Tuesday, February 18, 2014

From Pro-Publica: The Dark Money Man: How Sean Noble Moved the Kochs’ Cash into Politics and Made Millions

Still more on money in politics - this time who gets to profit from it. Take this as career advise:

- Click here for the story.

For a brief, giddy moment, Sean Noble—a little-known former aide to an Arizona congressman—became one of the most important people in American politics.

Plucked from obscurity by libertarian billionaire brothers Charles and David Koch, Noble was tasked with distributing a torrent of political money raised by the Koch network, a complex web of nonprofits nicknamed the Kochtopus, into conservative causes in the 2010 and 2012 elections.

Noble handed out almost $137 million in 2012 alone -- all of it so-called dark money from unnamed donors -- from his perch atop the Center to Protect Patient Rights, a group run out of an Arizona post office box.

Much of it was channeled to obvious destinations: Groups supporting Republican presidential candidate Mitt Romney, for example.

But with Noble as ringmaster, Koch money also poured into efforts that didn’t surface until long after Election Day: To a political committee backing Wisconsin Gov. Scott Walker against a recall attempt; to a group blaming President Obama for high gas prices; even to a legal challenge to Arizona’s redistricting plan.
. . . his story shows how the Supreme Court’s landmark 2010 Citizens United ruling has given rise to a new breed of power brokers who control a growing pool of money raised in secret and spent to influence politics in ways that voters can’t always trace.

Much of Noble’s work in 2012 remained invisible to the public until the Center and dozens of other Koch-backed nonprofits released their tax returns late last year.

An examination of those tax returns, along with court records and filings with the Federal Election Commission, shows that the Center to Protect Patient Rights bent state election laws and federal tax rules governing how such groups are supposed to operate.

Millions of dollars the Center told the Internal Revenue Service it gave to other groups only for “tax exempt education and social welfare purposes” were actually spent on election ads and other political activities. Experts on nonprofit law said it’s the donor’s responsibility to follow up on grants if they were not spent as required.

One of the biggest beneficiaries of the Koch network’s money was Sean Noble himself, tax documents show. The Center paid three firms owned by Noble almost $24 million for consulting and other services in 2012—or more than $1 of every $6 it spent.