THE CENTER SQUARE—A top processor of political donations for Democrats, ActBlue, is facing an investigation by the Republican-led House over concerns that the donation processing service is being used to circumvent campaign finance laws.

The House Oversight and Accountability Committee launched the investigation, citing “reports of potentially fraudulent and illicit financial activity” in a letter to Treasury Secretary Janet Yellen.

In the letter, the lawmakers ask Yellen for copies of financial suspicious activity reports related to ActBlue, which serves as a catch-all processor for online donations to Democratic candidates.

“Recent reports have raised the specter of........

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