Talarico Camp Files FEC Complaint Over Paxton 'Dark Money'

The campaign of Texas Senate candidate James Talarico has filed a complaint with the Federal Election Commission accusing Republican nominee Ken Paxton and his campaign treasurer of violating federal campaign finance law through an undisclosed "dark money" scheme.

The complaint, submitted Wednesday and reviewed by CBS News, centers on Preserve Texas, Inc., a Virginia-based nonprofit that sent four checks totaling more than $1 million to the pro-Paxton super PAC Lone Star Liberty between February and May. Preserve Texas is not registered as a political committee and has disclosed no information about its donors. Corporate filings in Virginia show it was incorporated by John Plishka, who also serves as treasurer of Paxton's Senate campaign.

"It appears that Mr. Paxton — via his agent Mr. Plishka — established and controls Preserve Texas Inc., a dark money entity that has spent substantial sums to influence Mr. Paxton's election while shielding their donors from public scrutiny," wrote Seth Krasne, Talarico's campaign manager, in the complaint.

The complaint cites a provision of the 2002 Bipartisan Campaign Reform Act designed to prevent candidates from using outside groups to collect money they could not legally accept directly. Senate candidates can accept at most $3,500 from an individual donor for each of the primary and general elections, and any donor giving more than $200 must be publicly disclosed. Nonprofits like Preserve Texas face no such restrictions.

Greg Keller, a spokesman for Lone Star Liberty, said the PAC "fully follows all regulations and laws" and accused Talarico of hypocrisy over a fundraising practice called "redboxing," which more than a dozen Democratic candidates have also used, according to a NOTUS report.

Preya Samsundar, a spokeswoman for Preserve Texas, said the group is "an independent social welfare organization" that is "not established, financed, maintained, or controlled by any federal candidate or agent of a candidate." She said Plishka's role with the group is purely administrative.

Richard Hasen, a UCLA law professor specializing in campaign finance, said the complaint raises "a plausible claim" against Plishka but that any violation by Paxton himself would depend on whether he directed or knew of the arrangement.

The FEC is unlikely to act before Election Day because it currently lacks enough commissioners to open investigations. This week, Lone Star Liberty launched a $15 million ad campaign across 18 Texas media markets, with Preserve Texas remaining its largest single donor to date.