Revealed: The Dark Money Group Attacking Sen. Sherrod Brown

by Justin Elliott ProPublica

In May, a previously unknown group started pouring money into Ohio's U.S. Senate race, considered one of the most important in the country and currently the nation's most expensive.  The group, the Government Integrity Fund, has spent over $1 million so far on TV ads bashing Democratic incumbent Sen. Sherrod Brown and praising his Republican opponent, Josh Mandel.

Like many other such non-profit groups that are playing a dominant role in this year's elections, the Government Integrity Fund is shrouded in mystery. It isn't required to reveal donors, nor has it answered questions about who runs the group. The Fund's barebones website lists no contact information beyond a P.O. Box.

The only name listed on incorporation papers for the group is a Columbus lawyer, William Todd, who told ProPublica, "I really have no role in their affairs." (In June, Todd also declined to respond to questions from a Huffington Post reporter, citing attorney-client privilege.)

But previously unreported documents filed with an Ohio television station pull back the curtain a bit: the Government Integrity Fund is run by a state lobbyist who in turn employs a former top Mandel staffer.

The lobbyist, Tom Norris, is listed as the Government Integrity Fund's chairman and treasurer. Norris owns an Ohio lobbying firm, Cap Square Solutions, and last year hired a top Mandel aide, Joel Riter, to work at the firm.

Riter's role in the Government Integrity Fund, if any, is not clear. The former Mandel aide declined to say whether he is involved with the group that is chaired by his current boss and running ads in support of his former boss.

"I can't talk to you about this," he told ProPublica. "I'm not going to comment on any kind of involvement I have with anyone."

Norris did not respond to requests for comment, nor did the Mandel campaign.

The documents identifying Norris as the chairman of the Fund are public because of a Federal Communications Commission rule requiring TV stations to keep detailed records about political advertisers. The files can be valuable, offering a look at exactly who is spending and how much. Until recently, the documents were only available by physically traveling to stations. ProPublica's Free the Files project has spotlighted the issue and this summer the FCC passed a rule requiring the stations in the nation's top markets to upload the files to agovernment website.

The documents were filed with a Cincinnati NBC affiliate, WLWT, one of the stations the group has been advertising on. Here is a Fund ad that attacks Senator Brown for purportedly turning his back on his younger, more honorable self. "Young Sherrod Brown was independent of Wall Street," the announcer says. "Today Sherrod Brown takes big money from those same corporate interests."

The Associated Press reported last month that outside groups have spent $15 million supporting Mandel compared to about $3 million on the Democratic side.

We still don't know who is putting up the money for the Government Integrity Fund's ads because the group is a non-profit "social welfare" group, which don't have to release donor information or register with the Federal Election Commission. Such groups are supposed to be "primarily" engaged in promoting social welfare but they have been flooding the airwaves with political ads in the wake of the Supreme Court's Citizens United case and decisions by regulatory decisions.

Besides identifying Norris as the chairman of the group, the form filed with the TV station shows that the Government Integrity Fund has an office at 208 East State Street, a few blocks from the state house in Columbus. Riter, the former Mandel aide, also has an office in the building.

Asked about his office at 208 East State Street, Riter said: "Whatever office Government Integrity Fund has is not mine."

Outside groups are not allowed to coordinate with campaigns, but it is common for politicians' former aides to be involved with such groups.

Riter first worked as an aide to Mandel during the candidate's stint in the Ohio legislature. Riter then became field director for Mandel's campaign for state treasurer, joining the treasurer's office as constituent and executive agency liaison after Mandel won the race. Riter left his state job in the treasurer's office after six months to become a lobbyist at Cap Square in 2011. According to state records, the firm lobbies for a range of interests, including the Ohio Ready Mixed Concrete Association and medical device companies.

Riter was featured in a Dayton Daily News article earlier this year investigating Mandel's practice of hiring former campaign workers for state jobs. (That piece led a Democratic legislator to file an ethics complaint against Riter, who has contested the charges.)

The Fund was created in May 2011 and an affiliated super PAC, the Government Integrity Fund Action Network, registered with the Federal Election Commission two months later. 

The super PAC, which does have to report its donors, has not been active and raised just $10,500 through the end of June, all but $500 from New York financier and benefactor of conservative causes Roger Hertog. Hertog also gave $5,000 directly to Mandel's campaign last year. Hertog declined to comment.

Brown campaign spokesman Justin Barasky said that the Government Integrity Fund is the fourth largest outside group on the Republican side in Ohio, behind such national outfits as the Karl Rove-affiliated Crossroads GPS.  "We don't know anything else about them," he said. "They are the only secretly funded group that is based here."

Continue reading »

A recent Atlanta news report details instances of foreclosure fraud in Georgia and how Georgia officials fail to take prosecutorial action despite a new law that makes foreclosure fraud a felony, punishable by fines and jail time.

In the wake of Occupy Broadway's success and the failure of "The Big Bank" musical initiative comes the screaming-to-go-viral "Occupy West Side Story." Though perhaps less ambitious than its predecessors, this hilarious clip takes aim at NYPD Deputy Inspector Edward J. WInski (who replaced the infamous Tony Baloney) by overdubbing a classic scene from the 1961 film with new lyrics. The result is an entertaining and powerful expression of why occupiers are in the streets, how the economy collapsed, and the sad ironies surrounding the police brutality that the movement has suffered (and, it could be said, benefitted from as well). As one stanza states, "Gee, Officer Winski, please put down your mace/Your checks are paid by citizens you punch in the face/Your pension’s been stolen, and nobody cares/Deep down inside we know you’re scared."

Connor Stevens, Doug Wright and Brandon Baxter -- three men with ties to Occupy Cleveland who were arrested in the spring for plotting to blow up a bridge -- entered guilty pleas on Wednesday afternoon. A fourth man pleaded guilty earlier this year, while a fifth suspect is undergoing a competency evaluation. All three pled guilty to "conspiracy to use a weapon of mass destruction, attempted use of a weapon of mass destruction and attempted use of an explosive device to destroy property used in interstate commerce," according to the DOJ.

“The defendants today made a voluntary choice to plead guilty, the same way they made voluntary choices to try to detonate what they thought were explosive devices they had planted at the foot of a bridge," Steven Dettelbach, U.S. Attorney for the Northern District of Ohio, said in a statement.

“We are pleased these defendants have admitted to their intent to utilize violence, which threatened innocent citizens, to further their ideological views,” said FBI Special Agent in Charge Stephen Anthony.

A new video from the Gates Foundation...

Giving women and girls access to family planning tools and information is the easiest way to empower them to determine their own futures.

Raise your voice and pledge to support family planning for the millions who need and want it: http://no-controversy.com.

"On Tuesday, a group of more than 100 protesters shouting "Obama is a traitor" temporarily shut down the official bus service that ferries around delegates at the Democratic National Convention. The protesters, some of whom were lying down in the street, were surrounded by Charlotte police, who used their bicycles to build a barrier around the group..." Ana Kasparian and John Iadarola (host of TYT University and Common Room) break it down on The Young Turks.

The Bailout: By The Actual Numbers

by Paul Kiel ProPublica

Quick, how many billions in the red are taxpayers on the bailout of GM? AIG? Fannie and Freddie? Is it true that the government has reaped a profit from bailing out the banks?

It should be easy to find answers to such questions. But while it's a snap to find rosy administration claims about the bailout, finding hard numbers is much more difficult. That's why, since the bailouts began in 2008, we've maintained a frequently updated site to provide them. Now we've retooled our database to make it even easier to find these sorts of answers.

So you can effortlessly discover that it's $27 billion for GM, $23 billion for AIG, $91 billion for Fannie, $51 billion for Freddie, and yes, the bank investments have so far returned a profit of $19 billion.

We also make it easy for you to see which investments have resulted in losses (39 so far in total) and to sort bailout recipients by how far in the red or black they are. As always, our scorecard page adds it all up and shows where both bailouts — the Troubled Asset Relief Program, better known as TARP ($55 billion in the red) and Fannie and Freddie (negative $142 billion) — stand right now.

Ultimately, the bailout of GM seems likely to result in the TARP's single biggest loss. But since the government still holds about a third of the company's stock (currently worth about $10 billion), we don't include it on our list of losers yet. It's possible the government will sell the stock for more than it's currently worth, recouping more of its investment.

For now, the reigning bust is the $2.3 billion investment in the bank CIT, which landed in bankruptcy less than a year after its bailout. Second on the list is Chrysler, which resulted in a $1.3 billion loss.

"The government's financial stability programs are expected to cost far less than many had once feared during the crisis, and we're continuing to make significant progress recovering taxpayer investments," said a Treasury spokesman.

Over time, that list of losing investments is likely to grow far beyond 39, because many of the smaller banks that have yet to repay the government are struggling. Although more than 300 banks have exited TARP (often repaying with money from another government bank program), nearly 400 remain. Of those, 162 are behind on their dividend payments to the Treasury Department. According to the GAO, the banks that are languishing in TARP tend to be weaker than those that have left, and at least 130 appear on a secret "problem bank" list kept by regulators.

The TARP's main bank program was supposed to be reserved for healthy banks, but among the losing investments are banks that were troubled even when they first received the money. Central Pacific Financial, a Hawaii bank, got its $135 million in early 2009 despite regulators having just ordered it to raise additional capital. As we reported then, the approval came two weeks after staff for Sen. Daniel Inouye, D-Hawaii, who had helped establish the bank and owned a large amount of the bank's stock, inquired about the bank's application for funds. Both regulators and Treasury denied that the inquiry affected their decision. Taxpayers ultimately lost $61 million from the investment.

Also notable among the failed investments is South Financial Group. The bank received a $347 million government investment in 2008 about a month after its former CEO, Mack Whittle, retired with a $18 million golden parachute. Taxpayers ultimately lost $200 million while the CEO kept his package. Contacted by ProPublica, Whittle said, "I founded [South Financial Group] in 1986 and take offense that anyone would imply that retirement benefits were not warranted." He added that the benefits had been negotiated long before he announced his retirement in the summer of 2008 and that he'd retired by the time the bank applied for TARP funds.

Of course, the government has already turned a profit on its bank investments overall, because the biggest bailouts — particularly Citigroup and Bank of America (each received $45 billion) — resulted in large profits. None of the banks remaining in TARP have net outstanding amounts over one billion dollars.

The Treasury wants to get rid of those remaining bank investments as soon as it can — even when that means selling stakes in apparently healthy banks for a discount, as ProPublica's Jesse Eisinger reported last month.

What defines a profit? So far, the Treasury has allowed many banks to exit TARP after receiving most, but not all, of the amount owed. But in cases where the Treasury received enough other revenue (e.g. through dividend payments) from the bank to result in a net gain, we label that investment as a profit. So far, that's been the case for 26 banks.

The final cost of the TARP, the Fannie, or the Freddie bailout isn't possible to know.

For the TARP, it depends on the biggest remaining investments: AIG and the remains of the auto bailout, GM and GMAC (now called Ally Financial). The net outstanding amount of those three companies together is about $61 billion. At this point, it seems likely that Treasury will ultimately recoup its bailout of AIG. The auto companies, on the other hand, seem likely to result in a loss approaching $20 billion, according to both Treasury Department and Congressional Budget Office estimates.

Another big factor is the TARP's housing programs, its mortgage modification program chief among them. Although Treasury set aside more than $40 billion for its various initiatives, less than $5 billion has been spent so far, a testament to the limited reach of the programs. Since those are subsidies, none of that money will be repaid, and any spending ups TARP's tab. Earlier this year, the CBO estimated that ultimately $16 billion would be spent.

Of course, all of these numbers benefit from being put in a broader context. The Obama administration argues that the TARP should be credited with blunting the force of the financial crisis and saving "more than one million American jobs." Critics like former TARP inspector general Neil Barofsky say the program may have stemmed the damage from the crisis, but it did so by largely preserving the broken too-big-to-fail system that caused the crisis. It's also worth mentioning that the Federal Reserve played an enormous role in supporting the biggest banks and allowing them to exit TARP.

The fate of the Fannie and Freddie bailouts is even harder to figure, although the Treasury recently announced that all of the companies' profits from now on will be handed over to Uncle Sam each quarter. Their tabs should decrease, but how quickly and for how long they'll be allowed to exist is unclear.

For now, our site provides a snapshot of the two bailouts as they actually stand. We've been at it since 2008, and we'll continue to update it frequently.

President Obama accepted the Democratic presidential nomination Thursday night with an appeal for another four years to continue with the platform of "change" he was elected on in 2008. "If you reject the notion that this nation’s promise is reserved for the few, your voice must be heard in this election," Obama said.

“On every issue, the choice you face won’t be just between two candidates or two parties."

“It will be a choice between two different paths for America."

“A choice between two fundamentally different visions for the future."

“I won’t pretend the path I’m offering is quick or easy. I never have. You didn’t elect me to tell you what you wanted to hear. You elected me to tell you the truth. And the truth is, it will take more than a few years for us to solve challenges that have built up over decades. It will require common effort, shared responsibility, and the kind of bold, persistent experimentation that Franklin Roosevelt pursued during the only crisis worse than this one. And by the way – those of us who carry on his party’s legacy should remember that not every problem can be remedied with another government program or dictate from Washington."

“But know this, America: Our problems can be solved. Our challenges can be met. The path we offer may be harder, but it leads to a better place. And I’m asking you to choose that future. I’m asking you to rally around a set of goals for your country – goals in manufacturing, energy, education, national security, and the deficit; a real, achievable plan that will lead to new jobs, more opportunity, and rebuild this economy on a stronger foundation. That’s what we can do in the next four years, and that’s why I’m running for a second term as President of the United States.”

Obama presented a clear set of achievable goals on manufacturing, energy, education, national security, and the deficit – an achievable plan that will create jobs, expand opportunity, and ensure an economy built to last.

Obama's speech may not have been the "best" speech of the convention this week, but I think there is a message there for every one of us, and the message is that he has heard our voices. If you think he hasn't heard the cries of Occupy Wall Street, listen to this speech. Goals centered around jobs, education, college tuition, and energy. The message of "Hope" and "Change" are still there, but they've been tempered by four years of the reality of money and politics in Washington, just as all of our dreams have been.

The President himself has acknowledged that there is much more to be done, and has accepted the nomination again, and stands ready to help us face our challenges.

Personally, I'd rather not hand it all over to Mitt Romney in mid-struggle and wait to see what's left of our nation when he's finished with it.

A full transcript of Obama's speech follows below the fold.

Continue reading »

Sarah Palin, in an interview with the Fox Business Report, responded to Senator John Kerry's mention of her during the Democratic National Convention:

"I think he diminished himself by even mentioning my name. How does he even know my name? I mean aren't these guys supposed to be these big wig elites who don't waste their time on the little people like me."

During his DNC address Thursday night, Kerry slammed Romney's foreign policy experience by referencing an infamous remark made by Palin during the 2008 presidential race.

"Sarah Palin said she could see Russia from Alaska," said Kerry. "Mitt Romney talks like he's only seen Russia by watching Rocky IV."

In the interest of fairness, I'll have to agree with Sarah Palin. I think Senator Kerry "diminished" himself by mentioning her name.

Friends,

In two months we Americans will go to the polls once again to decide who the president will be for the next four years. We will not be allowed to vote on those who wield the true power in this country. On November 6th we will not vote for the chairman of ExxonMobil or JPMorgan Chase or Citibank or the Premier of China. That day will come, but not this year.

Now, I know there are a goodly number of you out there who believe there's not a snowball's chance in Kenya that Barack Obama will not be re-elected to the White House. And why would you believe otherwise? After the incredible Democratic convention this week, with the best rock-em-sock-em speeches I've heard from a Democrat's mouth since … since, I don't know when. You can't help but not have a contact high after this past week if you are of the sort who believes in economic justice, peace, and a five-dollar latte. Right now, with the buzz on, you are sitting there thinking that your fellow Americans will turn out in massive numbers, either because they want to continue the Obama era or because they're scared shitless of the barbarians at the gate – or both. You're convinced that the Republicans have blown it with all their talk of the lady parts they want to control even though we now know that they have no idea where those parts are, what they are, or how they work.

Yes, it certainly looks like the voters will reject this obscenely wealthy man called Romney — Romney of Michigan/Massachusetts/New Hampshire/Utah/Zurich/Grand Cayman — this man who will not explain exactly how all his wealth was obtained, where he keeps it, or how much taxes he pays on it. He wants to turn the clock back to the '50s – the 1850s – and he refuses to offer any specific plan about what he'll do about anything. He wants to run the country like a corporation but he can't even control one 82-year-old actor on his own convention stage, a Hollywood legend who, in the matter of ten and a half minutes went from Good (walking onto the stage) to Bad (talking to a chair) and then to Ugly (the chair started … swearing?). It was better than the best cat-flushing-the-toilet video on YouTube and it was a gift to all of us who know that Romney is doomed come November.

Or is he?

Last week, I said on the HuffPost Live webcast that we had all better start practicing how to say "President Romney" because, living in Michigan, I can tell you that there's trouble here on the two peninsulas and it's not just because Romney is a native son or that we like to watch kids from Cranbrook chase down gay kids and chop their hair off. One recent poll here showed Romney leading Obama by four points! How can that be? Didn't Obama save Detroit?

No, he didn't. He saved General Motors and Chrysler. "Detroit" (and Flint and Pontiac and Saginaw) are not defined by the global corporations who suck our towns dry and then split town to make more money elsewhere (except, of course, they continued to design and built crap cars, so eventually they didn't make the money at all). These cities in Michigan are about the people who live here, and in the process of "saving Detroit," Mr. Obama had to fire thousands of these people, and reduce the benefits and pensions of those who were left. There's a lot of pissed off people in Michigan (and Wisconsin and Ohio), people who weren't saved even though the corporation was. I'm just stating a fact, and those of you who don't live here should know this.

The other problem facing us this election (spoiler alert – angry white guys may want to stop reading right now) … is race. We all fear there's probably a good 40% of the country who simply do not want a black man in the Oval Office. In fact, in 2008, Obama lost the white vote. He lost every white age group except young people (18-29). And yet he still won by 10 million votes! The optimistic secret the Obama people know is that only about 70% of the voters in November will be white. So if he can win just 35-40% of them, and then get a massive majority of people of color, he can win re-election. There is no question in my mind that Obama is more popular than Romney and if everyone could vote from their couch like they do for American Idol, Obama would win hands down. As I have said before, we live in a liberal country. The majority of Americans (who do not call themselves "liberal") now support most of the liberal agenda – they're for gay marriage, they're pro-choice, they're anti-war, they believe there's global warming, and they hate Wall Street for what it has done to them and their neighbors. The Republicans know this: that we, the majority, will have sex when we want and with whom we want, will read and watch whatever we want when we want, will use marijuana if we want and if we don't want to then we certainly don't want our friends who do to be throw into prison. We are sick and tired of being poisoned, by chemicals or propaganda, we think the Palestinians have been given a raw deal and we want our friggin' jobs back! The Christian Right (and their Wall Street funders) know this all too well – America has turned, and there's no going back to not loving someone because of the color of their skin or expecting women to cede control of their bodies to a bunch of Neanderthals. So, what's a Rightie to do now that we've turned the joint into Sodom and G? They have to suppress the vote! They have to stop as many liberals from voting as possible. So they've passed many voter suppression laws to make it hard for the poor, the minorities, the disabled and students to vote. They honestly believe they call pull this off – and they just may. The only "positive" thing about this is that their need to have such laws in order to win the election is an admission on the part of the Republicans that they know the U.S. Is a liberal country and that the only way they can now win now is to cheat. Trust me, if they believed that America was a right-wing country they'd be passing laws making it so easy to vote you could do it in the checkout line at Walmart.

Continue reading »