The Electoral Commission has launched an investigation into “potential offences” by Leave.EU over its spending during last year’s EU referendum campaign.
The campaign group, which was headed by Nigel Farage and the businessman Arron Banks, is understood to have worked with the data firm Cambridge Analytica, which uses social media to influence voters.
Cambridge Analytica’s involvement was not declared to the election watchdog, which has concluded that Leave.EU has a case to answer. If the commission decides that political spending laws have been breached, it can report the campaign group to the police.
A spokesman for the watchdog said: “The Electoral Commission has begun an investigation into Leave.EU’s EU referendum spending return. This followed an assessment which concluded that there were reasonable grounds to suspect that potential offences under the law may have occurred.
“The investigation is focused on whether one or more donations – including of services – accepted by Leave.EU was impermissible; and whether Leave.EU’s spending return was complete.”
Banks said Leave.EU would not cooperate with the investigation and threatened legal action against the commission. “We fully and correctly complied with the Electoral Commission rules on spending during the referendum. We have answered all of their questions,” he said in a statement.
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