"Groups Linked To Kochs Agrees To Pay $1 Million Fine"

Groups Linked To Kochs Agrees To Pay $1 Million Fine

by Eyder Peralta at NPR

http://www.npr.org/blogs/thetwo-way/2013/10/24/240612690/groups-linked-to-kochs-agrees-to-pay-1-million-fine?ft=1&f=1001

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The two organizations are the Center to Protect Patient Rights and Americans for Responsible Leaderships.

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"The investigation revealed that a Virginia nonprofit, Americans for Job Security (AJS), raised approximately $28 million in 2012 for issue advocacy opposing tax increases and supporting "pro-paycheck public policy." Current law permits donors to remain anonymous if their contributions are used for issue advocacy. Shortly before the general election, AJS decided that were it to spend the money on issue advocacy at that time, it would trigger a California law requiring disclosure of the funds' sources. Instead, AJS decided to make multiple donations to another non-profit, CPPR, which has a history of funneling millions of dollars to support conservative causes. AJS expected and hoped that CPPR would be able to find other money to support AJS's efforts in California. AJS gave CPPR a donation of $4.05 million on September 10, 2012, $14 million on October 11, 2012 and $6.5 million on October 19, 2012.

"Following these donations, CPPR made two major contributions of its own. First, on September 11, 2012, CPPR donated $7 million to the Iowa-based American Future Fund (AFF). As an intermediary, AFF then made a contribution of $4.08 million to a third entity, the California Future Fund (CFF). CFF used that money to support Proposition 32 in the California general election.

"CPPR's second contribution occurred on October 12, 2012, in the form of $13 million to ARL. As an intermediary, ARL returned $11 million to California through a contribution to the Small Business Action Committee (SBAC), a campaign committee supporting Proposition 32 and opposing Proposition 30. CPPR's contributions were funneled back to California campaign committees through intermediaries AFF and ARL, which violated civil provisions of the California Political Reform Act of 1974."


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