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UPDATE
: Via Reuters:
"Two factory bosses were arrested in Bangladesh on Saturday, 72 hours after the deadly collapse of a building where low-cost garments were made for Western brands, as the death toll rose to 325 and angry workers protested on the streets of the capital."

"The owner of the eight-storey building that fell like a pack of cards around more than 3,000 workers was still on the run."

~~~~~~~~~~~~~~~~~~~~~~

Bangladeshi police fired tear gas and rubber bullets into a crowd of protesters demanding better working conditions after a garment factory collapsed, killing hundreds, earlier this week. M Asaduzzam, a police officer in the control room, called the protests "volatile." Asaduzzam said police used “rubber bullets and tear gas” to disperse the crowd. Meanwhile, the death toll in Wednesday’s deadly building collapse has risen to 300, with authorities expecting to find even more bodies as they search the building. A total of 50 people were found alive Friday, raising the hopes of thousands of relatives. The collapse came just months after a fire in November at a factory that makes clothes for Walmart and other Western labels.

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FBI Docs Redact Threats to Assassinate OWS Leaders

September 25, 2011, 12th St between University and 5th Ave, NYC. A journalist (Louis Jargow) is violently arrested for documenting police brutality against OWS protesters and a young woman is attacked by a police officer and dragged into the street by her hair. Moments later the young women from the opening shot of the video are pepper sprayed, point blank without warning or provocation.

Naomi Wolf gives an excellent in-depth analysis of those newly released documents that reveal the FBI's counterterrorism monitoring of Occupy Wall Street, and points out the assassination by sniper fire threats against OWS leaders that the FBI never bothered to inform anyone in the movement about.

Mara Verheyden-Hilliard, executive director of the PCJF points out the close partnering of banks, the New York Stock Exchange and at least one local Federal Reserve with the FBI and DHS, and calls it "police-statism," and believes these documents are only the "tip of the iceberg."

The Guardian:

The Partnership for Civil Justice Fund, in a groundbreaking scoop that should once more shame major US media outlets (why are nonprofits now some of the only entities in America left breaking major civil liberties news?), filed this request. The document – reproduced here in an easily searchable format – shows a terrifying network of coordinated DHS, FBI, police, regional fusion center, and private-sector activity so completely merged into one another that the monstrous whole is, in fact, one entity: in some cases, bearing a single name, the Domestic Security Alliance Council. And it reveals this merged entity to have one centrally planned, locally executed mission. The documents, in short, show the cops and DHS working for and with banks to target, arrest, and politically disable peaceful American citizens.

The documents, released after long delay in the week between Christmas and New Year, show a nationwide meta-plot unfolding in city after city in an Orwellian world: six American universities are sites where campus police funneled information about students involved with OWS to the FBI, with the administrations' knowledge (p51); banks sat down with FBI officials to pool information about OWS protesters harvested by private security; plans to crush Occupy events, planned for a month down the road, were made by the FBI – and offered to the representatives of the same organizations that the protests would target; and even threats of the assassination of OWS leaders by sniper fire – by whom? Where? – now remain redacted and undisclosed to those American citizens in danger, contrary to standard FBI practice to inform the person concerned when there is a threat against a political leader (p61).

Wolf mentions that Jason Leopold, at Truthout.org, has sought similar documents for more than a year, and reported that the FBI falsely asserted in response to his own FOIA requests that no documents related to its infiltration of Occupy Wall Street existed at all. So indeed, is the release strategic? Having your personal information harvested and sent to terrorism task forces and fusion centers, and the threat of an unknown entity's "longterm" plans to shoot you could easily frighten off even the most hard-core activists among us.

Are we all Wikileaks?

Wolf writes,"There is a new twist: the merger of the private sector, DHS and the FBI means that any of us can become WikiLeaks, a point that Julian Assange was trying to make in explaining the argument behind his recent book. The fusion of the tracking of money and the suppression of dissent means that a huge area of vulnerability in civil society – people's income streams and financial records – is now firmly in the hands of the banks, which are, in turn, now in the business of tracking your dissent."

And of the push for counterterrorism fusion centers and the Department of Homeland Security militarization of police departments, she adds, "It was never really about "the terrorists". It was not even about civil unrest. It was always about this moment, when vast crimes might be uncovered by citizens – it was always, that is to say, meant to be about you."



Wal-Mart Said 'No' to Paying for Fire Safety in Bangladesh

workersbury
[Workers bury the body of an unidentified garment factory fire victim. Reuters]

Documents found among the ruins of the Bangladesh garment factory where over 100 people perished during a fire last month, show that Wal-Mart worked with at least five different suppliers there this year. Further, in 2011, the retail giant decided against aiding factory upgrades that could have stopped fires like the deadly blaze.

Bloomberg News reports:

Wal-Mart said the Tazreen Design Ltd. factory near Dhaka, Bangladesh’s capital, was no longer authorized to produce merchandise for the company and that it had cut ties with one supplier that kept using the facility. It’s not clear if any other suppliers continued to use the factory, which Wal-Mart had de-authorized before the blaze, the company said.

Purchase orders, shipment statements, inventory reports and other documents show that two New York-based suppliers for Wal- Mart and a third in California had sourced merchandise from Tazreen. Two companies in Bangladesh also manufactured apparel there for Wal-Mart, the records show. As recently as September, five of 14 production lines at the factory were making shirts and pajamas for Wal-Mart, an income report shows.
...
The Bangladesh Center for Worker Solidarity photographed the documents. The group passed them on to the Worker Rights Consortium, a labor-rights monitoring group based in Washington, which provided the documents to Bloomberg News. Suppliers cited in the documents include Topson Downs, of Culver City, California. That supplier subcontracted work to Bismillah Sourcing, a Bangladesh firm.

Also among the documents, an e-mail correspondence between a Wal-Mart buyer and IDG (Tazreen produced shorts for Wal-Mart’s Sam’s Club brand through IDG) "highlighting the pressure the world’s largest retailer puts on its suppliers."

In a January e-mail, Wal-Mart's buyer requests and early delivery of 266 pairs of shorts from IDG for a new store opening, and IDG complied. Numerous other documents show that "tens of thousands" of the same pairs of shorts were made at Tazreen for IDG since at least the first quarter of 2012.

In 2011, Walmart reportedly decided against aiding factory upgrades that could have stopped fires like the deadly blaze at the Tazreen garment factory.

During an April meeting, Bangladeshi suppliers reached out to retailers of their garments with a plan that would help upgrade their facilities to make them more fire-proof -- other retailers approved the plan -- only to have it fall through when Wal-mart and the Gap refused to pay higher prices to make such upgrades feasible.



A Son Lost in Iraq, but Where Is the Casualty Report?


(This video was shot and edited by Steve Hebert for ProPublica and produced by Steve Hebert for ProPublica and Krista Kjellman Schmidt, ProPublica)

By Peter Sleeth, Special to ProPublica and Hal Bernton, The Seattle Times

WELLSVILLE, Kan. -- The day after Jim Butler learned his son had died in Iraq in 2003, a U.S. Army casualty officer showed up at the family's small ranch to explain what happened.

Your son was hit by a rocket-propelled grenade in the city of As Samawah, the officer said. But he had no other details to offer, nothing about how the fighting came about or what Sgt. Jacob Butler was doing when he was killed. For the grieving father, it wasn't enough. The question of how Jake died gripped him in the days after, in part because he'd made an unusual promise before his son left: If you are killed, I will go and stand where you fell.

So Butler made a simple request to the Army for Jake's casualty report. Rules require one when soldiers are killed in a war zone. Unit commanders are supposed to create and maintain them, along with numerous other field records.

"They said, 'We'll have to see,'" Butler recalled, "because one should have been made."

Nine years later, Butler is still waiting for a report he may never get. As an investigation by ProPublica and The Seattle Times revealed, the Army has lost or failed to keep that document and many other field records from Iraq and Afghanistan.

The 1st Armored Division Jacob Butler's unit is among those lacking many of its records. Documents and interviews show that dozens of units are in similar shape, and that U.S. Central Command in Iraq also lost records related to joint-service operations in the theater.

History is cheated when front-line records are lost. And without them, veterans can face delays securing benefits for combat-related disabilities.

But missing records can have another after effect, creating uncertainty and confusion as survivors struggle with the heartbreak of loss.

Family members of soldiers who die in war are entitled to casualty reports if they request them. That fact did not help Jim Butler. He pressed the Army repeatedly in the months after Jake's death for his casualty report, but got a series of conflicting and perplexing responses instead.

"I felt hurt because I felt they should be truthful," Butler said of the Army. "Is that too much to ask?

"If it turned out Jake was killed by friendly fire, it would hurt, but I could handle it," he said. "If he died by suicide, it would hurt, but I could handle it."

The truth turned out to be far different, but Butler had to dig out the story himself. And he never saw the most complete official account of Jake's death until a reporter provided it.

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More Evidence Key Dark Money Group May Have Misled IRS

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By Kim Barker, ProPublica, and Rick Young and Emma Schwartz, Frontline Oct. 30, 2012

This story is being co-published with Frontline, which is also airing a documentary on the group tonight. Check your local listings.

New signs emerged Monday that a controversial nonprofit may have misled the Internal Revenue Service not only about its political activities but also about support from a purported donor.

Western Tradition Partnership, or WTP, sent the IRS a letter in 2008 asking the agency to expedite the group's request for recognition of its tax-exempt status. The letter said that without it, the group's principle donor, Jacob Jabs, would pull a planned grant of $300,000.

But Jabs, who runs Colorado's largest furniture retailer, said on Monday he had never pledged money to the group, and never even been in contact with them until press stories appeared naming him.

"I think they just grabbed my name out of a hat to forward their agenda," Jabs told us. "I know nothing about the group, never heard of them, never have heard of them until the last few days, and I did not, absolutely did not, commit $300,000 to start this company." (Jabs also spoke with the Bozeman Daily Chronicle, again denying any connection to the group.)

Although operating at the state level, WTP has won national attention for its attempts to fight campaign-finance restrictions. It successfully sued to overturn Montana's ban on corporate spending in elections, extending the provisions of the U.S. Supreme Court's Citizens United decision to all states. It has also sued Montana investigators over the state's ruling two years ago that the group is a political committee and should have to report its donors.

Documents obtained by Frontline on WTP offer a rare look into the inner workings of dark money groups, tax-exempt organizations that can accept unlimited contributions and do not have to disclose their donors for political ads.

On Monday, we detailed how some of those documents pointed to WTP actively shaping the campaigns of candidates for state office in Montana. The documents, found in a meth house near Denver by a convicted felon in late 2010, indicate possible coordination between candidates and outside groups. Outside groups and candidates are not allowed to coordinate.

Social welfare nonprofits like WTP are allowed to engage in some political activity, but IRS regulations say they must have social welfare as their primary purpose. ProPublica has extensively reported on how some of these nonprofits, known as 501(c)(4)'s after their section of the tax code, appear to exploit gaps in enforcement between the Internal Revenue Service and election authorities so they don't have to disclose where they get their money.

As ProPublica and Frontline have previously reported, when WTP applied for recognition of its tax-exempt status, the group also told the IRS under penalty of perjury that it would not directly or indirectly attempt to influence elections. Yet even before its application, the group sponsored mailers that criticized politicians in the 2008 Republican primary.

The IRS approved WTP's tax-exempt status three days after it received the group's request for expedited review.

Jabs said he only first spoke with WTP earlier this month, after seeing reports that he was the primary donor. Jabs said he reached a WTP official, Athena Dalton, who signed the IRS letter citing him. According to Jabs, Dalton told him she was WTP's secretary and had been instructed to send the letter by two other WTP officials, Christian LeFer and Dan Reed.

"I did talk to Christian LeFer," Jabs said. "They basically admitted they used me to get their 501(c)(4) status." Jabs said he also contacted Reed, who did not call him back.

In an email responding to a ProPublica question about Jabs, LeFer wrote: "Your facts are wrong, I 'admitted' no such thing; that doesn't even sound plausible. Further, what significance this issue might hold escapes me. I don't discuss donors, and I can see that your story line does not need my help."

Reed did not respond to a phone call.

On Monday, LeFer also confirmed the documents found in a meth house were stolen from his wife's car and belonged to him and his wife, Allison. The documents included material from outside groups and candidates, and communications between LeFer and candidates. There were surveys of candidates by outside groups and drafts and final copies of mailers marked as being paid for by the campaigns.

LeFer, described as WTP's director of strategic programming in memos in 2009, said in an email that the boxes of documents were stolen in Colorado in June 2010.

"These stolen documents appear to be a mix of those from my consulting and volunteer work and from my wife's independently owned and operated mail and printing shop," wrote LeFer, whose wife runs a company called Direct Mail and Communications in Livingston, Mont. "Both my wife and I have scrupulously endeavored to avoid any possibility of illegal coordination.

"The stolen documents, which were in the process of being transferred to storage when the theft occurred, have been mingled to infer that the work of two separate people is in fact the work of one person and therefore improper. This is false." (Here is LeFer's full response.)

Candidates have confirmed that LeFer worked with Direct Mail. They have also said LeFer was an adviser on their campaigns.

There is also other evidence LeFer worked with the firm.

On Tuesday, a woman named Elizabeth Sheron said that when she briefly worked for Direct Mail in 2010, LeFer welcomed her to the company. She provided us a check from Direct Mail and an email from LeFer in which he asked her to elaborate on her abilities and experience. LeFer also wrote that he hoped to increase the membership of one of his social welfare nonprofits to 250,000 people in two years.

Sheron said she did work for Direct Mail, WTP and other related groups. "They kind of had you involved with every project…no matter who was paying you," she said. "I was paid by Direct Mail but I was doing stuff for other groups." Sheron worked there only briefly before quitting.

In an email, LeFer said he didn't think it was useful to try to recall "snippets of information from years back." He said if reporters sent "the entire file of materials you have and you want to discuss at a later time, please do so."

The documents from the meth house eventually landed in the office of Montana investigators, who couldn't do much with them because they couldn't definitively prove they were real, or how they ended up in a meth house.

On Monday, a lawyer for LeFer confirmed them by sending a letter to Montana authorities explaining that the car was stolen from a homeschooling conference in Denver. The lawyer said the documents were stolen property and "evidence regarding the criminal investigation of the car theft in Colorado." The lawyer also said the documents contained sensitive information, and demanded that the documents be turned over to LeFer.

Montana investigators have sealed access to the documents, saying that now that someone has asserted ownership, they are unable to further discuss or release them until a court rules on the matter.

Western Tradition Partnership is now known as American Tradition Partnership. So far this election season, the group has advocated for candidates in Montana's Republican primary, putting out a press release announcing that 12 of those candidates won. It also has launched a newspaper called the Montana Statesman, which claims to be the state's "largest & most trusted news source," to be the state's "only non-partisan newspaper" and to have been founded in 1889.

A second edition of the purported newspaper was mailed to voters in Montana last week. Like the first edition, the 12-page paper contains many articles attacking Steve Bullock, the Democratic candidate for governor who as attorney general fought the partnership's lawsuits against the state. One on the front page accused him of being soft on child molesters.

Other stories attacked the state auditor, a Supreme Court candidate and the secretary of state.

On its website, the group describes itself as a "no-compromise grassroots organization dedicated to fighting the radical environmentalist agenda."

In a statement responding to the story Monday by ProPublica and Frontline, American Tradition Partnership, or ATP, said it had not coordinated with candidates. "I have never met or spoken to virtually all the candidates on the ballot," wrote Donny Ferguson, the executive director of the partnership and the editor of the Montana Statesman, on the Statesman website.

Ferguson also said the law was always on the group's side, and that the nonprofit had always obeyed every applicable law. He denied that the group told people how to vote. "ATP does not, and never will, tell voters which candidates to vote for," he wrote. "ATP speaks on the issues, informing voters where candidates stand and of their public records."

The IRS defines political advertising much more broadly than election authorities, asking whether social welfare nonprofits directly — or indirectly — engaged in campaign activities.



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Watch Big Sky, Big Money, an investigation with Marketplace on PBS.

By Kim Barker, ProPublica, and Rick Young and Emma Schwartz, Frontline Oct. 29, 2012

This post was co-published with PBS' Frontline.

The boxes landed in the office of Montana investigators in March 2011.

Found in a meth house in Colorado, they were somewhat of a mystery, holding files on 23 conservative candidates in state races in Montana. They were filled with candidate surveys and mailers that said they were paid for by campaigns, and fliers and bank records from outside spending groups. One folder was labeled "Montana $ Bomb."

The documents pointed to one outside group pulling the candidates' strings: a social welfare nonprofit called Western Tradition Partnership, or WTP.

Altogether, the records added up to possible illegal "coordination" between the nonprofit and candidates for office in 2008 and 2010, said a Montana investigator and a former Federal Election Commission chairman who reviewed the material. Outside groups are allowed to spend money on political campaigns, but not to coordinate with candidates.

"My opinion, for what it's worth, is that WTP was running a lot of these campaigns," said investigator Julie Steab of the Montana Commissioner of Political Practices, who initially received the boxes from Colorado.

The boxes were examined by Frontline and ProPublica as part of an investigation into the growing influence on elections of dark money groups, tax-exempt organizations that can accept unlimited contributions and do not have to identify their donors. The documents offer a rare glimpse into the world of dark money, showing how Western Tradition Partnership appealed to donors, interacted with candidates and helped shape their election efforts.

Though WTP's spending has been at the state level, it's best-known nationally for bringing a lawsuit that successfully challenged Montana's ban on corporate spending in elections, extending the provisions of the U.S. Supreme Court's landmark Citizens United decision to all states.

The tax code allows nonprofits like WTP to engage in some political activity, but they are supposed to have social welfare as their primary purpose. As reported previously by ProPublica and Frontline, when WTP applied for recognition of its tax-exempt status, it told the IRS under penalty of perjury that it would not directly or indirectly attempt to influence elections — even though it already had.

The group is now locked in an ongoing dispute with Montana authorities, who ruled in October 2010 that the nonprofit should have registered as a political committee and should have to disclose its donors. WTP sued. A hearing is set for March.

In the meantime, the group has changed its name to American Tradition Partnership, reflecting its larger ambitions. This month, it sent Montana voters a mailer in the form of a newspaper called the Montana Statesman that claimed to be the state's "largest & most trusted news source."

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Is BofA’s Foreclosure Review Really Independent?

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By Paul Kiel, ProPublica

Answers to homeowners' questions about the Independent Foreclosure Review.The administration's website for the foreclosure prevention program. Provides an FAQ, homeowner examples, and other tools to see whether you might qualify for the program.A list of HUD-approved housing counseling agencies nationwide.Tips for homeowners from the Federal Trade Commission.These rules lay out how mortgage servicers are supposed to conduct the program.A finance and economics blog that provides news and metrics on the state of the housing market.

Late last year, the country's bank regulators launched a massive program to evaluate millions of foreclosure cases and compensate homeowners who fell victim to the banks' flawed or illegal practices. Regulators dubbed it the "Independent Foreclosure Review" to emphasize that the banks would not be making key decisions about loans they had made or serviced.

But a raft of evidence — internal Bank of America memos and emails obtained by ProPublica, interviews with two bank staff members who have worked on the review, and little-noticed documents released late last year by a federal banking regulator — throw the independence of the review into serious doubt. Together, they indicate that Bank of America — the financial giant with the largest number of homeowners eligible for the program — is performing much of the work itself.

The ultimate decision as to whether and how much a homeowner will be compensated is not made by Bank of America, the evidence shows, but is based largely on work that the bank itself performs. One current employee called that crucial judgment "only a matter of double checking" the bank's work.

Moreover, the bank gets a chance to challenge that key decision before it becomes final — an opportunity not given to homeowners.

Bank of America strongly objects to ProPublica's analysis. It insists that the independence of the review has never been compromised. It maintains that its role "has been and remains gathering documents." While it may discover "an error" in the course of that work, the bank says that an independent review conducted by an outside firm "is the sole and final basis" for determining whether homeowners have been harmed and how much compensation they merit.

A bank spokesman questioned ProPublica's fairness, writing that "there are no facts to support your claim. Yet it seems you have made a decision to move forward with a story based on speculation and a preconceived notion of this issue."

Bank of America's regulator, the Office of the Comptroller of the Currency (OCC), also maintained that the review was independent. After seeing the internal bank documents obtained by ProPublica, the OCC investigated, officials said. The OCC concluded that the documents, which include a memo sent by Bank of America executives to the hundreds of bank employees working on the Independent Foreclosure Review, are "incomplete and inaccurate," said Deputy Comptroller for Large Bank Supervision Morris Morgan.

But the documents and interviews tell a sharply different story, and the stakes are high. The maximum cash compensation a homeowner can win through the foreclosure review is $125,000. Regulators set different amounts for the various errors and abuses homeowners endured, and those distinctions can result in widely differing payments — for instance $15,000 instead of $125,000 for homeowners who suffered very similar abuses.

ProPublica provided the internal Bank of America documents to Sen. Robert Menendez, who chaired a congressional hearing overseeing the foreclosure reviews. He said, "Congress was led to believe that the consultants would be analyzing homeowner foreclosures completely independently of the Wall Street banks, but these memos raise serious questions as to whether that's true. If banks are trying to skew the results in their favor, regulators should stop that immediately."

The senator also said that regulators "should ensure that homeowners have the same opportunities banks do to influence and contest the findings of the foreclosure reviews."

The Document Trail

Federal regulators designed the program to work like this: Each of the big banks would hire an "independent consultant" to conduct reviews of the bank's foreclosure cases. To ensure that these consultants really were independent, the regulators had to approve them. In September 2011, Bank of America hired Promontory Financial Group to be its independent consultant.

Two months later, the OCC released the contract between Bank of America and Promontory. The 118-page document received little notice, but it clearly spells out that Promontory will make its decision only after reviewing the bank's own analysis of each homeowner's claim.

When a homeowner sends in a complaint about the way Bank of America handled his or her foreclosure, the contract states, the bank "will process the complaint and provide the complaint, supporting resolution documentation, report of its findings, and proposed resolution to Promontory for independent review and decision concerning the complaint at issue." Promontory, the contract continues, will then review the "complaints and claims, together with [Bank of America's] recommended resolution and supporting documentation, and provide a decision on the complaint."

Job ads posted in the fall of 2011 for "Foreclosure File Reviewer" positions at Bank of America reflect this scope of work. Among the job duties listed in one ad were "Complete Claim Review and perform Harm Evaluation according to Promontory/OCC definitions"; "If there was financial injury, determine the amount"; and "Perform final determination of Harm." The ads were posted by staffing companies, but the bank confirmed to ProPublica it was the ultimate employer.

An internal bank document created to train employees on their role in the reviews also describes a "claim review" process at the bank. Employees would be running tests on the files to see if there was "harm done to the customer as a result of faulty servicing."

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FOIA Documents Show FBI Was Watching Occupy Oakland

Thousands of Occupy Oakland Protesters succeed in shutting down the Oakland Port in December of last year. The Oakland Port is the 5th busiest in the United States.

Not surprising that the FBI was keeping close tabs on Occupy Oakland last year, but documents obtained by the ACLU through a Freedom of Information Act (FOIA) request show agents were particularly interested in planned protests to shutdown West Coast ports.

Via:

The FBI kept a watchful eye on the local Occupy movement last year, especially while it was planning protests to shutdown West Coast ports, according to documents obtained by the ACLU of Northern California.

The 13 pages, obtained in a public record request, include FBI reports on Occupy protests in Oakland, a Jan. 27 meeting on how to deal with a possible Occupy Oakland action the following day at the Oakland International Airport, and an FBI alert to private corporate security officials before the attempted shutdown of the Port of Oakland on Dec. 12.

More troubling to the ACLU is that the bureau has refused to release an additional 24 pages of documents it acknowledges having, citing the need to protect confidential informants and protect national security.

"What we are really interested in finding out is why Occupy rises to that level," said ACLU attorney Linda Lye. "The bottom line issue for us is Occupy is a political activist organization, and the FBI has a history of surveilling political activists."

According to Lye, the ACLU suspects the FBI has far more documents than they have acknowledged regarding the local Occupy movement, and will continue efforts to obtain those reports.



Revealed: The Dark Money Group Attacking Sen. Sherrod Brown

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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."

 

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Mitt Romney's Federal Bailout; Bain Investigated for Tax Evasion

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Mitt Romney may not "apologize" for his success in business, but more importantly, you'll also likely never hear him say "thanks" to the American people for the Federal bailout of Bain Capital.

Via:

The trouble began in 1984, when Bain & Company spun off Bain Capital to engage in leveraged buyouts and put Romney in charge of the new operation. To free up money to invest in the new business, founder Bill Bain and his partners cashed out much of their stock in the consulting firm – leaving it saddled with about $200 million in debt. (Romney, though not a founder, reportedly profited from the deal.) "People will tell you that Bill raped the place clean, was greedy, didn't know when to stop," a former Bain consultant later conceded. "Did they take too much out of the firm? You bet."

The FDIC documents make clear what happened next: "Soon after the founders sold their equity," analysts reported, "business began to drop off." First came scandal: In the late 1980s, a Bain consultant became a key figure in an illegal stock manipulation scheme in London. The firm's reputation took a hit, and it fired 10 percent of its consulting force. By the time the 1989 recession began, Bain & Company found itself going broke fast. Cash flows weren't enough to service the debt imposed by the founders, and the firm could barely make payroll. In a panic, Bill Bain tapped Romney, his longtime protégé, to take the reins.
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In fact, Romney had a direct stake in the survival of Bain & Company: He had been working to build the Bain brand his entire career, and felt he had to save the firm at all costs. After all, Bain sold top-dollar strategic advice to big businesses about how to protect themselves from going bust. If Bain & Company went bankrupt, recalls the Romney deputy, "anyone associated with them would have looked clownish." Indeed, when a banker from Goldman Sachs urged Bain to consider bankruptcy as the obvious solution to the firm's woes, Romney's desperation began to show. He flatly refused to discuss it – and in the ensuing argument, one witness says, Romney almost ended up in a brawl when the Goldman banker advised him to "go f*ck yourself." For the sake of Romney's career and fortune, bankruptcy was simply not an option – no matter who got screwed in the process.

It's no wonder Romney wouldn't want to discuss the details of the bailout during a campaign for office. And then when it came to "negotiating" repayment of the bailout, Romney threatened use of a loophole:

In a letter dated March 23rd, 1993, Romney reassured creditors that his latest scheme would return Bain & Company to "long-term financial stability." That same month, Romney once again threatened to "pay out maximum bonus distributions" to top executives unless much of Bain's debt was erased.

In the end, the government surrendered. At the time, The Boston Globe cited bankers dismissing the bailout as "relatively routine" – but the federal documents reveal it was anything but. The FDIC agreed to accept nearly $5 million in cash to retire $15 million in Bain's debt – an immediate government bailout of $10 million. All told, the FDIC estimated it would recoup just $14 million of the $30 million that Romney's firm owed the government.

Sounds more like blackmail than a negotiation, doesn't it?

As if this bailout doesn't sound crooked enough, Bain is now under investigation for tax evasion. Via Think Progress:

Since July, New York Attorney General Eric Schneiderman has been issuing subpoenas to private equity firms including Bain, which he believes intentionally changed management fees into capital gains as a way of hanging onto millions of dollars that would have otherwise been taxed at a higher rate. Bain alone is estimated to have saved “more than $200 million in federal income taxes and more than $20 million in Medicare taxes.” It is unclear whether the tax strategy was used while Romney was at the helm of the company, but the Times reports that Romney is still making money on funds that are using the method in question.

While an attorney for Romney insists that he “can confirm that neither he nor the trust has ever done this, whether before or after he(Romney) retired from Bain Capital," it would certainly be nice, for the sake of transparency, if Romney would release his tax returns.