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Justice

Watchdog: Karl Rove And His Crossroads GPS Broke Election Law By Failing To Disclose Donors

Karl Rove

Karl Rove

The non-partisan Citizens for Responsibility and Ethics in Washington (CREW) filed complaints Thursday with both the Federal Election Commission (FEC) and the Federal Bureau of Investigation (FBI) alleging that Karl Rove and his secretive Crossroads GPS violated election law and may have engaged in a criminal conspiracy to do so.

Under campaign finance law and FEC regulations, 501(c)(4) groups, like Crossroads GPS, can raise unlimited funds from wealthy individuals and corporations without having to disclose their donors. The only time donors to these secretive groups must be disclosed is when donors give more than $200 explicitly “for the purpose of furthering an independent expenditure.”

According to CREW, Rove expressly asked for and received millions of dollars in contributions specifically to fund an independent expenditure effort in support of unsuccessful Republican Ohio Senate nominee Josh Mandel:

Federal law requires any outside group that makes an independent expenditure to disclose the donors who contributed to pay for such ads. Groups like Crossroads GPS normally evade this law by claiming none of their contributions were earmarked for a specific purpose. At an August 2012 fundraiser, however, Rove said an anonymous donor gave Crossroads GPS $3 million specifically for the Ohio Senate race, and told Rove it was a “matching challenge” dependent on the group raising another $3 million for the race. Crossroads GPS ended up spending $6.36 million on independent expenditures in the Ohio race, but did not disclose any donors in nine reports the group filed with the FEC.

CREW also notes that, in a 2011 letter to the FEC, Crossroads GPS said that it “understands the applicable reporting regulations” and that, should it receive “any contributions that are required to be reported,” it would do so as required. Given this, CREW argues, the violations “were deliberate” and “are subject to criminal as well as civil penalties.”

The Rove comment in question was reported in Bloomberg Businessweek in September. That article quoted Rove as saying a donor told him “I’ll give ya’ $3 million, matching challenge,” and that “Bob Castellini, owner of the Cincinnati Reds, is helping raise the other $3 million for that one.” Crossroads GPS would end up spending just over $6 million on the Ohio Senate race.

Tara Malloy, senior counsel at the Campaign Legal Center, told ThinkProgress that if the allegations are true, it “seems reasonable to assume the main contributor gave for the purpose of furthering that expenditure or at least that these allegations warrant an FEC investigation.” But, she notes, the three Republican appointees on the deadlocked six-member Federal Election Commission often block enforcement efforts of this type and have previously noted a difference between contributions furthering independent expenditures in general — and contributions specifically furthering a particular independent expenditure. Even if Rove raised the money to fund independent expenditures in the Ohio Senate race, that interpretation of the rule would require proof that he discussed with them the exact ads before the donation.

Still, she observed, “The allegations are troubling… One would hope the FEC might investigate this matter.”

Crossroads GPS may also be in hot water for its apparent failure to register as a charity in Virginia, as required by law.

NEWS FLASH

POLL: Voters Hate Super PACs, Want More Campaign Finance Disclosure | A new poll of 2012 voters by Greenberg Quinlan Rosner for Democracy Corps and Public Campaign Action Fund shows huge national concern with the growing role of money in politics and the lack of disclosure thereof. Fully 61 percent of voters (60 percent of Romney voters and 62 percent of Obama voters) oppose the current level of money in politics. Just 18 percent of voters share Mitt Romney’s and Sen. Mitch McConnell’s (R-KY) view that there should be no limits on campaign contribution or spending. In addition to showing about two-thirds of voters support some sort of public financing system with matching funds for Congressional candidates, a stunning 85 percent said they support requiring disclosure of who funds secret outside advertisements. The Republican minority in the Senate filibustered to death a bill to do exactly that in 2010 and again in July.

Election

The Six Worst SuperPAC Congressional Race Investments

Super PACs and other outside groups poured more than $1 billion into the 2012 elections, according to the Center for Public Integrity. But not all of that money proved to be wisely spent.

Here are six of the worst investments right-wing groups made:

– $29,836,729 in the Virginia Senate race (lost by 4.8 points): Karl Rove’s Crossroads GPS and American Crossroads ($11,287,908 combined), the U.S. Chamber of Commerce ($4,494,618), and Independence Virginia PAC ($4,921,410) majorly backed former Sen. George Allen (R-VA) in his race against former Gov. Tim Kaine (D). Independence Virginia PAC, formed especially to elect Allen, received at least $1.5 million in contributions from billionaire casino mogul Sheldon Adelson. Allen lost the same seat six years ago after his infamous bullying of an Indian-American campaign tracker who he called “macaca.” This time around, he spent much of the campaign complaining about the national debt he helped run up in his first term and advocating for pro-polluter policies to benefit the companies he worked for as an energy consultant. As President Obama won Ohio by 3 points, Kaine beat Allen by a 4.8 point spread (52.4 to 47.6).

– $22,143,479 in the Ohio Senate race (lost by 5.2 points): Karl Rove’s Crossroads GPS ($6,363,714), the U.S. Chamber of Commerce ($4,392,434), former Rep. Dick Armey’s FreedomWorks for America ($2,246,409), and the controversial Government Integrity Fund ($1,300,000) were among the biggest investors in support of Ohio Treasurer Josh Mandel (R) in his challenge to Sen. Sherrod Brown (D). Mandel refused to tell voters his position on the automobile bailout that saved thousands of Ohio jobs and advocated for fracking in National Forests. As President Obama won Ohio by less than 2 points, Mandel apparently lost 50.3 to 45.1.

– $15,316,062 in the Florida Senate race (lost by 12.8 points): Karl Rove’s American Crossroads ($4,022,607), former Rep. Dick Armey’s FreedomWorks for America ($2,883,893), and the U.S. Chamber of Commerce ($3,846,303) all invested millions in support of Rep. Connie Mack IV (R-FL) in his challenge to Sen. Bill Nelson (D). Though the seat was previously held by Mack’s father, former Sen. Connie Mack III (R), the younger Mack’s campaign was forced to contend with headlines about his history of bar fights and was mocked as the “Charlie Sheen of Florida politics.” Mack apparently lost 55.1 to 42.3.

– $5,879,939 in the Illinois 8th District race (lost by 9.4 points): Former Rep. Dick Armey’s FreedomWorks for America ($2,164,046) and Now or Never PAC ($2,789,614) spent big to try to re-elect controversial Tea Party freshman Rep. Joe Walsh (R-IL). A leading opponent of raising the debt ceiling, Walsh generated controversy when he said President Obama only won because he is “a black man who was articulate,” yelled at his constituents at a local bar, and he belittled his opponent’s war record and injuries. Though Walsh claimed she was not a “true hero,” Tammy Duckworth, a double amputee who lost both her legs in Iraq when insurgents hit her helicopter with an RPG in 2004, easily beat him Tuesday. Walsh apparently lost 51.5 to 42.9.

– $4,177,208 in the Illinois 12th District race (lost by 8.6 points): Grover Norquist’s Americans for Tax Reform ($472,053), Karl Rove’s Crossroads GPS ($586,103), and the YG Action Fund and YG Network ($1,184,259 combined) all spent heavily in support of candidate Jason Plummer (R). Plummer, whose painful interview as a 2010 Lieutenant Governor candidate went viral, lost an open seat race to former Illinois National Guard Adjutant General Bill Enyart (D). Plummer apparently lost 51.5 to 42.9.

– $918,789 in the New Jersey 9th District race (lost by more than 48 points): Patriot Prosperity PAC made a massive investment in support of Rabbi Shmuel “Shmuley” Boteach (R) — the host of TLC’s Shalom in the Home — in his challenge to Rep. Bill Pascrell (D). The super PAC was funded almost entirely by $1 million in contributions from billionaire casino mogul Sheldon Adelson and his wife Miriam. Pascrell’s lone outside support came in the form of a $10 expenditure by the Sierra Club. Even with this massive 91,878-to-1 advantage on outside spending, Boteach lost in a landslide: he apparently lost 73.6 to 25.4 percent.

Election

America’s Most Disgusting Political Ad: Florida Republican Group Links Elementary School Teacher To Jerry Sandusky

In a stunning smear, a GOP group chaired by a prominent Republican strategist and funded by the state Republican leadership, has sent a mailing to Florida voters accusing an elementary school teacher running for state legislature of enabling child molestation because she is in a teacher’s union.

The mailings — by a group called the Committee to Protect Florida — attack Karen Castor Dentel, an elementary school teacher in Maitland, Florida, and the Democratic challenger for the 30th District State House of Representatives seat. Because she is a member of the Florida Education Association, which opposed a 2011 bill that eliminated tenure for public-school teachers, the mailer says she would “rather protect bad teachers and the union” than “young and impressionable students.” One one side of the mailing is a picture of convicted serial child molester Jerry Sandusky — who as an assistant football coach at Penn State would not have been protected by any Florida public school teacher’s union; the other side shows a picture of her and the other says:

Karen Castor Dentel’s priorities are clear:

* Use tenure policies to protect bad, burnt-out, longtime teachers at the expense of younger, better teachers.
* Use the courts to keep all teachers in the classroom – even those who prey on young people.
* The right to use our tax dollars and valuable student learning time to promote her political campaign.

Karen Castor Dentel: Good for the union, bad for kids.

The Orlando Sentinel reports that even the Republican incumbent, State Rep. Scott Plakon, denounced the ad as sounding “indefensible,” and called it “exhibit A” of why campaign finance reform is needed to stop anonymous groups from making such attacks. The Supreme Court’s 5-4 Citizens United ruling allows outside attacks like this with very little disclosure or restriction.

But the mailings were largely funded by his own party’s leadership: incoming Florida House Speaker Will Weatherford (R) and Rep. Richard Corcoran (R), who is in line to become Florida’s Speaker in 2016. Financial disclosures for the group also indicate that the Florida Chamber of Commerce Alliance Inc., the Florida Medical Association, and AFSCME have made significant contributions to the group.

Update

A spokesman for AFSCME told ThinkProgress: “AFSCME, in no uncertain terms, denounces this despicable and ugly mailer. Attacks like this have no place in our public discourse. Karen Castor Dentel is our endorsed candidate in the race for House District 30. She will be a champion for working families in Tallahassee.”

NEWS FLASH

Thanks Citizens United! Outside Election Spending In 2012 Exceeds Previous Eight Elections Combined | According to the Center for Responsive Politics, super PACs and other outside spending groups spent nearly $1 billion so far to influence this election cycle, with more than two-thirds of that money benefiting conservatives or Republicans. That’s more money than outside groups spent in every single federal election cycle since 1996. [HT: Sen. Bernie Sanders (I-VT)]

NEWS FLASH

Montana GOP Candidate Gives Up Scheme To Evade Contribution Limits | A Montana district judge on Wednesday extended her order blocking former Rep. Rick Hill, the Republican nominee for governor, from spending an over-the-legal-limit $500,000 contribution from the state party. The party made the contribution during a brief window between a federal judge throwing out all of the state’s campaign finance limits and an appeals court staying that ruling. Hill’s campaign said it does not plan to appeal Wednesday’s ruling and will abide by it.

Justice

Justiceline: November 1, 2012

Welcome to Justiceline, ThinkProgress Justice’s morning round-up of the latest legal news and developments. Remember to follow us on Twitter at @TPJustice

  • Texas executed its 250th man under the governorship of Rick Perry last night.
  • With wrongful death lawsuits against him, massive civil rights violation allegations and $100 million in misspent funds, the infamous Sheriff Joe Arpaio may finally lose his seat in Maricopa County, after what is slated to go down as one of the most expensive sheriff’s races in history.
  • A man who posted a jury foreperson’s personal contact information on a white supremacist website was not protected by the First Amendment, the U.S. Court of Appeals for the Seventh Circuit held.
  • In a piece about politicians’ silence on the U.S. Supreme Court, Linda Greenhouse wonders whether a ten-year-old Supreme Court case that struck down federal regulations restricting pharmacies from soliciting business might have impacted the recent meningitis crisis.
  • The latest in an extensive ProPublica series on dark money explores the rise of secretive spending on elections.

Justice

Judge Halts Montana GOP Candidate’s Plan To Evade Contribution Limits

Former U.S. Rep. Rick Hill (R-MT)

Former U.S. Rep. Rick Hill (R-MT)

A Montana judge Wednesday halted a plan by former U.S. Rep. Rick Hill (R), currently his party’s nominee for Montana governor, to evade state campaign finance limits and take a $500,000 contribution from the state Republican Party. The contribution had been made in a brief six-day window when a federal judge’s ruling prohibited Montana from enforcing its limits on campaign contributions — a ruling now on hold, as a federal appeals court determined a challenge to his order was “likely to succeed.”

District Judge Kathy Seeley issued a restraining order, stopping Hill from spending any of the party’s donation and ordering him to cancel any pending ad buys he has made with those funds. She ordered a hearing to consider the case for Monday morning, just eight days before the election. A federal judge also rejected on Wednesday an attempt by the Hill campaign to move the case to federal court.

On October 3, U.S. District Judge Charles Lovell threw out Montana’s campaign contribution limits, writing that they prevent candidates from “amassing the resources necessary for effective campaign advocacy.” On October 9, the 9th Circuit Court of Appeals temporarily stayed his ruling and later ordered that the state’s campaign finance rules be operative for this year’s election.

The Montana Republican Party opted to use the six-day gap to make a large transfer — $500,000 — from its coffers to Hill’s campiagn. The Hill campaign accepted the money and said it would keep and spend the cash, as it was a legal contribution at the time it was made. Democratic nominee and current Montana Attorney General Steve Bullock filed suit claiming the contribution was still illegal — well over the state’s $22,600 maximum aggregate limit. While the state party could have spent the money on ads of its own rather than contribute it to Hill, federal law allows candidates to buy them at a significantly lower rate.

Election

Chamber Of Commerce Is Spending Millions Supporting Candidates It Pledged To Defeat

U.S. Chamber of Commerce president Tom Donohue

The U.S. Chamber of Commerce — which spent nearly $33 million in 2010 to elect a Republican Congress — strongly backed the 2011 Budget Control Act which averted a national debt default and instituted automatic cuts that will go into effect unless Congress reduces federal spending. But while the Chamber’s CEO Tom Donohue reportedly warned Congressional Republicans at the time “we’ll get rid of you,” if they did not agree to a debt ceiling increase, the group has spent millions supporting Republicans who voted against the bipartisan agreement:

1. Rep. Todd Akin (R-MO). The Chamber spent more than $692,000 on “independent expenditures” helping Akin in his challenge to Sen. Claire McCaskill (D), with ads attacking both McCaskill and his primary opponent former Missouri State Treasurer Sarah Steelman (R). The group has not spent any money in support of Akin since his comments that victims of “legitimate rape” are unlikely to become pregnant. Akin explained his opposition to the deal, saying it “fails to address the problem at hand, and it threatens to severely degrade our national defense with a trillion dollars in cuts to our military.”

2. Rep. Ann Marie Buerkle (R-NY). The Chamber has spent at least $185,000 in “independent expenditures” attacking her opponent, former Rep. Dan Maffei (D), and praising Buerkle. The freshman Congresswoman explained her vote against the deal in a statement, saying “There were some good aspects to the bill, but this version also creates several new problems. At the end of the day, I was not satisfied that all my questions and concerns had been answered as to potential negative effects of this bill on the people in my district.”

3. Sen. Dean Heller (R-NV). The Chamber spent more than $489,000 on “independent expenditures” helping Heller in his re-election bid against Rep. Shelley Berkley (D), with ads endorsing his re-election and attacking her record. Heller said he saw “no strategy” in the compromise and would have preferred a “big deal.”

4. Rep. Connie Mack IV (R-FL). The Chamber spent over $3.8 million on “independent expenditures” helping Mack in his challenge to Sen. Bill Nelson (D), with ads attacking Nelson and urging voters to defeat him. Mack said he didn’t think the American people wanted a deal or “gimmicks.”

5. Rep. Denny Rehberg (R-MT). The Chamber has spent more than $1.3 million on “independent expenditures” helping Rehberg in his challenge to Sen. Jon Tester (D), with ads attacking Tester and encouraging voters to defeat him. Rehberg called the deal “little more than business as usual for Washington.”

The Chamber has also spent at least $3.3 million on “independent expenditures” helping Mitt Romney by attacking Barack Obama. While Obama signed the compromise, Romney said he “thought it was a mistake on the part of the White House to propose it” and “a mistake for Republicans to go along with it.”

Election

Despite ‘Legitimate Rape’ Comments, Right-Wing Groups Continue To Spend For Akin

Rep. Todd Akin (R-MO)

Rep. Todd Akin (R-MO)

After Senate nominee and U.S. Rep. Todd Akin’s (R-MO) August comments that victims of “legitimate rape” are unlikely to become pregnant, a wide array of leading Republicans called on him to withdraw from the race. When he refused, some outside groups cancelled their plans to run ads on Akin’s behalf. But, a ThinkProgress review of independent expenditures shows several groups have continued to spend in support of Akin.

Among those continuing to back Akin are:

1. Reinventing A New Direction PAC (Sen. Rand Paul’s (R-KY) leadership PAC): This political action committee has spent at least $100,000 on its media efforts against incumbent Sen. Claire McCaskill (D). The group’s ad attacks McCaskill for supporting foreign aid. Even Sen. Lindsey Graham (R-SC) denounced the spots — which are also being run against other Senate Democrats.

2. Faith Family Freedom Fund (the super PAC affiliated with the Family Research Council, an anti-LGBT hate group): This super PAC has reported spending more than $15,000 on radio ads attacking McCaskill for her support for Obamacare and the 2009 stimulus law — though it does not mention the social issues the group tends to focus on. One speaker in the ads argues “everyone’s talking about this so-called war on women, and it seems to me that McCaskill is the problem,” because she “made the economy worse.” Family Research Council President Tony Perkins criticized the GOP’s abandonment as “suspect.”

3. Senate Conservatives Fund (Sen. Jim DeMint’s (R-SC) leadership PAC): This political action committee has spent more than $90,000 backing Akin, including e-mail list rental and on-line processing. The PAC’s website is collecting online contributions for Akin and says it has already raised more than $444,000 for his campaign. DeMint and former Sen. Rick Santorum (R-PA) endorsed Akin in September, saying, “We support Todd Akin and hope freedom-loving Americans in Missouri and around the country will join us so we can save our country from fiscal collapse.”

4. National Rifle Association Political Victory Fund and its NRA Institute for Legislative Action: The political and lobbying arms of the pro-gun group
have combined to spent more than $140,000 on flyers and postcard mailings. The group’s endorsement praised Akin for his “proven record of defending the Second Amendment.”

5. National Right to Life PAC: This anti-abortion group spent more than $30,000 on mailings backing Akin.

6. Freedom’s Defense Fund: This PAC, tied to birther and Swift Boat conspiracy theorist Jerome Corsi has spent over $150,000 running TV ads in support of Akin. While one recent ad attacked McCaskill for her support of “socialism” and “the liberal assault on free markets and traditional values,” the group made the odd decision to run a pro-Akin ad that actually reminds voters of Akin’s “legitimate rape” comments.

Watch the spot:

7. Missouri Farm Bureau Federation Statewide Farm PAC: The group, which claims to support candidates who are pro-agriculture, has spent about $20,000 on radio ads supporting Akin.

8. National Federation of Independent Business: This pro-GOP trade association spent more than $10,000 on mailings against McCaskill. The group, which calls itself “the voice of small business,” endorsed Akin this month, noting his opposition to Obamacare, tax increases, and “the regulatory bureaucracies in Washington.”

In recent weeks, Akin has come under additional fire for repeatedly comparing McCaskill to a dog, claiming there is no “science” behind evolution, and arguing against equal pay laws.

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