State Ethics Commission approves $300,000 consent order with New Georgia Project, citing undisclosed millions in 2018–19 election activity

The State Ethics Commission on Jan. 15 approved a consent order with New Georgia Project, Inc. and New Georgia Project Action Fund, Inc., resolving multi-year enforcement proceedings that alleged widespread failures to register and disclose independent-committee and ballot-committee activity during the 2018 statewide election cycle and the 2019 MARTA referendum.

Commission staff said the investigation and litigation began in September 2019, produced bank records in March 2022, and led to an amended complaint and a preliminary reasonable-grounds finding in August 2022. Staff told commissioners the respondents admitted to multiple violations and agreed in the consent order to pay a $300,000 civil penalty.

Staff summarized the admissions in the consent order as including failure to register as an independent committee and failure to file required disclosure reports for the 2018 cycle (staff reported the respondents did not disclose approximately $4,216,000 in contributions and about $3,217,000 in expenditures during that cycle). For the 2019 MARTA referendum, staff said respondents admitted failing to register as a ballot committee and not disclosing approximately $646,000 in contributions and $173,000 in expenditures tied to that referendum.

Staff presented documentary evidence at the meeting showing express-advocacy activity: campaign mailers and literature referencing Stacey Abrams for governor, social-media posts soliciting donations (including public ActBlue links), door-hanger and palm-card invoices paid out of New Georgia Project accounts, and field-operation materials such as canvasser scripts and hiring posts for phone banks and door-knocking staff. Staff said bank and vendor records showed most fundraising and payments flowed through New Georgia Project rather than a separately incorporated Action Fund, and that the Action Fund's online “donate” or “learn more” links redirected users to New Georgia Project pages.

David Fox, counsel for the respondents, addressed the commission remotely and said the respondents did not agree with every characterization in staff's presentation but considered the consent order a practical resolution of long-running litigation. "Respondents are eager to put the matter behind them," Fox told the commission.

Commissioners who spoke praised staff persistence through repeated litigation. Commissioner Wise commended the staff’s diligence; Commissioner Thompson said the conduct illustrated the harm secret money can do to elections, while acknowledging the commission’s civil (not criminal) enforcement authority in these matters.

The commission moved to adopt the consent order in case 2019-0050pc; the motion was seconded, put to a voice vote and carried. The consent order notes respondents' representations, admissions, and agreement to the civil penalty. Staff described the $300,000 penalty as the largest fine assessed by the commission to date for campaign-finance violations.

The consent order resolves the administrative enforcement case and closes the matter as to the claims admitted in the order; staff said the settlement and admissions will be reflected in the commission's public records.

Because the consent order is a negotiated settlement that contains agreed factual findings and admissions, it does not resolve every factual disagreement the parties raised in litigation; the order narrows the issues to the matters enumerated in its findings and conclusions of law.