Quincy Mayor Thomas Koch has faced numerous controversies throughout his 17-year tenure, but a recent mobile marketing scandal may be his most significant challenge yet. According to state regulators, Koch took thousands of dollars in illegal campaign donations, including money from businesses, anonymous donors, and apparent straw donors.

Under a resolution released Wednesday, Koch paid $55,000 to settle the allegations, including $15,000 directly to the state, according to the state Office of Campaign and Political Finance. His campaign also made separate $20,000 donations to two city nonprofits, Quincy Asian Resources Inc., and Quincy's Dragon Boat Museum.

State regulators found that Koch took more than $7,700 in donations from corporations, which are barred from giving directly to candidates. Additionally, his campaign accepted another $3,100 from anonymous donors through PayPal, and an unspecified amount from "multiple individuals" who appeared to be straw donors – people whom state regulators said donated to Koch but were later reimbursed by someone else for the contribution.

The settlement included a reasonable estimate of the prohibited funds, according to OCPF spokesperson Jason Tait. When asked about the allegations, Koch claimed he personally did not know his campaign had taken illegal donations and that they followed guidelines and worked with OCPF officials.

Despite the controversy, Koch's campaign has maintained its commitment to compliance and transparency. In a statement, Jon Carvalho, Koch's campaign spokesperson, said: "The Committee has always worked to comply with the law and all applicable regulations and address any issues as they arise."

This is not the first time campaign finance regulators have identified Koch as a recipient of apparent straw donations. In 2020, a Quincy real estate development and investment management firm paid the state $250,000 to settle allegations that it made illegal campaign contributions to nearly a dozen state and local politicians, including Koch.

The recent findings come amid a series of controversies surrounding Koch's tenure as mayor. Last week, he proposed scaling back a pay increase approved by the City Council, which would push his salary to $285,000 – making him the highest-paid mayor in Massachusetts. The controversy has led to changes within the City Council, with voters all but overhauling the panel.

As the mobile marketing scandal continues to unfold, it remains to be seen how Koch's campaign will move forward and what measures they will take to prevent similar issues in the future.