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Impact of Panama Papers rockets around the world; U.S. officials react cautiously

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Correction, April 5, 2016: This article has been corrected.

Update, April 6, 2016, 12:30 p.m.: This article is being continuously updated, as developments merit.

Reports published this week on the secretive industry that banks and lawyers use to hide the financial holdings of some of the world’s top leaders and billionaires brought a powerful global response, including the resignation of one prime minister, while the White House and U.S. agencies reacted more cautiously.

President Barack Obama addressed the massive leak of documents, which led to the reporting, on Tuesday during a press conference about business tax reform.

“There is no doubt that the problem of global tax avoidance generally, is a huge problem,” the president said. The president also noted in his remarks that the problem is not unique to other nations. "There are folks here in America who are taking advantage of the same stuff. A lot of it is legal, but that's exactly the problem," the president added. "It's not that they're breaking the laws, it's that the laws are so poorly designed that they allow people, if they've got enough lawyers and enough accountants, to wiggle out of responsibilities that ordinary citizens are having to abide by." 

The Justice Department, which is investigating alleged corruption in the world’s top soccer body, the Fédération Internationale de Football Association (FIFA), said it may focus more on the financial dealings raised in the reporting based on the documents.

“We are aware of the reports and are reviewing them," said Peter Carr, a Justice Department spokesman. "While we cannot comment on the specifics of these alleged documents, the U.S. Department of Justice takes very seriously all credible allegations of high level, foreign corruption that might have a link to the United States or the U.S. financial system.”

The investigation was published Sunday by the International Consortium of Investigative Journalists, which with the German-based newspaper Suddeutsche Zeitung oversaw the probe, which is being referred to as the Panama Papers. ICIJ is the international arm of the Center for Public Integrity.

At the White House’s daily news briefing on Monday, Press Secretary Josh Earnest was asked four separate times about the reports. He said he wouldn’t comment on the allegations and stressed that “the United States continues to be a leading advocate for increased transparency in the international financial system and in working against illicit financial transactions and in fighting corruption.”

Earnest avoided a question asking if the administration would scrutinize the financial dealings of some world leaders with offshore holdings, including Argentina’s President Mauricio Macri, whom President Obama met with last month, and King Salman of Saudi Arabia, whom Obama plans to visit this month.

“I'm not going to be able to consider the individual claims that are made based on some information included in the documents,” Earnest said. “But, look, this large volume of documents does not change the U.S. position.”

The papers, which totaled more than 11 million documents, were leaked from inside Panama-based Mossack Fonseca, one of the world’s top creators of shell companies, which are corporate structures that can be used to hide ownership of assets. The documents expose the offshore holdings of 12 current and former world leaders, associates of Russian President Vladimir Putin and a former FIFA vice president, who has been charged by U.S. authorities with wire fraud and money laundering.

Presidential candidate Bernie Sanders issued a press release Tuesday on the Panama Papers to draw a contrast with Hillary Clinton. He said he voted against the Panama Free Trade Agreement, passed by Congress in 2011, arguing it would encourage the growth of offshore accounts to shield the wealthy from paying taxes. Clinton, Sanders said, “helped push the Panama Free Trade Agreement through Congress as Secretary of State.”

If elected president, Sanders said he would terminate the agreement.

Clinton has not issued a statement about the Panama Papers.

Still, most U.S. reaction was measured. U.S. Treasury Department spokeswoman Whitney Smith said in an email that “we will not comment specifically on the findings.”

Smith added that “it is important to note that the U.S. government intently focuses on investigating possible illicit activity, including violations of U.S. tax laws or sanctions, using all sources of information, both public and non-public. … If there has been any violation of U.S. tax law or sanctions evasion, we will take appropriate action consistent with the national security and foreign policy of the United States.”

Major U.S. media outlets weighed in as well. 

"Lost tax revenue is one consequence of this hidden system," said the New York Times in an editorial. "Even more dangerous is its deep damage to democratic rule and regional stability when corrupt politiciains have a place to stash stolen national assets out of public view."

USA TODAY said that Mossack Fonseca has assisted in establishing almost 1,100 business entities in the United States since 2001, mostly in Nevada and Wyoming, according to state incorporation records; both those states have relatively permissive laws regarding corporate secrecy. The newspaper said most of the firms linked to Mossack Fonseca "were formed by M.F. Corporate Services (Nevada) Limited, a one-employee company based out of a low-slung tile-roofed office building 20 miles from the Las Vegas strip."   

The Panama Papers investigation has had a massive impact globally. It led to the resignation of Iceland’s prime minister, official investigations were opened worldwide and an immediate censorship drive was instituted in China.

Thousands of Icelanders took to the streets of Reykjavik on Monday to demand the resignation of Prime Minister Sigmundur David Gunnlaugsson following the disclosure by ICIJ, Reykjavik Media, and Suddeutsche Zeitung that he and two members of his cabinet had owned or controlled secret offshore shell companies.

On Tuesday, Iceland’s president refused a request from Prime Minister Gunnlaugsson to dissolve parliament and call snap elections, according to the Guardian.

Gunnlaugsson’s resignation came hours later.

Gunnlaugsson violated parliamentary ethics rules when he failed to disclose his 50 percent ownership of Wintris Inc. in 2009. The company held millions of dollars worth of bonds in the three major Icelandic banks, which collapsed in 2008. The prime minister said the company was actually his wife’s all along and that his 50 percent ownership was caused by an error by the couple’s bank.

The crowd gathered in the square across from Parliament House, tossing eggs, bananas, and Icelandic yogurt at the building.

Elsewhere, prosecutors and officials across the world have announced investigations into the Panama Papers revelations:

  • German Justice Minister Heiko Maas announced plans for a new national register that will put an end to anonymous ownership of companies in a bid to fight tax evasion and financial wrongdoing.
  • In the United Kingdom, HM Revenue and Customs promised to act “swiftly and appropriately” to the allegations, and said it was seeking further data from media organizations.
  • Dmitry Peskov, a spokesman for Russian President Vladimir Putin, dismissed the revelations as “Putinphobia” and accused the media of attempting to “destabilize” Russia ahead of elections. Peskov also denied revelations his wife held a secret offshore company.
  • The Chinese government responded to the Panama Papers with a renewed censorship drive, and banned all media sites from mentioning the investigation in China.
  • In France, the Finance Ministry announced an official investigation and President Francois Hollande said: “I can assure you that as information emerges, investigations will be carried out, cases will be opened and trials will be held.” France also put Panama back on their tax haven blacklist, according to Reuters.
  • Panama will open an investigation into the law firm at the center of the Panama Papers, Mossack Fonseca. It will be the second time this year the law firm has faced an official probe. Panama President Juan Carlos Varela agreed to cooperate with investigations, and the nation’s attorney general said Panama would comply with requests for assistance from foreign countries launching their own investigations.
  • Two Spanish authorities, the Attorney General’s office and the Finance Ministry, announced investigations, and contacted ICIJ and its media partners seeking access to the data.
  • The Australian Tax Office confirmed it was targeting 800 high net wealth Australian clients of Mossack Fonseca.
  • In Austria, regulators announced an investigation into whether two banks named in Panama Papers stories breached rules on money laundering.
  • Belgium’s Finance Minister congratulated the journalists who worked on the Panama Papers, and said Belgium would open an investigation into its findings.
  • Indian Prime Minister Narendra Modi asked for a special multi-agency task force to be established to probe the Panama Papers revelations for evidence of tax evasion or wrongdoing by Indian citizens.
  • The Swedish Financial Supervisory Authority reached out to authorities in Luxembourg for information as it commenced an investigation into Nordic banking giant Nordea, after revelations the bank helped clients set up secret offshore accounts.
  • Norway’s bank regulatory body, the Financial Supervisory Authority, also said it would seek an explanation from Norwegian banks named in the investigation.
  • In Mexico, the tax authority said it would review the Panama Papers findings and open investigations against tax evaders. It said it would invoke exchange of information agreements with other countries as it sought more information.
  • The head of advocacy group Transparency International’s branch in Chile resigned on Monday following revelations he held a number of offshore companies.
  • The Costa Rican government used the Panama Papers revelations to call for law and policy reform to crack down on tax evasion and money laundering.
  • Mossack Fonseca has denied wrongdoing, and published its full response to the revelations on its website. Founding partner Ramon Fonseca denounced the Panama Papers investigation as an attack on privacy.

    ICIJ and its media partners will continue publishing more findings over the coming days and weeks.

    Jared Bennett contributed to this report.

    Correction, April 5, 2015, 3:20 p.m.: An earlier version of this story incorrectly referred to Iceland's prime minister as a head of state.

Demonstrators gather in front of Iceland’s parliament yesterday, April 3, 2016.Hamish Boland-Rudderhttps://www.publicintegrity.org/authors/hamish-boland-rudderAllan Holmeshttps://www.publicintegrity.org/authors/allan-holmesRyan Chittumhttps://www.publicintegrity.org/authors/ryan-chittumhttps://www.publicintegrity.org/2016/04/05/19526/impact-panama-papers-rockets-around-world-us-officials-react-cautiously

Global military spending is increasing

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Last year, the world’s military spending increased for the first time in four years, a directional shift that may herald even higher spending on armaments and operations in years to come, according to new data compiled by the Stockholm International Peace Research Institute (SIPRI).

The world heaped more than $1.6 trillion on military programs and personnel in 2015, roughly 1 percent more than in 2014, a SIPRI analyst declared at the nonpartisan Stimson Center in Washington, D.C. on April 5. The increase follows four years of decline, which was preceded by 12 years of steady increases.

So the brief falloff is over, and the familiar routine is back.

“The dynamic for state spending has changed everywhere,” Aude Fleurant, Director of the Arms and Military Expenditure Programme at SIPRI said during a panel discussion. Many non-western countries in particular increased their military spending in 2015, she said.

“There’s a possibility that this is a transitional year.” Fleurant added. If spending continues to rise, it would make the decreases between 2011 and 2014 insignificant, she said. Fleurant noted, however, that the evidence was not clearcut, because some countries boosted spending due to conflicts while others cut spending due to economic pressures.

 It’s “a very interesting moment,” Gordon Adams, a former White House budget official and emeritus professor at American University said at the Stimson event.  “The era of the drawdown is over.”

In 2015, the United States was still the world’s largest military spender — its $596 billion accounting for 36 percent of the world’s military spending, according to SIPRI’s data. China was in a distant second place, increasing its defense spending by 7.4 percent to reach an estimated $215 billion. Saudi Arabia surpassed Russia to become the third largest defense spender, spending $87.2 billion in 2015. Russian military spending was estimated at $66.4 billion.

Current U.S. spending is well below the $711.3 billion spent in 2011, and 2.4 percent lower than in 2014, SIPRI said.  Overall U.S. and Western European military spending remains lower than it was in 2006. But the Obama administration has proposed to boost U.S. military spending by roughly 0.4 percent in 2017, making the decline “probably the most shallow…. that we’ve seen since the end of the Second World War,” Adams said.

SIPRI’s tallies include spending on the armed forces, defense ministries, paramilitary forces, military research, space activities and peacekeeping forces.

Overall spending in Asia, East Europe, and Oceania went up. Conflict in Ukraine pushed spending by Central European countries up by 13 percent. A drop in global oil prices moderated an expected military spending increase in Russia, SIPRI said, and forced South American military spending to drop by 4 percent in 2015. Countries such as Venezuela, Ecuador and Brazil in particular had much less to spend.

SIPRI was unable to provide a regional estimate for the Middle East, noting large uncertainties about military spending in Kuwait, Qatar, Syria, the United Arab Emirates, and Yemen. For nations such as China, SIPRI could only provide an estimate, since China does not publicize all its spending and SIPRI draws its conclusions from official statements and open source spending data. Several Central Asian republics do not publish figures, and Saudi Arabia only announces what they plan to spend, not what they actually spent.

Lauren Chadwick is a Herbert Scoville Jr. Fellow at the Center for Public Integrity.

In this Aug. 10, 2014, file photo, an aircraft lands after missions targeting the Islamic State group in Iraq from the deck of the U.S. Navy aircraft carrier USS George H.W. Bush in the Persian Gulf.Lauren Chadwickhttps://www.publicintegrity.org/authors/lauren-chadwickhttps://www.publicintegrity.org/2016/04/06/19532/global-military-spending-increasing

Center for Public Integrity’s ICIJ rocks the world with #PanamaPapers

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The Center for Public Integrity's ICIJ rocks the world with #PanamaPapers

Revelations about the epic scale of tax avoidance, evasion and sanctions busting uncovered by investigative journalists in the Panama Papers have rocked governments, corporations and sports bodies around the world this week.

President Barack Obama broke into the usual White House news conference to comment on the scale of offshore secrecy uncovered by the leak. "There is no doubt that the problem of global tax avoidance generally, is a huge problem,” the president said.

The Center for Public Integrity’s founder Charles Lewis created the International Consortium of Investigative Journalists as a project of the Center precisely to generate this scale of impact. We explain the background to the project here.

The Center, a non-profit investigative journalism group funded by philanthropic organizations and individuals, continues to house and support the ICIJ as a powerhouse of international journalistic collaboration and discovery.

Panama Papers is without doubt the biggest world story this week. Tweets on #panamapapers are in the millions and our own explanatory video on why this all matters has been watched 1.3 million times so far. More than 100 media outlets around the world have had teams working on Panama Papers over the ICIJ network for much of the past year and all have published in synchronicity since Sunday.

“This is the biggest cross-border investigation in journalism history, using a data set that is the largest of its kind,” Gerard Ryle, director of the ICIJ said in our press release to launch the project. “Collaboration with media partners around the world allows us to expose a bunch of secrets — in depth. There is no way any individual reporter or media organization could have done this.”

To stay on top of the story we naturally urge you to use the special website created for the Panama Papers by the ICIJ. There you can find a list of all the media organizations involved and all the reporters involved around the world.

The Twitter hashtag #PanamaPapers is trending and valuable to keep track of it.

Stories I’d recommend that we’ve published so far include:

ICIJ partners across the world have reported material from their own countries and overall on the leak. None more so than Munich, Germany, newspaper Suddeutsche Zeitung to whom the original leak was entrusted and whose editors then brought in the ICIJ. SZ’s English-language explanation of the project is crucial to understanding why we have done this work.

The Center and the ICIJ are non-profit journalism groups dedicated to non-partisan and independent journalism. In this report as in all others we let our journalism do the talking. If you’d like to support this kind of work please consider supporting us: Donate.

 

 

People gathered in Reykjavik to demonstrate against Iceland's prime minister, after revelations of tax avoidance published in the Panama Papers, on Monday, April 4, 2016.Peter Balehttps://www.publicintegrity.org/authors/peter-balehttps://www.publicintegrity.org/2016/04/06/19537/center-public-integrity-s-icij-rocks-world-panamapapers

Inside Hillary Clinton's big-money cavalry

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On April 12, 2015, Hillary Clinton formally launched her latest presidential bid, naming her official campaign committee Hillary for America.

But more than a dozen other groups supporting Clinton’s effort to win the presidency — some directly, others not so much — had previously sprung into existence, or did soon after.

They come in a variety of organizational flavors: political action committees, super PACs, corporate entities, “social welfare” nonprofits — even 501(c)(3) nonprofits, best known for performing charitable or educational work.

Some take advantage of the Supreme Court’s 2010 decision in Citizens United v. Federal Election Commission and raise unlimited amounts of money from corporations, unions and billionaires and spend the cash to directly advocate for or against political candidates.

Among the most notable pro-Clinton organizations in operation this election:

Priorities USA Action

Type: super PAC

In 2012, it served as the flagship super PAC backing President Barack Obama’s re-election. By early 2014, Priorities USA Action had transitioned into a pro-Clinton super PAC in waiting. It’s run by Guy Cecil, a top aide to Clinton during her 2008 presidential run. Key board members rebooting the group include Obama campaign manager Jim Messina, former Michigan Gov. Jennifer Granholm, political strategist and Clinton loyalist David Brock, American Federation of Teachers President Randi Weingarten and Emily’s List President Stephanie Schriock.

While it’s girding for a general election battle against the Republican Party’s eventual nominee, Priorities USA Action has also spent more than $5.5 million through March to advocate for Clinton during her Democratic primary fight against Sen. Bernie Sanders of Vermont.

As a super PAC, Priorities USA Action must disclose its donors. But not all of its donors disclose their donors. It accepted a $1 million contribution from Fair Share Action, a super PAC funded by two “social welfare” nonprofits that don’t comprehensively reveal who funds them. It likewise took in six-figure contributions from corporations such as Suffolk Construction Company Inc. ($200,000) and TA Group Services Inc. ($100,000). Through February, Priorities USA Action has received more than $7 million from unions or union-controlled super PACs.

Priorities USA Action has also received seven-figure contributions from more than 20 individual donors, including billionaire financier George Soros ($7 million), Dreamworks Animation CEO Jeffrey Katzenberg ($1 million) and film legend Steven Spielberg ($1 million).

As of early April, Priorities USA Action has so far reserved $8.8 million worth of general election-focused TV ad time. That time is reserved in August and beyond on TV stations in Ohio, Iowa, New Hampshire, Nevada and Colorado markets, an analysis of Federal Communications Commission documents indicates.

In defending pro-Clinton super PACs’ fundraising, Michael Vachon, a spokesman for Soros, said they “disclose all information that the law requires them to disclose. They are playing by the rules of the game as they exist.” Vachon added that Soros is supporting pro-Clinton super PACs because “Mr. Soros believes Hillary Clinton is the most qualified candidate to be president.”

(The Center for Public Integrity receives funding from the Open Society Foundations, which Soros funds. A complete list of Center for Public Integrity funders is found here.)

Ready for Hillary PAC / Ready PAC

Type: hybrid PAC

Nearly two-and-a-half years before Hillary Clinton officially announced, Ready for Hillary PAC formed to promote a potential Clinton presidential bid, organize supporters and build a massive trove of information about those supporters. The super PAC accomplished its mission: By the time Clinton announced, it had amassed data on nearly 4 million people. It changed its name to “Ready PAC” and began to wind down its operation, although not completely.

In his self-published book, Ready for Hillary: The Official, Inside Story of the Campaign Before the Campaign, former Ready for Hillary PAC spokesman Seth Bringman said his super PAC gave the information to Emily’s List — a PAC that backs Democratic women that support abortion rights — “to make sure none of the hard work of our supporters was lost and to make sure that this list was ultimately available to the campaign.” Emily’s List likewise inherited Ready for Hillary PAC’s social media platforms, Bringman wrote. Clinton’s campaign obtained Ready for Hillary PAC’s database through Emily’s List, Ready for Hillary PAC spokeswoman Nicole Titus confirmed.

Ready for Hillary PAC capped contributions at $25,000 per donor. The vast majority of its contributions came from individuals, but dozens also came from limited liability companies and other corporate entities, the leaders of which are often difficult to decipher. It also earned hundreds of thousands of dollars by renting supporters’ personal information to other political groups, including the Democratic Congressional Campaign Committee and End Citizens United PAC, an outfit run by Democratic party operatives that some campaign reformers have sharplycriticized for its fundraising techniques. It likewise earned $105,000 allowing a for-profit company MOKO Social Media Inc. to email its supporters.

In 2014, Ready for Hillary PAC decided that being a super PAC wasn’t super enough. So it pulled a page from conservatives’ political playbook and converted itself into a “hybrid PAC.” Now, Ready for Hillary PAC could make direct contributions to other political groups. And donate it did, soon scattering tens of thousands of dollars among federal- and state-level Democratic Party committees and super PACs, as well as state- and federal-level candidates’ campaigns.

Ready for Hillary PAC’s largest initial contribution — $25,000 — benefited Jack Hatch, a Democrat then running for governor in Iowa, which conducted the presidential election’s first-in-the-nation caucus. Hatch lost, but he later endorsed Clinton, who narrowly won the Iowa caucus over rival Sanders.

From its creation in early 2013 through Dec. 31, 2015, Ready for Hillary PAC raised $16.37 million and spent nearly $16 million.  It’s next scheduled to update its finances by April 15.

American Bridge 21st Century

Type: super PAC

The group describes itself as “a progressive research and communications organization committed to holding Republicans accountable for their words and actions.” More simply: It’s a massive opposition research operation that its former president Brad Woodhouse toldThe Nation overshadows the capabilities of national party committees and candidates’ own campaigns.

While not exclusively focused on the presidential race, much of the super PAC’s recent efforts have targeted Donald Trump. It’s also produced a string of web videos tying Republican U.S. Senate candidates to Trump. American Bridge 21st Century employs a team of employees who track Republican presidential candidates, taking video of them all the while.

During 2015, American Bridge 21st Century raised nearly $10.5 million and spent more than $10.1 million. American Bridge 21st Century Foundation, a sister nonprofit that doesn’t disclose its donors, gave the super PAC more than $2.9 million to offset overhead and staffing expenses, federal records indicate. Soros gave the super PAC $1 million. Unions are also big contributors, and in December, Clinton’s own campaign paid the super PAC $22,211 for “research services.” American Bridge 21st Century must disclose its finances for January, February and March by April 15.

While Clinton has said almost nothing about American Bridge during the 2016 campaign, she expressed excitement about its formation in 2010. “That’s a good launch story! Congrats to all,” Clinton wrote in 2010 to Sidney Blumenthal, a friend and confidant, in response to a New York Times article about American Bridge that he emailed her.

American Bridge 21st Century Foundation

Type: 501(c)(4) “social welfare” nonprofit

American Bridge 21st Century Foundation has given its sister super PAC nearly $3 million so far this election cycle to offset staffing and overhead costs, according to federal records. American Bridge 21st Century Foundation does not disclose its donors, which means the American Bridge 21st Century PAC is benefiting from what’s commonly known as “dark money.”

It also does its own political work, sponsoring an effort it dubs “Bridge Project” that is “dedicated to opposing the conservative movement’s extreme ideology and exposing its dishonest tactics.” It also tracks the political activities of major Republican political organizations and individual donors such as David and Charles Koch, sometimes criticizing them for their use of “dark money.”

American Bridge 21st Century Foundation’s most recent federal tax filing, which covers the period from July 1, 2013, to June 30, 2014, indicates it raised about $3.3 million during that time. It reported net assets of $572,546 as of June 30, 2014, with Brock, as chairman and treasurer, drawing a salary of $80,097 for an average of 10 hours of work per week, the filing indicates.

While it hasn’t recently funded its own political messaging, American Bridge 21st Century Foundation did sponsor an anti-Mitt Romney ad during the 2012 presidential election.

Correct the Record

Type: hybrid PAC

More than any other Clinton group, Correct the Record is most directly tied to Clinton’s campaign committee. Although federal law prohibits super PACs and candidates from coordinating paid messaging, Correct the Record nevertheless argues that it can work with the Clinton campaign to produce and publish material posted online for free — and it does.

In December, super PAC Priorities USA Action donated $1 million to Correct the Record. The Clinton campaign itself gave Correct the Record more than $281,000 last year for “research” services. American Bridge 21st Century is also a contributor.

Lately, it’s been highly critical of both Trump and Sanders. Correct the Record has not aired television or radio advertisements as pro-Clinton super PACs such as Priorities USA Action have.

Founded by Brock and once a project of American Bridge 21st Century, Correct the Record became its own entity in 2015, billing itself as a “strategic research and rapid response team designed to defend Hillary Clinton from baseless attacks.” Brock tapped Democratic operative Brad Woodhouse to run Correct the Record, and Kathleen Kennedy Townsend, the former lieutenant governor of Maryland, became its chairwoman. Also involved: longtime Bill Clinton adviser James Carville.

Through Dec. 31, Correct the Record has this election cycle raised $3.4 million and spent about $3.1 million. It must report its finances for the first three months of 2016 by April 15.

Emily’s List / Women Vote!

Type: PAC / super PAC

When Clinton announced her presidential run in April 2015, Ready for Hillary PAC (now Ready PAC) gave information it collected on nearly 4 million supporters not to Clinton’s own campaign, but to Emily’s List, a PAC that aims to elect Democratic women who support abortion rights.

Emily’s List is also a money-in-politics pioneer. In early 2010, it created one of the nation’s first super PACs — going so far as to fund it even before a federal court formally legalized super PACs. The term “super PAC,” moreover, hadn’t even yet been coined.

That super PAC is now known as Women Vote!, which ended February with nearly $2.4 million in reserve. It has already spent nearly half a million dollars this election overtly promoting Clinton, according to federal filings.

Planned Parenthood Votes

Type: super PAC

Planned Parenthood’s super PAC is working in conjunction with the Priorities USA Action super PAC. Last month, for example, they jointly released an online advertisement costing “five figures” targeting Donald Trump. Much of Planned Parenthood Votes’ recent presidential advocacy efforts have focused on online ads and phone calls promoting Clinton or attacking Republican presidential candidates, federal disclosures indicate.

Entering March, Planned Parenthood Votes reported having more than $3.3 million on hand. Top donors this year include the son of billionaire financier George Soros, Jonathan Soros ($1 million), and hedge fund managerLarry Lebowitz ($250,000).

Citizens for Responsibility and Ethics in Washington

Type: 501(c)(3) nonprofit

In 2014, Brock assumed control of this nonpartisan, nonprofit watchdog, which had aggressively targeted Republicans, but Democrats, too. Many key staffers left soon after Brock became its chairman, and since then, the organization has almost exclusively pursued Republicans and conservative organizations through federal complaints and its own investigations, a Center for Public Integrity analysis of its activity indicates.

CREW does not reveal its funders. But the most recent available Internal Revenue Service tax filings submitted by various entities offer some clues that CREW receives significant financial support from prominent Democrats. For example, the Bohemian Foundation of Colorado, led by Democratic megadonor Pat Stryker, gave CREW $200,000 during 2014. Stryker, this election cycle, has so far donated more than $1 million to pro-Clinton super PACs. The California-based Arkay Foundation, led by Democrat backer Marian Penn, gave CREW $35,000 during 2013.

CREW’s most recent tax filing indicated it had $572,546 in net assets as of June 30, 2014.

Asked about his involvement with the watchdog group, Brock said that in his “interaction in the day to day business of CREW, I have not made any restrictions about who CREW could or should bring complaints against or comment on … it remains focused on corruption and corporate influence, wherever we find it.”

Brock declined to specifically address a question about CREW’s previous involvement in obtaining information about Clinton’s email when she served as secretary of state.

American Democracy Legal Fund

Type: 527 political committee

Created in 2014 by Brock, and headed by Correct the Record leader Woodhouse, the group aims to “hold candidates for office accountable for possible ethics and/or legal violations.” This election, it’s filed individual complaints against the presidential campaigns of Republicans Ben Carson, Jeb Bush, Marco Rubio, John Kasich and Donald Trump, as well as several super PACs supporting various Republican candidates. In August, it asked the FEC to investigate what it described as“continuous and ongoing illegal coordination between the RNC, Republican political candidates, campaigns and state parties, as well as numerous outside groups.”

But in late March, it turned its efforts against Sanders, accusing his presidential campaign of violating federal campaign laws by not including a disclaimer on a Facebook advertisement it sponsored.

The group’s two known contributions come from American Bridge 21st Century ($50,000) and the National Education Association ($25,000).

Media Matters for America

Type: 501(c)(3) nonprofit

Brock created Media Matters for America in 2004, and since then, it’s dedicated itself to “comprehensively monitoring, analyzing and correcting conservative misinformation in the U.S. media.” While it tackles a wide variety of topics and conservative actors, rarely has a day gone by lately when Media Matters for America hasn’t come to Clinton’s defense in some form or fashion. Comparatively, it hasn’t defended Sanders nearly as often, although it periodicallyhasduringrecent months.

Media Matters is housed in the same office as American Bridge 21st Century, Correct the Record and Citizens for Responsibility and Ethics in Washington. As of Dec. 31, 2014, Media Matters for America had about $3.2 million in net assets, according to its most recent federal tax filing.

Blue Nation Review

Type: Primarily owned by a limited liability company

In November, True Blue Media LLC — owned by Brock — bought a majority stake in Blue Nation Review, a liberal news website previously owned by MOKO Social Media Inc. Blue Nation Review editor Jimmy Williams soon left, replaced by former Hillary Clinton adviser Peter Daou.

Williams said in an interview that he didn’t play favorites with Democratic candidates. Since Brock’s group took Blue Nation Review over, much of its content has been highlycritical of Sanders and supportiveof Clinton.

Brock declined to address his purchase of Blue Nation Media. Daou did not respond to requests for comment.

The Bonner Group

Type: Nonprofit

Run by Brock ally Mary Pat Bonner, the firm provides fundraising services for Ready for Hillary PAC, Correct the Record and American Bridge 21st Century PAC, according to federal campaign finance disclosures. It’s also provided similar services to Media Matters for America, The New York Times reported. It is registered as a nonprofit, although it has earned millions of dollars for the work it’s done over the years on behalf of Democratic clients.

Bonner and Brock share a rental house in the Hamptons, The New York Times reported.

American Independent Institute

Type: 501(c)(3) nonprofit

Launched anew in 2014 by Brock, the American Independent Institute provides grants and support to journalists who seek to expose "the nexus of conservative power in Washington.”

Sources: Center for Public Integrity reporting, Federal Election Commission, Internal Revenue Service, Sunlight Foundation, Center for Responsive Politics, The New York Times, Politico, The Washington Post.

Cady Zuvich and Oghene Oyiborhoro contributed to this report

This story was co-published with NBC News

Democratic Presidential hopeful Hillary Clinton at a rally for grassroots supporters at Alexandria Market Square in Alexandria, Virginia on October 23, 2015.Dave Levinthalhttps://www.publicintegrity.org/authors/dave-levinthalhttps://www.publicintegrity.org/2016/04/07/19528/inside-hillary-clintons-big-money-cavalry

How ‘Citizens United’ is helping Hillary Clinton win the White House

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Hillary Clinton fashions herself as the ultimate general in a war against big-money politics.

“You're not going to find anybody more committed to aggressive campaign finance reform than me,” Clinton said following the New Hampshire primary.

But the Democratic presidential front-runner stands poised to bludgeon her general election opponent with Republicans’ favorite political superweapon: the Supreme Court’s Citizens United decision, which earlier this decade launched a new era of unbridled fundraising.

Clinton’s massive campaign machine is built of the very stuff — super PACs, secret cash, unlimited contributions — she says she’ll attack upon winning the White House.

Indeed, a Center for Public Integrity investigation reveals that Clinton’s own election efforts are largely immune from her reformist platform. While Clinton rails against “unaccountable money" that is “corrupting our political system,” corporations, unions and nonprofits bankrolled by unknown donors have already poured millions of dollars into a network of Clinton-boosting political organizations. That’s on top of the tens of millions an elite club of Democratic megadonors, including billionaires George Soros and Haim Saban, have contributed.

Far from denouncing their support, Clinton has embraced it, personally wooing potential super PAC donors and dispatching former President Bill Clinton and campaign manager John Podesta on similar missions.

Several of the big-money groups crucial to the Clinton-for-president effort are led or advised by one man, Clinton scourge-turned-disciple David Brock, who’s also seized control of — and defanged, former staffers say — a prominent, nonpartisan watchdog group that helped lay groundwork for what’s become the Clinton email server scandal. Each of the groups plays a specific role, from advertising to opposition research, in bolstering the Hillary for America campaign committee Clinton herself leads.

Clinton’s campaign argues it “cannot afford to unilaterally disarm” and quit the big-money game. That, they say, is because powerful conservative interests, most notably the secretive outfits backed by billionaire brothers David and Charles Koch, plan to support the Republican presidential nominee with hundreds of millions of dollars. Republican front-runner Donald Trump, himself a billionaire, is burning his own wealth as campaign fuel.

“When she is elected president, Hillary Clinton will make it a priority to restore a government of, by and for the people,” spokesman Josh Schwerin told the Center for Public Integrity.

Not satisfactory, say some prominent liberals, whose reactions range from underwhelmed to apoplectic.

They cite Bernie Sanders as proof a Democratic presidential candidate can contend in elections mostly on the strength of small-dollar donations— and without cultivating support from super PACs and billionaires.

Clinton’s supposedly reform-minded campaign, they continue, has instead tolerated, if not encouraged, a Democratic operation akin to what the Koch brothers have wrought.

“It’d be like tobacco companies coming out and saying they wanted to fight against lung cancer,” said Dylan Ratigan, the former MSNBC television host and author of New York Times bestseller Greedy Bastards, who hasn’t yet endorsed a presidential candidate. “In a way, the Koch brothers have more credibility than Clinton on election money issues — they’re at least upfront about how they want to use money to buy politics.”

A Center for Public Integrity/Ipsos poll conducted in late February indicates many potential general election voters are likewise concerned about how serious Clinton is about remaking the nation’s campaign system —a monumental challenge under any circumstance, but a goal supported by the vast majority of Americans.

Half of all poll respondents overall — and nearly four in 10 self-identified Democrats — said Clinton is relying on super PACs and big money too much. That compares to 18 percent overall who said Clinton is relying on them the “right amount” and 5 percent who said “too little.”

And when asked, “If elected president, which of the following would do the most to reform the campaign finance system and make it less reliant on big money?” Clinton trailed both Sanders and Trump among respondents.

The situation has frightened some conservatives, who see Clinton evolving into a sort of Madam Strangelove, worrying little about lefty protestations while learning to love her backers’ money bombs. Almost never, they note, does Clinton speak ill — or at all — of the specific super PACs supporting her and itching to damage Republicans.

And she almost never speaks out against pro-Clinton money that’s difficult, if not impossible, to trace to a flesh-and-blood source, such as corporate treasury dollars or donations from “social welfare” nonprofits that may, by law, hide their own contributors from public view.

Call it pragmatism, call it ruthlessness. By any name, Clinton’s acceptance of big-money politics means trouble for Republicans, who’ve been reveling all decade in the Supreme Court’s 2010 decision in Citizens United v. Federal Election Commission.

The ruling freed corporations, unions and certain nonprofits to raise and spend unlimited amounts of money to advocate for and against political candidates. Conservatives have embraced Citizens United more widely than liberals, many of whom consider poorly regulated political money a poison that weakens democracy.

What initially prompted the high court’s decision? A dispute over a decidedly anti-Clinton movie that a conservative nonprofit organization called Citizens United wanted to broadcast during the 2008 presidential primaries.

“Wouldn’t you know that Hillary Clinton has become one of the greatest beneficiaries of the Citizens United Supreme Court decision,” Citizens United President David Bossie said. “It is an irony that is not lost on me.”

A ‘Milky Way’ of Clinton groups

During the 2016 election cycle, most presidential candidates have enjoyed support from super PACs created for one reason: to supercharge the candidates’ campaigns.

The development represents the full flourishing of a trend that began during the 2012 presidential election. While technically separate from the campaigns they back — federal law prohibits super PACs and campaigns from coordinating most spending — the super PACs are legally independent, but often run by friends, associates or former staffers of the presidential candidate being supported.

And Clinton has been a trailblazer: Three cash-flush super PACs, stacked with Clinton allies, exist almost exclusively to strengthen Clinton’s presidential effort.

Priorities USA Action, for example, is an advertising juggernaut that’s already spent millions helping Clinton secure the Democratic nomination. Ready for Hillary PAC (now Ready PAC) organizes and collects information from grassroots supporters. Correct the Record serves as a political SWAT unit attacking those who attack Clinton.

A fourth super PAC, American Bridge 21st Century, aides Democratic candidates in general with opposition research — and was praised by Clinton at its outset.

That group’s recent efforts largely focus on researching, tracking, embarrassing and damaging candidates competing in the Republican presidential primary. Barring a contested Republican National Convention where a non-candidate fantastically becomes the nominee, one will face Clinton in the general election.

These four core pro-Clinton super PACs have together raised more than $86 million toward Election 2016, according to a Center for Public Integrity analysis of the groups’ most recent filings with federal regulators. The true figure is almost certainly larger — significantly larger — because three of the four super PACs haven’t yet disclosed money they’ve raised since Jan. 1.

Of this known haul, about $14 million collectively — about one of every six dollars raised — comes from dozens of corporate, union or nonprofit sources. Tracking these contributions to a human source ranges from relatively easy to effectively impossible.

And these pro-Clinton super PACs are intimately linked.

Two of them — American Bridge 21st Century and Correct the Record — share space in a Washington, D.C., office building at 455 Massachusetts Ave. NW— “its exquisite interior is appointed with materials of the finest quality,” building developers boast.

Federal records show all four super PACs regularly shuttle millions of dollars in cash and resources among themselves. This means an initial, anonymous contribution to one super PAC can flow through any of the rest before it’s finally used to help Clinton.

Consider the $1 million Priorities USA Action gave Correct the Record in December. Correct the Record, in turn, gave American Bridge 21st Century $400,000 later that month.

Priorities USA Action and Correct the Record, which is pushing legal boundaries by coordinating many of its efforts directly with Clinton’s campaign, have even formed a federal joint fundraising committee called American Priorities 16, a vehicle that allows the two groups to more seamlessly solicit donations and swap resources.

No tie binds these groups closer than Brock, the Clinton ally who either leads or has advised or assisted them all. The irony here is rich: Brock publicly hounded the Clintons during the 1990s before transforming himself from an unabashed conservative into a blue-streaked liberal.

Brock is also involved with several nonprofit organizations friendly to Clinton’s cause, such as Media Matters for America, which tracks conservative communications, and the American Independent Institute, which funds journalism exposing “the nexus of conservative power in Washington.” Brock’s American Democracy Legal Fund — a political group managed by Correct the Record chief Brad Woodhouse and funded in part by American Bridge 21st Century — last month slapped Sanders with a Federal Election Commission complaint accusing his campaign of violating federal campaign laws.

Another key Clinton supporter is Emily’s List, a political fundraising operation that helps fund the campaigns of Democratic women who support abortion rights. It’s partnering with Priorities USA Action on a project to mobilize women voters on Clinton’s behalf. It also formed a federal joint fundraising committee with Priorities USA Action.

Additionally, super PAC Planned Parenthood Votes, which supports multiple Democratic candidates, has spent more than $1.2 million on pro-Clinton efforts this election. Planned Parenthood has endorsed Clinton and works closely with Priorities USA Action.

“She doesn’t just have a constellation, she has a galaxy — a Milky Way — of this outside funding,” says former Rhode Island Gov. Lincoln Chafee, who ran against Clinton in the Democratic presidential primary and dropped his bid in October.

Leaders of the pro-Clinton super PACs say they serve an essential purpose: efficiently and effectively defending her against Republicans who will use the Citizens United decision against Clinton to the greatest extent possible.

Clinton, they continue, also can’t be expected to battle unlimited political money with limited resources — the most a presidential candidate’s own campaign may accept from an individual donor during the general election is $2,700.

Brock, for his part, says he’s “very proud of the progressive infrastructure” that he’s helped build in a bid to aid Clinton.

After the Citizens United decision, Brock said, Democrats and liberals had a choice.

They could bury their “collective heads in our ideals and principles and cede the new political reality to the likes of Karl Rove and the Koch brothers or play by the rules as they are and play to win,” Brock said. “We made the decision, the correct and only one in our view, to play by the rules as they are and play to win so that progressives can gain enough political power to move America forward in a number of critical areas including campaign finance reform.”

Added Justin Barasky, a Priorities USA Action spokesman: “To think we’re not going to fight back against those attacks would be political malpractice. We’re not going to allow Republicans to buy an election.”

Barasky said that Priorities USA Action, which is led by former Clinton aide Guy Cecil, does support Clinton’s campaign finance reform platform. Barasky also noted that the super PAC’s leaders recently shut down its sister nonprofit, Priorities USA, which had accepted millions of dollars in undisclosed contributions while it was still largely a vehicle for supporting President Barack Obama and his political agenda.

Michael Briggs, a Sanders spokesman, says he’s not buying it.

Priorities USA Action, he notes, has spent huge quantities of money to promote Clinton not in the general election against a Republican, but in key Democratic primary states where she was competing against Sanders. (Priorities USA Action has spent more than $5.5 million to boost Clinton, FEC disclosures show.)

“We found a way to raise significant amounts of money from small donors,” said Briggs, adding that Sanders’ average contribution today is still close to, if not exactly, the $27 figure Sanders loves to tout from the campaign trail. “Clinton’s super PACs — it’s clearly a way for her to raise a lot of special interest money from a system that’s corrupt. This reliance, and the secrecy, raises the same questions that are raised about why she won’treleasetranscripts of her paid speeches to Wall Street executives.”

Heading into March, Clinton’s own campaign committee had raised about $160 million to the Sanders campaign’s $140 million.

But super PACs supporting Clinton had together raised tens of millions of additional dollars while no super PACs exist to primarily back Sanders.

One key Clinton super PAC backer has received particular attention from Clinton.

On July 2, Clinton personally wrote Saban, who with his wife, Cheryl, has contributed $5 million to Priorities USA Action this election cycle. Clinton’s letter solicited Saban’s “thoughts and recommendations” on how to counter the “boycott, divestment and sanction” movement against Israel’s presence in Palestinian territory.

“I will be speaking out publicly on this issue in the weeks ahead, so I am eager to hear your perspective and advice,” Clinton wrote Saban, adding in a handwritten postscript: “Looking forward to working with you on this.”

The letter came three days after Saban, a billionaire TV mogul, and his wife together contributed $2 million to Priorities USA Action.

An uneasy relationship

On the campaign trail, and on her own terms, Clinton alludes to shadowy political money as the currency of a modern right-wing conspiracy.

“We have to end the flood of secret, unaccountable money that is distorting our election, corrupting our political process, drowning out the voices and votes of people,” Clinton said in a speech last year.

“As president, I'll appoint Supreme Court justices who recognize that Citizens United is bad for America. And if necessary, I'll fight for a constitutional amendment that overturns it,” Clinton wrote in a CNN op-ed piece marking the sixth anniversary of the Citizens United decision.

“Big surprise: A flood of money from rich people, corporations, special interests has poured into our politics,” Clinton said during a speech last month in Madison, Wisconsin. “The idea, I believe, that money is speech turns our Constitution upside down … the Supreme Court has given the wealthiest Americans even greater power to affect what happens in our democracy.”

But Clinton and her campaign often bristle at direct inquiries about her campaign’s relationship with super PACs and other big-money political forces that support her.

At a Democratic debate Feb. 11 in Milwaukee, for example, Clinton parried PBS News Hour anchor Judy Woodruff’s inquiry about millions of dollars liberal financiers George Soros and Donald Sussman have poured into Priorities USA Action.

(The Center for Public Integrity receives funding from the Open Society Foundations, which Soros funds. A complete list of Center for Public Integrity funders is found here.)

“You're referring to a super PAC that we don't coordinate with, that was set up to support President Obama, that has now decided that they want to support me,” Clinton said. “They are the ones who should respond to any questions. Let's talk about our campaigns.”

When Sanders later pressed her about Priorities USA Action, she shot back: “It's not my PAC.”

Schwerin, Clinton’s spokesman, declined to address specific Center for Public Integrity questions about secret and tough-to-track money that super PACs are using to support her candidacy.

He likewise declined to answer questions about Brock, the leader of many pro-Clinton organizations.

Such responses fit the pattern of Clinton’s campaign: Eschew talk of the cash-flush political groups orbiting her campaign, or even in general about super PACs and the like.

This proves especially true when Clinton is face-to-face with Sanders, who often antagonizes her about her paid speeches to Wall Street executives, connections with wealthy supporters and support from big-spending groups that wouldn’t exist in their current forms but for Citizens United.

A Center for Public Integrity analysis of Democratic presidential debate transcripts indicates that Sanders almost always mentions the Citizens United decision, super PACs and other money-in-politics topics more than Clinton does.

Technically, Clinton is correct about her relationship with super PACs: Federal law prohibits her, or any presidential candidate, from commanding and controlling super PACs that back them. (Even Sanders receives modest support from superPACs and “dark money” nonprofits and he can’t legally force them to stop.)

But many do the next best thing: Both Clinton and most of her Republican counterparts have instead stood by, without quarrel, as close political operatives and intimates fuel and run supportive super PACs.

Priorities USA Action paid Paul Begala, a close Clinton friend, $200,000 for “communications consulting” work from January 2014 to August 2015, FEC records show. Begala alsoaided Ready for Hillary PAC.

During that time and beyond, Begala also worked as an on-air political contributor for CNN, frequently commenting on Clinton, her opponents and the presidential race in general — and not always disclosing his relationship with Priorities USA Action or Ready for Hillary PAC.

How close are Clinton and Begala? Close enough that Begala on April 28, 2009, asked Clinton associates at the U.S. State Department for “a briefing on what HRC has accomplished in the first hundred days” of her tenure as secretary of state.

He’d be talking about Clinton on an upcoming CNN special, he explained.

Twelve minutes later, an aide forwarded Begala’s message to Clinton’s top advisers, including Huma Abedin, Philippe Reines, Cheryl Mills and P.J. Crowley. Begala apparently got what he wanted, writing back to say, “PJ can give me what I need.”

Begala then appeared on CNN April 29 to discuss Clinton’s performance. Afterward, he emailed Mills with an update.

“I gave Sec. Clinton an A+ in our dopey CNN report card last night,” he told her in an email, released after a federal judge ordered the State Department to publish most emails Clinton wrote and received from a private address she used for official business.

“Xo,” replied Mills, Clinton’s chief of staff.

Finally, Mills forwarded the email chain to Clinton herself at Clinton’s now-notorious private email address — the contents of which were housed on a private server in her New York state home that’s now the subject of an FBIinvestigation.

Shining light on Clinton ‘dark money’

A look at specific contributions to the super PACs supporting Clinton shows just how difficult it can be to unravel who is really writing the checks.

For example, federal records show that on June 29, super PAC Priorities USA Action received $1 million from an outfit called Fair Share Action.

Fair Share Action, too, is a super PAC — a liberal one that says it works to “elect public officials who stick up for working families.” The big check followed its earlier $5,000 contribution to Ready for Hillary PAC.

So who funds Fair Share Action? During 2015, a pair of “social welfare” nonprofits alone bankrolled it: Environment America Inc. ($800,000) and Fair Share Inc. ($300,000).

But neither Environment America Inc. nor Fair Share Inc. is required to comprehensively or publicly reveal its donors, because as “social welfare” groups that can’t primarily focus on electoral politics, federal law says they don’t have to. (Several other environmentally minded nonprofits give to Environment America Inc., federal tax filings indicate.)

Wendy Wendlandt, acting director for both Fair Share Action and Fair Share Inc., declined to volunteer the names or contribution amounts of Fair Share Inc.’s donors.

Wendlandt did say that both Fair Share Inc. and Environment America Inc. are “largely funded by individual members” with money “raised in teeny, tiny contributions.” Neither group, she continued, accepts for-profit corporate contributions.

“It’s important to distinguish between grassroots groups like Environment America and Fair Share which are truly organized with a social mission and those organizations which are specifically set up to shield political donors,” Wendlandt said, adding that Fair Share Inc. supports proposed laws requiring “social welfare” nonprofits to disclose donors who fund electioneering efforts. “However, until such laws are enacted, we do not turn away any donation which is legal and motivated by a desire to further the public interest.”

Barasky of Priorities USA Action declined to comment on Fair Share Action’s contribution.

Priorities USA Action also received $200,000 last year from the corporate treasury of Suffolk Construction Company Inc., a Boston-based firm with a portfolio filled with dozens of completed private sector and public sector projects, including facilities operated by the federal government.

Government contracting records indicate that the federal government has awarded Suffolk Construction more than $168.8 million worth of contracts since fiscal year 2008.

Officials at Suffolk Construction repeatedly declined to explain why the company contributed money to Priorities USA Action.

One clue: Federal records show Suffolk Construction’s John Fish is a major political bankroller, having personally donated hundreds of thousands of dollars to federal candidates and committees over the years. Fish, who the Federal Reserve named chairman of the board of the Federal Reserve Bank of Boston, did not return requests for comment.

Most of Fish’s contributions went to Democrats, including Clinton’s presidential campaign. But Fish also last year contributed to the presidential campaigns of Sen. Marco Rubio, R-Fla., and Gov. Chris Christie, R-N.J.

Priorities USA Action’s Barasky again declined to comment.

Other pro-Clinton super PAC contributions listed in federal disclosure documents are more modest but similarly opaque, their true sources hidden within a tangle of corporate acronyms and aliases.

Take a $5,000 contribution last year to Ready for Hillary PAC from “RMS” in Cleveland, Ohio.

The hunt for answers begins at R.M.S. Aquaculture— “Cleveland’s aquarium superstore!” But a man answering the phone there expressed confusion about the contribution and insisted the company had never donated to Ready for Hillary PAC, or any super PAC.

There is another RMS in Cleveland, state incorporation documents indicate. This RMS’ address tracks to a building where real estate developer Forest City also has offices.

Turns out there’s a connection between the two companies: Forest City spokesman Jeff Linton confirmed that RMS more or less functions as a “family office” for the Ratner family, which founded Forest City.

Several family members are frequent political contributors, federal records show, donating to both Democrats and Republicans. Albert Ratner, for example, personally has given nearly $120,000 to New Day for America, a super PAC supporting GOP presidential candidate and Ohio Gov. John Kasich. He’s also donated $2,700 to the campaign committees of both Kasich and Clinton.

Ready for Hillary PAC spokeswoman Nicole Titus declined to discuss specific contributions received by the PAC, but noted that it accepted donations from more than 130,000 contributors and built “an early network of supporters who were ready to begin working” the moment Clinton announced her candidacy.

Ready for Hillary PAC also received $5,000 in 2014 from “PCCC, LLC” of Brentwood, Tennessee.

The Price Cutter Charity Championship, a professional golf tournament in Missouri, is on the same Web.com Tour schedule as a tournament in Brentwood, Tennessee. But tournament director Jerald Andrews says it “has no connection whatsoever” to the pro-Clinton super PAC.

Is PCCC LLC an entity controlled by the Progressive Change Campaign Committee, a political group that pushes for liberal reforms and is aligned with Sen. Elizabeth Warren, D-Mass.? No, says co-founder Adam Green — it’s not his PCCC that’s behind the money.

There is a Dallas-based private equity company called Pharos Capital Group LLC.

The firm also has an office in Brentwood, Tennessee. Its address matches the one Ready for Hillary PAC listed for PCCC LLC. For two weeks, Pharos Capital Group LLC officials declined Center for Public Integrity requests to explain whether Pharos Capital Group LLC and PCCC LLC are one and the same.

An answer finally came in late March when Pharos Capital Group LLC Vice President Ryan Shelton acknowledged that PCCC LLC is a “related entity” controlled by Pharos Capital Group LLC Managing Partner Kneeland Youngblood, a frequent contributor to Democratic candidates, including Clinton.

The mini-mysteries continue with a $5,000 contribution Ready for Hillary PAC received in June 2014, from Victoria Pre-Owned Autos Inc. in Bergen County, New Jersey — the same day that a dozen other companies gave the super PAC money, federal records indicate. Donations ranged from $250 to $12,500.

Lucky Ugulu, one of Victoria Pre-Owned Autos Inc.’s partners, confirmed his company donated to the super PAC. He said he made it at the behest of his local Democratic party.

New Jersey Democratic State Committee spokesman Matt Farrauto said his committee doesn’t endorse candidates in primaries and made no such ask. Lou Stellato, chairman of the Democratic Committee of Bergen County, has endorsed Clinton, and did not return a message seeking comment.

As for Ugulu, he’d like his money back: business isn’t strong, and since making his contribution, he’s barely heard a peep from either the Clinton campaign or pro-Clinton super PACs. Ugulu says he’s now planning to skip November’s presidential vote.

“It’s just a system that asks for money and gives you nothing in return,” he said.

That’s not always the case, though.

In April, Ready for Hillary PAC earned $105,000 from MOKO Social Media Ltd., a for-profit firm with offices in Sydney, Australia; Alexandria, Virginia; and New York City.

What did MOKO get for its money?

Ready for Hillary PAC granted MOKO the right to email the PAC’s millions of supporters with up to eight commercial messages, according to a contract obtained by the Center for Public Integrity.

The messages would come from Blue Nation Review, a popular and unabashedly lefty news site that MOKO then owned. Ready for Hillary PAC also agreed to “retweet on Twitter and post on Twitter mutually agreed upon content produced by MOKO-owned property Blue Nation Review.”

The idea, MOKO founder Ian Rodwell told the Center for Public Integrity, was to promote content that was “relevant to the same audience.”

But MOKO only sent one email message, said Titus of Ready for Hillary PAC. And in November, MOKO sold most of its stake in Blue Nation Review to a new company called True Blue Media LLC.

Who owns True Blue Media LLC?

Clinton consigliere David Brock.

In acquiring Blue Nation Review, Brock now owned both a media property and remaining access to Ready for Hillary PAC’s millions of supporters.

He tapped Peter Daou, a former Clinton campaign operative, as Blue Nation Review’s editor.

Daou replaced Jimmy Williams, Blue Nation Review’s founder, an avowed Democrat and a Clinton supporter who nevertheless wasn’t willing to play editorial favorites with Clinton over Sanders.

In an interview, Williams said Brock made it clear to him that Blue Nation Review would not report on Democrats neutrally.

“It appears Blue Nation Review’s goal is to destroy Bernie Sanders, and I’m not willing to be a part of that,” said Williams, who now hosts the DecodeDC podcast. “I believe in the Reagan rule — do not speak ill of your party members — applied to Democrats.”

Indeed, Blue Nation Review now routinely publishes pieces slamming Sanders or lauding Clinton. Recent stories feature headlines such as “Integrity: Rachel Maddow Speaks Hard Truths About Bernie’s Campaign,” “Welcome: Republicans for Hillary” and “Is Bernie in Denial About Attacks on Hillary?

Brock declined to address his purchase of Blue Nation Media. Daou did not respond to requests for comment.

Defanged watchdog?

Brock also assimilated into his network another brand-name organization — Citizens for Responsibility and Ethics in Washington — that few would have previously mistaken as a Clinton cheerleader.

CREW, a nonpartisan, nonprofit government watchdog, routinely hounded Republicans, but pursueditsshareofDemocrats, as well.

And it was CREW, in December 2012, that filed a Freedom of Information Act request demanding U.S. State Department officials cough up information about email accounts Clinton used as secretary of state — an action that helped give wings to what, this election, has become Clinton’s unshakablepoliticalalbatross.

But after Brock became CREW’s chairman in August 2014, co-founder and Executive Director Melanie Sloan tendered her resignation. She officially quit in January 2015. And since Sloan departed, CREW has all but ignored liberal politicos.

Not so with conservatives: CREW has filed more than 20 formal complaints against various Republican politicians, Republican operatives or right-leaning political groups, a Center for Public Integrity review of CREW’s publicly disclosed activities indicates.

Among its targets: Christie, a political organization backing Rubio and a charitable organization led by Trump.

CREW’s most notable public actions against Democrats since January 2015 are comparatively tepid: It filed one complaint against a Democratic-aligned organization — a nonprofit supporting Jersey City, New Jersey, Mayor Steven Fulop — and scolded federally indicted Sen. Robert Menendez, D-N.J., and Rep. Chaka Fattah, D-Pa., in statements.

Meanwhile, the “CREW’s Most Corrupt” report, which the nonprofit had published every year in some form since 2005, ceased after Brock became CREW chairman. The report routinely lambasted liberal members of Congress, including some who’veendorsed Clinton this election, such as Reps. Maxine Waters, D-Calif., and Gregory Meeks, D-N.Y.

CREW’s operations immediately changed upon Brock’s arrival, said Anne Weismann, who was then the organization’s chief counsel, and briefly, acting executive director. She left CREW in 2015 and now works as executive director for the Campaign for Accountability, a nonpartisan government watchdog organization.

“From a blog item on up, it was made clear CREW was not to go forward with anything without Brock’s approval,” Weismann said. “We prided ourselves on being fearless and nonpartisan, and we were not afraid to go after Democrats. After Brock came, it was no longer the case at all … that we had that discretion. It’s unfortunate.”

Sloan, who now runs consulting firm Triumph Strategy, declined to comment.

Noah Bookbinder, who succeeded Sloan as executive director, says CREW remains “a very different kind of place than the other organizations David [Brock] works with.”

CREW’s focus, Bookbinder said, has somewhat shifted toward state-level affairs and money-in-politics matters and away from certain past projects, such as “CREW’s Most Corrupt” and investigating government email systems. All the same, Bookbinder says it’s important to him that CREW “maintain the independence and credibility that it’s always had.”

Today, Brock serves as board vice chairman of CREW, which last year moved into the same building as pro-Clinton Correct the Record and American Bridge 21st Century. Asked about his current involvement with the watchdog group, Brock said that in his “interaction in the day-to-day business of CREW, I have not made any restrictions about who CREW could or should bring complaints against or comment on. … It remains focused on corruption and corporate influence, wherever we find it.”

Real estate executive and longtime Democratic donor Albert Dwoskin became CREW’s chairman last year when Brock transitioned from chairman to vice chairman.

For his part, Dwoskin has donated more than $15,400 to Clinton’s campaigns and pro-Clinton political committees over the years, federal records indicate. That includes $2,700 — the legal maximum — to Clinton’s presidential campaign in April 2015. That also includes more than $10,700 worth of office space he contributed in-kind to Ready for Hillary PAC during 2013.

Wayne Jordan, a major Democratic Party donor, and David Mercer, a longtime Democratic operative with close ties to the Clintons, also joined CREW’s board in 2014, IRS records show.

Campaign reform activists underwhelmed

On the campaign trail, Clinton’s words should hearten souls that believe money isn’t speech and should be more heavily regulated by the government.

But Clinton has a problem: Her seemingly natural allies are balking.

A telling development occurred in late February, when Robert Reich, who served as labor secretary under President Bill Clinton, declined to support Hillary Clinton — and instead endorsed Sanders.

In doing so, Reich took a leave of absence from his post as chairman of Common Cause, one of the nation’s foremost campaign finance reform organizations.

If Clinton becomes the Democratic nominee, Reich says he’ll support her.

But he worried aloud about whether Clinton, as president, would ever fight like he believes Sanders would fight to overhaul campaign funding rules.

“It will not be easy for any candidate, especially one who has taken a lot of super PAC money, to disavow super PACs,” Reich told the Center for Public Integrity. “For Sanders, this issue is one of the central tenets of his campaign, and if he’s elected, he has a mandate to act. She does not.”

Among the more than 20 campaign finance reform group officials the Center for Public Integrity interviewed about Clinton in February and March, many offered some measure of understanding for Clinton’s situation — with several employing the “she can’t unilaterally disarm” talking point the Clinton campaign uses.

In other words: Better that Clinton play and win by the lousy election rules in place today and reform the system later than martyr herself on some altar of idealism.

“Her solutions are robust, and I believe it when she says she’ll follow through,” said Marge Baker, executive vice president for People for the American Way, which advocates for a constitutional amendment overturning Citizens United.

“We don’t expect her to lay down arms. We would like to see her elevate this issue into a centerpiece of her campaign,” said Adam Lioz, counsel and senior adviser at Demos.

Many others, stung by what they consider Obama’s underperformance on political transparency and campaign reform matters, have this advice for Clinton: Show us, don’t tell us.

They want to see a President Hillary Clinton sign an executive order requiring government contractors to disclose funding they give “dark money” political nonprofits.

They want to see her appoint new commissioners to the ever-gridlocked Federal Election Commission, where five of six commissioners continue to serve despite their terms having long ago expired.

And they most certainly want to see her engage congressional reform proposals, even if they’re relatively modest measures such as incentivizing people to make small-dollar political contributions.

“There are some things we need to see before we can figure out the level of her commitment,” said David Donnelly, president and chief executive of Every Voice.

Others are more skeptical. Much more skeptical.

“There’s nothing in her background that suggests this will be a top priority for her,” said Trevor Potter, president of the nonpartisan Campaign Legal Center and a former FEC chairman who served as general counsel for Republican U.S. Sen. John McCain’s 2008 presidential campaign.

“If her candidacy is any reflection of her personal priorities, she’s a hypocrite,” said Cyrus Patten, chief executive of Mayday.US, which works to elect hardcore campaign reformers. “My faith in her commitment to change is slim.”

Why, some asked, didn’t Clinton months ago attempt to build her reformist résumé by, say, proposing a super PAC détente with her Democratic rivals?

They pointed to a “People’s Pledge” agreement struck during the 2012 U.S. Senate race between Democrat Elizabeth Warren and then-Sen. Scott Brown, R-Mass.

“It’s a bit of a cop-out to say there’s no other option available” than to use the power of Citizens United, said Kaitlin Sopoci-Belknap, national director for Move to Amend. “All candidates have a choice.”

Harvard University professor Larry Lessig, who last year briefly sought the Democratic presidential nomination on an election reform-centric platform, agrees.

“[Clinton] runs a campaign where she avoids the issue wherever she can,” said Lessig, who wants to publicly fund congressional elections he considers gamed by corporate and other big-money interests. “If we don’t fix Congress, nothing else matters.”

Then there’s Cenk Uygur, host of liberal politics show “The Young Turks.” He offers this wager: “I bet my bottom dollar Hillary Clinton will do absolutely nothing to change the system,” Uygur said. “If you believe her, you’re a sucker.”

Schwerin, Clinton’s spokesman, defended her reform record.

He noted that as a U.S. senator, Clinton co-sponsored numerous bills aimed at enhancing donation disclosure and increasing public campaign financing.

She also co-sponsored perhaps the highest-profile piece of campaign reform legislation this century: the Bipartisan Campaign Reform Act of 2001— better known as McCain-Feingold.

“Hillary Clinton,” Schwerin said, “has spent her career fighting for campaign finance reform.”

Now what?

It’s not inconceivable that the existential threat Clinton supporters offer as justification for them adopting Citizens United-inspired campaign techniques — the Koch brothers’ political network — could stand down during the general election.

The Washington Postreports that the Koch-backed groups, such as Americans for Prosperity, are mulling whether to abandon Trump if Republicans make him their presidential candidate. Instead, Koch groups would pour their prodigious resources into U.S. House and U.S. Senate races. (Trump spokeswoman Hope Hicks declined to comment.)

Were such a situation to transpire, Clinton’s super PAC and nonprofit network could dominate in size and scope any of the entities Republicans currently have at their disposal, including super PAC American Crossroads and sister nonprofit Crossroads GPS, both of which were messaging powerhouses during the 2012 presidential election. Pro-Clinton Priorities USA Action is already skewering Trump.

Establishment Republicans say they’d have no qualms pummeling Clinton on this point or her broader embrace of Citizens United-driven electioneering.

“It undermines the central premise of what she’s saying about super PACs … it’s clear hypocrisy, and it’ll be a problem for her,” said Amelia Chassé, spokeswoman for America Rising PAC, a Republican super PAC specializing in “exposing the truth about Democrats through video tracking, research and communications.”

In the meantime, there’s one man who’s convinced Clinton will use every political weapon at her disposal in order to again reside at 1600 Pennsylvania Ave. — the father of super PACs.

“Seems she believes what she’s doing is not harmful for the system, and she doesn’t think it’s corrupting her,” said David Keating, an attorney whose 2010 federal court victory in SpeechNow.org v. FEC gave rise to super PACs. “If Hillary does get elected, I hope her positive experience in the campaign will convince her that the rules should be left in place the way they are.”

A version of this story was published with NBC News.

Dave Levinthalhttps://www.publicintegrity.org/authors/dave-levinthalhttps://www.publicintegrity.org/2016/04/07/19521/how-citizens-united-helping-hillary-clinton-win-white-house

Federal Election Commission dismisses complaint against rapper

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A divided Federal Election Commission has dismissed a complaint against rapper Pras Michel, a co-founder of the Fugees who funded a pro-Barack Obama super PAC in 2012.

A complaint filed last year by two campaign finance reform advocacy groups alleged that Michel had violated federal law by giving money to super PAC Black Men Vote through his company — known as SPM Holdings LLC — without disclosing that he was the source of the funds.

The super PAC spent $1.3 million during the 2012 election supporting Obama’s re-election. Since then, limited liability companies have increasingly been used to bankroll a range of liberal and conservative super PACs.

The FEC’s recent move, announced last week along with decisions in three other years-old cases involving super PAC donations from limited liability companies, shows how divided its six commissioners are on whether certain corporate vehicles are skirting political disclosure requirements.

The FEC’s three Democratic-appointed commissioners argued that Michel should be sanctioned for using his limited liability company to inject $875,000 into Black Men Vote during the fall of 2012 without identifying himself as the true source of the money.

But the commission’s three Republicans disagreed, as did the FEC’s office of general counsel.

The FEC’s Republican commissioners acknowledged that, “under certain circumstances,” LLC contributions to super PACs may violate the federal prohibition on giving money in the name of another donor.

But, they concluded, this case was not one of them.

Part of the reason why not? The FEC’s office of general counsel concluded that SPM Holdings LLC was “an active business entity” and “not merely a ministerial conduit or vehicle for transferring Michel’s contributions.”

Neil Reiff — a campaign finance lawyer retained by Michel, who had also donated $350,000 to Black Men Vote in the fall of 2012 in his own name — told the FEC that the rapper had used SPM Holdings LLC to make additional contributions because of “cash flow” reasons and “business convenience.”

In a letter to the FEC, Reiff called the complaint against Michel, which was brought by the Campaign Legal Center and Democracy 21, “baseless.” Reiff further argued that Michel was being used “as a pawn to conduct a public relations campaign” regarding the reform groups’ discontent with existing campaign finance laws.

Under what circumstances might a majority of the FEC’s six commissioners agree to a corporate LLC has been misused to violate campaign finance law?

It’s not exactly clear.

“The speech rights recognized in Citizens United would be hollow if closely held corporations and corporate LLCs were presumed to be straw donors — thus, triggering investigations and potential punishment — each time they made contributions,” wrote Republican commissioners Lee Goodman, Caroline Hunter and Matthew Petersen. “Because closely held corporations and corporate LLCs are constitutionally entitled to make contributions to super PACs, such contributions shall be presumed lawful unless specific evidence demonstrates otherwise.”

In the three other recently dismissed cases involving LLC donations to super PACs, the Republican commissioners voted against punishing the companies despite the fact that the office of general counsel urged the commission to find these contributors in violation of the law.

As in the case involving Michel, the Democratic-appointed commissioners supported sanctioning the donors in these three cases.

“Congress certainly did not intend for donors to be able to conceal their identities by routing their personal contributions through corporate entities,” wrote Commissioners Ann Ravel, Steven Walther and Ellen Weintraub. “The current law clearly prohibits contributors from using the names of LLCs to shield their identity from disclosure to the public.”

For decades, donors have been prohibited from making political contributions in the name of another person in order to evade contribution limits. Super PACs, which were created following the U.S. Supreme Court’s Citizens United v. FEC decision in 2010, are allowed to accept unlimited contributions from individuals, corporations and labor unions.

The fact that Michel was behind SPM Holdings LLC was first reported by the Center for Public Integrity last year.

Grammy Award-winning rapper Pras Michel, a founding member of the Fugees.Michael Beckelhttps://www.publicintegrity.org/authors/michael-beckelhttps://www.publicintegrity.org/2016/04/08/19541/federal-election-commission-dismisses-complaint-against-rapper

'The leak of the century'

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Leak of the Century

The Economist calls it “The Leak of the Century.” The International Consortium of Investigative Journalists called it “Prometheus” when it was a secret project, and the world now knows it as Panama Papers.

It is a monster project and an even bigger story: the biggest story in the world this week. Millions of Tweets, thousands of stories from the more than 100 ICIJ partners, tens of thousands of pick ups from the rest of the media and millions of video streams.

I’ve written to you, our staff, our board, our donors and partners before with updates this week so I won’t repeat those other than to say the story is still rolling. #resigncameron is trending on Twitter this morning after the British Prime Minister acknowledged— after much fudging of the issue — that he had benefited from offshore trusts the ICIJ team revealed his father had set up.

So far, the Icelandic prime minister has resigned, as have the head of Transparency International in Chile, a leading Austrian banker and a leading world football executive. The leak and our reports identify public officials, rulers, despots and democratically elected officials. Investigations have been launched by authorities around the world, conspiracy theories are multiplying and the impact has just begun.

What is clear though is the quality of the journalism of the ICIJ and its partners and the power of the network created over the years since Chuck Lewis founded the ICIJ and particularly in the past four years under the direction of Gerard Ryle and Marina Guevara Walker. The fact 370 journalists around the world could work in the same enormous project, in private and securely, and the leak not leak is astounding. It is a testament to the trust and strength Gerard and his entire team have built into the platform and the relationships with our partners.

I am going to take the risk of calling out Mar Cabra, Matthew Caruana and Rigoberto Caraval for their work on that platform. The entire ICIJ team stands behind this work and they are all identified here, as are our media partners here.  

It is important to remember how small the ICIJ team is when considering what they have achieved. It is also crucial to recall that the ICIJ and its parent, the Center for Public Integrity, are non-profit investigative journalism operations dependent on philanthropic support. We have had thousands of people donate through the ICIJ Panama Papers site since launch. None of this would have been possible though without the long-term support of groups such as the Adessium Foundation in the Netherlands, the Open Society Foundations, the Australian businessman Graeme Wood and the Sigrid Rausing Trust, and many previous philanthropic and individual supporters over the years of the ICIJ in particular and the Center for Public Integrity in general.

No funder had a say in what the ICIJ was working on.

To critics, those who were left out of the story, the conspiracy theorists and anyone else who would take pot shots at it, we have decided to say only: “We will let our journalism speak for itself.”

Stories from the ICIJ I strongly recommend you read, and updated from my earlier notes include:

- Jake Bernstein in the art world’s use of havens to hide shenanigans The Art of Secrecy

- Will Fitzgibbon on the James Bond world of havens used by spies 

- Marina Guevara Walker’s Frequently Asked Questions on the Panama Papers

On the work by others I recommend reading in full the editorial and the two main stories, here and here that The Economist has written this week. I thought Vice did a nice job of nailing some of the nonsense with this compendium of the conspiracy theories around the work. Again, I also recommend watching the superb video by the ICIJ member which received the leak: Suddeutsche Zeitung.

If you wish to support the CPI and the ICIJ please go to our DONATE page. We’d be very grateful. We appreciate the years of support the organizations have had from philanthropy groups, individuals and staff members from the very start. As it happens, the Ford Foundation, a current supporter of the Center though not a current backer directly of the ICIJ, has published an interview with Gerard in its latest bulletin.

I welcome feedback on this note.

Peter Bale
CEO, The Center for Public Integrity

This April 5, 2016 file photo shows the entrance of the regional head office of Panama-based law firm Mossack Fonseca, one of the world's biggest creators of shell companies, in Hong Kong, America's openness to foreign tax evaders is coming under new scrutiny after the leak this week of 11.5 million confidential documents from the Panamanian law firm. The Panama Papers show how some of the world's richest people hide assets in shell companies to avoid paying taxes.Peter Balehttps://www.publicintegrity.org/authors/peter-balehttps://www.publicintegrity.org/2016/04/08/19543/leak-century

Debunked: Terrorist attacks often occur in clusters

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Within hours of the March 22 terrorist attacks in Brussels, New York city authorities deployed roughly 400 National Guard troops at major transit hubs in New York City, and transit police in Washington D.C. also ordered a surge at subway stops.  The Washington police tweeted reassuringly that they were “closely monitoring events in Brussels w/our fed partners."

Visibly surging security personnel in urban centers after a major terrorist incident has become a habitual response around the globe since the 9/11 attacks in New York and Washington, putting citizens on edge and occasionally causing policing expenses to spike.  But it turns out there’s little evidence that such an aggressive public response is necessary, according to a new report by terrorism experts at the RAND Corporation.

The experts studied 140,000 terror attacks in the United States and Europe between 1970 and 2013, and found no statistically significant evidence after 2003 that one big attack will spawn another one immediately afterward, producing a “cluster” of related incidents.

 “Visible increases in security reflect prudence, but also suggest that there is reason to worry about further terrorist attacks,” experts Brian Jenkins, Henry Willis and Bing Han wrote in their report, published on March 31. But since 2003, they said, terrorist attacks in Western countries have actually not been occurring in clusters, which they define as falling within a 30-day period.

The incidents studied were listed in a global database of terrorism events that produced at least one fatality. The database was compiled from open sources by the University of Maryland.

Before 2003, some terrorist attacks did occur in clusters, suggesting that officials in Europe and the United States might now be reacting reflexively to a pattern that is no longer prevalent.  The Provisional Irish Republican Army (IRA), for example, carried out clusters of attacks in Ireland and the United Kingdom in the 1970s, 1980s and 1990s, and Basque separatists in Spain, ETA, carried out clusters of attacks starting in the 1970s. But the clustering phenomenon started to drop off by 1993, and now there is no statistical evidence that a large terrorist attack will trigger or inspire another attack.

 “Jihadists have not been able to field groups in the United States or Europe that are capable of sustaining terrorist campaigns like those that operated in Europe from the 1970s to the early 1990s or in the United States primarily during the 1970s,” the authors explain.

The report also disputes another commonly-held view about the timing of terrorist attacks. Terrorists generally have not attacked on symbolically important dates in the U.S. and Europe. While attacks increased slightly on dates around Independence Day and New Years’ Eve, the evidence did not show any increased likelihood of attacks on anniversaries such as September 11 or other symbolic dates such as Ramadan or Christmas.

Some experts who study terrorism say they doubt that terrorists keep a calendar. Attacks are timed when those involved conclude they will be successful. The RAND authors state that Independence Day and New Years’ Eve, for instance, draw large crowds that represent a vulnerable target.

A third, surprising argument in the report is that terrorism in the West has been declining. The incidence of attacks decreased roughly 94 percent between 1976 and 2013, the RAND tally showed, again reflecting the different capabilities of European paramilitary groups and present day jihadists.

At the same time, the deadliness of recent attacks has increased. The scale of the 9/11 attacks was “unprecedented.”  And since then, the proportion of incidents with more than three fatalities has increased.

Some experts said they didn’t take much comfort from the new report. With respect to “some of the European [jihadist] plotters who were captured, we now know that they had been planning a series of attacks. It calls into question how reliable this finding is,” said Jessica Stern, a research professor at Boston University’s Pardee School of Global Studies who has interviewed terrorists and written several books on their motivations.

The RAND authors acknowledged that they could not rule out that police surges had deterred some coordinated or copycat attacks. And they also warned that the future might not be like the past: “It’s important to monitor” whether terrorism related to the Islamic State will be different, said Henry Willis, director of the RAND Corporation’s Homeland Security and Defense Center and one of the study authors, in an interview.

Stern said that there’s some evidence of a shift already. “Most of the attacks we’ve seen until now carried out in ISIS’s name are not the kind of attack we would expect to be clustering --they’re individuals who radicalize themselves or small groups that seem to have minimal if any contact with ISIS… [But] the kind of attacks we’ve seen in Paris and Belgium are not that kind. They involved highly trained operatives and they’re part of a plot that’s a broader attack.”

Belgian authorities have reported in recent days that those involved in the Paris attacks were planning additional bombings there – months later -- but undertook the March 22 attacks in Brussels instead because they feared that police were closing in.

Lauren Chadwick is a Scoville Fellow at the Center for Public Integrity.

Police investigate an area where terror suspect Mohamed Abrini was arrested earlier today, in Brussels on Friday April 8, 2016. The federal prosecutor's office confirmed a fugitive suspect in the Nov. 13 Paris attacks was arrested in Belgium on Friday, after a raid Belgian authorities said was linked to the deadly March 22 Brussels bombings. The suspect, Mohamed Abrini, is believed to be the mysterious "man in the hat" who escaped the double bombing at Brussels airport, but further investigation is needed to determine Abrini is the third suspect of the airport attack.Lauren Chadwickhttps://www.publicintegrity.org/authors/lauren-chadwickhttps://www.publicintegrity.org/2016/04/12/19545/debunked-terrorist-attacks-often-occur-clusters

Pro-Trump super PAC wants your money

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The Republican establishment wants to deny Donald Trump the Republican nomination for president, even though he’s the delegate leader, and a new TV ad wants to know if its viewers think that is wrong — right?

Well, yes, but the nationally airing ad is as much about raising money for the sponsor than it is about boosting the candidate.

“Donald Trump is the true front-runner in the presidential race,” the boisterous narrator says over a still image of Trump. “And we need you to pick up the phone and let us know your opinion.”

Dial one of the two toll-free numbers on the screen and you hear the same voice asking callers to press “1” if they agree that this is wrong. And then, the same voice asks for a donation to Great America PAC.

So who is Great America PAC? The Federal Election Commission says it’s a hybrid super PAC. But didn’t Trump say he was opposed to super PACs?

The ad’s sponsor

Great America PAC formed in February, but under a different name: TRUMPAC.

Great America PAC is a “hybrid” political action committee, meaning that like a super PAC, it can raise and spend in unlimited amounts to advocate for or against candidates. But it also operates as a traditional PAC, collecting limited amounts of money that is sent directly to a candidate.

Hybrid PACs were born out of the 2011 federal court case Carey v. Federal Election Commission that opened the door for such groups to exist, so long as they keep separate bank accounts for the two activities.

And the treasurer of Great America PAC is Dan Backer, the conservative attorney who helped to make hybrid PACs possible.

Who’s behind it?

Backer, a conservative lawyer, is known for winning McCutcheon v. FEC, a decision that further opened the flood gates for money flowing into elections. The decision eliminated aggregate limits for individual donors.

Also behind the group is Bill Doddridge, founder of diamond retailer The Jewelry Exchange.

Doddridge co-founded Great America PAC with tea party operative Amy Kremer. In March, they recruited Jesse Benton, a Republican operative who previously oversaw a super PAC supporting Rand Paul. Paul dropped out of the presidential race in February.

Eric Beach, also a former Paul ally, is overseeing fundraising for Great America PAC.

Money in

Doddridge and Beach are the biggest benefactors of Great America PAC, together contributing $50,000 to the group, though federal records show that Great America PAC is mostly a small-dollar operation.

Out of its 825 disclosed contributions through February, nearly 98 percent were in the amount of $5. In March, Great America PAC solicited donations via email, using Trump’s trademarked “Make America Great Again” slogan. A portion of the donations would be forwarded to the campaign.

Great America PAC forwarded about $3,300 to the official Trump campaign through February, according to its most recent FEC report.

Great America PAC raised roughly a total $73,000 through the end of February, but if its reported TV buys are any indicator, it raised at least $1 million since.

Money out

Great America PAC has reported spending about $1.1 million on expenditures such as TV ads, radio spots and email list rentals, according to FEC filings. The ad is airing primarily on satellite and cable stations, according to the group.

Why it matters

Trump frequently talks on the campaign trail about how much he dislikes super PACs, calling them “a disaster" and “very corrupt” during a Republican debate hosted by CNN in March.

“And frankly, I know the system better than anybody else and I'm the only one up here that's going to be able to fix that system because that system is wrong,” Trump added.

Though not closely linked with Trump, Great America PAC has emerged as the most moneyed super PAC complementing his efforts. Trump previously disavowed super PACs supporting him, though he has yet to do the same for Great America PAC.

Great America PAC’s efforts also come at a time when the self-described “self-funding candidate” is being targeted in attack ads fueled by super PACs and “dark money” organizations. Just before Florida’s primary in March, a band of outside groups paid for more than 4,300 TV ads attacking Trump.

Whether or not Trump has changed his tune on super PACs is uncertain. Trump campaign spokeswoman Hope Hicks did not respond to requests for comment.

This story was co-published with NBC NewsPRI and TIME.

A supporter of Republican presidential candidate Donald Trump drives his vehicle outside the Times Union Center before a rally in Albany, New York, on April 11, 2016.Cady Zuvichhttps://www.publicintegrity.org/authors/cady-zuvichhttps://www.publicintegrity.org/2016/04/12/19551/pro-trump-super-pac-wants-your-money

Why do you read investigative journalism?

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The Center for Public Integrity is teaming up with the Center for Investigative Reporting/Reveal to launch a new reader survey that will explore what makes investigative journalism engaging and how we can increase the impact of our work. Those interested in participating will read a sample story from our newsrooms and answer a brief questionnaire. Your responses will help influence future decisions on how our stories are presented and distributed.

If you’re interested in signing up for the survey, please fill out the form below. A representative from the Public Insight Network will be in touch shortly with the sample article and questionnaire. Thanks for helping the Center and CIR as we work to make our investigations even more insightful, engaging and impactful.

 

 

 

The Center for Public Integrityhttps://www.publicintegrity.org/authors/center-public-integrityhttps://www.publicintegrity.org/2016/04/13/19553/why-do-you-read-investigative-journalism

'Panama Papers' law firm raided by Panama's national police

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Panama’s national police raided the Panama City headquarters of law firm Mossack Fonseca late Tuesday, looking for evidence that “would establish the possible use of the firm for illicit activities,” as they said in a statement.

The police, under the direction of prosecutor Javier Caravallo, who specializes in organized crime and money laundering, surrounded the headquarters building and raided other branches as well. According to the Financial Times, the operation was still underway eight hours after it began.

The action was part of the continuing fallout from publication of the Panama Papers, an investigation into 11.5 million documents spanning 40 years of operations by the firm, one of the world’s largest wholesalers of shell companies. Usually set up in a manner that makes it hard to know who controls them and existing almost only on paper, shell companies may be used for lawful purposes but have also figured frequently in money laundering, tax evasion, bribery, drug dealing and other crimes.

“We’re the ones against whom a crime has been committed,” the law firm said in a statement published on its website. It added that the company is “ready, willing and eager to cooperate with authorities.”

The raids came at a time when Panama’s President Juan Carlos Varela has taken several actions in response to the revelations about the firm, whose co-founder Ramon Mossack was one of his top advisers until his recent resignation.

Earlier in April, Varela announced the creation of an international panel to improve transparency in Panama’s economically important offshore financial industry. He also published an op-ed piece in the New York Times, decrying the emphasis on Panama which he said “does not deserve to be singled out on an issue that plagues many countries,” adding that Panama is “willing to accept the responsibility for fixing it, in part because greater transparency is ultimately a continuation of reforms we have recently undertaken.

On Tuesday before the raids, Panama warned France that it would take unspecified diplomatic measures if Panama is not removed from a blacklist of tax havens.

Read more at the International Consortium of Investigative Journalists.

 

 

Martha M. Hamiltonhttps://www.publicintegrity.org/authors/martha-m-hamiltonhttps://www.publicintegrity.org/2016/04/13/19556/panama-papers-law-firm-raided-panamas-national-police

Commentary: Why I missed the Flint story

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I shouldn’t have missed the story of lead-contaminated water in Flint.

Not because I’m an environmental reporter, but because my mom told me what was happening in my hometown, and I didn’t listen.

I tell people’s stories for a living. Our team at the Center for Public Integrity spent most of 2015 looking for examples of environmental discrimination — places where communities of color sat next to sewage plants, pesticide-covered fields and noxious landfills. Places where people went to meeting after meeting begging someone for help.

Our project detailed the Environmental Protection Agency’s limp enforcement of one mechanism to address discrimination — Title VI of the Civil Rights Act of 1964. Before I worked on it, I hadn’t realized how easy it is to ignore those fighting to be heard.

I grew up in a place a lot like the ones I now report on — Flint, Mich. I left after high school but return for holidays and milestones. In between, I call my mom for news. She still lives in the modest white house on the north side of Flint where I grew up. She’s spent most of the last 44 years there. The city long ago abandoned its part of the bargain, but she refuses to sell her hedge-lined piece of the American Dream.

When we talk, she usually details the latest city struggle — a new fee residents pay to keep street lights on in front of their homes; the police substation that closed up the street; her volunteer work with the abandoned-housing census. The day in August 2014 she casually mentioned a boil-water advisory, it didn’t even register. I brushed it off when she mentioned it again the next month. I ignored the loop of images in my Facebook feed showing hydrants flushing brown water. All of these things were routine, I reasoned. There’s nothing to worry about.

By now, you know the story.

In a cost-saving move, an emergency manager appointed by the state to oversee the city’s finances agreed to switch it from water supplied by the Great Lakes to water from the Flint River, once an industrial dump site. When the switch was made in April 2014, city officials toasted it with river water and called it “historic.” 

That it was. Almost immediately, residents noticed something was wrong: Smelly, brown water came gushing from taps. People developed rashes after bathing. They complained to city officials, bringing jugs of that water to meetings. Officials maintained that the water was safe to drink. Now we know that was a lie.

From the emergency managers who ruled the city to Gov. Rick Snyder to the Michigan Department of Environmental Quality and the federal EPA, pretty much everyone messed up. Residents pleaded for help. Few listened.

That wasn’t new. There is a legacy Flint residents are taught to bear early: Take what is thrown at you without complaint; just find a way to survive it. For as long as I can remember, each day in Flint seemed to come with a new indignity to endure.

As a child, I held my breath as our car crossed the Stewart Avenue bridge to block the stench from the General Motors transmission factory below. My last Christmas home from Hampton University before graduation, tears forced me to the side of the road when I saw empty lots where factories once stood.

On campus, I brushed off jokes about how I “escaped” my hometown, with its reputation as one of the most dangerous cities in America. As an adult, I seethed as financial woes in Detroit were decried as a national tragedy; no one cared that this had been the reality in Flint for a decade.

No one expected much out of people from Flint, unless it was on a basketball court or a football field. The world, it seemed, would always try to mock or disregard us. We always have to prove ourselves worthy — even, apparently, of basic services we expect in America, like clean water.

As events unfolded last year, I would scroll through social media, getting lost in stories of what Snyder knew and when, or researching the horrific long-term effects of lead. I imagined the response if this had happened in the richer, whiter Detroit suburbs of Grosse Pointe or Bloomfield Hills instead of in my poorer, browner hometown.

I tried to figure out how I’d missed what was happening in Flint. The Flint Journal and Detroit Free Press were covering the story from the start. But I got most of my news from national outlets, and until the story elevated to that level I didn’t pay attention.

Paying attention is my job. I always saw journalism as a way to make a difference by amplifying the society’s unheard voices. Somewhere along the way, the plight of people in places unknown registered more than those in the place I knew intimately. Now I know that it’s easy to swoop into an unfamiliar town and tell someone else’s story. It’s a lot harder to recognize the things you became resigned to in your own life.

I’d bought into the idea that “Flintstones” could take anything, never once questioning why they should have to. Even after being immersed in research into environmental injustice, it was easy for me to write off discrimination in my city. If I could do it, how much could I expect from anyone else? 

These days, Flint undulates in the news cycle. Plans to replace lead water lines have faltered. Lead levels in city water have dropped, but researchers say it’s still not safe to drink. Congress is looking at lessons to be learned from the debacle.

Few things are as invasive as poisoned tap water. On my worst days, I worry that this may be a knockout punch for my staggering city. I no longer live in Flint, but the crisis is still personal for me.

The people of Flint, meanwhile, survive. 

Brown water never flowed from my home’s tap during the crisis, but my mom says she remembers the water smelling like “sewer vapor.” The last time I was there, I helped her unload 544 bottles of donated water from the car. We added them to the stockpile in our basement.

My mom is retired, but like others in Flint, she’s become a student of water contamination. She collects a quart of water from her kitchen sink — the only one without a filter — every two weeks in containers supplied by the state. The pink form she wraps around each bottle lists an identification number and her name, address and the date of collection.

When she’s done, she sets the water outside in a gallon plastic bag; state employees pick it up from her doorstep and test the water for lead and copper. 

She’s participated in this ritual since March 1.

After the first four tests, my mom’s water came back clean. Last time, the state said in a letter that it contained lead. She isn’t sure what to believe. On the phone, she asks me questions I can’t answer: Why didn’t the earlier tests show any lead? Wouldn’t it have been there all of the time? 

I can’t reassure her. She’s right; there’s no reason to trust anything she’s been told.

During these conversations, I’ve learned to do what I should have done the first time she told me about the bad water — and what the rest of America must do to prevent the next Flint. I listen.

This Thursday, March 24, 2016, image from video shows a hand-written sign placed at the entrance to a lead-testing clinic held at Richfield Public School Academy in Flint, Mich. Thousands of Flint parents have had their children tested at free clinics run by the Genesee County Health Department since residents became aware that their water had become contaminated with lead after the city began drawing water from the Flint River to save money.Talia Bufordhttps://www.publicintegrity.org/authors/talia-bufordhttps://www.publicintegrity.org/2016/04/15/19562/commentary-why-i-missed-flint-story

Panama Papers fallout: Leader leaves Pakistan, Spanish minister resigns

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Pakistan’s Prime Minister Nawaz Sharif, facing calls for his resignation as a result of his family’s holdings in offshore companies, checked himself into a London hospital this week, setting off speculation that he might not return to Pakistan.

The outcry against the prime minister was touched off by revelations in the Panama Papers that his daughter and two of his sons controlled shell companies through which they had acquired expensive London real estate.

Political opponents have called for his resignation and a judicial commission investigation of his offshore affairs.

Sharif ‘s departure for London was sudden, and described as a trip for a cardiac medical check-up. According to news reports, the Pakistan government denied reports that he was seeking support there from former president Asif Ali Zadari.

One of Sharif’s leading political opponents, former cricket star Imran Khan, arrived the same day the prime minister checked into the hospital. Khan said he was looking into hiring a financial investigative agency to pursue the issue of Sharif’s family members’ offshore holdings.

Also facing pressures because of his offshore holdings, Spain’s minister of industry resigned on Friday. José Manuel Soria had previously vehemently denied any ties to an offshore company cited in the Panama Papers and reported by online newspaper El Confidencial and television station La Sexta.

“I totally deny that I have anything to do with any company based in Panama, or any other tax haven," he said earlier in the week.

​However Spanish media caught the minister in a series of lies about his involvement in offshore companies, which culminated with newspaper El Mundo proving the minister was director of a Jersey-based company up to 2002, when he was already into politics.

Soria, whose ministry also included energy and tourism, hasn’t been accused of wrong-doing. Announcing his resignation on Friday, he said he was stepping down because of “the succession of mistakes committed along the past few days, relating to my explanations over my business activities... and considering the obvious harm that this situation is doing to the Spanish government."

In other reaction to the Panama Papers investigation, five European nations agreed to share tax and law enforcement data. The agreement included the United Kingdom, Germany, France, Italy and Spain, but critics said it would take the cooperation of the United States and other nations to make it work.

Panama also reversed itself and said it would adopt international tax reporting standards, according to the Organization for Economic Cooperation and Development’s Secretary General José Ángel Gurría. But Gurría also sounded a note of caution. “If that is the case, and if they do it in whole, that is very good news indeed,” he said. But he added that it was a question of follow-up.

It’s not the first time Panama has made the pledge: the country had previously assured the OECD it would adopt the reporting standards, but then reversed course in February, 2016.

Prime Minister David Cameron meeting with Nawaz Sharif, the Prime Minister of Pakistan, at Downing Street.Martha M. Hamiltonhttps://www.publicintegrity.org/authors/martha-m-hamiltonhttps://www.publicintegrity.org/2016/04/15/19567/panama-papers-fallout-leader-leaves-pakistan-spanish-minister-resigns

Pierre Omidyar gives $100,000 to new anti-Trump super PAC

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Billlionaire eBay founder Pierre Omidyar is donating $100,000 to NeverTrump PAC, a fledgling super PAC that registered with the Federal Election Commission on March 4.

While Omidyar has made donations to various Democratic candidates and party organizations over the years, this is believed to be his first contribution to a super PAC. Such organizations were made possible by the 2010 U.S. Supreme Court decision Citizens United v. Federal Election Commission.

Omidyar confirmed the donation via Twitter: "I think Trumpism is dangerous," he wrote. "So I'm personally supporting @NeverTrumpPAC, a rare political contribution during extreme times."

Billionaire businessman Donald Trump currently leads rivals Ted Cruz and John Kasich in the race for the Republican Party's presidential nomination, although forces such as NeverTrump PAC have recently been working to thwart him. Omidyar's contribution shows that liberal-leaning donors may also be willing to pony up funds to influence the GOP presidential contest.

Omidyar, 48, is number 163 on Forbes' list of the world’s billionaires, with an estimated net worth of 7.8 billion. The Hawaii resident made his fortune from eBay, the popular online auction site, where he still serves on the board. He and his wife, Pam, are major philanthropists, and have poured hundreds of millions of dollars into projects centered around human rights, economic development, government transparency and media, among other areas.

Omidyar's dislike for Trump is no secret. He has made his antipathy toward the candidate clear on Twitter.

“I can't be contrarian about Donald Trump anymore,” he tweeted on March 13, quoting a Vox story, as Trump blamed Democratic presidential candidate Bernie Sanders for violence at Trump rallies. “He's terrifying.”

“Trump is a dangerous authoritarian demagogue,” Omidyar wrote in one tweet a few days later.

“Endorsing Donald Trump immediately disqualifies you from any position of public trust,” he wrote in another.

He has also called Trump a “bigot” and a “thin-skinned,” “scaredy-cat” with “no spine.”

Reached via phone, Trump spokeswoman Hope Hicks declined to comment.

The Center for Public Integrity receives funding for its money in politics work from the Democracy Fund, a private foundation funded by Omidyar. The Democracy Fund invests in "organizations working to ensure that our political system is responsive to the priorities of the American public," according to its website.

The group further notes that "The public’s voice is increasingly drowned out as political leaders become ever-more dependent on a relatively small group of large donors and special interests."

Democracy Fund president Joe Goldman said Friday that the group is strictly nonpartisan: "As a private foundation, we do not support or oppose candidates and no Democracy Fund resources were used in the course of this gift,” he said.

"Pierre has no editorial involvement with the journalism groups he funds," said Gina Lindblad, an Omidyar spokeswoman, who confirmed the contribution amount.

The Omidyar Network, a philanthropic organization that invests in numerous for-profit and nonprofit ventures, has also funded other Center for Public Integrity projects.

Center for Public Integrity CEO Peter Bale said the Democracy Fund, while founded by Omidyar, "is an independent entity" and that donors "exert no influence on Center story choice or reporting."

So far, NeverTrump PAC has paid nearly $50,000 to Tusk Digital, a Washington, D.C.-based company, for online advertising. The super PAC is linked to Republican digital consultant Patrick Ruffini. The group’s website features a pledge that says signers “will do our part to deny Donald Trump the Republican nomination and ensure that he never becomes commander-in-chief. Never means never.

According to the website, the pledge has so far been signed by nearly 25,000 people.

A super PAC is a political committee that can raise unlimited amounts from individuals, labor unions and corporations that must be spent independently from a candidate.

Earlier this month, Ruffini told The Hill newspaper that the group was relying on small dollar donations to run targeted ads in New York districts where Trump could be denied delegates. The group has not yet filed reports disclosing its donors.

Omidyar has not been a major donor in the super PAC era, although he and Pam have given more than $500,000 to federal candidates and groups — nearly all of them Democrats — since 1999, according to a Center for Public Integrity review of records filed with the Federal Election Commission.

Pierre and Pam Omidyar have combined to give nearly $200,000 to the Democratic Senatorial Campaign Committee over the years and about $150,000 to the Democratic Congressional Campaign Committee.

Both Pierre and Pam Omidyar supported Democrat Hillary Clinton during her 2006 U.S. Senate re-election campaign. Pam Omidyar donated to both Clinton and Barack Obama during the 2008 presidential race, while Pierre Omidyar did not donate to any presidential candidate that year. Neither has yet made a personal contribution to any 2016 White House hopefuls, according to FEC records.

High-profile Democratic candidates to whom Pierre Omidyar has donated in the past include House Minority Leader Nancy Pelosi, D-Calif.; Senate Minority Leader Harry Reid, D-Nev.; and Sen. Dianne Feinstein, D-Calif. His most recent federal political contributions came in 2010, records indicate.

Pierre Omidyar has given money to only a handful of Republicans including former President George W. Bush, former U.S. Rep. James Greenwood of Pennsylvania and former U.S. Rep. Jeb Bradley of New Hampshire. Between 1999 and 2010, he also donated $55,000 to the political action committee of eBay, which supported a number of Republican and Democratic candidates.

Pierre Omidyar.John Dunbarhttps://www.publicintegrity.org/authors/john-dunbarMichael Beckelhttps://www.publicintegrity.org/authors/michael-beckelCarrie Levinehttps://www.publicintegrity.org/authors/carrie-levinehttps://www.publicintegrity.org/2016/04/15/19564/pierre-omidyar-gives-100000-new-anti-trump-super-pac

'The Army to Set Our Nation Free'

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Sheriff Nick Finch let a pistol-packing local man out of the Liberty County, Florida, jail shortly after taking office, a decision that brought him admiration, donations, and speaking requests from anti-government activists across the country. It put him at odds with state authorities, who charged him with a crime, but also thrust him into the vanguard of a radical and growing movement among sheriffs in rural communities who assert they can ignore state and federal laws they decide are unconstitutional.

The Florida episode began in the middle of the county’s lush Apalichicola National Forest on March 8, 2013, when one of Finch’s deputies pulled over a driver and discovered a loaded .25-caliber semi-automatic pistol in his front pocket, according to the deputy’s sworn statement. Carrying a concealed firearm without a license is a third-degree felony under Florida law, so the deputy arrested the man, Lloyd Parrish, and brought him in to the county jail.

Finch, 53, later said he decided that “I know what law rules the day, and it’s the U.S. Constitution.” He ordered Parrish released and someone whited out Parrish’s booking record, an act that caused Republican Gov. Rick Scott to order Finch’s suspension after the deputy complained. But then former Arizona Sheriff Richard Mack called, and the political machinery of a group that Mack heads — the Constitutional Sheriffs and Peace Officers Association — became engaged.

Sympathizers created a Facebook support page for the previously obscure former U.S.Army police supervisor, and online commentators expressed outrage at what they called an unconstitutional attempt by the state to interfere with Finch’s support for gun rights. Mack organized a fundraiser in nearby Panama City and brought Stewart Rhodes, head of the citizen militia group known as the Oath Keepers, the same group that made national headlines last August for patrolling the streets of Ferguson, Missouri, with long guns. Mack is also on the Oath Keepers’ board of directors.

It wasn’t the only occasion in which Mack, a former public relations director of a lobbying group called Gun Owners of America, has intervened on behalf of someone who prominently contested the enforcement of laws. He’s traveled repeatedly to Oregon this year, appearing at high schools and fairgrounds, and giving interviews in which he sharply criticized federal authorities during their armed standoff with militants who occupied a wildlife refuge there to protest federal land-use rules. He’s also promised to help elect new sheriffs in the region who share his views. Gun laws are a focus of his ire, but federal lands restrictions and tax laws also have been in his sights.

What’s unique about his group is not that it opposes gun controls but that its ambition is to encourage law enforcement officers to defy laws they decide themselves are illegal. On occasion, some of his group’s sheriffs have found themselves in curious agreement with members of the sovereign citizens’ movement, which was also founded on claimed rights of legal defiance and is said by the FBI to pose one of the most serious domestic terrorism threats.

Mack claims the dues-paying support of several hundred of the nation’s more than 3,000 sheriffs and the sympathies of hundreds more, but it’s hard to assess how many endorse his denunciation of the federal government as the corrupt and illegitimate enforcer of laws that trample on states’ rights.

Dozens of sheriffs around the country — including John Hanlin, the sheriff of Douglas County, Oregon, the site of last October’s mass shooting of eight students and a professor at Umpqua Community College — joined Mack in an aggressive letter-writing campaign to the White House after the 2012 Sandy Hook Elementary School shooting, in which they vowed not to enforce any “unconstitutional” federal regulations that tightened gun restrictions.

Mack has referred to the federal government as “the greatest threat we face today,” and describes his association — which states its meetings are supported by the John Birch Society and Gun Owners of America, as well as by annual dues payments of $50 — as “the army to set our nation free.” He said in an interview with the Center for Public Integrity that he has grown the army by training more than 400 sheriffs at seminars and conventions in how to interpret the U.S. Constitution and how to resist authorities and laws that violate it. A former Florida assistant state attorney, KrisAnne Hall, assists in a coordinated training effort and says she conducts 265 sessions annually.

During Finch’s boisterous trial in October 2013, he was joined in the small Liberty County courtroom by Mack, several other Florida sheriffs, and dozens of new supporters. The judge had to admonish the crowd repeatedly not to laugh as the state presented its case against Finch, and in the end, the jury acquitted him of misconduct and falsification of records. He later won back pay as well as attorney’s fees of more than $160,000 and remains the sheriff of Liberty County.

Electoral defeats no obstacle

Mack first made it to the national stage in 1996 as a sheriff from Arizona, when he and a sheriff from Montana challenged a provision of the Brady Handgun Violence Prevention Act before the U.S. Supreme Court. Using attorneys subsidized by the National Rifle Association, they argued it was unconstitutional for the federal government to require local chief law enforcement officers to run background checks on prospective gun buyers — and won, in a 5-4 ruling that struck down that provision of the act.

Mack was defeated in the Democratic primary that year before the Supreme Court heard his case, and has since lost three more elections, as a Republican primary candidate for sheriff in Utah, a Libertarian candidate for the U.S. Senate in Arizona, and a Republican primary candidate for the House of Representatives. He nonetheless became a popular speaker, initially at John Birch Society and National Rifle Association banquets, and later at tea party events. In May 2011, he registered the Constitutional Sheriffs and Peace Officers Association with the state of Texas – but it is just now filing for tax-exempt status with the Internal Revenue Service, and as a result, its financing is largely opaque.

The group quickly came onto the radar of the Southern Poverty Law Center, an Alabama nonprofit group that describes itself as a monitor of hate groups. The center said in 2013 that Mack had frequently embraced “baseless conspiracy theories,” appeared on ideologically extreme media programs, and sought to promote the “Patriot” agenda among law enforcement officers. Mack responded by accusing the group of slander, but a lawsuit he filed foundered over a jurisdictional issue, according to federal court records and Center spokeswoman Ashley Levett.

Mack says that more than 100 sheriffs have shown up at the annual conventions his group has organized, including many in 2014 where Finch received the group’s top honor: Constitutional Sheriff of the Year. With forty other sheriffs, Finch signed a resolution there declaring they would not tolerate any federal agent who attempted to register firearms, arrest someone, or seize property in their counties without their consent.

Jared Goldstein, professor of constitutional law at the Roger Williams University School of Law in Rhode Island, said this vow conflicts with the supremacy clause of the U.S. Constitution, which authorizes federal agents to enforce federal law even when it clashes with state or local laws. “What makes them dangerous,” Goldstein said in an interview, is that they want “the sheriffs to resist federal authority,” using phraseology that he contends leaves the door open for violence. In their stubborn resistance to federal authority, he added, they are like Kim Davis, the Kentucky clerk jailed last year for flouting the U.S. Supreme Court ruling granting gay couples the right to wed — “but with guns.”

Mack rejects this and says he envisions the sheriffs’ “take back” of the United States as a peaceful event. But he uses apocalyptic language to depict social conditions in America, describing sheriffs as a bulwark to forestall the violence for which armed, angry citizens around the country are preparing. In an interview with the Center for Public Integrity at his office, Finch, too, said he sees sheriffs as a safeguard against all-out civil war. “If all the sheriffs would get on board and stand in the gap, then maybe we can avoid the violence that I believe probably is going to come at some point,” Finch said.

Milwaukee County Sheriff David Clarke, an African-American Democrat who supports the association and was chosen as its Sheriff of the Year in 2013, captured the attention of gun rights advocates around the nation that year with his prophecy that federal efforts to restrict gun ownership in the country would result in an all-out civil uprising. In a 30-second public service announcement recorded that January, he urged citizens to learn to use firearms because “simply calling 911 and waiting is no longer your best option.” In an election the following year, the pro-gun control political action committee started by former New York City Mayor Michael Bloomberg spent $236,450 on television advertisements for his opponent while the National Rifle Association spent $30,876 on advertisements and organized a fundraising campaign that brought in another $170,617.77 from donors all over the country.

Clarke won with 52 percent of the vote, but his relationship with local authorities soured. Milwaukee County District Attorney John Chisholm in 2014 publicly accused him of pursuing media appearances and publicity tours at the expense of public safety in the county. “The public has a right to see their elected officials are committed to solving problems not engaging in demagoguery,” he wrote. “Get off your high horse, Sheriff, and get your office back in the fight.”

Winning over law enforcement officials

On the chilly morning last October, roughly 60 people — mostly older white men — sat at long plastic tables beneath the fluorescent lights of the auditorium in the Forrest County Multipurpose Center in Hattiesburg, Mississippi, to attend a “Tribute to Constitutional Sheriffs and Peacekeepers.” The funder was America’s Foundation, a nonprofit founded in Mississippi to teach people about the “proper balance of power that is supposed to exist between the states and the federal government,” according to the foundation’s president, Vince Thornton.

Thornton is listed in federal tax court records as a petitioner who sought tax-exempt status in 2000 for a different group, called The Nationalist Foundation, which said its aim was to support “promajority” citizens and to “save” neighborhoods by suing minorities and by countering “the leftist threat to our liberties.” He also is listed in state incorporation papers filed in March as an officer of the Dixie Alliance, which describes itself as supporting a correct understanding of the principles on which the Confederate States of America was founded.

Richard Barrett, a well-known white supremacist lawyer, was listed in state records as the Nationalist Foundation’s registered agent in 1996 and the America’s Foundation’s registered agent in 2005. “Richard Barrett is a self-proclaimed ‘racist’ and Chairman of the America’s Foundation, Jackson, Mississippi, a rightist youth organization,” a declassified 1987 FBI report states. (Barrett was killed by a neighbor in 2010.)

Asked for comment, Thornton said in an email that “Barrett was my friend and we never had a cross word between us.” With regard to the Nationalist Foundation, which failed to win a tax exemption, he said “I agreed to let him use my name as a favor for legal work he had done for me.” With regard to the America’s Foundation, he said Barrett “was only one member on a Board of Directors” and didn’t bring his political views “into the operation.” Thornton said “I reject both Nationalism and Socialism” and support “limited local government and the free enterprise system,” while opposing official corruption.

At the meeting, four or five political groups — the local chapters of a tea party group, Freedom Works, United Conservatives Fund — laid out their literature, candy, and swag on folding tables at the back of the room. The speakers included two local police officers, the president of Mississippi’s Gulf Coast Rangers citizen militia, a veteran who tracks gun laws in Mississippi, an investigator for the state’s attorney general, and finally, the star attraction: Sheriff Richard Mack. But only one Mississippi county sheriff showed up: Billy McGee, from the surrounding Forrest County.

Mack is over six feet tall and bears a passing resemblance to Ronald Reagan, but with more piercing eyes and more forbidding eyebrows. Standing before the crowd in a casual, desert-hued suit, he seemed slightly larger than life. Audience members queued to have him sign their copies of a booklet summarizing his case against the Brady Act, called “The Victory for State Sovereignty.” In America, he said as audience members nodded, “gun control is against the law. And we don’t get to violate the law just because we have a shooting in Oregon or Sandy Hook or anyplace else.”

“What we want now is for many of you to come to our certification training,” he said. “You come to a two-day seminar, get certified, and then you get back here to your state and you start providing this training, bam, bam, bam, go to every sheriff’s office, go to chiefs of police, go to county commissioners and show them this training.” Details about how to get the certification training, Mack assured the audience, would be forthcoming.

Paul Boudreaux, 53, raised his hand from the third row. “What do you do about the sheriffs that are complicit with the federal government?” he asked.

“Ignore them,” Mack replied. He reminded the audience that there are nearly 3,100 sheriffs in the country and that the association is aiming to get approximately one-fourth of them to support its mission: “If we get that 600 or 700, there’s going to be no stopping. And then everybody in this country has at least two or three places in each state where they can go for refuge, find a true constitutional sheriff who’ll tell the federal government, ‘You’re not going to abuse citizens anymore.’”

Asked later what the worst abuses were that the federal government had committed in his community, Boudreaux brought up the gopher frog: an endangered species native to the Gulf region. To protect it, Boudreaux said, some of his neighbors have had hundreds of acres of land condemned as habitat where the frog can live. “Fortunately, because of our Second Amendment, we’ve still got the freest country on Earth,” Boudreaux added, crossing his arms. "But the sheriff needs to know," Boudreaux said, expressing a view that most legal scholars vigorously dispute, "that he can forbid federal agents from coming into his county and trying to enforce laws that are unconstitutional.”

Roots of the movement

The constitutional sheriff movement, according to the teachings of Mack and his supporters, is rooted in the historical definition of sheriffs as the most powerful law-enforcement officers within their counties. The idea harkens to medieval England, when Anglo-Saxon kings tasked sheriffs with enforcing their edicts. English colonists brought the tradition to the Americas, and began electing their own sheriffs in the mid-1600s, entrusting them with overseeing the judicial process, carrying out legal decisions, and keeping the peace. Under the latter authority, they could organize citizen brigades to catch outlaws or defend against attackers, an arrangement known as “posse comitatus.”

In the 1970s, a minister in the white supremacist Christian Identity movement, William Potter Gale, wrote a series of articles that would come to be known as the handbook of the Posse Comitatus movement. Gale described sheriffs as the only “legal” law enforcement officers in the country and urged citizens to form their own militias to resist encroachments on their rights if sheriffs did not. The constitutional abuses he cited included the federal income tax system, gun control, federal education, and civil rights laws. He advised citizens to form their own “common law” courts to try officials who violated the constitution, and prescribed archaic punishments, such as hangings.

Contemporary “sovereign citizens,” who generally reject federal authorities, are inspired partly by Gale’s rhetoric and partly by past bloody clashes between federal officials and citizens charged with illegal gun sales and ownership. Terry Nichols, who is now in prison for planning the Oklahoma City federal center bombing that killed 168 people and wounded more than 680 others this week 21 years ago, is a notorious member of the sovereign citizen movement, according to the FBI.

That April 19 bombing deliberately coincided with the date of three iconic events in the radical right’s historical pantheon — the “shot heard round the world” at the Battle of Lexington and Concord in 1775; a violent FBI battle in 1985 with members of an extremist Christian group in Arkansas known as the Covenant, the Sword and the Arm of the Lord; and the FBI’s climactic confrontation in 1993 with religious extremists belonging to the Branch Davidians in Waco, Texas, provoking a fire in which 76 people perished.

Nowadays, sovereign citizens number in the hundreds of thousands, and U.S. law enforcement agencies consider them the top terrorist threat in the country, according to a July 2014 survey by a University of Maryland-led terrorism study consortium. At least 14 police officers have been killed and another 14 injured in 62 incidents involving sovereign citizens since 9/11, according to J.J. MacNab, a frequent writer on anti-government extremism who consults for federal agencies. Most of their attacks are “unplanned, reactive violence targeting law enforcement officers during active enforcement efforts,” the Department of Homeland Security said in a Feb. 5, 2015, report.

In one such incident, West Memphis police officer Brandon Paudert and another officer pulled over a sovereign citizen named Jerry Kane and his 16-year-old son in a white minivan with out-of-state license plates, in May 2010. The duo had been traveling around the country peddling debt-avoidance seminars based on sovereign citizen beliefs. Kane had been threatening anti-government violence for years on his Internet radio show, and the traffic stop escalated rapidly into a tussle in which the younger Kane shot Paudert and the other policeman dead with an AK-47. Police officers caught up with both Kanes hours later in a Walmart parking lot, where they were killed.

Mack and his supporters dismiss the idea that they are supportive of the violent measures taken by sovereign citizens. But some of his association’s members have found common cause with the group. In February 2011, for example, New Hampshire Sheriff Christopher Conley — who was listed as a member of the council of the Constitutional Sheriffs and Peace Officers Association from November 2012 until 2015 — expressed support for claims made against the Internal Revenue Service by a sovereign citizen named Charles Gregory Melick. A deputy federal marshal had served a summons on Melick at Conley’s office, requiring him to appear in court about unpaid taxes, but Conley decided to write to a judge on Melick’s behalf, arguing that the service was not legally valid. “I have a duty to protect people’s Constitutional rights and protections,” Conley said in his note.

Conley was never directly punished for his decision to not detain Melick, but lost the election in 2012.

In 2014, at least three sheriffs showed up with constitutionalist citizen militia groups and members of the Oath Keepers to support Cliven Bundy’s standoff against the federal Bureau of Land Management at his ranch in southern Nevada — a precursor to this year’s standoff by radical land-rights activists, whose leaders included two of Bundy’s sons, at the Malheur National Wildlife Refuge in Oregon. In a speech at the National Press Club in Washington, D.C., a few months after the Bundy Ranch standoff, Oath Keepers President Stewart Rhodes gave those sheriffs a special shoutout. “You had Brad Rogers [from Indiana] there, he came on our behalf, you had Sheriff Peyman from Kentucky, you also had Jeff Christopher from Delaware,” he told the audience.

“So if we're a bunch of radical anti-government crazy cop killers, why were there police officers standing right there with us?” Rhodes asked. “It’s cause we're all in this together.”

Bob Paudert, the chief of the West Memphis police at the time of the deadly traffic stop and the father of one of the policemen slain that day, said he is troubled by the number of sheriffs and police officers who adopt the ideology of armed resistance embraced by sovereign citizens, but he can understand why they do. “Even I agree with a lot of what they say,” he told the Center for Public Integrity, such as the principles of standing up for states’ rights and reining in the federal government. “But law enforcement is not the enemy.”

Closed seminars for sheriffs and police

One of the foot soldiers in the effort to train law enforcement officers as well as regular citizens to be more “constitutionally minded,” as Mack puts it, is KrisAnne Hall. Like Mack, she travels the country teaching her interpretation of constitutional law to everyone from sheriffs to middle schoolers. She says the government cannot regulate healthcare or gun ownership or voting requirements, or exercise any powers not delegated to it by the states.

Hall told the Center in a recent interview that her passion for such topics lit up at the University of Florida law school, and that after a brief stint in the state attorney’s office, she found a job with the Gibbs Law Firm, which has offices in Florida, Texas, and Washington, D.C. Its owner, David Gibbs III, is also the president of the National Center for Life and Liberty, a ministry organization that aims to “protect and defend the Bible-based values upon which our nation was founded,” according to its website.

Hall became vocal about her views, and after returning to the state attorney’s office, gave speeches at tea party meetings and spoke on radio programs – a practice that irritated her superiors, she and her former boss said in interviews. She was told to quit speaking ill of the state’s authority or to resign, and filed a protest before reaching a settlement and leaving the office. She then took up the seminar work and developed a curriculum specifically aimed at sheriffs and law enforcement officers. In an interview, Hall said they usually find it particularly challenging to understand their true duties under the First, Second, Fourth, and Tenth Amendments. In her book, Sovereign Duty, Hall exhorts readers to bring a copy of the association’s 2014 resolution telling federal agents to keep out, in effect, to their sheriffs and ask them to sign it. “Do not except [sic] excuses like, ‘I have to enforce the law,’” she writes.

The National Sheriffs’ Association, the country’s main professional association for sheriffs, does not try to regulate its member’s claims, including messages from Mack and his supporters, according to its deputy executive director, John Thompson. “There may be people that are part of this that are our members. Matter of fact, I know there are,” said Thompson in an interview at the association’s headquarters in Virginia.

The association, a 65-year-old nonprofit organization dedicated to “raising the level of professionalism” among sheriffs, according to its website, offers general ethics and leadership training for sheriffs. But Thompson said the association’s leaders never opine on how individual sheriffs should behave because their authorities vary so widely from state to state, and because they are ultimately accountable to voters.

How Mack’s campaign plays out over the next few years is unclear. The general political climate, as reflected in the presidential campaign, is angrier and more confrontational than ever. And anti-government extremists are more agitated than at any time in recent memory, as evidenced by the recent siege at the Oregon wildlife refuge. But the reputation of the sheriffs in Mack’s group could be enhanced or sullied by the outcome of a wide-ranging Oregon state probe of Sheriff Glenn Palmer, a vocal supporter of the group who met with several participants in the siege, allegedly asked them to sign his copy of the Constitution, and was quoted by a newspaper calling them “patriots.” The sole casualty, Robert “Lavoy” Finicum, told state police he was on his way to meet with Palmer a few minutes before he was shot, allegedly for making a threatening motion.

“We can’t make anybody be courageous, but we want sheriffs to see the abuses of the federal government,” Mack said in the interview. “If you put them in front of the right information, they’ll do the right thing.”

Executive editor Gordon Witkin contributed to this article.

Heavily armed civilians with a group known as the Oath Keepers arrive in Ferguson, Missouri, on Aug. 11, 2015. The far-right anti-government activists, largely consists of past and present members of the military, first responders and police officers.Julia Hartehttps://www.publicintegrity.org/authors/julia-harteR. Jeffrey Smithhttps://www.publicintegrity.org/authors/r-jeffrey-smithhttps://www.publicintegrity.org/2016/04/18/19568/army-set-our-nation-free

Panama Papers fallout, Flint and politics

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Panama Papers Week II

Fallout from the epic Panama Papers story driven by the International Consortium of Investigative Journalism rolled into a second week and I suspect may actually gather momentum in certain areas.

The Spanish industry minister resigned — adding to existing political crisis in Spain — OECD finance ministers met in a hastily convened session in Paris specifically called after Panama Papers, police raided the offices of Mossack Fonseca in Panama and Britain’s David Cameron announced a new multi-national tax secrecy initiative. There’s even a suspicion that Pakistan’s prime minister Nawaz Sharif is vulnerable after he made a dash to England, supposedly for medical treatment after calls for him to quit.

The ICIJ’s own reporting burst on the project has abated a little this week with more on reaction and great contributions from Martha Hamilton, Emilia Diaz-Struck and the stalwart Hamish Boland-Rudder who has kept the remarkable Panama Papers microsite running and blogged throughout as the pace of resignations, raids, discoveries, conspiracy theories and claims emerged. 

By mid-this week the Panama Papers had generated more than 40 million page views on our properties (along with partners using our tracking code), 23 million of which went to the Power Players interactive. The explanatory video has been viewed more than 1.65 million times.

It’s a stunning achievement by ICIJ Director Gerard Ryle, Deputy Director Marina Guevara Walker and their team and partners around the world. Gerard has been asked to attend a Commonwealth panel ahead of Cameron’s slightly ironic Anti-Corruption Summit in London in May. While state media in places like Ecuador (where Gerard’s salary was published on the front page of a newspaper) and Russia continued to spew out conspiracy theories there is great recognition from journalism professionals at the scale of the achievement by the ICIJ’s work on the leak and its use of a network of more than 370 reporters worldwide to manage the leak received by German paper Suddeutsche Zeitung.

I suspect this one will run and run as they say.

Separately, the ICIJ crew — Sasha Chavkin, Michael Hudson and Cécile Schilis-Gallego - in partnership with Huffington Post won first place/writing for website from the 82nd National Headliner Awards for “Evicted and Abandoned: The World Bank’s Broken Promise to the Poor.” The World Bank project was also a finalist in the IRE Awards for innovation in investigative journalism. 

Flint and the story in your backyard

Talia Buford, a member of Jim Morris’s environmental reporting team, was in the Washington Post and on our site with a thoughtful and I thought courageous commentary about her home town of Flint and why she didn’t quite appreciate the import of what her own mother was telling her about the drinking water bans. "I’d bought into the idea that “Flintstones” could take anything, never once questioning why they should have to,” she writes in a piece which I suspect will become a standard text for young journalist and was brave to write. You can see other pieces Talia has worked on through her author page on the Public Integrity site.

On a side note, Talia and her colleague Kristen Lombardi received a special finalist citation for “Environmental Justice, Denied” in the Paul Tobenkin Memorial Award competition, sponsored by the Columbia School of Journalism. The award honors “outstanding achievements in reporting on racial or religious hatred, intolerance or discrimination in the United States.”  The project is also a finalist for science, technology and environmental reporting in the annual contest of the Deadline Club, the New York City chapter of Society for Professional Journalists.

Tracking the nukes

President Barrack Obama chaired his last 53-nation nuclear security summit in Washington recently and R. Jeffrey Smith who heads our national security coverage with a small but able team, focused on just how much is still to do nearly 30 years after the fall of the Berlin Wall and the collapse of the Soviet Union. Foreign Policy tweeted that Jeff’s piece was “the one you need to read”. The team’s work was also cited in expert analysis of the state of nuclear proliferation for the summit by groups including Harvard University’s Belfer Center and the Stimson Center

The National Security team has really been on the ball with a strong news angle on the fact one of the Brussels suicide bombers was among those it had reported earlier involved in a plot to develop a dirty bomb.

Bernie outspends Hillary in ads

Michael Beckel, a witty and data-skilled, reporter on the federal politics team was nicely praised in a piece in the Washington Post for his ongoing work on who is sending what in the political race — in this case the Democratic race. It’s a good analysis in a sense by an outsider into what really makes the Center for Public Integrity’s focus on data and money in politics tick.

What we’re reading and thinking about

Two perspicacious pieces about the state of modern media — all of it and mostly commercially funded rather than non-profit — from two people I respect this week. Rafat Ali, whom I have quoted before and who founded the Skift travel site sees a clear out in new media (which if he is right I think will potentially impact on Public Integrity to some extent) while the sage Ken Doctor, of Newsonomics, sees a similar picture of dramatic change in our landscape underway right now thanks to shrinking display advertising revenue. Anyone who cares about the future of the newspapers, magazines or websites they read or TV news they watch will find both valuable.

I welcome feedback on this note.

Peter Bale, CEO, The Center for Public Integrity

Prime Minister David Cameron meeting with Nawaz Sharif, the Prime Minister of Pakistan, at Downing Street.Peter Balehttps://www.publicintegrity.org/authors/peter-balehttps://www.publicintegrity.org/2016/04/19/19569/panama-papers-fallout-flint-and-politics

Underdog Sanders outspends Clinton on airwaves in New York

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The New York presidential primary is a study in contrasts for underdogs.

Democratic presidential candidate Bernie Sanders is outspending rival Hillary Clinton on the airwaves in New York and hoping for an upset. Republicans Ted Cruz and John Kasich, meanwhile, have all but left the Empire State to GOP front-runner Donald Trump.

Cruz and Kasich, along with their supportive super PACs, spent just $1.1 million on television and radio advertisements in the state ahead of today’s election, according to data from The Tracking Firm, a nonpartisan media tracking company headquartered in Washington, D.C.

All the while Trump — who has benefited from a large volume of free, “earned media” — did not air a single TV ad and spent a paltry $67,000 on radio ads in New York.

By contrast, Sanders spent more than $6.8 million on television and radio ads in New York, according to data provided to the Center for Public Integrity by The Tracking Firm — about $3 million more than Clinton.

For Cruz and Kasich, their lack of ad spending is somewhat curious given that New York’s Republican primary allows also-rans to win some of the state’s 95 available delegates.

For example: If Trump fails to win 50 percent or more of the vote statewide, Cruz and/or Kasich could pick up a few of the 14 statewide delegates up for grabs.

This 50 percent winner-take-all threshold also applies to New York’s 27 congressional districts, which each award three delegates. Trump, in other words, would only win two delegates were he to win a congressional district with, say, 45 percent of the district-wide vote.

The fewer delegates Trump wins in New York, the greater chance he doesn’t obtain the 1,237 delegates he needs to secure his party’s nomination heading into the Republican National Convention and avoid multiple ballots where his delegates might defect to Cruz or Kasich.

Such a “contested convention” scenario could be disastrous for Trump — and political salvation for Cruz or Kasich, whose only realistic chance of winning the Republican nomination comes via this route.

Tim Kay, the director of political strategy at advertising firm NCC Media, said he was not surprised to see a “certain amount of concession” by Trump’s rivals in New York, given that it is Trump’s home state.

“There are other states in play,” Kay continued, adding that there will be contests held next week in several states, including Delaware, Maryland and delegate-rich Pennsylvania.

One pro-Cruz super PAC — Trusted Leadership PAC— spent about $430,000 on cable TV and radio ads targeting primary voters in New York, according to data from The Tracking Firm. Filings with the Federal Election Commission show the super PAC spent an additional $110,000 on digital ads and telephone calls.

While not a massive sum, Kellyanne Conway — who leads Keep the Promise I, another pro-Cruz super PAC affiliated with Trusted Leadership PAC — said it’s plenty to help bolster Cruz’s cause.

“We intend to get in the way of a Trump sweep in New York,” Conway told the Center for Public Integrity.

She added that the super PAC’s efforts in New York have forced Trump to spend time and resources in his home state — instead of using them elsewhere.

Officials at pro-Kasich super PACs New Day Independent Media Committee and New Day for America, which together spent about $440,000 on TV ads in New York, did not return requests for comment. But the Kasich campaign itself flashed optimism.

“[T]he latest polls show that we have a real chance to gather some delegates today,” Kasich strategist John Weaver wrote supporters in a fundraising email today.

The Democrats’ air war in New York is decidedly more lively, as Sanders continues his quest to catch Clinton, who’s opened up a wide delegate lead despite a string of recent Sanders’ victories.

During the past two weeks since Sanders’ win in the Wisconsin presidential primary, his campaign aired about 22,300 broadcast and cable TV ads targeting New York voters, according to a Center for Public Integrity analysis of data provided by ad tracking firms Kantar Media/CMAG and NCC Media.

That’s an average of one ad every minute.

Meanwhile, Clinton’s campaign aired about 12,700 TV ads in New York during the same period — about three ads every five minutes, on average. The super PACs supporting her have stayed quiet.

Sanders, however, is fighting an uphill battle. Even if he wins the primary, it would do little to reel Clinton back into range in the delegate race.

In a sign that Sanders does not plan to withdraw from the presidential race, no matter how he performs in New York’s primary, his campaign is already airing ads in Indiana, which conducts its primary on May 3.

Both Sanders and Clinton are also already airing ads in Connecticut, Maryland, Pennsylvania and Rhode Island, which all conduct primary elections next Tuesday.

Bernie SandersDave Levinthalhttps://www.publicintegrity.org/authors/dave-levinthalMichael Beckelhttps://www.publicintegrity.org/authors/michael-beckelhttps://www.publicintegrity.org/2016/04/19/19570/underdog-sanders-outspends-clinton-airwaves-new-york

Sanders falters in New York despite outspending Clinton on airwaves

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Update, 10:36 a.m., April 20, 2016:Donald Trump and Hillary Clinton easily won their presidential primary contests in New York.

The New York presidential primary is a study in contrasts for underdogs.

Democratic presidential candidate Bernie Sanders is outspending rival Hillary Clinton on the airwaves in New York and hoping for an upset. Republicans Ted Cruz and John Kasich, meanwhile, have all but left the Empire State to GOP front-runner Donald Trump.

Cruz and Kasich, along with their supportive super PACs, spent just $1.1 million on television and radio advertisements in the state ahead of today’s election, according to data from The Tracking Firm, a nonpartisan media tracking company headquartered in Washington, D.C.

All the while Trump — who has benefited from a large volume of free, “earned media” — did not air a single TV ad and spent a paltry $67,000 on radio ads in New York.

By contrast, Sanders spent more than $6.8 million on television and radio ads in New York, according to data provided to the Center for Public Integrity by The Tracking Firm — about $3 million more than Clinton.

For Cruz and Kasich, their lack of ad spending is somewhat curious given that New York’s Republican primary allows also-rans to win some of the state’s 95 available delegates.

For example: If Trump fails to win 50 percent or more of the vote statewide, Cruz and/or Kasich could pick up a few of the 14 statewide delegates up for grabs.

This 50 percent winner-take-all threshold also applies to New York’s 27 congressional districts, which each award three delegates. Trump, in other words, would only win two delegates were he to win a congressional district with, say, 45 percent of the district-wide vote.

The fewer delegates Trump wins in New York, the greater chance he doesn’t obtain the 1,237 delegates he needs to secure his party’s nomination heading into the Republican National Convention and avoid multiple ballots where his delegates might defect to Cruz or Kasich.

Such a “contested convention” scenario could be disastrous for Trump — and political salvation for Cruz or Kasich, whose only realistic chance of winning the Republican nomination comes via this route.

Tim Kay, the director of political strategy at advertising firm NCC Media, said he was not surprised to see a “certain amount of concession” by Trump’s rivals in New York, given that it is Trump’s home state.

“There are other states in play,” Kay continued, adding that there will be contests held next week in several states, including Delaware, Maryland and delegate-rich Pennsylvania.

One pro-Cruz super PAC — Trusted Leadership PAC— spent about $430,000 on cable TV and radio ads targeting primary voters in New York, according to data from The Tracking Firm. Filings with the Federal Election Commission show the super PAC spent an additional $110,000 on digital ads and telephone calls.

While not a massive sum, Kellyanne Conway — who leads Keep the Promise I, another pro-Cruz super PAC affiliated with Trusted Leadership PAC — said it’s plenty to help bolster Cruz’s cause.

“We intend to get in the way of a Trump sweep in New York,” Conway told the Center for Public Integrity.

She added that the super PAC’s efforts in New York have forced Trump to spend time and resources in his home state — instead of using them elsewhere.

Officials at pro-Kasich super PACs New Day Independent Media Committee and New Day for America, which together spent about $440,000 on TV ads in New York, did not return requests for comment. But the Kasich campaign itself flashed optimism.

“[T]he latest polls show that we have a real chance to gather some delegates today,” Kasich strategist John Weaver wrote supporters in a fundraising email today.

The Democrats’ air war in New York is decidedly more lively, as Sanders continues his quest to catch Clinton, who’s opened up a wide delegate lead despite a string of recent Sanders’ victories.

During the past two weeks since Sanders’ win in the Wisconsin presidential primary, his campaign aired about 22,300 broadcast and cable TV ads targeting New York voters, according to a Center for Public Integrity analysis of data provided by ad tracking firms Kantar Media/CMAG and NCC Media.

That’s an average of one ad every minute.

Meanwhile, Clinton’s campaign aired about 12,700 TV ads in New York during the same period — about three ads every five minutes, on average. The super PACs supporting her have stayed quiet.

Sanders, however, is fighting an uphill battle. Even if he wins the primary, it would do little to reel Clinton back into range in the delegate race.

In a sign that Sanders does not plan to withdraw from the presidential race, no matter how he performs in New York’s primary, his campaign is already airing ads in Indiana, which conducts its primary on May 3.

Both Sanders and Clinton are also already airing ads in Connecticut, Maryland, Pennsylvania and Rhode Island, which all conduct primary elections next Tuesday.

This story was co-published with PRI and TIME.

Bernie SandersDave Levinthalhttps://www.publicintegrity.org/authors/dave-levinthalMichael Beckelhttps://www.publicintegrity.org/authors/michael-beckelhttps://www.publicintegrity.org/2016/04/19/19570/sanders-falters-new-york-despite-outspending-clinton-airwaves

Sanders spent $9 per vote in New York. Trump? About 13 cents.

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Democratic presidential candidate Bernie Sanders faltered in New York despite outspending front-runner Hillary Clinton on the television and radio airwaves.

Sanders won about 750,000 votes in New York — or 42 percent — while spending more than $6.8 million on TV and radio ads, according to election, according to data provided to the Center for Public Integrity by The Tracking Firm, a nonpartisan media tracking company.

Sanders’ spending spree amounted to about $9.03 per vote.

Clinton, meanwhile, bagged more than 1 million votes while spending about $3.8 million on TV and radio ads — about $3.62 per vote.

Clinton’s victory added to her delegate lead in the Democratic primary, in which she has now won about 25 percent more pledged delegates than Sanders, according to the Associated Press.

Including superdelegates — free agents who may choose to back any candidate — Clinton is now roughly 450 delegates away from clinching the Democratic Party nomination. Sanders would need to secure nearly 1,200 delegates to win the party’s presidential nomination.

Math be damned, Sanders continues pressing on. His campaign is already airing TV ads ahead of the May 3 primary in Indiana, according to data provided to the Center for Public Integrity by Kantar Media/CMAG, an advertising tracking firm.

Both Sanders and Clinton are also already airing ads in Connecticut, Maryland, Pennsylvania and Rhode Island, which all conduct primary elections next Tuesday.

Fueled by small-dollar donors — many of whom have made multiple contributions— Sanders has amassed a campaign war chest of more than $180 million. This has allowed him to outgun Clinton on the TV airwaves for months, although the results of his massive spending have been mixed.

For her part, Clinton has raised about $190 million for her campaign, and super PACs supporting her candidacy have raised tens of millions of dollars in additional funds.

While Clinton and Sanders aired thousands of ads in New York ahead of Tuesday’s primary, Republican Party front-runner Donald Trump did not air a single TV ad.

The New York resident and real estate tycoon surged past rivals Ted Cruz and John Kasich, who largely conceded the state. Trump won more than 515,000 votes — about 60 percent of the GOP vote.

Trump, who has benefited from widespread media coverage, spent a mere $67,000 on radio ads during the state’s primary election — the equivalent of about 13 cents per vote.

This story was co-published with TIME.

    

Democratic presidential candidate Bernie Sanders.Michael Beckelhttps://www.publicintegrity.org/authors/michael-beckelhttps://www.publicintegrity.org/2016/04/20/19578/sanders-spent-9-vote-new-york-trump-about-13-cents

Banks ordered to provide info on Panama dealings to N.Y. regulator

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More than a dozen banks will have to turn over details of their dealings with Panama law firm Mossack Fonseca to New York's banking regulator, as authorities continue to respond to revelations from the Panama Papers investigation.

The order came from the New York Department of Financial Services and was sent to 13 foreign banks identified in articles published by ICIJ and its media partners. Among the banks are Deutsche Bank AG, Credit Suisse Group AG, Commerzbank AG and ABN Amro Group NV, Bloomberg reported.

The banks have been given 10 days to respond, and were asked to provide communications, phone logs and records of transactions between their New York branches and employees or agents of Mossack Fonseca, as well as any subsequent communication with shell companies formed as part of these transactions. According to Bloomberg, the regulator has also asked banks to identify any New York-based personnel who may have held positions at the shell companies.

The regulator is reportedly searching for potential violations of rules or regulations related to the law firm. The banks have not been accused of wrongdoing.

The second ranking Democrat on the U.S. House of Representatives Financial Services committee also used the Panama Papers investigation on Wednesday to request hearings on a bill introduced earlier this year aimed at stopping anonymous company ownership.

Rep. Carolyn B. Maloney, D-N.Y., cited the Panama Papers investigation in asking for the hearings, and said its findings highlighted "the ease with which criminals and corrupt officials can use anonymous shell companies to hide assets from law enforcement." 

Maloney’s bill, “The Incorporation Transparency and Law Enforcement Assistance Act,” would require corporations and limited liability companies to disclose who their true owners, to the states in which they are incorporated, if the states have such a requirement, or to the Treasury department.

Offshore entities often take advantage of multiple ways in which to make it harder to identify their ownership, including corporate records that make it appear as if stand-ins are actually running the business, or being owned by foundations in jurisdictions such as Panama where the law requires that those involved in setting up the foundation “or any person that obtains information relating to the activities, transactions or operations of the foundation maintain strict confidentiality even following its termination.” Breaches of the law are punished with up to six months imprisonment and penalties up to $50,000.

Earlier in April, Sen. Sherrod Brown, D-Ohio, and Sen. Elizabeth Warren, D-Mass., asked the U.S. Treasury to investigate any U.S. companies or U.S.-linked companies that appeared in the Panama Papers.

Wyoming, where Mossack Fonseca maintains an office, conducted an audit of firms registered there by the company right after the investigation was published. Secretary of State Ed Murray said that the audit “determined that M.F. Corporate Services Wyoming LLC failed to maintain the required statutory information for performing the duties of a registered agent under Wyoming law.” The information was subsequently provided, he said. 

Last week, the IRS participated in a special meeting of the Organization of Economic Cooperation and Development’s Joint International Tax Shelter Information & Collaboration Network that was called in the wake of the Panama Papers. 

“People hiding assets offshore should recognize the continued changes and progress in the international tax arena” and “come forward voluntarily,” the IRS said in a statement. “The IRS welcomes the OECD’s support of the JITSIC’s work to coordinate the effort by tax authorities across the world to respond to the released information. We will be closely monitoring the situation along with our international tax administration partners as we determine what steps to take to ensure compliance with U.S. tax laws and meet our shared global interests.”

Martha M. Hamiltonhttps://www.publicintegrity.org/authors/martha-m-hamiltonHamish Boland-Rudderhttps://www.publicintegrity.org/authors/hamish-boland-rudderhttps://www.publicintegrity.org/2016/04/20/19581/banks-ordered-provide-info-panama-dealings-ny-regulator
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