Leaked Docs: How a Secret FreedomWorks Donor Sought a Return on Its "Investments"

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http://m.motherjones.com/politics/2014/07/freedomworks-switzerland-richard-stephenson-matt-kibbe

Internal records show how a Switzerland-based businesman oversaw millions in contributions to the tea party group.

—Andy Kroll on Wed. July 30, 2014 6:00 AM PDT

For five years, FreedomWorks has proclaimed itself a leading tea party group fueling the conservative grassroots and fighting establishment Republicans. The organization touts its small-dollar donations from everyday activists, but it also has received substantial funding from corporate donors and one-percenters, most notably Richard Stephenson, a FreedomWorks board member who founded the Cancer Treatment Centers of America. Documents obtained by Mother Jones—including emails, financial records, and fundraising pitches—show that CTCA, in addition to Stephenson, gave money to FreedomWorks, and that Stephenson's son, Shawn, a Switzerland-based businessman, had a central role in overseeing the Stephenson family's support of FreedomWorks. The goal, Shawn Stephenson noted in a September 2010 email, was "creating a tsunami of change directed at DC that is and will be historic." But the documents also reveal that the Stephensons and CTCA expected real returns for the money they pumped into FreedomWorks.

In numerous emails, CTCA officials said they anticipated their FreedomWorks donations would produce tangible benefits for the company. For example, they hoped that FreedomWorks would help CTCA hone its online marketing and outreach skills. (CTCA is a privately held chain of hospitals that treats advanced-stage cancer patients. It reaches new customers largely via TV commercials and digital advertising.) As Shawn Stephenson put it in 2010, "I know there will be benefits that all of CTCA will gain through the work that Freedomworks is pursuing."

A spokeswoman for CTCA declined to comment for this story. FreedomWorks and Shawn Stephenson did not respond to detailed requests for comment.

Richard Stephenson, who founded CTCA in 1988, is a longtime supporter of libertarian causes. Described by a former FreedomWorks employee as "hard core" and a "true believer," Stephenson served on the board of Citizens for a Sound Economy, a corporate-funded advocacy group co-founded by the Koch brothers that fought the Clinton administration's health care reform plan and other initiatives. In 2003, due to internal bickering, Citizens for a Sound Economy split in two. The Kochs broke off to form Americans for Prosperity, and Stephenson, former House majority leader Dick Armey, and the libertarian activist Matt Kibbe launched FreedomWorks.

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