TEXAS — The campaign of James Talarico filed a complaint with the Federal Election Commission against Ken Paxton and his treasurer. Seth Krasne, Talarico's campaign manager, stated in the FEC complaint that Paxton illegally spent dark money outside federal contribution limits to promote his candidacy.

The complaint alleges that Paxton, via his agent John Plishka, established and controls Preserve Texas Inc. to shield donors from public scrutiny. J.T. Ennis, a spokesman for the Talarico campaign, stated that Paxton's campaign treasurer is the same person running one of his dark money groups.

"The arrangement is plainly illegal," Ennis said. "Paxton is wrapping donors in his own criminality." John Plishka serves as the treasurer for Paxton's Senate campaign. The complaint cites the 2002 Bipartisan Campaign Reform Act provision preventing candidates from using outside groups to collect money they cannot lawfully accept.

Senate campaigns are limited to accepting $3,500 per individual for primary and general elections, with donors giving over $200 required to be named in public filings. Political campaigns cannot accept money from corporations or unions. A super PAC supporting Paxton received four checks totaling over $1 million from Preserve Texas, Inc. earlier this year.

Preserve Texas sent money to the pro-Paxton super PAC Lone Star Liberty from February to May. Preserve Texas is listed in campaign finance records as having made donations to no other groups except Lone Star Liberty. Preserve Texas is not registered as a political committee and has not filed paperwork with the Federal Election Commission disclosing its donors.

Preya Samsundar, a spokeswoman for Preserve Texas, stated that the group is an independent social welfare organization operating under section 501(c)(4). She added that Preserve Texas is not established, financed, maintained, or controlled by any federal candidate or agent. Samsundar stated that services provided by John Plishka are purely administrative and involve no strategic role.

Greg Keller, a spokesperson for Lone Star Liberty, stated that the PAC fully follows all regulations and laws. The Lone Star Liberty PAC launched a $15 million ad campaign across 18 markets in Texas. Richard Hasen, a law professor at the University of California, Los Angeles, stated that the allegations raise a plausible claim that Paxton's treasurer violated Federal Election Commission rules.

Hasen stated that the validity of the complaint depends on whether Preserve Texas was controlled by Plishka acting as Paxton's agent. The open question remains whether Preserve Texas was controlled by John Plishka acting as Paxton's agent.

Why It Matters

The complaint centers on allegations that a candidate used an outside group to circumvent federal contribution limits and donor disclosure requirements. If proven, such actions would violate provisions of the Bipartisan Campaign Reform Act designed to prevent candidates from collecting money they cannot lawfully accept directly.

The case shows the role of dark money groups in federal elections and the regulatory challenges they present. The Federal Election Commission will determine whether the relationship between Paxton's campaign treasurer and Preserve Texas constitutes illegal coordination or control.

What's New

Democratic candidate James Talarico has secured over $68.5 million in fundraising compared to Paxton’s $9 million. At the end of June, Talarico held more than $21.5 million in available cash, whereas Paxton had $1.75 million.

President Donald Trump endorsed state Attorney General Paxton in his primary victory over incumbent Sen. John Cornyn. Paxton is Attorney General of Texas since 2015.