Conservative group behind student loan challenge sent money to Dershowitz legal defense fund, Pitbull’s record company

From: POLITICO Influence - Tuesday Dec 19,2023 11:36 pm
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By Caitlin Oprysko

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With Daniel Lippman

ANNALS OF DARK MONEY: Job Creators Network, the network of conservative small business advocacy groups that helped lead this year’s successful legal challenge to President Joe Biden’s student debt relief plan, brought in more than $7 million in revenues in 2022, according to tax filings for the nonprofit and its affiliated charitable arm, the Job Creators Network Foundation. Neither nonprofit is required to disclose its donors.

— JCN’s 501(c)(4) arm reported more than $2.8 million in revenues, including two transfers of publicly traded securities worth a little over $400,000, according to its newest filing, which was shared with PI by liberal watchdog group Accountable.US.

— The group dropped $3.2 million on three different programs, including marketing efforts to “identify, recruit and sign up CEOs and small businesses for the purpose of educating the public in the defense and preservation of free enterprise and entrepreneurship” and education efforts to “sign up companies to receive employer to employee education materials to distribute to their employees to help educate them on what it takes to create jobs and how bad policy hurts good people,” which the group said “will generate a better informed and educated voter.”

— JCN paid $1 million to a firm called Rigel Strategies for advertising, $752,000 to conservative PR firm Berman & Company for media services, $153,000 to the law firm Boyden Gray & Associates and $150,000 to the lobbying firm Mehlman Consulting for consulting, according to the filing. Job Creators Network, which has received $550,000 in contributions from the Leonard Leo-linked nonprofits The 85 Fund and Concord Fund over the past three years, also paid Leo’s for-profit consulting firm CRC Advisors $288,000, according to the filing.

— Meanwhile the group’s lone grant recipient listed on the filings appears to have little to do with issues of entrepreneurship or its student loan relief undertaking. The filing shows Job Creators Network wrote a $60,000 check last year to the  Alan Dershowitz Legal Defense Trust, the legal defense fund set up to help famed legal scholar Alan Dershowitz defray the costs of a defamation lawsuit filed by an alleged Jeffrey Epstein victim and Dershowitz’s own, since-dismissed defamation lawsuit against CNN.

— More curious spending on the report discloses that JCN spent an unspecified amount on a “health club” membership and personal trainers for the group’s CEO Alfredo Ortiz. The group also reported spending more than $62,000 at the members-only Capitol Hill Club for fundraising and program expenses. "Our 990’s speak for themselves and we have no additional comments,” JCN chief communications officer Elaine Parker told PI in a statement.

— “It’s no surprise that the group leading the charge against student debt forgiveness for Americans spent the rest of its time bankrolling extreme causes and facilitating Leo’s circular profit scheme,” Accountable.US President Caroline Ciccone said in a statement, referencing the D.C. attorney general’s investigation into Leo’s network.

— JCN Foundation, the entity that filed one of the two lawsuits that ultimately resulted in the Supreme Court striking down Biden’s student loan relief, brought in nearly $4.3 million in revenues last year, up from $2.9 million the year before, according to a copy of its tax return that was filed over the summer. The foundation reported spending $3.7 million on programs similar to that of its 501(c)(4) arm, with the addition of $340,000 to seed its new legal action fund.

— The nonprofit paid conservative law firm Consovoy McCarthy, which represented the two plaintiffs in the student loan case, $225,000 for legal fees, according to the tax filing. But among the group’s largest expenditures last year was $500,000 JCN Foundation paid to Mr. 305 Inc., Miami rapper Pitbull’s record label, for a “public education project.” It was not immediately clear what that project was.

Happy Tuesday and welcome to PI. Don't forget to send us your best money and influence tips before it's too late: coprysko@politico.com. And be sure to follow me on X, the platform formerly known as Twitter: @caitlinoprysko.

 

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MIAMI MAYOR GETS COZY WITH RIYADH: “As Saudi Arabia sought to rehabilitate its image after decades of bad-for-business headlines about 9/11 hijackers, alleged police torture, public beheadings and the gruesome murder of a Washington Post journalist, the regime turned to an unlikely ally for PR and networking assistance,” the Miami Herald’s Sarah Blaskey, Tess Riski, Joey Flechas and Susan Merriam report: Miami Mayor Francis Suarez.

— At a summit in Miami Beach in March with the head of the Saudi sovereign wealth fund, and “using his public office, including the city seal, Suarez gave the Saudi regime what it wanted: a public relations boost at a time when it was seeking to spread its influence around the globe and brand itself ‘a force for good.’ As a bonus, he was also able to significantly benefit a major client of the international law firm that pays him more than $1 million a year,” Quinn Emanuel Urquhart & Sullivan.

— “Internal communications and planning documents obtained as part of the Miami Herald’s investigation into Miami City Hall show the extent to which Suarez put himself and his public office at the service of the Saudis.”

— “He was provided a lengthy roster of tycoons and celebrities that the Saudis wanted invited — ranging from Marc Anthony to Shakira — as well as a list of which sessions the mayor needed to attend, when he should show up and what talking points he should follow. Although it wasn’t obvious from glossy advertisements … the Florida summit was part of Saudi Arabia’s subtle, multifaceted campaign, to use the investment power of its oil-soaked sovereign wealth fund to diversify and grow its economy, buff over the regime’s bloody reputation and recast the nation as a leader in sustainability, innovation and progress.”

— “Now, the Miami summit is caught up in an ongoing congressional investigation into how Saudi Arabia has bought its way into popular U.S. institutions and used them to reshape the public narrative in the United States.”


FIRST IN PI: Sen. Kyrsten Sinema (I-Ariz.), who has been criticized by Democrats for her ties to and help for Wall Street, accepted a $750 donation from an Arizona man months after he pled guilty to a felony charge of stock manipulation, specifically selling unregistered securities, Daniel reports.

Ira Gaines was sentenced to 60 months probation in June for the crime and paid almost $100,000 in restitution to the victims of the scheme in addition to a $10,000 fine. He donated the $750 on Sept. 15. A spokesperson for Sinema didn't respond to requests for comment or whether she would return the funds. Gaines also didn't respond to a request for comment.

WARREN’S LATEST CRYPTO CRUSADE: “Sen. Elizabeth Warren has a new target as she takes on the cryptocurrency industry: Its growing army of former defense, national security and law enforcement officials,” our Zach Warmbrodt reports.

— “The Massachusetts Democrat sent letters to Coinbase, the largest U.S. crypto exchange, as well as the Blockchain Association and Coin Center, two leading industry groups, demanding details on their employment of the former officials,” which she described as an “abuse of the revolving door” designed to give the industry “a veneer of legitimacy while fighting tooth and nail to stonewall common sense rules designed to restrict the use of crypto for terror financing — rules that could cut into crypto company profits.”

— “Warren cited POLITICO reporting that outlined how the crypto lobby has been flexing its association with the experts as it faces growing scrutiny for the role digital assets play in facilitating financial crime, including funding the Oct. 7 Hamas attacks in Israel.”

— “Warren’s letters identified Coinbase’s recruitment of one-time Defense Secretary Mark Esper and Bush counterterrorism adviser Frances Townsend, as well as retired Republican Sen. Pat Toomey and former Democratic Reps. Tim Ryan and Sean Patrick Maloney, who is nominated to serve as the U.S. representative to the OECD.”

— “They serve on Coinbase’s Global Advisory Council. She also noted a recent Blockchain Association letter to Capitol Hill signed by 40 former military officials, ex-intelligence officers and national security professionals, who downplayed illicit activity in crypto and argued against policies that would drive digital asset players overseas.”

IF YOU MISSED IT MONDAY: “A watchdog group that has already filed several complaints against Gov. Ron DeSantis is now alleging that the Florida Republican and a super PAC aiding his presidential bid violated federal campaign finance laws,” our Gary Fineout reports.

— “DeSantis’ reliance on Never Back Down, which was set up with an infusion of more than $80 million transferred from a committee that once was raising money for the governor’s 2022 reelection campaign, has already generated a lot of questions and scrutiny.”

— Now, campaign finance watchdog Campaign Legal Centerwants federal election regulators to look at whether Never Back Down, which has been in turmoil lately amid a rash of firings and departures of top staff, including top strategist Jeff Roe, worked hand-in-hand with the DeSantis campaign despite federal laws that prohibit coordination between the two.”

— “When a super PAC like Never Back Down illegally coordinates its election spending with a candidate’s campaign, the super PAC effectively becomes an arm of the campaign,” Saurav Ghosh, director of federal campaign finance reform at Campaign Legal Center said in a statement. “That circumvents federal contribution limits and reporting requirements, and gives the super PAC’s special interest backers, including corporations and ultra-wealthy individuals, a concerning level of influence over elected officials and policymaking — undermining voters’ right to a meaningful and equitable role in the democratic process.”

— DeSantis spokesperson Andrew Romeo called the complaint “baseless,” while Never Back Down Chair Scott Wagner maintained that the super PAC is fully complying with the law.

SPOTTED last night at a holiday party for Democratic fundraising group Electing a Democratic Generation hosted at the offices of Brownstein Hyatt Farber Schreck, per a tipster: Rachel Miller of Sen. Mark Kelly’s (D-Ariz.) office, Justin German of Rep. Haley Stevens’ (D-Mich.) office, Matt Lee of Rep. Deborah Ross’ (D-N.C.) office, Jason Ortega of the National Wooden Pallet & Container Association, Katie Phillips of Federal Hall Policy Advisors, Colton Hotary of LG, Dave Korkoian of FedEx, Colin Craib of UBS, Sterling Wiggins of the U.S. Chamber of Commerce, Mike Giblin of the American Medical Association, David Reid and Zach Marshall of Brownstein Hyatt Farber Schreck, Bobby Cunningham of the Vogel Group and Lane Coberly, Paul Nemetz and Channing Lee Foster of Invariant

 

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Jobs Report

Darien Flowers is joining Squire Patton Boggs’ global public policy practice. He was most recently head of government relations at Flexport and is a Senate Commerce and DOT alum.

Mario Grande has joined the Consumer Brands Association as vice president of revenue and membership growth. He was previously chief commercial officer for the American Trucking Associations and is a SmithBucklin, CQ Roll Call and The Hill alum.

Glen Echo Group has promoted Lauren Gaydos and Dani Leopold Bogage to senior directors; Kathryn Porter, Carrie Hutcheson and Miranda Neil to directors; and Tiffany Garcia to senior associate.

Katie Harbath is joining Duco Experts full-time as global affairs officer. She’s the founder and CEO of Anchor Change and has worked with the Bipartisan Policy Center, the International Republican Institute and the Integrity Institute and is a Meta alum.

Kim Atkinson is joining Honor Technology as chief communications officer. She was previously senior vice president of communications at Athletic Greens and is a SmileDirectClub and IHG Hotels alum.

Kia Kolderup-Lane has joined Salesforce as senior manager of state and local government affairs for California and the Southwest. Kolderup-Lane most recently worked in San Francisco Mayor London Breed's administration.

Mike Zamore is joining the ACLU as national director of policy and government affairs. He previously was chief of staff for Sen. Jeff Merkley (D-Ore.) and is a DSCC alum.

Kevin Klauer will become CEO of the American Health Information Management Association next month. He has served as chief medical officer at HCA Florida Ocala and West Marion hospitals. He’ll replace Amy Mosser, who has served as interim CEO since June.

Ben Elleson is joining USTelecom as senior director of government affairs. He was previously senior policy adviser to Rep. Kat Cammack (R-Fla.).

New Joint Fundraisers

Adam Gray Victory Fund 2024 (Adam Gray for Congress, California Democratic Party)

New PACs

Amplified Voices PAC (Super PAC)

General Electric Company Vernova Political Action Committee (PAC)

GREAT OPPORTUNITY PAC (Super PAC)

Stop Traitors PAC (Super PAC)

WIN FOR A CHANGE (Super PAC)

New Lobbying REGISTRATIONS

Cornerstone Government Affairs, Inc.: Solari Inc.

Dla Piper LLP (US): Advanced Medical Technology Association (Advamed)

Jakub Stanger Kraus: Center For Ai Policy, Inc.

Munk Policy & Law: Unfair USer Fees On International Aviation Coalition, C/O Wheels Up Experience

Pillsbury Winthrop Shaw Pittman LLP: Global Patent Solutions, LLC

Skyline Capitol LLC: Artis, LLC

Teamhealth Holdings, Inc.: Teamhealth Holdings, Inc.

Team Subject Matter, LLC: Arcelormittal North America Holdings LLC

New Lobbying Terminations

None.

 

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