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Consider the Source

Super Tuesday brings super PAC spending milestone

Heading into Super Tuesday, spending by super PACs aligned with presidential candidates has surpassed spending by all super PACs in the 2010 mid-term election.

To date, super PACs aligned with one of the 2012 White House hopefuls have spent more than $66 million, an iWatch News analysis of data filed with the Federal Election Commission has found. Notably, the pro-Mitt Romney super PAC “Restore Our Future” accounts for almost 50 percent of this spending.

The super PAC has spent more than $32 million so far this election, nearly all of it on ads bashing his opponents. That’s nearly twice as much as the $16 million spent by pro-Newt Gingrich “Winning Our Future.” And it’s roughly six times as much as the $5.3 million spent by the pro-Rick Santorum “Red, White and Blue Fund.”

In the hopes of drowning out Romney’s challengers, Restore Our Future is ramping up its post-Super Tuesday investments as well.

BuzzFeed Politics reported Monday that Restore Our Future purchased $750,000 of ad time in Illinois and also made a $457,000 ad buy in Louisiana, states which will hold their primaries in the third week of March. These buys put Restore Our Future’s total expenditures across the $32 million threshold.

In 2010, all super PACs spent $65 million, according to the nonpartisan Center for Responsive Politics.

Super PACs focused on congressional races are also expected to be major players during the 2012 election. The Republican-supporting “American Crossroads” super PAC and Democratic-leaning “House Majority PAC” and “Majority PAC” have largely kept their guns quiet. Even the main super PAC backing President Barack Obama has spent just $689,000 so far — all of it opposing Romney’s presidential bid.

The iWatch News analysis included all filings submitted to the FEC as of publication time, which covered most activity through Monday, March 5.

For its part, Romney’s super PAC has leaned heavily on hedge fund billionaires and private equity managers for its funding. The group has reported raising nearly $37 million thus far this campaign season, far more than any other presidential super PAC.

Meanwhile, casino titan Sheldon Adelson, along with his relatives, have been the main financial backers of the pro-Gingrich Winning Our Future super PAC, donating close to $20 million thus far to the group.

Wyoming businessman Foster Friess and Louisiana energy exec William Dore have been the largest two donors to the pro-Santorum Red, White and Blue Fund, each giving at least $1 million to date.

And the pro-Ron Paul “Endorse Liberty” super PAC has received the bulk of its funding from PayPal co-founder Peter Thiel.

The three super PACs supporting Paul have spent a combined $3.9 million, with Endorse Liberty accounting for nearly $3.5 million of that sum.

Super PACs arose in the wake of two federal court rulings in 2010, including the U.S. Supreme Court’s Citizens United v. Federal Election Commission decision, and are allowed to accept unlimited amounts of money from corporations, unions, trade associations and individuals to fund political advertisements. They are prohibited from coordinating these ads with the candidates whose campaigns they aim to boost.

Source: Federal Election Commission
Graphic by Ajani Winston. Story by Michael Beckel.

Consider the Source

Screen shot from Chevy Volt parody ad YouTube

Conservative radio host and filmmaker produced viral Volt video

By Rachael Marcus

A viral video tying the Chevy Volt’s erroneously reported flammability to the Obama administration’s bailout of the auto industry was produced and paid for by a conservative radio host and filmmaker.

The parody video was viewed more than 367,000 times on YouTube as of Monday afternoon. It shows a man driving the plug-in hybrid car and delivering a mock testimonial: “Yeah I’ve heard they’re catching fire in some cases, but I’ve found that the fire really helps me get to my destination faster for fear of my life,” he says.

The actor’s image was lifted from a real Chevy Volt commercial, with new dialogue dubbed in.

The Volt garnered some bad publicity after the cars were involved in a series of fires after test crashes. But the National Highway Safety Traffic Safety Administration said “it does not believe that Volts or similar vehicles pose a greater risk of fire than gasoline-powered autos.”

The video ties President Barack Obama’s decision to bail out the U.S. auto industry to the vehicle’s bad publicity. It credits ObamaVolt2012.com as its sponsor. That site in turn links to bailoutcost.com, a website that tracks the cost of the General Motors bailout.

Identities of the creators and funders of the ad are obscured. Both websites are registered to proxies.

Tweets recently surfaced crediting Ben Howe, a conservative radio host and contributor to conservative political websites, for making the video. The video was first posted to YouTube three weeks ago. Last week, Howe posted the ad to Vimeo from his personal account.

Consider the Source

Emma Schwartz/Center for Public Integrity

Lawrence Lessig on campaign finance reform: Overturning ‘Citizens United’ isn't enough

By Corbin Hiar

In contrast with many other campaign finance reformers, Harvard Professor Lawrence Lessig believes fixing the U.S. election system will require more than just overturning the Citizens United v. Federal Elections Commission Supreme Court ruling, which removed many restrictions on independent political spending.

Reversing this flood of political cash would be enough to satisfy most reformers, but not Lessig, who spoke last week at the Center for Public Integrity offices in D.C. Overturning the ruling “terrifies” him, he said, because “it imagines somehow that on January 20, 2010 – the day before Citizens United was decided – our democracy was fine and Citizens United broke it. But of course, the democracy was already broken.”

Lessig, director of the Edmond J. Safra Center on Ethics at Harvard, is concerned that if the decision is quickly repealed, it will take the wind out of an effort he’s leading to achieve a more comprehensive overhaul of the election system. Then activists “will have gotten nothing out of this moment when there’s an extraordinary anger and frustration that could be channeled in the direction of real reform,” he said.

Consider the Source

Lawrence Lessig: One way forward

By Emma Schwartz

Harvard Law Professor Lawrence Lessig spoke with the Center for Public Integrity about the problems with money's corrosive influence on the American political system — and what he believe should be done to fix it.

Consider the Source

Matt Rourke/AP

Drug lobby gave $9.4 million to nonprofits that spent big on 2010 election

By Michael Beckel

The drug lobby's trade association was a multimillion-dollar donor to nonprofit groups that were actively working to elect federal candidates during the 2010 election, an iWatch News analysis of documents filed with the Internal Revenue Service reveals.

The Pharmaceutical Research and Manufacturers of America, better known as PhRMA, doled out $9.4 million to 501(c)(4) “social welfare” nonprofit groups, some of which paid for ads that influenced races in the 2010 midterm election, records show.

In 2010, PhRMA gave about $20 million in “grants and other assistance” to more than 200 nonprofit organizations, including five politically active 501(c)(4) nonprofits, both liberal and conservative, which together received nearly half of the funds.

Consider the Source

SLIDESHOW: Fundraising in paradise

By Michael Beckel and Sarah Whitmire

New York’s Waldorf Astoria, which bills itself as a “beacon of old-world elegance and service,” is the luxury spot that has fetched the most in fees from Restore Our Future. The pro-Romney super PAC paid the Waldorf Astoria a combined $5,392 since November, associated with a fundraising event, according to documents filed with the Federal Election Commission.

Ainslie Cheung/Flickr CC

Every visitor to the glamorous Beverly Hills Hotel on Sunset Boulevard is “pampered like a celebrity,” according to its website.  It can be “a place to see and be seen, to catch glimpses of famous faces, or to revel in splendid luxury.” And ideally, for Romney’s supporters, those visitors will part with large sums of money. Since July, Restore Our Future has paid “The Pink Palace” $5,346 associated with fundraising events, according to FEC records.

The Beverly Hills Hotel

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The Montage Beverly Hills advertises itself as the perfect spot “whether you're in pursuit of serious business, pleasure or a blend of both.” Since November, Restore Our Future has paid this luxury hotel a combined $3,766, according to FEC filings.

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The University Club calls itself “New York’s premier social club.” On January 30, Restore Our Future paid $3,212 for a fundraising event at the elite haunt, according to FEC records.

Flickr4jazz/Flickr CC

San Francisco’s Fairmont Hotel promotes itself as a “crown jewel… perched atop Nob Hill.” It’s the prestigious place where the founding charter for the United Nations was drafted. In December and January, Restore Our Future paid the Fairmont a combined $2,112, according to the group’s filings with the FEC.

Pargon/Flickr CC

“Unforgettable events are all a part of the plan,” according to the website of Newport Beach’s Island Hotel. That’s what Romney’s supporters are aiming for as well, as they have paid $1,411 to this luxury resort and spa since December, according to FEC filings.

YouTube

Consider the Source

Every visitor to the glamorous Beverly Hills Hotel on Sunset Boulevard is “pampered like a celebrity,” according to its website.  It can be “a place to see and be seen, to catch glimpses of famous faces, or to revel in splendid luxury.” And ideally, for Romney’s supporters, those visitors will part with large sums of money. Since July, Restore Our Future has paid “The Pink Palace” $5,346 associated with fundraising events, according to FEC records. The Beverly Hills Hotel

Restore Our Future raises funds in lap of luxury

By Michael Beckel

They say it takes money to make money. And supporters of former Massachusetts Gov. Mitt Romney’s presidential bid have shelled out more than $20,000 to hold fundraising events for their super PAC at some pretty luxurious spots, according to an iWatch News analysis of campaign finance reports filed with the Federal Election Commission.

The pro-Romney super PAC called “Restore Our Future” has raised more than $36.8 million since its launch last year. That’s more than any other super PAC has collected so far this election cycle.

To aid this money chase, Restore Our Future has held fundraising events held at several elite locales, including New York’s Waldorf Astoria and the Beverly Hills Hotel in the acclaimed California ZIP code of 90210.

Restore Our Future was founded by — and is run by — several of Romney’s former aides, including Carl Forti, Romney’s 2008 political director; Larry McCarthy, a member of Romney’s 2008 media team; Steve Roche, Romney’s former finance director; and Charles Spies, Romney’s former chief financial officer and counsel, as iWatch News has detailed.

As a super PAC, Restore Our Future is allowed to accept unlimited contributions from individuals, corporations, trade associations, unions and other groups, so long as it doesn’t illegally coordinate with Romney’s campaign.

Consider the Source

Republican presidential candidate and former Massachusetts Gov. Mitt Romney Gerald Herbert/AP

Top fundraiser for Romney super PAC gets a $1.9 million payday

By Peter H. Stone

A super PAC supporting Mitt Romney has paid one of the Republican candidate’s veteran fundraisers a fee of $1.9 million for his work during a period when the super PAC raised about $24 million, according to new FEC filings.

The fee went to Podium Capital Group — a company that the super PAC’s treasurer said is Steve Roche’s. Roche is the top fundraiser for the principal outside group — "Restore Our Future" — that’s backing Mitt Romney’s presidential campaign.

Charlie Spies, the treasurer of the super PAC, confirmed in a telephone interview with iWatch News that Podium Capital is “Roche’s company.”

The hefty fees paid to Podium Capital suggest that court rulings in early 2010 that opened the floodgates for corporations, individuals and unions to give unlimited sums to outside groups backing candidates have been a bonanza for presidential contenders and some elite operatives with super PACs. 

Roche is a long-time major fundraiser for Romney, going back to Romney’s days as Massachusetts Governor. He worked directly for Romney’s campaign until last summer, and then shifted to the PAC's chief fundraising job. At that time, Restore Our Future had pulled in just over $12 million, the figure it reported to the FEC for the first six months of 2011.  

Although the super PAC is prohibited under federal election law from coordinating its work with the campaign, the transfer of such a senior operative from one group to another is not prohibited.

On FEC records Podium Capital only lists a P.O. Box in Beverly, Mass. Podium received $1.9 million for its work from mid-2011 through the end of January, according to the FEC filing.

Asked whether he deemed the fees paid to Roche’s company reasonable, Spies said “we don’t comment on payments to specific vendors.”

Calls to a phone number for Roche in Massachusetts were not answered.

Consider the Source

Massachusetts Gov. Deval Patrick, center, greets legislators and guests as he enters the House Chamber at the Statehouse in Boston. Steven Senne/AP

Anti-super PAC governor gives to super PAC

By Michael Beckel

Massachusetts Gov. Deval Patrick has called the Supreme Court decision that created super PACs “wrong” and in need of fixing, but that didn't stop him from sending money to one of these new groups.

On Jan. 25, just days after the two-year anniversary of the controversial Citizens United v. Federal Election Commission decision, Patrick donated $500 to the Democratic Governors Association's super PAC, “DGA Action,” records show.

The Citizens United ruling held that corporations and unions can spend their treasury funds on political advertisements expressly advocating for or against federal candidates. Super PACs can accept unlimited contributions and spend the money on ads - so long as they act independently of candidates and their campaigns.

Last year, several Massachusetts lawmakers introduced a resolution that says the Citizens United ruling “presents a serious and direct threat to our democracy” and calls on Congress to “pass and send to the states for ratification a constitutional amendment to restore the First Amendment and fair elections to the people.”

When Patrick was recently asked by the media whether he would support the resolution, he replied, “Well, if you’re asking me do I think the Citizens United decision was wrong and needs to be fixed, the answer to that is, yes.”

Alex Goldstein, executive director of Patrick’s state political committee and federal political action committee, told iWatch News that Patrick continues to be concerned about the influence of money in politics, especially “the role of unidentified corporate money.”

Consider the Source

John Dunbar on the effect of super donors in Election 2012

By iWatch News

John Dunbar, the Center's politics editor, discusses super PAC influence with PBS NewsHour's Margaret Warner.

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Writers and editors

John Dunbar

Managing Editor, Politics The Center for Public Integrity

John is director of Consider the Source, the Center's ongoing investigation of the impact of money on state and federal politic... More about John Dunbar

Michael Beckel

Reporter The Center for Public Integrity

Michael Beckel joined the Center for Public Integrity as a politics reporter in February 2012, where his focus is super PACs and the infl... More about Michael Beckel

Reity O'Brien

James R. Soles Fellow The Center for Public Integrity

Reity O’Brien is the Center’s 16th James R. Soles Fellow.... More about Reity O'Brien

Chris Young

American University Fellow The Center for Public Integrity

Chris Young is an American University Fellow currently working as a member of the Center’s Consider the Source team.... More about Chris Young

Dave Levinthal

Senior reporter The Center for Public Integrity

Dave Levinthal joined the Center for Public Integrity in 2013 to help lead its Consider the Source project investigating the influence of... More about Dave Levinthal

Ben Wieder

CAR Reporter The Center for Public Integrity

Ben Wieder is the Computer Assisted Reporter for the Consider the Sourc... More about Ben Wieder

Alison Fitzgerald

Senior reporter The Center for Public Integrity

Alison Fitzgerald is a finance and investigative reporter who joined the Center in April 2013 to help lead its financial reporting projec... More about Alison Fitzgerald

Alan Suderman

Reporter The Center for Public Integrity

Alan Suderman is a reporter for the Consider the Source project, where he focuses on the influence of money in state politics.... More about Alan Suderman

Dan Wagner

Reporter The Center for Public Integrity

Daniel Wagner came to the Center in 2013 from The Associated Press in Washington, D.C.... More about Dan Wagner