FEC is asked to investigate $500K to PAC backing Francis Suarez from Chinese straw donor

A complaint filed with the Federal Elections Commission Tuesday accused an online artificial flower vendor of illegally funneling half a million dollars from an unidentified source into a Super PAC backing Miami Mayor Francis Suarez, who is seeking the Republican nomination for president.

In its complaint calling for an FEC investigation, the Campaign Legal Center, a non-partisan watchdog organization, alleged that PassionForest LLC — a small online vendor founded in 2021 — appeared to be a straw donor, illegally masking the identity of whoever was behind a $500,000 contribution to SOS America in October 2022.

Incorporated in Delaware in November 2021, PassionForest has no online presence other than an Amazon storefront listing a Chinese business address, which operated for only 11 months before making its one major political contribution, according to the complaint.

“The available information supports the conclusion that PassionForest could not have generated sufficient income from real property holdings, assets, investment earnings, business revenues, or bona fide capital investments to make a $500,000 contribution,” the complaint alleged.

Federal regulations prohibit the use of straw donors and require full disclosure of the ultimate source behind any political contribution. Anyone found to have participated in a straw donor scheme can face civil fines and prohibitions on campaign activity brought by the FEC, which can also refer the case to the Department of Justice for criminal review.

While FEC records show the company’s political contribution was associated with a Brickell address, the complaint pointed to evidence that PassionForest is actually based in China, rendering it a “foreign national” and prohibited donor under federal law. A 2021 trademark application shows the the company is owned by Rao Juhui, whose business address is Guangzhou, China, and the associated Amazon account also lists a Chinese business address.

Any political donation from a foreign national is banned under federal laws protecting against foreign influence in elections.

The Herald attempted to contact Rao through his Amazon account but did not receive a response.

When reached by reporters, Angus Ni, the attorney who submitted PassionForest’s trademark application, said he submits thousands of such applications each year and has no relationship with the company.

“The name doesn’t even ring a bell,” Ni said while declining to put reporters in touch with the company.

“I want nothing to do with this,” he said before ending the call.

PassionForest listed the Miami address of the law firm Holland & Knight on its campaign contribution. The firm, which also represents the Herald in some matters, did not respond to a request for comment.

SOS America, which was operating under the name America For Everyone at the time of the donation, did not respond directly to the complaint.

“SOS America PAC has not received a complaint and if we do, we will respond to it,” wrote spokesperson Chapin Fay in response to questions from the Herald. “SOS America PAC has always held itself to the highest ethical and legal standards and conducts itself properly in every instance.”

After this article was published online, SOS America sent an updated statement, which read in part: “No surprise liberal special interest groups and their allies are lobbing political attacks that are intended to undercut the only Hispanic Republican candidate. ...This is nothing more than a political attack and it will be seen for what it is.”

Neither Suarez nor his campaign immediately responded to the Herald’s request for comment.

Saurav Ghosh, director of federal campaign finance reform at Campaign Legal Center, said he began to investigate donors backing SOS America after the Super PAC promoted a college tuition lottery in an effort to help Suarez obtain the 40,000 individual donations necessary to make the debate stage in August.

“These kinds of fundraising stunts were coming fast and furious so it was just general background. I was interested in what this Super PAC is and where it seemed to be getting its money from,” Ghosh said.

While the PAC itself is not named as a defendant in the complaint, the committee could also face repercussions if it were found to have solicited the donation.

“I think the past 10 years of history in campaign finance suggests committees in this situation almost always know where the money comes from,” Ghosh said. “It’s not credible that an LLC contributes half a million dollars and the committee has no idea where it’s coming from or who to thank.”

A filing attached to a late 2022 campaign finance report states that “contributor info has been requested for PassionForest, LLC.”

In 2019, a Super PAC supporting former Florida Gov. Jeb Bush’s failed White House bid was slapped with a $390,000 penalty, following a complaint from the Campaign Legal Center alleging a Chinese couple steered $1.3 million in donations into the campaign through a California-based company. Bush’s younger brother Neil was accused of soliciting the donations as an agent of the Super PAC.

Suarez has no official role with SOS America which is required by federal law to operate independently from official campaigns. Super PACs are prohibited from directly coordinating with candidates and contributing to their authorized campaigns. When the Herald previously asked the Suarez campaign about some of SOS America’s fundraising tactics, campaign spokeswoman Soledad Cedro said “the campaign has nothing to do with whatever the PAC does.”

SOS America reported raising more than $6 million in 2022, a haul that included hefty donations from major Suarez donors. The largest donation came from Howard W. Lutnick, CEO of financial services firms Cantor Fitzgerald and BGC Partners, who gave $1 million in November. Orlando Bravo, a co-founder of private equity firm Thoma Bravo, made two $500,000 donations, in July and December. Bravo previously supported the mayor’s reelection campaign in 2021.

Jorge Mas, managing owner of Major League Soccer franchise Inter Miami and chairman of infrastructure construction giant MasTec, gave the group $500,000. California-based cryptocurrency company Ripple Labs Inc. also contributed $500,000.

SOS America has not yet had to report contributions or expenses for 2023. The super PAC’s next fundraising report is due July 31.