of the Republican Party and its candidates. Recently, the RNC and the Data Trust have also started passing party and campaign data to the Koch brother's organization, AFP and all customers of the Data Trust's new partner 1360, a data management firm that supplies voter information to other conservative organizations. Significantly for purposes of the Act, the Data Trust has now unveiled a new technical upgrade that allows the RNC, Republican campaigns, and "everyone on [their] side,"' to not only "access voter information anytime ... but update it instantly, so others viewing the voter lists can see the information immediately."^ The move to a real time exchange of non­ public, strategically naaterial data through a common vendor constitutes "coordination" under the Act, and means that the purported "independent expenditures" of American Crossroads, ' Matea Gold, "Americans for Prosperity Plows Millions Into Building Conservative Ground Force," Washington Post (Oct. 6,2014), available flf .hUT)://www.washinutonDOSt.coin/politics/amcriGans-foi-nrosperitv-Dlows-millions- mtd-buildinE-conservativc-aroundTibrce/20l4/l0/06/692469bgr4b35-l Ie4-b72e-d60a9229cc 10 .stQrv.html. " Alex. Roa'rty, "Did the GOP Just Take a Big Leap Forward in Data?" National Journal (July 14,2014), available at littp://www.nationaiiounial.com/politics/did.-.thergoD-iust-ta"ke-a-bie-leap-^forward-in-data-201.40714. -2- Crossroads GPS, AFP and other outside organizations are in fact, excessive, illegal, in-kind contributions to the RNC. Furthermore, American Crossroads, Crossroads GPS and presumably other outside groups are paying the Data Trust such significant sums that the Data Trust can apparently charge the RNC far less than the fair market value for the extensive data services that it reportedly provides. Outside groups that accept unlimited contributions from undisclosed dark money sources are subsidizing the RNC's entire data program in violation of the law. Finally, the mere 4 fact that the RNC established, financed, maintains and controls the Data Trust is itself a violation 3 of law, since the Data Trust accepts and spends sums not subject to the contribution limits, f source restrictions, or reporting requirements of the Act. Data and analytics are some of the most important aspects of running a modern political campaign, informing every critical strategic decision. The Republican Party, Republican campaigns, one of the biggest Republican Super PACs, the Koch brothers' AFP, and the largest outside organizations supporting the Republican Party platform are operating by using the same data, and exchanging all of their information related to that data in real time. This amounts to illegal coordination, and the FEC should act immediately to investigate the full scope of these violations, determine what other parties, campaigns, and outside groups are also illegally sharing data, ensure they cease immediately, and seek the appropriate financial penalties. A. Factual Background 1. The RNG Greated the Data Trust to Administer the Committee's Database of Voter Lists and Information. -3- In 2011, the RNC formed a for-profit entity, the Data Trust, "to shoulder the cost of maintaining and improving the party's voter file."^ The intention was for the Data Trust to be the centralized vehicle through which the Republican Party's database of information regarding voters could be maintained, updated and shared with candidates and allied groups throughout the countryNews articles indicate that the Data Trust is not only "backed by the Republican National Committee,"^ but is "effectively a subsidiary of the RNC."® Key members of the 0 Republican Party infrastructure were selected for high ranking positions at the Data Trust. Mike ^ Duncan, a former chairman of the RNC, has also served as chairman of the Data Trust.' Johnny 4 3 DeStafano, the executive director of the Data Trust, is a former high ranking aide to John ? Boehner, and the former deputy executive director of the National Republican Congressional Committee.® After the Party's defeat in the Presidential election in 2012, the Republicans doubled down on their efforts given the extreme significance of voter file data. The Party's own post­ election report noted that "[u]se of data and measurement is critical," and highlighted the "need [for] candidates, rnanagers. Party operatives, communications professionals, fundraisers and strategists who understand and are willing to employ data in decision-making at every level."' The Data Trust continues to play a significant role in the stated goal of the Republican Party "to ' Eliana Johnson, "RNC's Data Push Greeted with Skepticism," National Review (Feb. 2,2014), available at http://www.natidnalreview.com/articic/370962/rncsrdata-pu5h-Ereeted-skepticism-eliana-i6hnson. '' Chris Moody, "Republican National Committee To Build Platform to Share Voter Data," Yahoo News (Mar. 15, 2013), available at http://news.vahoo.com/blocs/the-ticket/republican-national-committee-build-voter-data-sliarine- platfonn-090301874-election.html. Roarty, "Did the GOP Just Take a Big Leap Forward in Data?". ® Eliana Johnson, "The GOP's Data Surge," National Review (January 16,2014), available at linp://www.nationalreview.com/article/36858l/eopsrdata-surEe-eiiana-iohnson. ' Johnson, "RNC's Data Push Greeted vvith Skepticism". ' David Dnieker, "Data Trust Hires ex-Boehner Aide Johnny DeStafano to.Run GOP Technology Effort," Washington Examiner (July 29,2013), available at http://washinetonexaminer.com/data-trust-hires-ex-boehner- aide-iohnnv-desiefaho-to-iun-eop-technoloEV-efFort/aiticle/2533603. ' Republican National Committee, Growth & Qpppitunity Project 25, available at http://erowthopp.eop.com/RNC Growth Opportunitv Book 2013.pdf. -4- generate better data for everyone."'" Beyond simply "exercising control" over the RNC's voter list project and "manag[ing] RNC data," the Data Trust "manage[s] the open platform that will be built using RNC data."" 2. The Data Trust Serves as the Voter File Vendor both for Republican Candidates and Committees and for Supposedly "Independent" Outside Groups. The Data Trust platform allows "Republican campaigns and their allies to share voter 1 information with one another in real time," so that "campaigns and 'approved outside groups' ^ can access a voter's information anytime, update a voter's information instantly, and 4 3. automatically see the information that other campaigns or outside groups add to a voter's record."'^ The RNC's own spokesperson described this platform as the way the Party "is going to create an open data environment to give Republican data users more access to the RNC's premier data warehouse," to use for their own political activities.'^ In her words, any time the RNC collects data on a voter that can be used to target advertisements and to hone the party's message, "we want to have that information and share that with everyone on our side."''' This "open data environment" is open not only to all outside organizations that access data through the Data Trust, but also all organizations that obtain their data from i360, the Koch brothers' data operation. i360 describes itself as a "leading data and technology resource for the pro-free-market political and advocacy conununity."'® It not only has a"comprehensive national data warehouse" containing "hundreds of data points on every American adult that is currently or potentially politically active," but also offers its partners "a host of technologies such as Chris Moody, "Republican National Committee to Build Platform to Share Voter Data". " Thomas Edsail, "In Data We Trust," N.Y. Times (May 8,2013), available at http://opinionator.blogs.nvtimes.com/2013/05/08/in-data-we-trust. Roarty, "Did the GOP Just Take a Big Leap Forward in Data?" " Rachel Weiner, "RNC Launching New Data-Sharing Platform," Washington Post (May 1, 2013), available at htlp://www.."wash'inatonn6sl:com/b.l&Es/pQSt-politics/wp/2613/05/0 i/rnc-.launchiiie-new-data-sharing-platfbrm/. Gold, "Americans for Prosperity Plows Millions Into Building Conservative Ground Force". " See i360, http://www.i-360.com/ (last accessed Sep.
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