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Rep. Dan Crenshaw (R-TX), a leading Republican fundraiser who has worked to build a national political profile, has been hit with a hefty fine for violating federal campaign finance rules.

On Friday, officials at the Federal Election Commission disclosed they had fined Crenshaw’s campaign committee $42,000, after the campaign failed to properly return more than $220,000 in illegal campaign contributions.

The hefty penalty—about 20 percent of the amount in the...

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