By Jane Mayer
The Associated Press broke an interesting story recently noting that Herman Cain, who has portrayed himself as an outsider to politics, has in fact worked closely since 2005 with Americans for Prosperity, a corporate front group organized and funded in large part by billionaire industrialists Charles and David Koch, long-time financiers of America’s conservative movement. (I wrote about the Kochs for The New Yorker last year.) The historically publicity-shy Kochs have stepped out of the shadows recently, vowing that Americans for Prosperity will spend some $200 million in the 2012 Presidential campaign in hopes of defeating President Obama. In light of this, it seems fair to ask exactly how Cain fits into this larger project, and how dependent he is on the Kochs.
The AP story described a tangle of ties between Cain’s top campaign advisers and Americans for Prosperity. It also said that in 2005 and 2006 Cain himself travelled the country, speaking on behalf of the pro-corporate, anti-government group. But it stopped short of revealing any past or current financial ties between Cain and the Koch Brothers’ political organization.
Earlier this week, I asked J. D. Gordon, communications director for Cain’s campaign, whether Cain was an employee of Americans for Prosperity. “No,” he said, “He’s not an employee.” I noted that I’d seen Cain speak at an Americans For Prosperity event in Austin, Texas in July 2010. He had the audience laughing and cheering as he said, “Our government has been hijacked by liberals…. Stupid people are running this country! … Don’t buy this malarky that all black people support Obama.” “Did he do it for free?” I asked. Other such speakers have reportedly been well-compensated for appearing at the group’s events. According to Adele Stan of AlterNet, for instance, Stephen Moore, a member of the Wall Street Journal’s editorial board, has earned upwards of $135,000 for speaking at eighteen A.F.P. events in since 2006.
Gordon acknowledged that Cain had received “speaking fees” from Americans for Prosperity. He said he would have to get back to me with details. Meanwhile, I called Levi Russell, the communications director for the Americans for Prosperity Foundation, to ask if he could confirm whether or not the ostensibly non-partisan, non-profit, independent political advocacy group had been paying Cain. He said that the organization’s relationship with speakers prevented it from disclosing how much they paid Cain. He added, “Over the years, Herman Cain has spoken at our events sometimes without charge, and other times we might pick up travel expenses or give a modest honorarium. But I can tell you that since Herman Cain announced he was running for President he has not been paid for any appearances.”
With spokesmen not exactly jumping at the chance to explain the financial ties between Cain and the Kochs, all that was left were public documents. As a charitable organization, Americans for Prosperity Foundation has to file public tax forms, known as 990’s, listing significant expenses. And as a Presidential candidate, Cain has to file a financial disclosure report with the Federal Elections Commission revealing his sources of income. But Cain’s federal campaign disclosure makes no mention of A.F.P., and A.F.P.’s I.R.S. report has no mention of Cain. From reading these documents, which are meant to inform the public of any potential conflicts or questionable entanglements, one would never guess that these two entities have any financial relationship.
A little further reporting, however, reveals how the financial ties between Cain and A.F.P. were hidden. On the bottom of page eight of the A.F.P.’s 2010 I.R.S. tax form, in tiny type, is a line item reporting payment to Washington Speakers Bureau of $127,794. The Washington Speakers Bureau lists Herman Cain as one of its speakers, noting that his “fees vary.” Gordon confirmed that Cain is represented by the Washington Speakers Bureau, and that this may be how he was paid.
Yet, mysteriously, Cain discloses no payments from the Washington Speakers Bureau on his federal forms. Instead, on his 2011 F.E.C. form, he lists unspecified payments of between $50,000-$100,000 to his company, the New Voice, which he describes as a “public speaking” and “publishing” entity.
“There’s no record of payments from Americans for Prosperity to Herman Cain on his financial disclosures or the organization’s 990,” Bill Allison, editorial director of the Sunlight Foundation, a non-profit group favoring government transparency, said. “It defeats the purpose of public disclosure if a candidate’s businesses and speakers’ bureaus obscure the relationships between moneyed interests and candidates.”
Update: Lee Fang, a researcher and writer at the liberal blog Think Progress, writes in to point out that Think Progress reported on the links between the Koch Brothers and Cain prior to the Associated Press. That post is here.
Herman Cain speaks during a dinner sponsored by Americans for Prosperity, Friday, April 29, 2011 in Manchester, New Hampshire. Photograph by Jim Cole/AP Photo.
Earlier this week, I asked J. D. Gordon, communications director for Cain’s campaign, whether Cain was an employee of Americans for Prosperity. “No,” he said, “He’s not an employee.” I noted that I’d seen Cain speak at an Americans For Prosperity event in Austin, Texas in July 2010. He had the audience laughing and cheering as he said, “Our government has been hijacked by liberals…. Stupid people are running this country! … Don’t buy this malarky that all black people support Obama.” “Did he do it for free?” I asked. Other such speakers have reportedly been well-compensated for appearing at the group’s events. According to Adele Stan of AlterNet, for instance, Stephen Moore, a member of the Wall Street Journal’s editorial board, has earned upwards of $135,000 for speaking at eighteen A.F.P. events in since 2006.
Gordon acknowledged that Cain had received “speaking fees” from Americans for Prosperity. He said he would have to get back to me with details. Meanwhile, I called Levi Russell, the communications director for the Americans for Prosperity Foundation, to ask if he could confirm whether or not the ostensibly non-partisan, non-profit, independent political advocacy group had been paying Cain. He said that the organization’s relationship with speakers prevented it from disclosing how much they paid Cain. He added, “Over the years, Herman Cain has spoken at our events sometimes without charge, and other times we might pick up travel expenses or give a modest honorarium. But I can tell you that since Herman Cain announced he was running for President he has not been paid for any appearances.”
With spokesmen not exactly jumping at the chance to explain the financial ties between Cain and the Kochs, all that was left were public documents. As a charitable organization, Americans for Prosperity Foundation has to file public tax forms, known as 990’s, listing significant expenses. And as a Presidential candidate, Cain has to file a financial disclosure report with the Federal Elections Commission revealing his sources of income. But Cain’s federal campaign disclosure makes no mention of A.F.P., and A.F.P.’s I.R.S. report has no mention of Cain. From reading these documents, which are meant to inform the public of any potential conflicts or questionable entanglements, one would never guess that these two entities have any financial relationship.
A little further reporting, however, reveals how the financial ties between Cain and A.F.P. were hidden. On the bottom of page eight of the A.F.P.’s 2010 I.R.S. tax form, in tiny type, is a line item reporting payment to Washington Speakers Bureau of $127,794. The Washington Speakers Bureau lists Herman Cain as one of its speakers, noting that his “fees vary.” Gordon confirmed that Cain is represented by the Washington Speakers Bureau, and that this may be how he was paid.
Yet, mysteriously, Cain discloses no payments from the Washington Speakers Bureau on his federal forms. Instead, on his 2011 F.E.C. form, he lists unspecified payments of between $50,000-$100,000 to his company, the New Voice, which he describes as a “public speaking” and “publishing” entity.
“There’s no record of payments from Americans for Prosperity to Herman Cain on his financial disclosures or the organization’s 990,” Bill Allison, editorial director of the Sunlight Foundation, a non-profit group favoring government transparency, said. “It defeats the purpose of public disclosure if a candidate’s businesses and speakers’ bureaus obscure the relationships between moneyed interests and candidates.”
Update: Lee Fang, a researcher and writer at the liberal blog Think Progress, writes in to point out that Think Progress reported on the links between the Koch Brothers and Cain prior to the Associated Press. That post is here.
Herman Cain speaks during a dinner sponsored by Americans for Prosperity, Friday, April 29, 2011 in Manchester, New Hampshire. Photograph by Jim Cole/AP Photo.
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