WHAT WE LEARNED FROM MCAULIFFE’S CAMPAIGN FINANCE REPORT

McAuliffe Financed By Controversial Donors, Lincoln Bedroom Guests, Lobbying Firms And Out Of State Money
Arlington, VA—Last evening, the McAuliffe for Governor campaign released its campaign finance filing for the month of June. What did we learn?
   Among itemized contributions, McAuliffe received nearly 3 in 4 dollars from out of state. Over 90 % of the funds McAuliffe raised came from donations that were over $100. McAuliffe’s large controversial donors and donors of note include: o An ambassador nominee who had to withdraw amid accusations of ties to an illegal gambling ring. o A real estate developer whose conflicts of interest have led to critical media reports and criticism from the Department of Housing and Urban Development. o A medical services company that faces criticism and was threatened with a class action lawsuit for providing inadequate healthcare services at a Virginia prison. o One of the largest contributors who attended one of Clinton’s White House coffees, which McAuliffe brainstormed. TERRY MCAULIFFE JUNE 2013 CAMPAIGN FINANCE FILING MCAULIFFE FOR GOVERNOR Starting Balance Total Money Raised Expenses Ending Balance $5,427,906.50 $2,232,412 $1,647,621 $6,012,697

ITEMIZED CONTRIBUTIONS (In State Vs. Out Of State) Total Itemized Donations In-State Donations Out Of State Donations $1,749,930.20 $465,401.00 $1,284,529.20 100% 26.6% 73.4% 1

MONEY RAISED (Small Vs. Large Donations) Total Money Raised Refunded Expenditures Contributions Over $100 Contributions Over $100 In-Kind Total Over $100 $100 Or Less $2,232,413.06 $292,361.40 $1,940,051.58 $1,749,930.20 $49,269.19 $1,799,199.39 $140,852.27 N/A N/A 100% 90.2% 2.5% 92.7 7.3%

(Virginia Public Access Project, Accessed 7/15/13)

CONTROVERSIAL DONORS Marc Lasry Marc Lasry Donated $75,000 To McAuliffe For Governor On June 21, 2013. (Virginia Public
Access Project, Accessed 7/15/13)

In April, Lasry’s Name Was Withdrawn To Be The Next U.S. Ambassador To France After The White House Asked The FBI To Investigate His Ties To A Recently Charged Gambling Ring. “CNBC has more on the reasons top Obama donor Marc Lasry dropped out of consideration to be President Obama's next ambassador to France. Lasry withdrew earlier this week without saying why, and the New York Post reported Friday that his withdrawal came days after the White House asked the FBI to look into whether he knew anyone involved in a recently charged gambling ring. CNBC reports the FBI inquiry was the ‘last straw’ and that the biggest sticking point for the Avenue Capital CEO's candidacy for the ambassadorship was his investments.” (Donovan Slack,
“Lasry's French Connection,” Politico, 4/26/13)

On March 13, McAuliffe Attended A Fundraiser In Manhattan At Lasry’s Home. “Another helpful reader — and I appreciate every single one of you– sent along an invite for a March 13 fundraiser for former DNC Chairman Terry McAuliffe that features former President Bill Clinton as headliner. Clinton’s appearance is no surprise given McAuliffe’s top roles in both Clinton’s 1996 reelection campaign and former Secretary of State Hillary Clinton’s 2008 presidential bid. Hedge fund billionaire Marc Lasry and his wife, Cathy, will host the event at their Manhattan home, along with cohosts Doug and Lily Band.” (Celeste Katz, “Terry McAuliffe To Raise For Virginia Governor’s Race With Bill Clinton In NYC,” New York
Daily News’ Daily Politics, 2/15/13)

Elzie Higginbottom And ELH Partners ELH Partners Donated $50,000 To McAuliffe For Governor On June 25, 2013. (Virginia Public
Access Project, Accessed 7/15/13)

ELH Partners Is Owned By “Real-Estate Mogul Elzie Higginbottom.” “ELH Partners LLC, Elkay Enterprises Inc., $15,000 DALEY CONNECTION: Companies of real-estate mogul Elzie Higginbottom.” (Dan Mihalopoulos and Todd Lighty, “Daley Allies Help His Pals,” Chicago Tribune, 3/29/07) 2

According To A 2012 NBC Chicago Report, Higginbottom’s “Various Leadership Roles Have Raised Eyebrows At The U.S. Department Of Housing And Urban Development For Their Perceived Conflicts Of Interest.” “A Chicago real estate mogul's various leadership roles have raised eyebrows at the U.S. Department of Housing and Urban Development for their perceived conflicts of interest. Elzie Higginbottom is the former chairman of the Housing Authority of Cook County. But he also owns or has a major interest in 97 private companies, several of which are involved with real estate development.” (Dick Johnson and Katherine Smyser, “Conflict Of Interest In Real Estate Mogul's $3 Million
Deal?” NBC Chicago, 7/3/12)

Two Companies Higginbottom Owned Sought Contracts From A Cook County, IllinoisBacked Housing Non-Profit On Which He Sat On The Board. “Earlier this year, a $12 million apartment complex for senior citizens was erected in southwest suburban Summit. The project was overseen by Turnstone Development Corporation, a non-profit created by the Housing Authority of Cook County. Higginbottom sat on the board for Turnstone Development. And another contractor involved with the project, Burling Builders, lists Higginbottom as its president. So Burling -- with Higginbottom as its owner -- sought millions of dollars for work on a project overseen by Turnstone -with Higginbottom as a board member. And Turnstone was a branch of the Housing Authority of Cook County -- with Higginbottom as chairman.” (Dick Johnson and Katherine Smyser, “Conflict Of Interest In Real Estate
Mogul's $3 Million Deal?” NBC Chicago, 7/3/12)

One Of His Companies Won A $3 Million Contract. “As it turns out, Burling got more than $3 million from Turnstone -- as the lowest bidder to develop the second phase of the Summit housing.” (Dick Johnson and Katherine Smyser, “Conflict Of Interest In Real Estate Mogul's $3 Million Deal?” NBC Chicago,
7/3/12)

A U.S. Housing And Urban Development Spokesman Called The Bids “Inappropriate.” “‘It would have been inappropriate for Burling to bid,’ said a HUD spokesman in a statement about one of those bids.” (Dick Johnson and Katherine Smyser, “Conflict Of Interest In Real Estate Mogul's $3 Million Deal?” NBC Chicago, 7/3/12) NOTE: McAuliffe Once Discussed How It Was “Easier To Raise Money For A Governor. They Have All Kinds Of Business To Hand Out.” MCAULIFFE: “Now Let me tell you, it’s a lot easier to raise money for a Governor. They have all kinds of business to hand out, road contracts, construction jobs, you name it.” (Terry McAuliffe and Steve Kettmann, “What A Party,” Thomas Dunne Books, 2007, p.77)  Click To Listen Armor Correctional Health Services, Inc. Armor Correctional Health Services, Inc. Donated $25,000 To McAuliffe For Governor On June 7, 2013. (Virginia Public Access Project, Accessed 7/15/13) Armor Correctional Health Services Offers Medical Services For Jails And Prisons. “Armor is a physician and minority-owned enterprise, that provides comprehensive medical, dental and mental health services exclusively for patients in jails and prisons.” (Armor Correctional Health Services,
Accessed 7/15/13)

Armor Operates At Multiple Virginia Department Of Corrections Facilities. “Virginia Department Of Corrections[:] Coffeewood[,] Fluvanna Correctional Center for Women[,] Greensville[,] Indian Creek[,] Lunenburg[,] Powhatan Correctional Center[,] Sussex 1 State Prison[,] Sussex 2 State Prison[,] Meherrin River Regional Jail[,] St. Brides Correctional Center[,] ICAFarmville* * This is an immigration and customs enforcement (US-ICE) facility.” (Armor Correctional Health
Services, Accessed 7/15/13)

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Armor Correctional Services Was Threatened With A Class Action Lawsuit In 2012 For Providing Inadequate Healthcare Services At A Virginia Prison. “The Legal Aid Justice Center has filed a lawsuit claiming prisoners at the Fluvanna County Correctional Center for Women (FCCCW) have suffered prolonged pain and even death because of inadequate health care services. They say this has been going on for years. The class action Lawsuit has been filed against the Virginia Department of Corrections and Armor Correctional Health Services, the for-profit company hired to provide health care to prisoners at FCCCW.” (Rachel Ryan, “Fluvanna Co. Lawsuit Claims Prisoners Denied Basic Health Care,”
WCAV-TV, 7/24/12)

The Lawsuit Alleged That Prisoners Were “Forced To Wait Several Months To See A Doctor” And Were “Repeatedly Denied Specialized Care. “The lawsuit states prisoners are forced to wait several months to see a doctor and that they are repeatedly denied specialized care. Lawyers with the Legal Aid Justice Center say hundreds of grievances have been filed over the years, and that the goal of this lawsuit is to save lives.” (Rachel Ryan, “Fluvanna Co. Lawsuit Claims Prisoners Denied Basic Health
Care,” WCAV-TV, 7/24/12)

Richard Machado Gonzalez Dr. Richard Machado Gonzalez Is A Hospital Executive In Puerto Rico Who Gave One Of The Largest Contributions That Resulted From President Bill Clinton’s Infamous White House Coffees. “To dance with donors, a candidate must know when to lead and when to follow. Doing the hustle with Puerto Rican interests during the past two years, President Clinton has proved deft at both. Although Puerto Rico residents can't vote in U.S. elections, they can make campaign contributions. After the infamous White House kaffeeklatsches, for example, one of the largest contributions -- $200,000 -- came from Puerto Rican hospital executive Dr. Richard Machado Gonzalez.” (Suzanne Herel And Rachel Burstein, “Island Of Influence,” Mother Jones, 5/1/97) Gonzalez Recently Donated To Scandal-Scarred Rep. Charlie Rangel’s (D-NY) Legal Expense Trust. “The Trust also received on March 6th, $5,000 each from hospital owner Richard Machado Gonzalez (Bayamon, Puerto Rico), Norma Machado-Ortiz (Dorado, Puerto Rico), and Luis G. Machado-Ortiz (Dorado, Puerto Rico).” (Kent Cooper, “Rangel Pays $72,000 In Legal Fees,” Roll Call’s “Political MoneyLine”
Blog, 5/2/13)

NOTE: McAuliffe Admitted He Came Up With The Coffees Idea. CNN’s WOLF BLITZER: “Who came up with the idea of the coffees, for example, that the President would have these hundred plus coffees and that the fundraisers would come in and have these coffees with the President?” TERRY MCAULIFFE: “I did.” BLITZER: “Alright, tell us why.” MCAULIFFE: “Off of that memo, in 1994, when I was with the President, I said I needed to bring in some of your past supporters, as I talked to you about before, to stop the people from going to other campaigns. We needed to reenergize our people, to bring people in. I didn’t say they had to be at the White House. If you read my memo, I said, ‘Mr. President, I need time to get your past supporters to see you because they’re very disenchanted. They’re demoralized out there.’” (CNN’s “Political Insiders,” 3/1/97) Niranjan Shah And Globetrotters Engineering Corporation Globetrotters Engineering Corporation Donated $10,000 To McAuliffe For Governor On June 14, 2013. (Virginia Public Access Project, Accessed 7/15/13) According To His LinkedIn Profile, Niranjan Shah Is Chairman And CEO Of Globetrotters Engineering Corporation. (LinkedIn, Accessed 7/15/13) Shah Was Appointed To The University Of Illinois Board Of Trustees By Rod Blagojevich, To Whom Globetrotters Donated $53,000, But Resigned After Personally Intervening On Behalf Of 9 Applicants And Got A Job For His Future Son-In-Law. “That’s 4

one reason we ended up with Shah, whose company, Globetrotters Engineering Corp., contributed more than $53,000 to former Gov. Rod Blagojevich’s campaigns. Appointed by the now -indicted Blagojevich in 2003, Shah has intervened on behalf of at least nine U. of I. applicants, including his relatives and the children of his employees. He also pressured Chancellor Richard Herman to find a job at the university for his future son-in-law.” (“2 Down, 6 To Go,” Chicago Tribune, 8/4/09) NOTE: On May 3, 1995, Shah Attended A Coffee In The White House Map Room With McAuliffe. (“White House Coffee Guest List: May 3, 1995,” The Washington Post, Accessed 7/15/13) NOTE: McAuliffe Admitted He Came Up With The Coffees Idea. CNN’s WOLF BLITZER: “Who came up with the idea of the coffees, for example, that the President would have these hundred plus coffees and that the fundraisers would come in and have these coffees with the President?” TERRY MCAULIFFE: “I did.” BLITZER: “Alright, tell us why.” MCAULIFFE: “Off of that memo, in 1994, when I was with the President, I said I needed to bring in some of your past supporters, as I talked to you about before, to stop the people from going to other campaigns. We needed to reenergize our people, to bring people in. I didn’t say they had to be at the White House. If you read my memo, I said, ‘Mr. President, I need time to get your past supporters to see you because they’re very disenchanted. They’re demoralized out there.’” (CNN’s "Political Insiders,” 3/1/97) LOBBYING FIRMS DLA Piper PAC DLA Piper PAC Donated $10,000 To McAuliffe For Governor On June 4, 2013. (Virginia Public
Access Project, Accessed 7/15/13)

DLA Piper Is A Federal Registered Lobbying Firm That Has Been $2,020,000 In Lobbying Fees In 2013. (Center For Responsive Politics, Accessed 7/15/13) In 2013, DLA Piper Was Paid $130,000 To Lobby On Behalf Of The Association Of Banks In Lebanon. (U.S. Senate, Lobbying Disclosure Act Filing, 5/17/13) So Far In 2013, DLA Piper Was Paid $40,000 To Lobby On Behalf Of Comcast. (U.S. Senate,
Lobbying Disclosure Act Filing, 4/22/13)

Michael Kempner Michael Kempner Donated $10,000 To McAuliffe For Governor On June 24, 2013. (Virginia
Public Access Project, Accessed 7/15/13)

Michael Kempner Donated $1,357 To McAuliffe For Governor On June 18, 2013.
(Virginia Public Access Project, Accessed 7/15/13)

Kemper Is The President Of MWW Group, A Public Relations Firm That’s Billed Millions For Lobbying The Federal Government. “Perhaps the most prominent example is Michael Kempner, the president and chief executive officer of MWW Group, a public relations firm that billed more than $4 million in federal lobbying in 2010.” (Michael Scherer, “No Registered Lobbyists Among Top
Obama Fundraisers, But Influence Seekers Abound,” Time’s Swampland, 7/20/11)

  

MWW Was A Federally Registered Lobbying Firm. (Center For Responsive Politics, Accessed 7/15/13) Kempner Was A Registered Lobbyist For MWW From 1998 To 2005. (Center For
Responsive Politics, Accessed 7/15/13)

So Far In 2013, Kempner’s Firm Has Received $820,000 In Lobbying Fees. (Center For
Responsive Politics, Accessed 7/15/13)

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“Michael Kempner, Who Has Also Brought In At Least $500,000 For The [Obama] Campaign, Runs A Team Of Washington Lobbyists At His New Jersey Firm” Though He Personally Is Not Registered As A Federal Lobbyist. “And Michael Kempner, who has also brought in at least $500,000 for the campaign, runs a team of Washington lobbyists at his New Jersey firm, MWW Group, who, according to its promotional material, use their ‘important relationships with both the Democratic and Republican leadership’ to wield influence for their private sector clients. Seven of the lobbyists he employs are registered in Washington, but Mr. Kempner, the chief executive at the firm, is not.” (Eric Lichtblau, “Obama Backers Tied To Lobbies Raise Millions,” The New York Times, 10/27/11) Kempner Is Also An Operating Partner In A Private Equity Firm That Owns MWW’s Biggest Lobbying Client, iGPS, Which Spent Almost $1 Million Lobbying The FDA And EPA In 2010. “Though Kempner is not registered as a lobbyist, he is an operating partner in the private equity firm Pegasus Capital Advisors, which owns MWW’s biggest lobbying client, iGPS, a company that produces plastic shipping pallets. In 2010, iGPS spent nearly $1 million lobbying Congress, the Food and Drug Administration and the Environmental Protection Agency (EPA) mostly on new rules that would restrict the use of a fire-retardant chemical that iGPS uses in its pallets.”
(Michael Scherer, “No Registered Lobbyists Among Top Obama Fundraisers, But Influence Seekers Abound,” Time’s Swampland, 7/20/11)

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