11/05/2012
Election's biggest corporate donor an enigma
By Michael Beckel and Reity O'Brien, The Center for Public Integrity The biggest corporate contributor in the 2012 election so far doesn't appear to make anything — other than very large contributions to a conservative super PAC. Specialty Group Inc., of Knoxville, Tenn., donated nearly $5.3 million between Oct. 1 and Oct. 11 to FreedomWorks for America, which is affiliated with former GOP House Majority Leader Dick Armey. FreedomWorks' super PAC has spent more than $19 million on political advertising, including $1.7 million on Oct. 29 opposing Tammy Duckworth, a Democrat running for Congress in Illinois against Tea Party favorite Joe Walsh, a first-term incumbent. The buy was more than four times greater than the group's previous largest single expenditure. Specialty was formed only a month ago. Its "principal office" is a private home in Knoxville. It has no website. And the only name associated with it is that of its registered agent, a lawyer whose phone number, listed in a legal directory, is disconnected. Specialty is the biggest and most mysterious corporate donor to super PACs, but it is not unique. A new analysis by the Center for Public Integrity and the Center for Responsive Politics shows that companies have contributed roughly $75 million to super PACs in the 2012 election cycle. Super PACs, which were created in the wake of the controversial U.S. Supreme Court's Citizens United decision in 2010, can accept donations of unlimited size from corporations, unions and individuals. They spend the funds mostly on negative advertising. The centers' analysis found that 85 percent of money from companies flowed to GOP-aligned groups, 11 percent went to Democratic groups and the remainder went to organizations not aligned with either party. First Read: Full coverage on the campaign trail Prior to Citizens United, corporate spending on candidate advertising was not allowed. The decision raised fears that massive donations from corporate treasuries would flood the election in 2012. In fact, the largest amounts have come from wealthy businessmen. However, about 11 percent of the $660 million raised by all super PACs through mid-October has come from company treasuries — mostly privately held businesses, sometimes organized as limited partnerships or limited liability companies. High-profile donors In mid-October, oil and gas giant Chevron donated $2.5 million to a super PAC close to House Speaker John Boehner, R-Ohio, called the Congressional Leadership Fund, which has aired a bevy of ads attacking Democratic House candidates. Oxbow Carbon, the energy company owned by billionaire William Koch, the lesser-known brother of conservative industrialists David and Charles Koch, and Contran Corp., the business of Republican super donor Harold Simmons of Texas, have both steered significant sums to the coffers of super PACs. Oxbow Carbon has donated $4.25 million to GOP super PACs, making it the No. 2 corporate donor to super PACs, while Contran, No. 3, has donated more than $3 million to Republican-aligned groups. Another top corporate donor is a retirement community in central Florida known as The Villages — a Republican stronghold where Paul Ryan held his first campaign rally the day after GOP presidential nominee Mitt Romney named him as his running mate. Developer H. Gary Morse created The Villages more than 50 years ago, and this election cycle, more than a dozen companies connected to Morse and The Villages have collectively steered $1.6 million to GOP super PACs. That's in addition to the $450,000 that Morse and his wife, Renee, have donated from their personal funds. Notably, Morse is also the Florida co-chairman of the Romney campaign, and during the Republican National Convention, Morse's Cayman Island-flagged yacht, named "Cracker Bay," was the site of a soiree for some of Romney's top donors and fundraisers. Other high-profile corporate donors include:
Only a few other Fortune 500 companies have joined Chevron, which ranks third on the elite list behind only Exxon Mobil and Walmart, in making contributions to super PACs, and none has given as much as the energy giant. Caesar's Entertainment Corp., for instance, ranked by Fortune at No. 288, has given $150,000 to Majority PAC, a group that is spending to help Democrats retain the majority in the U.S. Senate. "Fortune 500 companies are the least likely to be the ones who will be out in front giving publicly," said Rick Hasen, a law professor at the University of California-Irvine. "They want to have influence over elections and elected officials, but they don't want to alienate customers." By category, companies in the finance, insurance and real estate sector donated more than $15 million, "general business sector" firms gave about $14 million and energy sector companies contributed more than $11 million, according to the analysis. Unions, by contrast, have donated about $60 million to super PACs, from their treasuries or political action committees. The top union donors include the National Education Association ($9 million), the United Auto Workers ($8.6 million) and the AFL-CIO ($6.4 million). All of these groups have spent heavily on Democratic candidates. Money 'hiding in plain sight' "I strongly suspect that most of the corporate money is hiding in plain sight in trade associations like the U.S. Chamber of Commerce," said Ciara Torres-Spelliscy, a professor at the Stetson University College of Law. For its part, the Chamber — which collects dues from companies such as Aetna, Chevron, Dow Chemical and Microsoft — has reported spending more than $35 million on political ads, which have overwhelmingly favored Republican politicians. Facts about Specialty Group Inc. are scant. Records filed with the Tennessee Secretary of State's office show it registered on Sept. 26, listing 61-year-old attorney William S. Rose, Jr., as its agent. Rose's $634,000 home — about a 30-minute drive from downtown Knoxville — is listed as its "principal office." Yet the company's money has made a huge impact. After the cash infusion from Specialty, FreedomWorks produced numerous advertisements, including one that blasts Duckworth as a crony of former Illinois Gov. Rod Blagojevich, who was impeached and sentenced to 14 years in federal prison following a corruption scandal. Duckworth is a double amputee and Iraq War veteran. She headed Illinois' Department of Veteran Affairs and later served in President Barack Obama's U.S. Department of Veterans Affairs. FreedomWorks' new ad features grainy footage of Duckworth and audio of her saying, "Gov. Blagojevich has charged me with the mission of taking care of my buddies, and that is what I'm doing." But it leaves out the fact that when she said "buddies," she was referring to other veterans and members of the military. FreedomWorks for America treasurer and legal counsel Ryan Hecker says the organization only supports candidates who are "ethically right." Anton Becker, Duckworth's campaign press secretary, says it's conservative outside groups who are peddling "lies." When asked for details about Specialty Group and the source of its contributions, Hecker expressed ignorance, and doubted that voters care about where the money came from. "We are in compliance with the law, and we are doing what we can to report to the Federal Election Commission," he said. "If there's an issue with Specialty, it's their issue. It's not our issue." Andrea Fuller of the Center for Public Integrity contributed to this report. This story is a collaboration between the Center for Public Integrity and the Center for Responsive Politics. For up-to-date news on outside spending in the 2012 election, follow our Source2012 Tumblr and the hashtag #Source2012 on Twitter. More from Open Channel:
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'Photogenic, well-mannered' grizzly kills worker
By NBC News staff and wire reports A 24-year-old man was killed on Sunday by one or more grizzly bears while he cleaned an enclosure at a facility in Montana that provides trained animals for photographers and filmmakers, authorities said. The man was attacked and killed at the Animals of Montana facility near Bozeman, Montana, on Sunday by one or both of the captive-bred grizzly bears in the enclosure, the Gallatin County sheriff's office said in a statement. Boy falls into Pittsburgh zoo exhibit, mauled to death by African painted dogs The sheriff and game wardens were investigating the death. The sheriff declined to release the name of the man who was killed. The victim was originally from Pennsylvania, according to KBZK.com. The company's website says that it is a "full service wildlife casting agency" which aims to provide "healthy, photogenic, well-mannered predators for the entertainment industry." It has numerous animals, including three grizzly bears. Reuters contributed to this report. More content from NBCNews.com:
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Decorated US soldier faces hearing over massacre
By NBC News wire services SEATTLE -- A U.S. Army soldier accused of killing 16 Afghan villagers in a drunken rampage in March faces the military version of a preliminary hearing starting on Monday to determine if there is sufficient evidence for a court martial. U.S. Army Staff Sergeant Robert Bales, a decorated veteran of four combat tours in Iraq and Afghanistan, is accused of walking off his base under cover of darkness and opening fire on civilians in their homes in at least two villages. The shooting of mostly women and children in Afghanistan's Kandahar province marked the worst civilian slaughter by U.S. forces since the Vietnam War and eroded already strained U.S.-Afghan ties after over a decade of conflict in the country. Bales faces 16 counts of premeditated murder and six counts of attempted murder, as well as charges of assault and wrongfully possessing and using steroids and alcohol while deployed. If convicted, he could face the death penalty. Read more US news stories on NBCNews.com The hearing at Joint Base Lewis-McChord in Washington state is expected to last two weeks. Military prosecutors are expected to show video from a surveillance blimp. Part of the hearing will be held at night to allow video testimony from witnesses in Afghanistan. Bales will be present at the hearing but was not expected to answer questions. He was confined at a military prison in Kansas from March until he was moved in October to Lewis-McChord, where Bales' infantry regiment was based. Karilyn Bales, the wife of Army Staff Sgt. Robert Bales, spoke exclusively with NBC's Matt Lauer, telling the TODAY anchor that the news about her husband is 'very unbelievable.' 'Sanity board' Browne told Reuters last month he and an Army prosecutor planned to question five to 15 Afghan villagers and military personnel as key witnesses from Kandahar Air Field. How Staff Sgt. Bales' lawyers are fighting for his life Bales also has two military defense counselors, Major Gregory Malson and Captain Matthew Aeisi. Malson represented Army Sergeant William Kreutzer, who was sentenced to life in prison three years ago for killing an officer and wounding 18 U.S. soldiers in a 1995 shooting spree. Separately, Bales is also subject to a review of his mental fitness to stand trial, often referred to as a "sanity board." The Army has not disclosed the status of that review. Aref Karimi / AFP - Getty Images More than ten years after the beginning of the war, Afghanistan faces external pressure to reform as well as ongoing internal conflicts. The March shooting highlighted discipline problems among U.S. soldiers from Lewis-McChord, which was also the home base of five enlisted men from the former 5th Stryker Brigade charged with premeditated murder in connection with three killings of unarmed Afghan civilians in 2010. Four of the men were convicted or pleaded guilty in court-martial proceedings to murder or manslaughter charges and were sentenced to prison. Charges against the fifth were dropped. In August, U.S. Defense Secretary Leon Panetta directed a panel of experts to assess whether reforms were needed in the way the military justice system handles crimes committed by U.S. forces against civilians in combat zones. Reuters and The Associated Press contributed to this report. More content from NBCNews.com:
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Cops: 2 arrested over alleged gas hoarding
By NBCNewYork.com Police arrested two men on Sunday for their involvement in alleged gas hoarding in Connecticut. Police say Yunus Latif, 47, of Richmond Hill, Queens, filled 30 five-gallon plastic tubs with four gallons of gas each at a station in West Haven, Conn., with the intention of bringing it back to neighbors in New York. Fuel shortage expected to last for days, Cuomo says A witness told police they saw Latif loading up plastic containers filled with gas into his truck. When police arrived, they discovered the tubs with gas loaded in the back of the truck. The plastic lids were expanding, police say. Gas can only be transported in Department of Transportation-approved containers. Full coverage of Sandy's aftermath Police also arrested the attendant at the gas station, 41-year-old Muniruzzaman Gomosta, who sold the gas to Latif but said he did not realize he was buying so much gas because the store was busy. They were both issued misdemeanor summonses for violation of regulation concerning flammable or combustible liquids NBCConnecticut.com reported that Latif and Gomosta are expected to appear in court on November 19. |
11/04/2012
Pulpit politics: Pastors endorse candidates to protest 1954 law
John Adkisson / Reuters file The Rev. Mark Harris endorsed a Republican candidate for the state Supreme Court during his sermon Oct. 7 at First Baptist Church in Charlotte, N.C. By M. Alex Johnson, NBC News With the presidential election a dead heat and many other races too close to call, hundreds of religious leaders nationwide are urging their congregations to vote for a specific candidate. They break the law when they do so — that's the point — but it's unclear whether there's any real penalty for pastors who make such endorsements from the pulpit. About 1,600 pastors across the country violated a 58-year-old ban on political endorsements by churches in October by explicitly backing political candidates in their Sunday sermons, according to the Alliance Defending Freedom of Scottsdale, Ariz., a conservative Christian legal organization behind a campaign called Pulpit Freedom Sunday. The 1954 law they are challenging prohibits charitable groups, including most churches, from making candidate endorsements, but doesn't bar ministers, priests, rabbis and imams from speaking out on other ballot issues, like voter initiatives, or organizing get-out-the-vote drives and education efforts around elections themselves. The alliance is seeking to force a court showdown over the constitutionality of the law, violation of which can cost churches their tax-exempt status. Since Oct. 7, the original Pulpit Freedom Day, many pastors who participated in the protest have posted their remarks online or sent them to the Internal Revenue Service, essentially daring the agency charged with enforcing the prohibition to put up or shut up. So far, the IRS has done the latter. The Alliance Defending Freedom asserts that it's working to further the rights of all religious groups, but it's an explicitly Christian organization, with a heavy representation of evangelical members and leaders. One clue to its philosophy is that it made it Pulpit Freedom "Sunday" — choosing the Christian Sabbath, instead of more broadly embracing the Jewish Sabbath (Saturday) and the Muslim day of worship (Friday). So it's no surprise that an unscientific survey of the posted endorsements indicates that they skewed overwhelmingly in favor of Republican presidential nominee Mitt Romney, as in these representative samples: In a guest sermon at Calvary Chapel in Chino Hills, Calif., Wayne Gruden, a professor and theologian at Phoenix Seminary in Arizona, recommended that "all citizens" vote for Romney "and Republicans in general" (the endorsement begins at 59:58): Wayne Gruden, a professor and theologian at Phoenix Seminary in Arizona, endorses Mitt Romney. Pastor Ken Redmond of Abundant Life Worship Center in Midland, Texas, told his congregation they shouldn't vote for President Barack Obama, saying, "Here is your choice: a Mormon or a Muslim" (the remarks begin at 33:17): And Bishop Samuel A.L Pope Sr. told his congregation at Solid Rock Missionary Baptist Church in California City, Calif., not to vote for Obama (the statement begins at 26:54): Bishop Samuel A.L Pope Sr. endorses Mitt Romney at Solid Rock Missionary Baptist Church in California City, Calif. As of Friday, none of the hundreds of pastors who took part in the protest reported hearing back from the government. In fact, the Alliance Defending Freedom says, only one of the churches that have taken part in Pulpit Freedom Sundays over the last five years has been the target of IRS action, and that case was dropped shortly after the IRS lost a separate legal ruling almost four years ago. The Internal Revenue Code specifies that all section 501(c)(3) organizations are "absolutely prohibited" from taking part in, contributing to or making any statement "in favor of or in opposition to any candidate for public office." But enforcement appears to have halted completely in early 2009 after Living Word Christian Center of Brooklyn Park, Minn., successfully appealed an audit that the IRS launched after its pastor endorsed Republican Rep. Michelle Bachmann for re-election. The judge ruled (.pdf) that the IRS was technically violating its own regulations in deciding whether to audit churches for banned political activities — because the official making that decision wasn't high enough on the Treasury Department's organization chart. The IRS, however, isn't acknowledging that it has stopped enforcing the ban on candidate endorsements by officials of 501(c)3 charitable organizations. In response to queries from NBC News, the IRS disavowed comments by a regional official of its division overseeing tax-exempt organizations, who said last month that the agency was "holding any potential church audits in abeyance" while it revises its regulations in light of the 2009 ruling. Dean Patterson, a spokesman for the IRS, said the official "misspoke," adding: "The IRS continues to run a balanced program that follows up on potential non-compliance, while ensuring the appropriate oversight and review to determine that compliance activities are necessary and appropriate." Noting that it's barred by law from discussing individual tax cases, the IRS declined NBC News' request for documentation showing that it has taken any action against politicking from the pulpit since then. Full coverage of Decision 2012 on NBC Politics But Erik Stanley, senior legal counsel for the Alliance Defending Freedom, said it's clear that the agency is sidestepping the issue. "We surmise the IRS has shut down all its church audits," Stanley said. As time goes on, he added, "It may become clear that the IRS has taken the position that it will not censor a pastor." (As it happens, there is a legal way for churches to endorse candidates and still not pay taxes, by registering with the IRS under a different section of the tax code, 501(c)4. But nearly all religious institutions reject that choice because individuals who give money to 501(c)4 groups aren't allowed to claim tax deductions for their donations. Donations to 501(c)3 groups are deductible.) A matter of politics, not constitutionality That was when the Supreme Court ruled — in a case involving banks, not churches — that the federal government had the power to limit taxation of specific enterprises in furtherance of the public good, quoting Daniel Webster's argument that "the power to tax is the power to destroy." Subsequent law extended that philosophy to establish that charitable groups could seek exemption from taxation. The prohibition on candidate endorsements comes from a different source. It dates only to 1954, and like the 1819 decision, it applies to all 501(c)3 charitable groups, not just churches. Democratic Sen. Lyndon Johnson of Texas inserted it into the tax code as he was fighting off a re-election challenge backed by tax-exempt political foundations that historians have linked with the anti-Communist witch hunts of Sen. Joseph McCarthy. Stay informed with the latest headlines; sign up for our newsletter The measure passed with little debate. Its effect was to muzzle religious leaders, even though "there is no evidence that a religious element played a significant part in Johnson's decision," Patrick L. O'Daniel, an adjunct professor at the University of Texas Law School, wrote in a 2001 reconstruction of the bill's passage in the Boston College Law Review. Whether Johnson intended it that way or not, religious leaders have argued that the provision is an unacceptable stifling of their constitutional rights. "This is about restoring biblical authority and a constitutional right for pastors to speak freely from the pulpit without any fear of the government on cultural and societal issues from a biblical perspective. And that includes commenting on the positions of the candidates," the Rev. Dann E. Travis, pastor of Crossroads of Life Church in Binghampton, N.Y., said to cheers from the congregation last week. The Rev. Rob Rotola, who took part in Pulpit Freedom Sunday at Word of Life Ministries in Wichita, Kan., told NBC station KSN: "The concept of separation of church and state meant that the state was to keep out of the affairs of the church, not that the church was supposed to be silent about things about the state." Pulpit Freedom SundayMinistries taking part in Pulpit Freedom Sunday, Oct. 7 - Baptist/Southern Baptist 409 Sources: Alliance Defending Freedom, NBC News research But other religious figures see a political angle — specifically, a conservative and evangelical angle — behind the challenge to the law. The Rev. Barry Lynn, a minister in President Barack Obama's United Church of Christ and executive director of Americans United for Separation of Church and State, said the Alliance Defending Freedom was hiding behind "a fiction that there's a war against Christianity." The Rev. Martin Luther King Jr., he said, managed to preach about politics almost every day of his adult life without ever endorsing a political candidate. "It's time to get serious about this, because we could end up with a corruption not only of the political process but of the integrity of the genuine prophetic message of churches," Lynn said in a recent interview on State of Belief Radio. The Rev. Fester Coffee-Prose, youth minister at First Christian Church in Tyler, Texas, also objected, saying politics should be left to politicians, not pastors. "While we might take stands on certain issues, when it comes to the candidates, the church should be a place where people of diverse backgrounds and diverse beliefs gather," he told NBC station KETK. "I don't necessarily believe that we should be endorsing any one candidate from the pulpit." Also of concern to some religious leaders is the alliance leadership's connections to conservative organizations and causes: Its president, Alan Sears, was director of Attorney General Edwin Meese's Commission on Pornography during the Reagan administration, and other board members represent the Latino Partnership for Conservative Principles, the anti-abortion activist group Susan B. Anthony List and the conservative evangelical ministry Focus on the Family. What pastors sayIn a survey of 1,000 Protestant ministers, LifeWay Research, the polling arm of the Southern Baptist Convention, found that: - 87 percent believe pastors shouldn't endorse candidates from the pulpit Source: LifeWay Research, May 2012. Margin of error: plus or minus 3.2 percentage points. Pulpit Freedom Sunday itself was similarly overwhelmingly Christian, with an emphasis on evangelicalism. Working from a list of ministries that signed up in advance, NBC News tabulated that 98 percent were evangelical or otherwise Protestant ministries. Just 10 Catholic priests took part, defying the U.S. Conference of Catholic Bishops' directive that church leaders "are to avoid endorsing or opposing candidates or telling people how to vote." Only four Anglican ministers signed up. No imams or traditional rabbis were listed — the three synagogues on the roster are Messianic Jewish congregations, which proclaim the divinity of Jesus. In a statement, the Council on American-Islamic Relations said it had reminded imams and khateebs (those who give the sermon during Friday prayers) that tax-exempt mosques "cannot explicitly or implicitly endorse candidates." Likewise, the Jewish Council for Public Affairs pointed to its standing directive that "organizations may not rate, endorse or oppose candidates for public office." The alliance, nonetheless, says its campaign is about a larger question. "Eventually, we'll have a test case about the constitutionality of the Johnson Amendment," Stanley said. "The IRS has really left pastors and churches no option if they believe they have the right to speak freely from their pulpit." More content from NBCNews.com:
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