Musk Accused of Rigged $1M Giveaways
On 4 November, a lawyer representing Elon Musk and the America PAC political action committee informed a Philadelphia judge that the so-called "winners" of Musk's $1 million-a-day voter sweepstakes in swing states are not randomly selected but are instead designated as paid "spokespeople" for the organisation.
GOP attorney Chris Gober clarified that the recipients for Monday and Tuesday would be from Arizona and Michigan, respectively, and would not impact the Pennsylvania election.
According to Gober, these recipients are chosen based on their personal narratives and are required to sign contracts with America PAC.
Musk initially announced this initiative in early October, stating that one random, registered voter from Arizona, Georgia, Michigan, Nevada, North Carolina, Pennsylvania, or Wisconsin would receive $1 million daily until the election.
Gober told Common Pleas Court Judge Angelo Foglietta:
“The $1 million recipients are not chosen by chance. We know exactly who will be announced as the $1 million recipient today and tomorrow.”
Gober's testimony challenges the characterisation of these giveaways as a lottery for voters, emphasizing the targeted nature of the selections.
The $1M Sweepstakes is a Scam?
Musk did not attend the hearing held on the eve of the presidential election, where significant issues surrounding his $1 million-a-day voter sweepstakes were discussed.
CNN courtroom reporter Marshall Cohen noted that the case's central argument hinges on Musk's previous statements suggesting that eligible voters would receive awards "randomly," which led many to label the initiative a lottery or sweepstakes.
Pennsylvania District Attorney Larry Krasner, who initiated the legal action against Musk and America PAC, characterised the programme as an unregistered lottery and described it as a scam, urging the judge to terminate it.
Krasner is also contemplating criminal charges related to the case, which America PAC hopes will bolster Donald Trump's presidential campaign.
Krasner highlighted that 18 prizes have been announced so far.
In defense, the attorney for America PAC and Musk contended that the initiative was never a lottery, asserting that winners were selected based on their personal stories and subsequently hired as spokespersons, with the $1 million payouts contingent on fulfilling contractual obligations.
The lawyer also confirmed that they do not intend to extend the sweepstakes beyond Tuesday.
However, Krasner labelled it an illegal lottery under Pennsylvania law, citing the absence of published rules or privacy policies governing the information collected from voters who sign an oath to the US Constitution when entering the sweepstakes.
Krasner testified:
“They were scammed for their information. It has almost unlimited use.”
X (formerly known as Twitter) users were quick to unleash fury, calling it a scam.
Krasner's attorney, John Summers, emphasized Musk's pivotal role, describing him as "the heartbeat of America PAC" and the individual responsible for announcing winners and distributing checks.
Summers stated:
“He was the one who presented the checks, albeit large cardboard checks. We don’t really know if there are any real checks.”
The case was presided over by Judge Foglietta at Philadelphia City Hall, following Musk and America PAC's unsuccessful attempt to move the case to federal court.
Krasner stated he might still pursue criminal charges, as he is committed to safeguarding both lottery regulations and electoral integrity.
In the lawsuit, he asserted that the defendants are "indisputably violating" Pennsylvania's lottery laws.
With 19 electoral votes at stake, Pennsylvania remains a crucial battleground state, and both Trump and Democratic Vice President Kamala Harris have made numerous campaign stops there, including planned appearances in the campaign's final hours.
Judge Greenlights Continuation of Giveaway: Will Musk Still Face Potential Charges & Jail Time?
Typically, the maximum penalty for operating an illegal lottery under US federal law includes the forfeiture of funds, fines, and up to one year in prison.
However, a motion to transfer the case to federal court was rejected on 1 November, meaning federal regulations may not apply.
The potential for Musk or members of America PAC to face jail time remains uncertain.
An initial review of Pennsylvania law reveals that running an illegal lottery is classified as a misdemeanour, which generally does not result in jail time for offenders.
While federal charges could still be a possibility—especially given reports that both Musk and America PAC have received warnings from the US Department of Justice—Musk's association with former President Donald Trump, a current candidate, may provide him some protection, should the Republican secure victory.
However, despite concerns surrounding the legality of the initiative, the judge has allowed Musk's political group to continue awarding $1 million to voters in swing states.
The giveaway by Musk's America PAC is scheduled to conclude on Tuesday, with the last recipient already chosen, as confirmed by a lawyer representing the billionaire during a court hearing on Monday.
Judge Foglietta did not provide an immediate explanation for the ruling, which was issued just hours after the hearing.
Gober informed the court that the final recipient will be a voter from Michigan.