A Canadian steel magnate is set to pay a “record-breaking” fine levied by the Federal Election Commission (FEC) after being found liable for steering nearly $2m in donations to a super PAC supporting former President Donald Trump and candidates aligned with his agenda.
The FEC announced the decision last week in response to a claim against the businessman filed by the Campaign Legal Centre in 2019. The original complaint was based on reporting initially published in The New York Times.
Barry Zekelman of Zekelman Industries “participated in Wheatland Tube’s decision-making process to contribute to [America First Action],” the FEC’s decision stated.
Additionally, Mr Zekelman’s company Zekelman Industries “provided substantial assistance in [a subsidiary]’s making of prohibited foreign national contributions,” it continued.
As a result, Mr Zekelman agreed to pay a fine of $975,000 through his various corporate entities and “will cease and desist from committing further violations” of US election fundraising law, the agency stated.
“It is a strong message to anybody out there who is confused about this,” FEC commission member Ellen Weintraub told the Times in a statement. “You cannot have foreign nationals involved in any way in political contributions in this country.”
America First Action (AFA) is a PAC affiliated with America First Policies, the nonprofit founded by several allies of former President Donald Trump including his longtime social media guru Brad Parscale in 2017. The PAC is separate from Mr Trump’s own Save America PAC, which houses the majority of his massive political war chest.
The FEC’s decision will also require AFA to refund the $1.75m it received in illegal contributions or return the sum to the US Treasury.
