California probe of campaign donations sheds light on 'dark money'
Source: LA Times
The Republican consultant and his team had raised piles of cash to use in California politics as last November's election approached. But a wrinkle in state law meant he couldn't spend it in the final two months of the campaign without jeopardizing the anonymity he had promised his rich donors.
So Russo turned to what he called "the Koch network." He asked a political consultant who has worked with billionaire Republican contributors Charles and David Koch to shuttle the money through an Arizona nonprofit. That group, which is not required to reveal its donors, could send cash to California causes without names attached.
But things went from bad to worse. Although Russo handed over $25 million, only about $15 million ended up back in California. And when the money surfaced, it sparked an investigation by state authorities, who last month[ levied $16 million in penalties against the Arizona group and three others.
The case offers a rare glimpse into the shadowy world of politically active nonprofits, which have played an increasing role in elections nationwide since the U.S. Supreme Court eased campaign rules in 2010. They provide donors a way to influence elections by piping major money around the country until it resurfaces — without their fingerprints — in a campaign.
Read more: http://www.latimes.com/local/la-me-secret-money-20131104,0,2449947.story?track=lat-pick#axzz2jhGSatVC
This is a fascinating story of how billionaires like Charles Schwab and Eli Broad go through great lengths to hide their support of right wing causes. It also illustrates how the Republican party has become nothing more than a conduit for the incredibly rich to implement their policies through sock puppet grass root organizations. When one grass roots organizations loses favor, the Tea Party, another sock puppet is created to take its place.
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