Campaign committee donates $26,900 in laundered money to Koster, files limited activity statement with Ethics Commission

In April, MPN reported that State Sen. Chris Koster received hundreds of thousands of dollars in laundered funds through a political action committee called the Economic Growth Council (EGC) and dozens of legislative committees. Today, MPN has learned at least one of those committees filed a faulty report with the Missouri Ethics Commission while two other committees filed no reports at all.

The Newton County Democratic Central Committee filed a Statement of Limited Liability on April 2 stating it had received less than $500 during the period.

A report filed by EGC, however, shows contributions totaling $27,500 during the first fundraising quarter of the year. A portion of those funds, $26,900 were then passed to Koster on April 1 directly or in-kind, according to Koster's own campaign finance report. The remaining $600 was profit to the committee in exchange for participating in the laundering exercise.

Two additional committees contributing to Koster - 57th District Committee and the Buchanan County Democratic Committee - did not even bother to file reports with the Ethics Commission.

Koster, a candidate for Attorney General, received 90 percent of his reported funds during the quarter from political committees, much of which was laundered from donors who contributed more than allowable by law last year. Koster's campaign refunded those funds in a manner that inflated total fundraising for his political committee and directed donors where to place the contributions to ensure Koster would later receive them.

This new evidence highlights the carelessness with which Koster's campaign sought to funnel funds at the close of the fundraising quarter.

In the past, Koster stated he is the reason Missouri needs to alter its campaign finance laws.

State Rep. Jeff Harris, also a candidate for Attorney General, seemingly agrees. Harris filed legislation this session to make laundering of campaign funds illegal.

“Since Missouri voters first imposed campaign contribution limits in 1994, creative donors have found ways around the law,” Harris said in a press release the day the bill was filed. “My bill would slam shut and lock the doors to campaign money Laundromat.”

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