Conduit crimes are subject to a separate felony penalty with a
lower monetary floor than the general felony provision for FECA
offenses. Specifically, conduit crimes aggregating over $10,000 in a
calendar year are now punishable as felonies, and subject to two years
of imprisonment or fines. 52 U.S.C. § 30109(d)(1)(D). Conduit
crimes aggregating $25,000 or more are subject to FECA’s five-year
felony provision. 52 U.S.C. § 30122(d)(1)(A)(ii). Finally, conduit
crimes aggregating between $2,000 and $10,000 are one-year
misdemeanors. 52 U.S.C. § 30122(d)(1)(A)(i).
Conduit violations also may be prosecuted under the federal
conspiracy and false statement statutes, 18 U.S.C. §§ 371 and 1001.
Courts have held that the use of conduits to disguise illegal
contributions to federal candidates is evidence of an intent to
interfere with the accurate reporting of campaign contributions, an
intent to defraud the FEC, and an intent to cause false information to
be conveyed to the FEC. See United States v. Hsia, 176 F.3d 517 (D.C.
Cir. 1999); see also United States v. Hopkins, 916 F.2d 207, 213–15
(5th Cir. 1990) (upholding Section 1001 conviction for filing false
statements on disclosure reports required by the Ethics in
Government Act).
Conduit schemes often involve multi-district activity, and
therefore the question of where a contribution is “made” or
“received” within the meaning of Section 30122 can present venue
questions. For a discussion of such venue issues, see United States v.
Passodelis, 615 F.2d 975 (3d Cir. 1980) (reversing a conviction
under Section 30122’s predecessor, 18 U.S.C. § 614, on venue
grounds). For a discussion of statute of limitations issues that also
can arise in such cases, see United States v. Hankin, 607 F.2d 611
(3d Cir. 1979) (reversing a conviction under 18 U.S.C. § 614 on
statute of limitations grounds).
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