09/05/2022
EDITORIAL
“SOCIETY” OF LAWYERS BEHIND ATTACK ON CIVIL LIBERTIES, FUNDED BY DARK MONEY (Part 3 of 3)
By Derek Woellner
A SYSTEM OF DEEP SECRET POCKETS
In 2019, the Washington Post did an investigative report on the Federalist Society’s longtime vice president, Leonard Leo. Analyzing the most recent tax filings available at the time, the Post found that between 2014 and 2017, dark money groups associated with Leo and the Federalist Society received more that $250 million from undisclosed donors. One donation was a single $24 million amount.
U.S. Senator Sheldon Whitehouse, chair of the Senate Judiciary Committee's Courts Subcommittee, in a speech about the Federalist Society said, “By the Post's reckoning, $250 million in dark money flowed through this apparatus. Testimony before the [Subcommittee] has since updated that number to $400 million.”
As mentioned in Part One of this series, dark money groups are organizations with secret donors; they not required to disclose where their money comes from to the IRS. They work like shell-companies and enable wealthy donors and corporations to spend huge amounts on political marketing anonymously. Leo’s career with the Federalist Society gives us a glimpse into the system.
According to the Post, “The groups in Leo’s network often work in concert and are linked to Leo and one another by finances, shared board members, phone numbers, addresses, back-office support and other operational details, according to tax filings, incorporation records, other documents and interviews.”
One such group is called the Judicial Crisis Network (previously the Judicial Confirmation Network) or JCN. The Post reported that JCN was once “based at the home of Ann and Neil Corkery, close allies of Leo who have served as board members or treasurers of organizations run by Leo and a small group of interconnected activists.”
Although JCN’s board director, Gary Marx, stated that JCN and the Federalist Society have, “different boards, different missions, different functions and do very different things,” the Post writes that when a “reporter visited the JCN offices to ask questions, a security guard contacted a longtime employee of the Federalist Society to see whether anyone at JCN was available. A Federalist Society employee then escorted the reporter to JCN’s office.”
The Post also reported that JCN’s president, Daniel Casey, “receives no pay from JCN or three other nonprofits in the network that he helps to lead.” However, “He received more than $1.5 million in fees from the Federalist Society over nine years for media training.” Strangely, Casey isn't paid by the company he runs, but is paid by the Federalist Society who happens to be in the same office space.
Leo has worked directly with JCN, although never in a formal position, going back many years. “In 2005 and 2006, Leo served as the leader of the campaigns supporting Supreme Court nominees John G. Roberts Jr. and Samuel A. Alito Jr.,” the Post reported. Leo would later brag about his work during that time to a college Federalist Society chapter, stating that he and others spent about $15 million in dark money on political marketing, conducting polls to craft persuasive messages and directly influencing the news media. His biography on the Federalist Society website also states he “organized the outside coalition efforts in support of the Roberts and Alito U.S. Supreme Court confirmations.'' JCN was a key group in that effort.
In more recent years, JCN published a news release during President Obama’s second term stating that they launched a $7 million media campaign to influence the Senate to prevent Obama from filling the vacant Supreme Court seat. In 2017, JCN announced they would spend $10 million on what they called “the most robust operation in the history of confirmation battles” to promote the nomination of Gorsuch.
In 2016, Leo created three new dark money groups: BH Fund, America Engaged, and Freedom and Opportunity Fund. Within the first two years, the three groups raised a total of $33 million. BH Fund received a single $24,250,000 donation from someone whose identity is still not publicly known. Millions were then shuffled to various other groups.
The Freedom and Opportunity Fund distributed $4 million to a group called Independent Women’s Voice (IWV). The Post tells us that Heather Higgins, IWV’s president and chief executive, “once described her group as a weapon in the “Republican conservative arsenal” that caters to “donors who want a high return on their investment for their political dollars,” according to a video of a speech she made at the nonprofit David Horowitz Freedom Center.” Higgins also said, “We have worked hard to create a branded organization … that does not carry partisan baggage,” Higgins said in 2015. “Being branded as neutral but actually having the people who know, know that you’re actually conservative puts us in a unique position.”
Along with BH Fund, Leo also created BH Group. “In the two years following its formation, the BH Group received more than $4 million from the Judicial Crisis Network, a related group called the Judicial Education Project and a third nonprofit in the network called the Wellspring Committee, all of them connected to Leo through funding, personnel and the same accountant,” reported the Post. “Leo, who disclosed BH Group as his employer in a campaign finance filing, declined to say how much money he received from the company or provide any other details about it.”
The Federalist Society paid Leo an annual compensation of more than $400,000 in the years leading up to his recent retirement. The Catholic Association paid him $120,000 for consulting in 2016.
“Leo joined the Federalist Society as one of its first paid employees,” the Post reported, “Leo also developed a reputation as a conservative moneyman. When Kavanaugh and other Bush aides were looking for someone to pay for a press event aimed at supporting the stalled judicial nomination of Miguel Estrada, they turned to Leo.
“Leonard Leo will know,” a White House aide wrote in an email obtained by The Post. “We probably don’t want the fed soc paying for it, but he might know some generous donor.””
Leonard Leo is just one person within a vast network of individuals and groups who have spent millions, if not billions, of dollars over the past two decades in an effort to take control of the Supreme Court. His position at the top of the Federalist Society gave him a central role in coordinating the effort.
Using the Federalist Society as a scouting ground, big moneyed-interests have identified their preferred justices, and have successfully gotten them appointed in courts across the nation, including a majority on the Supreme Court.