Written by Ashton Snyder on
 July 28, 2024

Watchdog Group Accuses Teacher’s Union Of $1.5M Money Laundering for Shapiro Campaign

A watchdog group has leveled serious accusations against the Pennsylvania State Education Association (PSEA).

The Freedom Foundation has charged the PSEA with illegally moving $1.5 million to support the 2022 campaign of Democratic Gov. Josh Shapiro, now rumored as a potential vice-presidential candidate, as the Daily Caller reports.

In complaints filed last Thursday, the Freedom Foundation alleged multiple violations of state and federal laws. The group believes that the PSEA funneled significant funds to back Shapiro, who is now considered to be on Kamala Harris' shortlist for VP.

PSEA Allegedly Laundered Union Dues

Maxford Nelsen, the Freedom Foundation’s Director of Research and Government Affairs, has been vocal about these allegations. He asserts that PSEA engaged in a “scheme to secretly launder nearly $1.5 million” via the Democratic Governors Association (DGA). He contends that these actions defied numerous Pennsylvania laws and the Internal Revenue Code.

The funds were reportedly channeled to the Fund For Student Success (FSS), a PSEA-created entity, in May 2022. The FSS then allegedly forwarded the same amount to the DGA, which eventually donated $5.6 million to Shapiro’s campaign. The Freedom Foundation’s complaints highlight these transactions as a breach of both the Pennsylvania Election Code and Pennsylvania Public Employee Relations Act.

Complaints Filed with Multiple Authorities

The Freedom Foundation did not stop at reporting to one authority. Complaints were filed not only with the FBI and IRS but also with Pennsylvania's attorney general, the Dauphin County district attorney, and the Pennsylvania secretary of state’s office. The watchdog group insists that the PSEA’s use of general treasury funds for political contributions is illegal under section 43 P.S. § 1101.1701.

Moreover, the FSS is accused of failing to register as a political committee. The Freedom Foundation also alleges that the FSS filed fraudulent tax returns, suggesting the funds were directed to Put Pennsylvania First instead of the DGA.

DGA's Deceptive Reporting Allegations

The issue extends beyond the PSEA and FSS. The DGA is also implicated in filing incomplete reports. The Freedom Foundation’s complaints indicate this could amount to criminal perjury or making false statements, as per Pennsylvania statutes 18 Pa.C.S.A. §§ 4902 and/or 4904. These discrepancies raise significant concerns about the transparency and legality of the entire funding process supporting Shapiro's campaign.

Freedom Foundation Director Maxford Nelsen condemned the PSEA's actions, remarking on the apparent disregard for both their members and Pennsylvania law. Nelsen emphasized that Pennsylvania teachers should feel confident that their dues are not being covertly used to back political candidates.

Silence from Those Accused

The entities involved have so far remained silent. Neither Gov. Shapiro’s office nor the PSEA responded to requests for comment. This ongoing silence adds to the gravity of the situation, leaving many questions unanswered about the integrity of the election process and the use of union funds.

The Freedom Foundation’s complaints insist that the PSEA executives' actions show a significant contempt for both their members and the law. This has become a matter of public interest given the amount involved and the potential impact on future political campaigns and union fund utilization.

This case underlines the importance of accountability within organizations that deal with substantial monetary contributions and political influence. As the investigation proceeds, the responses of the implicated organizations and individuals will be crucial in determining the outcomes and potential repercussions.

The implications of these accusations are far-reaching. The involvement of high-ranking officials and significant sums of money highlight the potential for ongoing scrutiny and legal actions. The financial contributions and political maneuvers detailed in these complaints may ignite a broader discussion on the regulatory oversight of campaign finances and union activities within Pennsylvania and beyond.

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About Ashton Snyder

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