$11 Million to Oppose Calif. Initiative Called "Money-Laundering"

Donations transferred through federal nonprofits that aren't obligated to reveal their sources


An $11 million campaign contribution from an Arizona nonprofit that gave money to a group fighting Gov. Jerry Brown's tax initiative represents the largest case of campaign "money laundering" in state history, California's political watchdog agency charged Monday.

Americans for Responsible Leadership reported the source of its contribution to a political action committee that is active in the November election after the state Supreme Court ruled unanimously Sunday that the group must turn over its records.

But the disclosure on the eve of Election Day reveals little about the actual source of the money. It shows that ARL received the $11 million from a group called Americans for Job Security through a second intermediary, the Center to Protect Patient Rights. Both are federally registered nonprofits that are not legally required to disclose the source of their funds.