Documents Found in Meth House Reveal Workings of Dark Money Group

More

The law prohibits outside groups from coordinating with campaigns -- but mysterious papers in Montana strongly suggest untoward dealings.

WTP.b<em></em>anner.Frontline.jpg
Frontline

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

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

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

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

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

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

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

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

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

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

The front page accused the Democratic gubernatorial candidate of being soft on sex offenders.

Donny Ferguson, American Tradition Partnership's spokesman and executive director, did not specifically address the documents found in Colorado or allegations of coordination made against WTP.

"American Tradition Partnership always obeys every letter of every applicable law," he wrote in an emailed response to questions. "ATP does not, and never will, endorse candidates or urge voters to vote for or against candidates .... These false allegations are old hat."

On its website, the group says its primary purpose is issue advocacy and combating radical environmentalists, whom it sometimes calls "gang green." It describes itself as a grassroots group backed by a broad membership of small donors.

When asked about the documents found in Colorado, Jim Brown, a lawyer for the group, said he was unfamiliar with them.

After being shown some of the documents by Frontline, Brown, in a follow up email, said his review indicated that they appeared to belong to a company called Direct Mail. Direct Mail and Communications is a print shop in Livingston, Montana, run by a one-time key player in WTP and his wife.

Brown urged Frontline to turn over the documents. "If the documents are purported to be what you say they are, then you may knowingly be in possession of stolen property," Brown wrote.

The records are in the hands of the Montana Commissioner of Political Practices, which considers them public and reviewable upon request.

*****

In the anything-goes world of modern campaign finance, outside groups face one major restriction: They are not allowed to coordinate with candidates. That's because contributions to candidates and parties are still capped to limit donors' direct influence, while contributions to outside groups are unlimited.

The Federal Election Commission has a three-pronged test for proving coordination: Did an outside group pay for ads, phone calls or mailers? Did these materials tell people to vote for or against a candidate, or praise or criticize a candidate in the weeks before an election? Finally, did the candidate, or a representative, agree to the expenditure?

Many concerns have been raised about coordination in this election because of close ties between outside groups and campaigns. Super PACs supporting President Obamaand Republican nominee Mitt Romney are run by their former staffers. Super PACs and campaigns have used the same consultants, who insist in interviews that they have firewalls.

Proving coordination is extremely difficult, however. Since 2007, the FEC has investigated 64 complaints of coordination, but found against candidates and groups only three times, fining them a total of $107,000, a review of FEC enforcement actions shows.

Montana, which has similar rules, also receives few complaints about such activity, Steab said.

The boxes from Colorado contained a mixture of documents from candidates and outside groups.

Folders labeled with the names of Montana candidates held drafts and final letters of support signed by candidates' wives and drafts and final copies of mailers marked as being paid for by the campaigns. The folders often appeared to have had an accounting of what had been sent and paid for scrawled on the front.

Several folders included copies of the signatures of candidates and their wives. "Use this one," someone wrote in red pen next to a cut-out rectangle on a page with five signatures from one candidate.

Steab, the Montana investigator, said she believed these cut-out signatures were then affixed to fliers from the candidates.

Besides material from the campaigns, the boxes also contained mailers on 2008 and 2010 races in Colorado and Montana from Western Tradition Partnership and six other groups. There were bank statements for several groups, including the Coalition for Energy and the Environment, the Alliance of Montana Taxpayers and the Conservative Victory Fund.

In all the documents, one name repeatedly popped up: Christian LeFer. Even though twoMontana Republican politicians founded WTP, investigators determined that LeFer was the man behind the scenes.

LeFer, who is described as WTP's director of strategic programming in memos in 2009, said in an email that the documents "appear to be stolen property" and that, as he'd had no access to them, he couldn't respond to most of ProPublica's questions, "which seem to be based on an erroneous and fanciful interpretation of what they mean."

LeFer did not address whether WTP had coordinated with candidates. Although former employees and candidates said LeFer helped his wife run Direct Mail and Communications -- the printing company that Brown, the lawyer, suggested was the owner of the boxes of documents found in Colorado -- LeFer said he did not "run or direct the activities" there.

Jump to comments
Presented by

Kim Barker, Rick Young and Emma Schwartz

Kim Barker is a reporter with ProPublica. Rick Young and Emma Schwartz are reporters at Frontline.

Get Today's Top Stories in Your Inbox (preview)

Is Technology Making Us Better Storytellers?

How have stories changed in the age of social media? The minds behind House of Cards, This American Life, and The Moth discuss.


Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

Is Technology Making Us Better Storytellers?

The minds behind House of Cards and The Moth weigh in.

Video

A Short Film That Skewers Hollywood

A studio executive concocts an animated blockbuster. Who cares about the story?

Video

In Online Dating, Everyone's a Little Bit Racist

The co-founder of OKCupid shares findings from his analysis of millions of users' data.

Video

What Is a Sandwich?

We're overthinking sandwiches, so you don't have to.

Video

Let's Talk About Not Smoking

Why does smoking maintain its allure? James Hamblin seeks the wisdom of a cool person.

Writers

Up
Down

More in Politics

Just In