This is true. I know this for a fact. My wife's very good friend raises tons of money for the democrats up in Chicago. She is real close to the hildabeast (fundraisers in home) - she went to india twice with slick willy. When hitlery was campaigning for the senate, my wife was asked if she would accept a check for $2k, so that my wife and I could donate $1k a piece in hard money to her campaign.
Of course we did not, and it still pisses me off that we haven't done anything about this, but I can't. This has been my wife's best friend since middle school.
I know for a fact that a large portion of the soft money will be converted - for crying out loud it was happening before this law was even passed.