9/22/16 Political Contributions


Some people make political contributions because they agree with the candidate.  Others because they hope to influence White House or Congressional decision-making.  But, could there be another reason?

Here’s what’s happening behind the headlines.

Three academic researchers claim data shows there’s another advantage to making political contributions.

The trio examined PAC and personal contributions made by executives.  They also looked at enforcement action by the Securities and Exchange Commission.

They found that companies with accounting irregularities tend to increase political contributions.

They also found that companies with PACs and/or executives that made contributions received less punishment when charged with fraud.

Data shows that for every $10,000 increase in PAC contributions, executives accused of fraud will receive less prison time and less probation.  They were also banned by the SEC for a shorter period of time.  The same is true for executives making personal contributions.

According to a former SEC Chairman, contributors being investigated lobby Congress to put pressure on the SEC or the Justice Department to end their investigations.