New York Attorney General Letitia James finds herself embroiled in controversy once again. This time, it’s not just about mortgage fraud allegations but potentially illegal campaign activities dating back to her 2013 run for New York City Public Advocate.
The spotlight is now on whether Letitia James improperly hired a nonprofit organization for her campaign, a move that could violate campaign finance laws. This revelation follows reports of mortgage fraud where James allegedly misrepresented facts in her government HAMP Loan application and obtained a home loan by posing as married to her father.
The New York City Campaign Finance Board (NYCCFB) oversees campaign finance laws, ensuring candidates comply with contribution limits and financial disclosures. A search of James’ records indicates her campaign hired New York Communities for Change (NYCC), a 501(c)(4) nonprofit, for campaign activities in late 2013.
James’ campaign reportedly paid NYCC for services including “Campaign Workers,” “Canvassing,” and “Staff/Rent/Phone,” totaling $3,494.38. The NYCC describes itself as a grassroots organization focusing on community issues, but IRS rules distinguish between 501(c)(3) and 501(c)(4) entities regarding political activities.
While 501(c)(4) organizations can engage in some political activities, they cannot coordinate directly with political campaigns. If NYCC provided such services, they could be considered an in-kind contribution, potentially violating campaign finance laws.
James has been vocal about upholding the law, famously stating, “no one is above the law.” Yet, questions remain about whether her campaign’s dealings with NYCC were legal. Were these payments lawful, and did NYCC act within its nonprofit mandate?
For clarity, a thorough investigation is necessary. As these allegations mount, calls for James’ resignation are growing, suggesting it might be a step to avoid further scrutiny.
Joel Gilbert is a Los Angeles-based film producer and president of Highway 61 Entertainment.
