In a significant blow to Stacey Abrams’ political reputation, her nonprofit, the New Georgia Project, has been hit with a $300,000 fine over illegal campaign spending during her 2018 gubernatorial bid. This settlement follows an extensive probe by the Georgia Ethics Commission into the group’s financial activities during the 2018 primary and general election. The verdict? A whopping $4.2 million in undisclosed contributions and $3.2 million in undisclosed expenditures, largely dedicated to Abrams’ campaign.
Violation of State Laws
The consent order made public on Wednesday outlines 16 separate violations of state law. The New Georgia Project and its fundraising partner, the New Georgia Project Action Fund, failed to register as a political committee and neglected to file critical disclosure reports. This oversight, or perhaps intentional omission, resulted in the failure to disclose millions in political contributions and expenditures. To add to their list of offenses, the New Georgia Project’s campaign for a 2019 ballot initiative aiming to expand public transportation added over $600,000 in contributions and $173,000 in expenditures to their tally.
Historic Fine
David Emadi, executive director of Georgia’s Ethics Commission, highlighted the historic nature of this fine. It’s the largest ever imposed by the commission and could possibly be the largest fine from a state ethics board in a campaign finance case. Emadi believes the severity of the fine is justified given the sheer scale of law violation committed by the New Georgia Project. He hopes it sends a strong message about accountability to the public and potential wrongdoers.
The Aftermath
Despite the hefty fine and the tarnished reputation, the New Georgia Project, represented by David Fox at the hearing, seems eager to move forward. They view the settlement as a “reasonable resolution” to a situation that transpired years ago. However, the hefty fine and the public scrutiny might take a toll on the nonprofit’s future activities.
Meanwhile, the group’s former executive director, Nsé Ufot, has been found owing the organization thousands of dollars in “non-work-related” reimbursements. The investigation also revealed a routine overlap between the New Georgia Project and the action fund, opening a whole new can of worms.
Stacey Abrams, who founded the New Georgia Project in 2014, has yet to comment on the matter. But the fallout from this case is sure to cast a shadow on her political career and future campaigns. This case is a stark reminder of the importance of transparency and legal compliance in political campaigns and non-profit activities, even (or especially) when the stakes are high.
