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Context of 'December 19, 2011: FEC Complaint Alleges Gingrich Unlawfully Profited from Selling Mailing List to Own Campaign'

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Newt Gingrich 2012 presidential campaign logo.Newt Gingrich 2012 presidential campaign logo. [Source: Logo Design Love (.com)]The political watchdog organization Citizens for Responsibility and Ethics in Washington (CREW) files a complaint against presidential candidate Newt Gingrich (R-GA) alleging that he sold his mailing list to his own campaign for $42,000. CREW files the complaint with the Federal Election Commission (FEC), and calls the transaction an unlawful personal use of campaign funds. The complaint also alleges that Gingrich seems to be improperly commingling book sales and campaign events. The mailing list sale was never listed on FEC disclosure forms. CREW executive director Melanie Sloan says: “Newt Gingrich will do anything to make a buck, even sell his own mailing list to his campaign. He has a long history of playing fast and loose with ethics rules, so it should surprise no one to learn he is at it again.” Gingrich campaign spokesman R.C. Hammond says in response that “if the FEC considers the complaint, they will find that the rules are being followed and published regulations are being enforced.” It is not unusual for political campaigns to buy and sell mailing lists, but the Gingrich case is unusual because Gingrich’s campaign says it bought the mailing list directly from Gingrich, and not from a political committee or group. Documents show that Gingrich stated in July 2011 that he was owed $47,005 by the campaign for “direct mail list/travel.” At the time, Hammond said the campaign paid Gingrich $42,000 for the mailing list. Hammond claims that he, not Gingrich, owned the mailing list, and that the failure to disclose the payment was merely an oversight. In its complaint, CREW notes that the mailing list was not included as an asset in Gingrich’s financial disclosure records, which are filed by presidential candidates. Therefore, the group argues, the list appears to be owned by Gingrich Productions, which is the name of the holding firm now headed by Gingrich’s wife Callista. Gingrich Productions routinely sells books and other materials at the same venues as Gingrich holds campaign-related events, an improper “commingling” of sales and campaign appearances. Federal law prohibits candidates from using campaign resources to profit personally or from using corporate funds to subsidize a campaign. [Washington Post, 12/19/2011] On the same day as the complaint filing, the press reveals an “extraordinary” and potentially illegal relationship between Gingrich and an “independent” political PAC (see December 19, 2011).

Entity Tags: Newt Gingrich, Citizens for Responsibility and Ethics in Washington, Federal Election Commission, Melanie Sloan, R.C. Hammond, Newt Gingrich presidential campaign (2012)

Timeline Tags: Civil Liberties, 2012 Elections

Sheldon Adelson at a celebration of the opening of his Sands Cotai Central casino in Macau, April 2012.Sheldon Adelson at a celebration of the opening of his Sands Cotai Central casino in Macau, April 2012. [Source: Aaron Tam / AFP / Getty Images / ProPublica]Casino owner Sheldon Adelson, one of America’s wealthiest individuals, gives $5 million to a super PAC acting on behalf of Republican presidential candidate Newt Gingrich. Adelson’s fortune comes from casinos he owns in Las Vegas and Asia. Adelson has let it be known that he intends to donate much more during the campaign season, both in the primaries and in the general election, when a Republican will challenge President Obama for the presidency. The Washington Post calls Adelson’s donation “the latest in an avalanche of campaign cash flooding the presidential season to independent groups known as super PACs.” Adelson donates the money to Winning Our Future, a super PAC whose predecessor, American Solutions for Winning the Future (ASWF), is plagued with allegations of misconduct and illicit involvement by Gingrich (see December 19, 2011). ASWF was also a benefactor of Adelson’s donations, both monetary and in Adelson’s permission for Gingrich to use his personal aircraft. According to a person close to Adelson, the billionaire is willing to spend at least $5 million more, either on Gingrich or the Republican nominee for president. The source adds that Adelson wants to keep Gingrich competitive in the primary race at least through the January 21 South Carolina primary. If Gingrich does well in South Carolina, as he is predicted to, the source says Gingrich’s super PAC may well receive another hefty donation. In December 2011, Adelson denied saying he planned on donating $20 million to the organization. Adelson and his wife Miriam have known Gingrich since the mid-1990s, when Adelson was locked in disputes with labor unions and government regulators over his construction of the massive Venetian casino in Las Vegas. Like Gingrich, Adelson is extremely conservative on the subject of Israel. Gingrich, buoyed with super PAC donations in recent weeks, did well in the Iowa caucuses (see January 3, 2012) against frontrunner Mitt Romney, whose own super PAC, Restore Our Future, has a stable of wealthy donors keeping pro-Romney and anti-Gingrich ads on the airwaves (see June 23, 2011 and January 3, 2012). Reportedly, Romney’s supporters begged Adelson not to make his contribution to Gingrich, and instead to let Gingrich’s campaign wither without Adelson’s support. Gingrich’s campaign intends to use much of the donation for airtime in South Carolina, and to air portions of a film documenting Romney’s time as CEO of Bain Capital, a private equity firm that oversaw the bankruptcy and dissolution of numerous small businesses and corporations. Gingrich claims Adelson is acting entirely on his own, saying, “If he wants to counterbalance Romney’s millionaires, I have no objection to him counterbalancing Romney’s millionaires.” [Washington Post, 1/7/2012; New York Times, 1/9/2012] Slate columnist Will Oremus observes: “There’s no question that Gingrich has been paid for by Sheldon Adelson. It’s up to voters to decide whether he’s been bought.” [Slate, 1/27/2012]

Entity Tags: Newt Gingrich, Bain Capital, American Solutions for Winning the Future, Miriam Adelson, Winning Our Future, Will Oremus, Restore Our Future, Willard Mitt Romney, Washington Post, Sheldon Adelson, Barack Obama

Timeline Tags: Civil Liberties, 2012 Elections

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