From Bloomberg Politics
8/26/16

Millions From Maxed-Out Clinton Donors Flowed Through Loophole

On average, 83 percent of the money that was sent from the state committees to the DNC in July originated with a donor who had already given the maximum $33,400 to the national party.

This article illustrates how donors are masked and hence able to exceed the donation limits to the DNC by contributions being funneled through the state parties and aggregated with money of multiple donors before the money is forwarded to the DNC un-attached to the names of the original donors.

“I’m not aware of any case law or regulations that would prohibit a state party from transferring to a national party committee funds raised through a joint fundraising committee,” Robert Kelner, an election law expert at Covington & Burling said. “But as a practical matter, it does appear that the DNC may be using Hillary Victory Fund as a mechanism for allowing donors to give more to the DNC indirectly than would otherwise be permitted directly.”

Here's a visual from the article of how it's done:

Sussman’s original contribution to Hillary Victory Fund has been similarly allocated to at least 10 other states, and each time has been passed on to the DNC on the same day. That makes his total effective contribution to the DNC about $133,400. (Sussman is Clinton’s biggest donor this election, having given more than $11 million to support her bid, mainly through super-PACs.)

And the handling of Sussman’s donation isn’t unique. Overall in 2016, funds from 410 maxed-out donors have been routed to the DNC through state parties, totaling $9.3 million. The fund has transferred $220,000 of contributions from media mogul Haim Saban and his wife Cheryl to the DNC via state parties, the same amount from billionaires J.B. and Mary Pritzker, and $110,000 from Chicago publishing tycoon Fred Eychaner. All are among the top ten donors supporting Clinton.

While there is a limit on individual contributions, the loophole is that there is no limit of how much money may be transferred between the national and the state parties.

In the article, you'll also see that $2.8 mil transferred from Hillary Victory Fund had no identification about from whom it came at all... Forget loopholes at that point, they don't even give enough of a rip to find a workaround - they're just not saying where it came from. Good thing the FEC is asleep at the wheel this season.