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'Musk Must Be Stopped': Philly DA Sues to Halt Million-Dollar Lottery Scheme
"Running an illegal lottery and violating consumer protections is ample basis for an injunction," reads the lawsuit filed by Philadelphia District Attorney Larry Krasner.
Oct 28, 2024
Philadelphia District Attorney Larry Krasner filed a civil lawsuit Monday aimed at stopping billionaire Elon Musk's million-dollar giveaway scheme, calling it an "indisputably" illegal lottery aimed at influencing the 2024 presidential election in favor of Republican nominee Donald Trump.
The lawsuit against Musk and America PAC—a pro-Trump group financed by the Tesla CEO—states that in addition to being an "unlawful lottery" under "unambiguous Pennsylvania law," the scheme "also violates the Commonwealth's consumer protection laws."
"In connection with their scheme, [Musk and America PAC] are deploying deceptive, vague, or misleading statements that create a likelihood of confusion or misunderstanding," the filing states. "For example, they have not published a complete set of lottery rules or shown how they are protecting the privacy of participants' personal information. Also, though Musk says that a winner's selection is 'random,' that appears false because multiple winners that have been selected are individuals who have shown up at Trump rallies in Pennsylvania."
"Running an illegal lottery and violating consumer protections is ample basis for an injunction and concluding that America PAC and Musk must be stopped, immediately, before the upcoming presidential election on November 5," the lawsuit continues. "That is because America PAC and Musk hatched their illegal lottery scheme to influence voters in that election."
Announced during a pro-Trump campaign rally in Pennsylvania on October 19, the lottery involves a million-dollar gift each day to a registered voter from a battleground state who has signed America PAC's petition in support of the First and Second Amendments. Nine million-dollar checks have been handed out so far, four of which went to Pennsylvania voters, the PAC's website shows.
Election law experts have said from its inception that the scheme is clearly illegal because only registered voters from select battleground states are eligible for the prize—effectively making it a monetary incentive to register to vote. Federal law states that anyone who "pays or offers to pay or accepts payment either for registration to vote or for voting shall be fined not more than $10,000 or imprisoned not more than five years, or both."
"This civil action neither precludes nor requires potential future action under Pennsylvania criminal law."
In a statement, Krasner's office said that "the Philadelphia district attorney is charged with protecting the public from public nuisances and unfair trade practices, including illegal lotteries."
"The DA is also charged with protecting the public from interference with the integrity of elections," the statement added. "Today, the Philadelphia DA filed a civil legal action under Pennsylvania law. This civil action neither precludes nor requires potential future action under Pennsylvania criminal law. The Philadelphia DA will litigate the factual allegations and legal arguments that underlie today’s filing on the record and in court."
Krasner's lawsuit is the first legal action taken over the lottery scheme, according toThe Philadelphia Inquirer.
Last week, as Common Dreamsreported, the consumer advocacy group Public Citizen filed a formal complaint with the Federal Election Commission (FEC) arguing that the million-dollar reward scheme "appears to constitute payment to encourage voter registration and to influence votes."
Musk has spent at least $118 million during the current election cycle to support Trump's bid for a second White House term, federal filings show.
In a report released two days before the group submitted its FEC complaint, Public Citizen made the case that Musk's efforts to influence the 2024 presidential election likely stems at least in part from his "self-serving desire to thwart the numerous civil and criminal investigations into his businesses."
The group observed that Tesla, X, and SpaceX are each either under investigation or facing accusations of illegal conduct from the U.S. Department of Justice, the National Labor Relations Board, the Federal Aviation Administration, and other federal agencies.
"Elon Musk isn't running for office in 2024," Public Citizen said. "But Musk himself may still be the main beneficiary of his own political spending."
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Michigan Secretary of State Probing Elon Musk Super PAC Over Voter Data Scheme
"Every citizen should know exactly how their personal information is being used by PACs, especially if an entity is claiming it will help people register to vote."
Aug 04, 2024
Michigan Secretary of State Jocelyn Benson is investigating a super political action committee created by billionaire Elon Musk that's been accused of "misleading voters" because of how it collects personal data of swing state residents online.
"Every citizen should know exactly how their personal information is being used by PACs, especially if an entity is claiming it will help people register to vote in Michigan or any other state," a spokesperson for the Democratic official toldCNBC on Sunday.
"While the America PAC is a federal political action committee, the department is reviewing their activities to determine if there have been any violations of state law," the spokesperson added. "We will refer potential violations to the Michigan attorney general's office as appropriate."
Sharing the CNBC article on X—a social media platform formerly called Twitter, which Musk bought in 2022—Benson said that she and Democratic Attorney General Dana Nessel "take intentional efforts to mislead voters very seriously in our state."
Benson also thanked Michigan Senate Majority Whip Mallory McMorrow (D-8) "for bringing the website to our attention a few days ago."
CNBC political finance reporter Brian Schwartz on Friday had reported on the digital advertising and data collection activities of America PAC, which is working to elect former Republican President Donald Trump. The journalist detailed how people who enter ZIP codes for competitive areas are not sent to local voter registration pages, "they instead are directed to a highly detailed personal information form, prompted to enter their address, cell phone number, and age."
Schwartz's reporting sparked accusations that the super PAC's scheme "seems like election fraud" and calls for the U.S. Department of Justice to launch an investigation. As with the initial reporting, Schwartz noted Sunday that a spokesperson for the group declined to comment and Musk did not return emails seeking comment.
After the reporter revealed Michigan's probe on Sunday, he pointed out on X that America PAC "took down their homepage links to register to vote and request a ballot."
Ben Gardner, All Voting Is Local's Michigan senior campaign manager, welcomed his state's investigation into the super PAC.
"Good," Gardner said Sunday. "Michiganders should feel confident knowing that Michigan's secretary of state will stand up to those who attempt to mislead voters."
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'How Is This Legal?' Elon Musk's Pro-Trump Super PAC Accused of Voter Deception
"If you did not believe he was maniacal or evil, before this, well now you know," said a former congresswoman.
Aug 02, 2024
A super political action committee connected to billionaire Elon Musk is not only working to elect Republicans including former President Donald Trump but also collecting voter information in battleground states via a method that is setting off alarm bells, CNBCreported Friday.
CNBC political finance reporter Brian Schwartz explained how an online America PAC advertisement featuring footage of the recent assassination attempt targeting Trump sends viewers to different websites depending on their location.
"If a user lives in a state that is not considered competitive in the presidential election, like California or Wyoming for example, they'll be prompted to enter their email addresses and ZIP code and then directed quickly to a voter registration page for their state, or back to the original sign up section," he reported. "But for users who enter a ZIP code that indicates they live in a battleground state, like Pennsylvania or Georgia, the process is very different."
"Rather than be directed to their state's voter registration page, they instead are directed to a highly detailed personal information form, prompted to enter their address, cell phone number, and age," according to Schwartz. "If they agree to submit all that, the system still does not steer them to a voter registration page. Instead, it shows them a 'thank you' page."
One user on X—the Musk-owned social media platform formerly called Twitter—trialed the process and shared related screenshots:
"How is this legal!?" Veni Kunche of Diversify Tech asked on X in response to the reporting. "America PAC is misleading voters."
Georgetown University professor Don Moynihan also raised legal concerns, saying, "Getting people's personal information on the promise of helping them to register to vote, and then not helping them to register to vote definitely seems like election fraud."
Retired journalist Mary Beth Schneider said: "Scamming people into thinking they registered to vote? This should be illegal."
Jodi Jacobson, founder and executive director of Healthcare Across Borders, called for a federal investigation.
"Is anyone actually working over there?" she asked the U.S. Department of Justice on X. "Because here is something you should be investigating. Now."
Ciara Torres-Spelliscy, a professor at Stetson University College of Law in Florida and fellow at the Brennan Center for Justice at the New York University School of Law, criticized the super PAC and offered guidance on registering to vote in the United States.
"This is so shitty," she said of the group's actions. "To avoid... a fake registration webpage problem: Google your local board of elections and register directly through them. Typically your local board of elections is the name of the county you live in and 'board of elections.'"
Former Congresswoman Marie Newman (D-Ill.) took aim at Musk, saying, "If you did not believe he was maniacal or evil, before this, well now you know."
While a spokesperson for America PAC declined to comment and Musk did not reply to Schwartz's emails, the billionaire confirmed he created the political group during a July 22 video interview on X with right-wing commentator Jordan Peterson. Musk also denied a recent Wall Street Journal report that he is putting $45 million a month toward sending Trump back to the White House.
"I am making some donations to America PAC, but at a much lower level and the key values of the PAC are supporting a meritocracy and individual freedom," Musk wrote on X the following day. "Republicans are mostly, but not entirely, on the side of merit and freedom."
Super PACs are not subject to the same legal restrictions as campaigns and traditional political committees; they can raise and spend unlimited amounts of money from individuals, corporations, and groups. There are limits for coordinating with campaigns, but they can coordinate on canvassing, thanks to a Federal Election Commission advisory opinion from earlier this year.
America PAC has already raised millions of dollars, with donations from venture capitalists and cryptocurrency investors.
Last month, Sen. Bernie Sanders (I-Vt.) publicly thanked Musk for doing "an exceptional job of demonstrating a point that we have made for years—and that is the fact we live in an oligarchic society in which billionaires dominate not only our economic life and the information we consume, but our politics as well."
As
The New York Timesdetailed Thursday, America PAC is off to "a rocky start" and now "shaking up its field operation." Still, the group's potential impact on the presidential election—in which Trump is expected to face Democratic Vice President Kamala Harris—is generating concerns, particularly given the new revelations from CNBC.
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