It hasn’t received much coverage yet, but there is a looming mortgage fraud scandal that threatens to shovel more dirt on the coffin that the Democrat Party is currently residing in. The scandal involves the Democrats’ largest online fundraising platform, ActBlue. No formal charges have been filed yet by the Justice Department, but there is an active criminal investigation now underway. Seven high-ranking people at ActBlue have resigned over the scandal, including the last remaining lawyer in the building. Just in time for the 2026 midterm elections!
The Department of Justice, the House Judiciary Committee, the House Oversight Committee, and the Committee on House Administration have all opened formal investigations into this matter. Part of the reason why the story has received almost no coverage is because it’s incredibly difficult to explain. Plus, financial crimes are usually very boring. We’ll try to break it down for you.
A woman named Regina Wallace-Jones became the new president and CEO of ActBlue in 2023. If they can afford ActBlue’s fees, prominent Democrats can have the organization set up a fundraising website for them. ActBlue then raises millions of dollars for the Democrat candidates, presumably through email campaigns to American donors.
Ms. Wallace-Jones was a field organizer for Barack Obama’s presidential campaigns, and was elected Mayor of Palo Alto, California in 2020. She’s been in leftwing politics for a long time.
Shawn Taylor, a former Assistant Police Chief in Millersville, Tennessee, has come forward with the results of a 15-year investigation into many of the key figures at ActBlue. Taylor appears to have uncovered what they’re calling a “Magic Mortgage” money laundering scheme involving ActBlue’s leadership team.
Here is just one example of the types of curious mortgage “investments” ActBlue’s former CEO Wallace-Jones has been involved in.
Regina Wallace-Jones and Stefford Jones (presumed to be her husband) bought a 2,668-square-foot family home in Palo Alto. The list price the day it was sold was $698,500. Wallace Jones and Jones received a loan from Wells Fargo Home Mortgage Inc. for $651,600 on the day they closed the purchase.
Later that same day, Wallace-Jones and Jones received another loan from Wells Fargo for $651,600. Then they received a third loan from Wells Fargo, that same day, for $552,253. The home was purchased from a private equity firm called the Clarum Corporation.
After getting three mortgage loans for the same house on the same day, Clarum suddenly changed the list price on the property from $689,500 to $68,950,000. They added two zeroes to the price of the home. Don’t you hate it when the closing price changes on you?
Not to worry, because two unnamed sources then jumped in and made additional mortgage loans to the ActBlue CEO and her husband. Those loans were for $10,035,000 and $55,125,000.
Six months after the Joneses bought the modest family home for $67 million, they took out two additional mortgages on it. One was $551,520 and the other was $100,350. Both loans were from Wells Fargo.
Two years after that, the Joneses received a $160,000 mortgage from Wells Fargo, and a $250,000 mortgage from Chase Bank. All for the same house.
In 2015, Stefford Jones appears to have sold the home to himself, using three mortgages from Wells Fargo valued at $565,000, $74,800, and $565,000.
I’m no mortgage expert, but I don’t think you’re supposed to get nearly $70 million in loans to pay for a $698K house. This information is all in Lexis/Nexis, by the way.
Taylor alleges that Regina Wallace-Jones has been making these weird mortgage “investments” dating back almost 20 years. She allegedly has similar wonky purchases listed in California, Texas, and Virginia. And Wallace-Jones isn’t the only person affiliated with ActBlue who has been in these creative mortgage schemes.
Taylor uncovered a $1.8 million home in Great Falls, Virginia where the ActBlue buyer received a $150 million mortgage. The lender was unlisted in Lexis/Nexis and there was no name on the deed to the home.
I don’t understand how the scheme works. I do know, however, that on the day that Kamala Harris replaced Joe Biden a year ago in the presidential race, $50 million suddenly poured into ActBlue’s coffers in just a few hours to prop up her campaign.
ActBlue raised many tens of millions of dollars last year for Joe Biden, Kamala Harris, 10 US Senate candidates, and 40 US House candidates. Investigators in Congress and at the Department of Justice have some very reasonable questions about where all that money really came from.
ActBlue raised a staggering $3.5 billion for Democrat candidates in the 2022 midterms. The Democrats could be in for a very tough 2026 midterm election if ActBlue is sidelined or shut down by this investigation. (Hooray!)
