Stacey Abrams-founded group settles case over illegal support for her campaign

A nonprofit founded by Stacey Abrams, the New Georgia Project, has settled a complaint with the Georgia Ethics Commission by agreeing to pay a $300,000 penalty to the state. This settlement stems from allegations of illegal spending amounting to millions to bolster Abrams’ gubernatorial bid in 2018.

The consent order, which was publicly disclosed following the ethics commission’s approval, revealed that the New Georgia Project and its fundraising arm, the New Georgia Project Action Fund, failed to disclose around $4.2 million in contributions and $3.2 million in expenditures. These undisclosed funds were primarily used to support Abrams during both the 2018 primary and general election.

Violations and Penalties

The order outlined 16 infractions of state law, including the group’s failure to register as a political committee, neglect to file necessary disclosure reports, and omission of millions of dollars in political contributions and expenditures. By accepting the consent order and paying the $300,000 fine, the New Georgia Project acknowledges its violation of the law.

In addition to the gubernatorial race support, the consent order shed light on the New Georgia Project’s advocacy for a 2019 ballot initiative aimed at expanding public transportation. This violation involved over $600,000 in contributions and $173,000 in expenditures.

Enforcement and Consequences

David Emadi, the executive director of Georgia’s ethics commission, emphasized that the $300,000 penalty is the largest ever imposed by the commission and possibly stands as the most substantial fine issued by a state ethics board in a campaign finance case to date. Emadi underscored the significance of the fine, indicating that it aligns with the gravity of the state law violations committed.

David Fox, the legal representative for the New Georgia Project during the proceedings, described the agreement as a fair resolution for past transgressions and expressed the organization’s eagerness to move forward.

Investigation and Resolution

The consent order concludes a lengthy investigation into the New Georgia Project’s activities dating back to 2019, which involved multiple court appearances. The ethics commission’s pursuit of the case led to subpoenas for the group’s bank records, with the complaint being revised in 2022 following legal developments.

While the New Georgia Project attempted to impede the ethics board’s inquiry in a separate instance, the 11th Circuit Court of Appeals ultimately allowed the investigation to proceed, overturning a previous ruling that halted the probe.

Organizational Background

Established in 2014 by Stacey Abrams, the New Georgia Project originated as an offshoot of the nonprofit Third Sector Development. Notably, Georgia Democratic Senator Raphael Warnock served as the organization’s chairman for over two years, from its transition to an independent 501(c)3 entity in 2017 until January 2020.

A 2023 investigative report by POLITICO uncovered financial discrepancies involving the group’s former executive director, Nsé Ufot, who allegedly owes the organization a substantial sum in reimbursements unrelated to work responsibilities.

Despite these revelations and the recent settlement, a spokesperson for Stacey Abrams refrained from immediate comment on the matter.