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Justice

62 Percent Of Karl Rove’s $123 Million In ‘Crossroads’ Fundraising Comes From Secret Donors

American Crossroads and Crossroads GPS logosThe Karl Rove-linked American Crossroads Super PAC and Crossroads GPS 501(c)(4) organizations have the same president, same spokesman, same mailing address, and same right-wing ideology. Both groups can, thanks to the Citizens United and SpeechNow.org rulings, accept unlimited sums of money from individuals and corporations — a privilege they’ve wielded to raise $100 million for the 2012 cycle alone and to run millions of dollars worth of political television ads. But one key difference separates the two entities: disclosure. While American Crossroads must publicly identify its major contributors, Crossroads GPS does not make the names of any of its donors public.

A Center for Public Integrity analysis of the two groups reveals that of the combined $123 million raised by the two groups in 2010 and 2011, $76.8 million, or 62 percent, was secret money contributed to Crossroads GPS. That money came from fewer than 100 individual donors — meaning an average donation of more than $750,000.

Crossroads GPS has made more than $1.3 million in “electioneering communications” — independent broadcast ads referencing federal candidates, run shortly before an election — since its formation. While the Bipartisan Campaign Reform Act (commonly known as McCain-Feingold) required that groups identify the donors who pay for these types of ads, a 2007 Federal Election Commission regulation effectively neutered this requirement.

A recent federal court ruling struck down that regulation, but the Commission has yet to implement the ruling and says it may appeal. It is unclear whether this ruling might force groups like Crossroads GPS to disclose their donors, retroactively. But, to this point, citizens have had no way of determining who is really behind these ads.

The combined $123 million raised in two years, it is worth noting, is more than Sen. John McCain (R-AZ) spent on his entire 2008 presidential general election campaign. And in addition, American Crossroads has already raised another $49 million in the first quarter of 2012, giving the Super PAC about $100 million for this cycle, according to Politico. Crossroads GPS only reports its fundraising totals once a year.

With giant corporations and billionaire activists dominating the airwaves and overwhelming the political process, Crossroads and similar organizations continue to show just how wrong the Supreme Court’s 5-4 majority was in thinking “independent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption.”

Security

Meet New Anti-Obama Super PAC Donor Irving Moskowitz

Right-wing donor Irving Moskowitz

Karl Rove’s super PAC American Crossroads just got a new big-league donor. Bingo kingpin Irving Moskowitz gave $1 million to the group, according to a report by Paul Blumenthal at the Huffington Post.

Moskowitz generates his millions from a bingo enterprise in California. The catch is that the gambling license requires that Moskowitz only hand over 1 percent of gross receipts to the city so long as the rest of the profits go to the tax-exempt Irving I. Moskowitz Foundation (net holdings: $52 million). Through this foundation, Moskowitz gives to a bevy of less-than-savory causes — American Crossroads and its dishonest attacks are just the latest. Blumenthal notes that donations involving electoral politics are a relatively new thing for Moskowitz, but he’s got a long history of backing far-right-wing causes. Here are some of his greatest hits:

  • Islamophobia – Since 2002, the foundation has given $485,000 to the Center for Security Policy, a hawkish Washington think tank run by former Reagan administration official and conspiracy theorist Frank Gaffney. As reported in CAP’s “Fear, Inc.,” Gaffney’s group pushes Islamophobia in the U.S., and Gaffney has proclaimed that practicing the Islamic faith is tantamount to “sedition.” Gaffney, who thinks President Obama is Muslim, also leads the advisory group of the Islamophobic group Clarion Fund, which produces documentaries that have been denounced as “inflammatory” and once published approving comments about Norwegian anti-Muslim mass-murderer Anders Breiviks views.
  • “Birthers” – Since 2006, Moskowitz’s foundation gave $200,000 to the Western Center for Journalism (WCJ), a non-profit founded by Joseph Farah. WCJ describes Farah as “the brains behind WND.com news website.” Formerly known as World Net Daily, WND is a hub for “birtherism,” the conspiracy theory that President Obama’s publicly released birth certificate is a fake, and that Obama therefore is not a U.S. citizen nor eligible to be president. WND even hosts conferences on the issue and WND Books published Jerome Corsi’s “Where’s the Birth Certificate?” tome just after Obama’s long-form certificate was publicly released — though that hasn’t stopped WND’s conspiracy theories. WCJ’s blog, naturally, pushes the same, lame discredited theories.
  • Israeli settlements – By far, Moskowitz’s most generous philanthropic work — and other non-philanthropic funding — goes toward projects linked to Israel’s settlement enterprise in East Jerusalem and the West Bank, considered “illegitimate” by the U.S. government and international bodies. In addition to gifts of at least $1.985 million to projects in West Bank settlements like Kiryat Arba and Kedumim, Moskowitz’s and his wife’s foundations have donated more than $300,000 to the Hebron Fund, which supports some 800 ideological settlers living in the Palestinian West Bank city. Moskowitz also focuses on East Jerusalem, giving huge sums to developments there, including one million dollars in the late 1980s to purchase a defunct hotel and, as of the late 1990s, more than $2 million to support a religious pro-settlement group in East Jerusalem called Ateret Cohanim.
  • So far, the millionaire-backed American Crossroads took cash from an oil speculator to run an ad campaign absurdly accusing Obama of driving up gas prices. If the ad campaigns are, as with this case, linked to the donor’s pet causes, American Crossroads could be on its way to putting out some of the most vicious attack ads of the election season.

    Climate Progress

    Pro-Oil Outside Groups Spend More Than $16 Million On Energy Attack Ads Since January

    A handful of outside groups, fueled by oil and coal dollars, are committing tens of millions to propel Big Oil to the forefront of the 2012 elections — outspending the Obama campaign on political energy ads by an overwhelming amount.

    In the first three-and-a-half months of 2012, groups including Americans for Prosperity, American Petroleum Institute, Crossroads GPS, and American Energy Alliance have spent $16,750,000 on energy attack ads. The total amounts to more than $56 million, including the American Clean Coal Coalition’s pledge of $40 million on ads promoting coal.

    According to a Think Progress analysis, there have been at least $16,750,000 worth in dirty energy ad buys since January:

    American Petroleum Institute spent $4.3 million since January, reported by the Washington Post.

    Crossroads GPS has spent a total $2.85 million since January, with three major ad buys. Crossroads spent $500,000 distorting the administration’s Solyndra record, $650,000 on gas prices, and $1.7 million promoting “drill, baby drill.”

    American Energy Alliance bought $3.6 million of gas price ads for the “largest effort of its kind in AEA’s history.” The group is partially funded by Charles and David Koch.

    Americans For Prosperity: $6 million on an ad distorting Obama’s Solyndra record, which ran in at least six states. This followed an earlier $2.4 million Solyndra ad in November, which was not included in the total count.

    By comparison, the Obama campaign and his super PAC have spent at least $1.67 million defending the president’s energy record.

    Other groups have pledged to spend millions more this election cycle, and will include ads focusing on promoting pro-oil and coal interests:

    U.S. Chamber of Commerce has committed to spend more than $50 million this year on a range of issues. So far it has targeted several lawmakers, including Sen. Sherrod Brown (D-OH), who faced $2.5 million of ads against him for wanting to end oil subsidies. In February, it spent $200,000 ads promoting Rep. Rick Berg (R-ND) for his pro-oil stance.

    American Coalition For Clean Coal Electricity: $40 million overall campaign to push coal interests to the forefront of the presidential campaign.

    American Crossroads, whose donors include oil and gas executives, has a bankroll of more than $200 milllion for 2012.

    Oil billionaires Charles and David Koch “plan to pump at least $100 million through their network of independent groups” which include Americans for Prosperity and the American Energy Alliance.

    Ad spending this cycle has skyrocketed 1600 percent compared to the 2008 race, partly due to oil and gas’s serious money to elect a candidate committed to putting oil’s profits first.

    Politics

    Billionaire Buddies: Adelsons Join Forces With Koch Brothers To Take Down Obama

    Charles and David Koch

    Charles and David Koch

    In recent years, billionaire oil magnates David and Charles Koch have bankrolled the Tea Party movement, Republican candidates, and efforts to deny the existence global warming. But less noticed have been their series of twice-yearly strategy coordination meetings for wealthy right-wing donors. These secret confabs have attracted Republicans like Govs. Rick Perry (R-TX) and Rick Scott (R-FL), as well as former Fox News Channel talker Glenn Beck, Supreme Court Justices Antonin Scalia and Clarence Thomas, representatives from the U.S. Chamber of Commerce, and executives from the oil, banking, and health insurance industries.

    The most recent meeting attracted two newcomers: Sheldon and Miriam Adelson. Between them, the Las Vegas casino-owner and his wife have reportedly plowed $10 million into a pro-Newt Gingrich super PAC and have donated tens of thousands of dollars to Republican party committees and candidates already this cycle.

    A Center for Public Integrity report suggests this may just be the beginning:

    Adelson has recently indicated strong interest in backing other GOP allied groups, say fundraisers familiar with his giving. In 2010, Adelson wrote a seven figure check to Crossroads GPS, a non-profit advocacy group that doesn’t have to disclose its donors publicly which was co-founded by GOP super consultants Karl Rove and Ed Gillespie.

    The story quotes unnamed fundraisers “familiar with Adelson,” the American Crossroads super PAC and the 501(c)(4) Crossroads GPS, as expecting Adelson to “pump a few million dollars more” into one of the Crossroads groups this year, to help defeat President Barack Obama’s re-election campaign. They also say Adelson is also considering writing a check to the American Action Network, former Sen. Norm Coleman (R-MN)’s non-profit, to help preserve the Republican majority in the U.S. House.

    Between the Kochs and the Adelsons, voters around the country should expect to see what voters in Iowa, New Hampshire, South Carolina, and Florida have seen in recent weeks: a seemingly unending stream of dishonest attack ads, paid for by billionaire-funded super PACs and tax-exempt organizations.

    Climate Progress

    Rove’s Crossroads GPS Drops $500,000 Ad For Latest Solyndra Attack

    Karl Rove and Ed Gillespie

    Karl Rove’s Crossroads GPS has released a new smear ad criticizing President Obama on the administration’s investment in the solar company Solyndra. The $500,000 ad is scheduled to run throughout the week, nationwide.

    As President Obama said in his State of the Union address, his administration is committed to the promise of American clean energy, even though some companies may fail to others in the marketplace. 180,000 pages of documents from a Congressional investigation confirmed that the Department of Energy’s investment in the advanced technology of Solyndra was based on the merits.

    The group, created by Karl Rove and former Republican National Committee Chairman Ed Gillespie, launched their 35-second TV spot dishonestly painting “the Solyndra loan guarantee as a corrupt deal aimed at benefiting the president’s campaign donors,” the Hill reports:

    “He gave his political backers billions – a big government fiasco- infused with politics at every level,” says a female narrator over the obligatory “SE7EN”-style, cut-and-paste imagery typical of super-PAC attack ads. “Laid off worker: forgotten. Typical Washington. Tell President Obama we need jobs not more inside deals.”

    This is the second Crossroads GPS attack ad that uses Solyndra as a scapegoat for the clean economy.

    Fossil-fueled conservatives are dead set on turning their imagined Solyndra scandal into a coordinated attack on the clean energy industry. The Crossroads GPS campaign is only the latest in a string of attack ads meant to play up the Solyndra bankruptcy as a potential liability for Obama in the coming election year. To date, Americans for Prosperity, the front group for the petrochemical billionaire Koch brothers, has spent over $8 million in battleground states — Michigan, North Carolina, Ohio, Virginia and Wisconsin — on two intentionally misleading ads taking aim at President Obama over Solyndra.

    -Fatima Najiy

    Media

    Fox News Gives Free Airtime For Employee Karl Rove’s Partisan Attack Ads

    Earlier this year, Karl Rove bemoaned, “America is likely to see the most negative re-election campaign ever mounted by a sitting president.” Meanwhile, “Rove’s deep-pocketed attack group” American Crossroads has been relentlessly releasing one partisan attack ad after another. In that vein, Crossroads released an ad this week mocking Obama for defending his record of accomplishments.

    One of Rove’s most powerful employers, Fox News, rewarded their employee’s partisan attack group with a lot of free airtime. The ad was featured on Fox’s Sean Hannity show, on Fox’s “The Five,” and during Fox’s daytime hours. On Hannity, Crossroad’s communications director Jonathan Collegio was invited to talk about the ad. Rove himself appeared as a guest on another show to tout his own ad.

    Fox pundits lauded the ad as “brilliant,” “pretty funny,” “very effective,” “fabulous,” and “my favorite ad of the year.” Fox guest host Mark Steyn even criticized CNN for failing to cover the ad. Watch a compilation:

    As the website American Crossroads Watch notes, “Rove’s group is funded by secret corporate donations made possible by a 2010 Supreme Court decision, Citizens United, allowing unlimited corporate funding of elections. Press reports indicate that AC is planning to amass and spend at least $52 million this year to support candidates friendly to Big Business, all without disclosure or accountability.”

    In addition to all the airtime that Rove’s group will be able to afford, Fox News is making clear that it will do its part to market the partisan content to its audience in glowing terms. As Media Matters notes, Fox also gave another one of Rove’s attack ads free publicity and endorsements back in Novemeber.

    Climate Progress

    Karl Rove Ad Piles On Solyndra Smears, Endangering Clean Energy

    Karl Rove’s Crossroads GPS has the latest ad that piles on with Solyndra smears, seeking to scapegoat clean energy investment for political points. The Crossroads ad “Typical,” released in a national buy, attacks Solyndra — a company once backed by private investors of all political stripes and the Bush administration — as an opportunity for the Obama administration to supply handouts to donors:

    Rove’s ad follows a similar one from the Koch brothers, part of a disturbing trend of fossil-driven politics that attacks not only environmental protection but even clean energy business.

    Contrary to the ad’s fear-mongering tone and surrounding media witch hunt, the consequences of Solyndra’s bankruptcy have been completely distorted. A recent Bloomberg Government report found Solyndra’s loan constitutes less than one percent of all federal loan guarantees, concluding “the focus on Solyndra is not proportional to its impact.” If conservatives’ witch-hunt cut off federal commitment to renewable energy, it may “jeopardize the remaining projects under review, calling into question the potential of new-to-market energy projects” for renewable energy. Bloomberg reports that ending investment in renewables would generate no budget savings, but it would cause great harm to the industry.

    Economy

    Disingenuous Karl Rove Ad Smears Elizabeth Warren, Implies She Facilitated Bank Bailouts And Corporate Bonuses

    Karl Rove’s independent group Crossroads GPS is up with a new advertisement today, smearing Massachusetts senate candidate Elizabeth Warren (D) by insinuating that she was responsible for the Troubled Asset Relief Program (TARP), the bank bailout that took place at the height of the financial crisis.

    The ad blames Warren for “bailing out the same banks that caused the financial meltdown, bailouts that helped pay big bonuses to bank executives while middle class Americans lost out.” It closes by imploring the viewer to “tell Professor Warren we need jobs, not more bailouts and bigger government.”

    The accusation that Warren is responsible for TARP, bank bailouts, or huge executive bonuses is beyond absurd. TARP and the bank bailouts were Republican ideas that began under President Bush. As Simon Johnson notes, Warren “has also been a strong supporter of all efforts to rein in Too Big To Fail banks, including by breaking them up.”

    In fact, her work creating and heading up the Consumer Financial Protection Bureau involved advocating directly on consumers’ behalf, a key check on the power of big banks. She also ran the Congressional Oversight Panel for TARP, where her role was to track the money that was given to the banks. She was extremely critical of both the banks’ and Washington’s inability to accurately account for TARP money.

    Viewers could be excused for thinking that Crossroads GPS might not even believe the veracity of its own ad, given that a month ago, they released a different ad accusing Warren of “sid[ing] with extreme left protests” and supporting the Occupy Wall Street protesters.

    In fact, if Crossroads actually cared about fighting back against excessive bank power, they would release an ad critical of Sen. Scott Brown (R-MA), whose top 10 contributors include six banks or financial institutions, such as Goldman Sachs and Bain Capital. In total, the financial industry has contributed over $2.9 million to Brown’s campaign. It is unclear where Crossroads’ funding comes from because under existing election law, groups like Crossroads GPS are not required to disclose their donors, nor are there limits on how much those donors can give.

    Crossroads GPS was one of the largest-spending outside groups in the 2010 election. There is little doubt that the group’s 2012 spending will dwarf its expenditures last year, using unlimited amounts of undisclosed money to run smears like the Warren ad against progressive candidates around the country.

    Politics

    Crossroads GPS’ One-Size-Fits-All Ad Falsely Claims North Dakota’s Booming Economy Is ‘Reeling’

    With veteran GOP operative Karl Rove at its back, and a little help from the Citizens United decision, the conservative PAC American Crossroads and its 501(c)(4) counterpart Crossroads GPS bombarded the airwaves with over $16 million in attack ads this campaign season. With 5 days to go until the election, American Crossroads announced $6 million worth of ad buys yesterday in its final blitz to defeat Democrats. But, while a GOP victory might be the Crossroads groups’ top priority, one ad proves that accuracy is certainly not.

    This season, Crossroads created a one-size-fits-all ad slamming targeted Democrats for supporting the Recovery Act. Running in different races across the country, the ad claims that while whichever state’s “economy is reeling,” whoever the Democrat happens to be is “making [the economy] worse” by supporting the “stimulus boondoggle.” Confident that this “fill-in-the-blank” issue ad fits every state, Crossroads ran the ad against Rep. Earl Pomeroy (D) in North Dakota. “North Dakota’s economy is reeling and Congressman Earl Pomeroy is making it worse,” the ad warns.

    Watch it:

    The ominous ad, however, fails to mention one important detail: North Dakota’s economy is not reeling. In fact, it’s booming. This summer, North Dakota saw employment rise from 362,100 in December 2007 to 371,300 last month — a record in job creation for the state. Indeed, along with Alaska, North Dakota is the only state “to have created jobs since the onslaught of the Great Recession.” And with the highest rate of personal income growth and the nation’s lowest unemployment rate of 3.7 percent — well below the 9.6 percent national average — this state’s economy “sticks out like a diamond in a bowl of cherry pits.”

    But truth in advertising isn’t exactly Crossroads’ modus operandi. According to Factcheck.org research, American Crossroads regularly makes “false and misleading claims” in their “blizzard” of attack ads in states like Colorado, Illinois, Ohio, Nevada, Missouri, and New Hampshire. And while American Crossroads must disclose its donors, Crossroads GPS is a 501(c)(4) organization and therefore does not have to. Thus, like its “kissing cousin” the U.S. Chamber of Commerce, Crossroads GPS can take advantage of legal loopholes to inject massive funds into this year’s election without ever having to disclose its funders.

    Pomeroy’s campaign ripped into Crossroads today for the “phony,” “cookie-cutter” ad. “Next time Karl Rove wants to funnel secret money to North Dakota to influence our elections, he ought to visit our state first or at least pick up one of our newspapers,” said Pomeroy’s spokesman Brenden Timpe. “If he did, he would know that North Dakota’s economy is doing quite well thank you very much, and Earl has been a strong partner in that progress.”

    Politics

    2010 Rove Dismisses 2004 Rove’s Deep Concerns About Secret Money In Elections

    Appearing on CBS’ Face the Nation today, former Bush advisor Karl Rove defended “flooding our politics with money from people who don’t want people to know they’ve contributed,” as host Bob Schieffer put it, saying his Crossroads GPS group and other conservative organizations like the U.S. Chamber of Commerce have a right to spend unlimited amounts of money on this year’s elections without disclosing their donors. The network of special interest groups led by Rove is expecting to raise $250 million to influence this years’ elections, almost all of it from millionaires and billionaires.

    But as ThinkProgress reported last week, Rove sang a different tune in 2004 when he said, “I’m against all the 527 ads and activities,” referring to a tax designation of some outside political groups, including his own American Crossroads. “I don’t think they’re fair. I don’t think it’s appropriate. They’re misusing the law. They all ought to stop,” he said at the time. Today, Schieffer confronted Rove with the video ThinkProgress highlighted, asking him, “so why is it that if they were so bad back then that they’re so wholesome now?” Watch it:

    Rove responded by saying “I wish we had a different system,” but that his group and the others were merely a response to the “liberal groups” which “have been using undisclosed money for years and years and years and years,” he said, pointing to unions. But as Schieffer and others have noted, unions’ memberships and agendas are well known and public, while the agenda and motives of Rove’s wealthy donors are unclear and hidden. Moreover, Rove ignored the fact that President Obama took a strong stance against secretive outside groups supporting his 2008 campaign, marginalizing Democrat-aligned groups.

    But when Scheiffer asked Rove — who at that point had stated that we need “a different system” at least three times — whether he would commit to working towards a stronger campaign finance regime, Rove dodged, declining to commit to anything or say what a “new system” might entail:

    SCHEIFFER: If you feel so strongly about it would you pledge this morning that you’ll work to have new campaign laws where we make all of these contributions transparent and we’ll know who is giving them?

    ROVE: I’m for a new system, Bob. I’m focused on 2010. Right now I’m focused on trying to level the playing field. When you have an organization that spends $87 million. It’s announced it’s spending $87 million. We’re the big player but we don’t like to boast about it. That’s the amount of disclosure. We’ve tolerated this for decades. The system may need something else.

    Rove did pledge, however, that his groups will act as a conduit for billionaires to secretly funnel money into American politics for years to come, saying his Crossroads groups will “serve as a permanent counterweight to the activities of the labor unions and these liberal groups.”

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