A key advocacy group in conservative judicial activist Leonard Leo’s community paid thousands and thousands to his consulting agency, a brand new submitting exhibits, the newest instance of Leo’s net of nonprofits sending cash to his enterprise amid authorities scrutiny of his dealings.
The Harmony Fund, a Virginia-based nonprofit, paid $6 million to Leo’s agency CRC Advisors between July 2022 and the tip of June 2023 for “Consulting,” in line with the submitting, supplied to POLITICO by the left-leaning watchdog group Accountable.US. The revelations of the massive sum transferred to Leo’s agency come amid mounting questions round Leo’s advocacy actions and whether or not he has stood to achieve financially from nonprofit teams pushing a conservative agenda across the nation.
D.C. Legal professional Basic Brian Schwalb has been probing Leo’s community, which incorporates the Harmony Fund, as a part of an inquiry into whether or not the teams skirted nonprofit guidelines. Leo has vowed to not cooperate.
In recent times, Leo, co-chairman of the Federalist Society’s board, has amassed outsized affect in conservative authorized circles, advising former President Donald Trump on judicial picks. That position has additionally introduced added scrutiny to his monetary actions.
He additionally obtained a large $1.6 billion present from the businessman Barre Seid to fund Leo’s agenda by way of a gaggle referred to as the Marble Freedom Belief. The Marble Freedom Belief, which counts Leo as a trustee and chairman, has transferred tens of thousands and thousands of {dollars} to the Harmony Fund. The Harmony Fund has additionally paid thousands and thousands to Leo’s for-profit enterprise.
Between July 2022 and the tip of June 2023, the Harmony Fund, also referred to as the Judicial Disaster Community, acquired about $52.8 million. Between Could 2022 and the tip of April 2023, Marble Freedom Belief reported giving $55.5 million to the Harmony Fund.
Schwalb, a Democrat, has questioned whether or not the Leo teams’ actions violate nonprofit tax legal guidelines. Republican members of Congress have launched their very own inquiry into the lawyer common’s probe. Rep. Jim Jordan (R-Ohio) and James Comer (R-Ky.), chairs of the Home Judiciary and Oversight Committees respectively, have requested for paperwork associated to his investigation.
The Harmony Fund has reported spending $140,000 to foyer Congress on “Issues related to government oversight, law enforcement, public advocacy and Rule of Law” because it registered to foyer in late 2023, not lengthy after information of the probe broke.
Carrie Severino, president of the Judicial Disaster Community (an alias of the Harmony Fund), didn’t instantly return a request for remark.
By means of counsel, CRC Advisors denied that something within the 990 supplied proof of “self-enrichment.” In an announcement, the corporate referred to as Politico’s protection “irredeemably biased” and “unreliable.”
The submitting from the Harmony Fund additionally illustrates how the grant-making group funded efforts throughout the nation to stymie abortion entry by way of different teams, together with one combating a constitutional modification in Ohio that protected entry to the process.
The Harmony Fund gave $8.8 million to Susan B. Anthony Professional-Life America, a number one anti-abortion group, together with $3 million to Defend Ladies Ohio Motion, a gaggle that was combating the constitutional modification in Ohio that enshrined abortion entry. The modification finally handed.
The Harmony Fund additionally gave $6 million to the Republican Governors Affiliation and $4 million to the Republican Legal professional Generals Affiliation. It gave an extra $3 million to a gaggle that was backing the Republican candidate for Kentucky governor, David Cameron, who finally misplaced.
The massive present to the Republican Attorneys Basic Affiliation is notable, partially, as a result of quite a lot of Republican attorneys common have additionally questioned Schwalb’s inquiry into Leo.
The Harmony Fund additionally gave $500,000 every to a Florida political committee then referred to as Associates of Ron DeSantis and a nonprofit based by former Vice President Mike Pence referred to as Advancing American Freedom. It additionally gave $300,000 to a nonprofit based by former presidential candidate and U.S. ambassador to the U.N. Nikki Haley.
Accountable.US President Caroline Ciccone blasted the Harmony Fund, calling it an necessary a part of Leo’s equipment to switch cash to his personal enterprise.
“Leonard Leo’s Concord Fund is at the center of his far-right dark money web and a key cog in Leo’s apparent self-enrichment scheme,” Ciccone stated.
In its monetary submitting, the Harmony Fund reported that it produced “radio and television advertisements regarding significant legal and civic issues, court packing, executive branch appointments, federalism, and civic accountability.” It additionally reported paying about $3.8 million to the media shopping for agency Mentzer Media for “Advocacy,” however CRC Advisors was the Harmony Fund’s largest unbiased contractor by thousands and thousands of {dollars}.
The 85 Fund, additionally a part of the investigation by Schwalb, paid $21 million to Leo’s consulting agency in 2022.
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