IN THIS SECTION Funding Arena-1 Slush (here) Funding Arena-2 Donations Funding Arena-3 Terrorism Funding Arena-4 George Soros Funding Arena-5 Grants Funding Arena-6 Lawsuits Start Here Forbes dot com 2017/10/24 Judiciary Chair Claims Internal Docs Reveal Obama DOJ 'Slush Fund'. By Jessica Karmasek [Note from PF: See more under ACTS/HR 732 below] https //www forbes com/sites/legalnewsline/2017/10/24/a-smoking-gun-internal-docs-reveal-obama-dojs-slush- fund-judiciary-chair-says/?sh=2895e0c0cb88 Excerpt: Internal U.S. Department of Justice documents confirm the existence of a department “slush fund” under the Obama Administration and that DOJ officials “went out of their way” to exclude conservative groups, the head of the House Judiciary Committee told fellow lawmakers Tuesday. House Judiciary Chairman Bob Goodlatte, R-VA, made the claim just ahead of a vote by the U.S. House of Representatives on a bill that would prohibit government officials, most notably the DOJ, from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment or a loan to any person or entity other than the United States, with some exceptions. …In January, the judiciary panel also sent a letter to the DOJ requesting it preserve all documents related to the department’s settlement practices. “It is not every day in Congressional investigations that we find a smoking gun,” Goodlatte told fellow lawmakers Tuesday, pointing to the documents. “Here, we have it.” “…This legislation, however, remains necessary because history shows that we cannot rely on the current DOJ policy remaining in place,” Goodlatte said. …Under H.R. 732, government officials or agents who violate this prohibition may be removed from office or required to forfeit to the government any money they hold for such purposes “to which they may otherwise be entitled.” …In June, U.S. Attorney General Jeff Sessions issued a memo to all DOJ components and 94 U.S. Attorney’s Offices prohibiting them from entering into any third party settlements. “When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people -- not to bankroll third-party special interest groups or the political friends of whoever is in power,” Sessions said. “Unfortunately, in recent years the Department of Justice has sometimes required or encouraged defendants to make these payments to third parties as a condition of settlement. “With this directive, we are ending this practice and ensuring that settlement funds are only used to compensate victims, redress harm, and punish and deter unlawful conduct.” …Goodlatte praised Sessions for his decision. “The practice is wrong no matter which party is in power,” he said at the time. “Attorney General Session’s integrity stands in stark contrast to the behavior of Obama Administration officials who used their position to funnel billions of settlement dollars to their political allies.” He echoed that statement following his bill’s passage Tuesday. “Regardless of which party is in the White House, subverting Congress to funnel money to outside organizations is unacceptable and unconstitutional,” Goodlatte said. “I applaud the passage of this bipartisan bill that bans settlement payments to non-victim third parties permanently for future administrations. There should be no excuse or justification for this banned behavior, and I urge my colleagues in the Senate to defend Congress’s constitutional interests and support H.R. 732.” https //www forbes com/sites/legalnewsline/2017/10/24/a-smoking-gun-internal-docs-reveal-obama-dojs-slush-fund- judiciary-chair-says/?sh=2895e0c0cb88 ACTS, PROPOSED LEGISLATURE, etc. H.R. 732 Stop Settlements Slush Funds Act See: https://www.govtrack.us/congress/bills/115/hr732 Bill Introduced in January 2017 Bill passed October 2017 238-183 231 Republican votes, 7 Democrat, Democrat made up all 183 no votes Bob Goodlatte-House Judiciary Chairman, R-VA, major player Alcee Hastings, US Rep, D-FL, one detractor House Judiciary and Financial Committees involved Americans for Limited Government, a Fairfax, VA-based conservative nonprofit looking on or involved Tony West: Former Associate Attorney General Tony West involved in negativity Geoffrey Graber, former deputy associate attorney general and director of the Residential Mortgage-Backed Securities, or RMBS Justice Dept Emails The Stop Settlements Slush Funds Act of 2017, or H.R. 732, was introduced in January [2017] On Tuesday evening -- after hours of discussion -- the House voted mostly along party lines, 238-183 in favor of the bill. Of the “yes” votes, 231 were Republican and seven were Democrat. Democrats made up all 183 “no” votes. Eleven members did not vote…House Judiciary Chairman Bob Goodlatte, R-VA, made the claim just ahead of a vote by the U.S. House of Representatives on a bill that would prohibit government officials, most notably the DOJ, from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment or a loan to any person or entity other than the United States, with some exceptions…But Goodlatte, who introduced H.R. 732, said new internal DOJ documents “tell a different story.” Goodlatte has said the need for the legislation arose after an extended judiciary committee investigation found that the DOJ had engaged in a pattern or practice of systematically subverting Congress’ budget authority by using settlements from financial institutions to funnel money to what he describes as “left-wing activist groups.”…But U.S. Rep. Alcee Hastings, D-FL, told fellow lawmakers both bills were “deficient in process and substance.” Hastings criticized Republicans for putting forth such “pointless and partisan” legislation, given that Barack Obama is no longer in office and that other, more important issues demand the attention of federal lawmakers. He also argued that a House Judiciary Committee investigation “yielded no credible evidence.”…Financial Services committees…Americans for Limited Government, a Fairfax, VA-based conservative nonprofit, commended Goodlatte for his release of the internal DOJ documents. Tony West …The internal documents show that a deputy for former Associate Attorney General Tony West -- who now serves as executive vice president of government affairs, general counsel and corporate secretary for PepsiCo Inc. -- asked colleagues about settlements in negotiation. “Can you explain to Tony the best way to allocate some money to an organization of our choosing?” the deputy wrote in a November 2013 email. West’s team also went out of its way to exclude conservative groups, the internal DOJ documents show…In particular, activist leaders met with a senior official from West’s office in March 2014 to “make the case” that, in settling mortgage-lending cases, the DOJ should make donations “mandatory in all future settlements.” This follows a letter requesting that the DOJ offer banks “enhanced credit” for making donations. A few months later, the department announced major bank settlements requiring mandatory donations to community groups and offering enhanced credit for these donations. In an August 2014 email, recipient organizations then discuss how they can “thank” West for the money. One organization, in the correspondence released, suggested a resolution and a formal plaque -- and even threw out the idea of having a statue of West built so they could “bow down to this statue each day after we get our $200,000+.” The documents are contrary to the DOJ’s sworn testimony. In a July 2014 email, a senior official explained that the DOJ reworded a draft mandatory donation provision to achieve the aim of “not allowing Citi to pick a statewide intermediary like the Pacific Legal Foundation [PLF],” which the official explained “does conservative property-rights free legal services.” The documents also show outside groups lobbied the DOJ directly to obtain such incentives. Justice Dept. Emails "The Justice Department emails released by Goodlatte show that only approved left-wing groups were eligible for the banks to make payouts to as part of their settlements, overtly excluding deemed to be too conservative,” President Rick Manning said in a statement. “What's worse, is that the settlements often gave the banks double credit if they gave money to the left-wing groups rather than paying the government. Meaning, every $10 million to left-wing groups was counted the same as $20 million to the government. Manning said Goodlatte was right to seek to defund such third-party settlements, calling them “nothing more than political payola” to radical, left-wing groups. “Goodlatte’s disclosures show once again that there wasn’t single area of government that Obama did not corrupt into being a part of a left-wing funding machine,” he said. “Obama's Justice Department effectively appropriated federal funds to these third-party groups without Congressional approval, violating Article I of the Constitution as this was a revenue stream to the government that was then illegally diverted to political ends. “The actors who signed off on those political allocations should be subjected to the full weight of the law, including loss of pension and at the very least significant fines.” Gruber Geoffrey Graber, former deputy associate attorney general and director of the Residential Mortgage-Backed Securities, or RMBS: Geoffrey Graber, former deputy associate attorney general and director of the Residential Mortgage-Backed Securities, or RMBS, Working Group at the DOJ, had told Congress in February 2015 that the department “did not want to be in the business of picking and choosing which organization may or may not receive any funding under the agreement.” Graber now serves as a partner at Cohen Milstein Sellers & Toll PLLC and is a member of the firm’s consumer protection practice group. https //www forbes com/sites/legalnewsline/2017/10/24/a-smoking-gun-internal-docs-reveal-obama-dojs-slush-fund- judiciary-chair-says/?sh=2895e0c0cb88 H.R. 469 Sunshine for Regulations and Regulatory and Settlements Act of 2017 Introduced in Jan. 2017 US Rep Doug Collins R-GA introduced this: “unacceptable to shortchange victims.” An identical bill -- the Stop Settlement Slush Funds Act, or H.R. 5063 -- passed the House in the last Congress by a vote of 241-174, but then stalled… U.S. Rep. Doug Collins, R-GA, who introduced the Sunshine for Regulations and Regulatory Decrees and Settlements Act of 2017, or H.R. 469, in January, said during debate Tuesday that it is simply unacceptable to “shortchange victims.” Similarly to Goodlatte’s legislation, the sunshine bill inhibits the ability of federal agencies to participate in back-door sue-and-settle arrangements with special interest groups, which circumvent established regulatory processes. “It’s a problem we’ve seen grow,” Collins said of the settlement agreements, adding that it’s a “scenario that should concern everyone.” https //www forbes com/sites/legalnewsline/2017/10/24/a-smoking-gun-internal-docs-reveal-obama-dojs-slush-fund- judiciary-chair-says/?sh=2895e0c0cb88 2021 MSN 2021/01/21 Biden DOJ to review Trump-era rule banning 'slush fund' payments. Jerry Dunleavy https://www.msn.com/en-us/news/politics/biden-doj-to-review-trump-era-rule-banning-slush-fund- payments/ar-BB1cY0ZH Excerpt: N.C. City Official Removed After Refusing to Address Black Professor as ‘Doctor’… A police trainer's event was canceled after video resurfaced of him telling…President Biden's team said he will be instructing his attorney general to review a Trump policy prohibiting the Justice Department from using tens of millions of dollars in bank settlement payments that Republicans criticize as a “slush fund” to leftist groups. 2017 Justice dot gov 2017/06/07 Attorney General Jeff Sessions Ends Third Party Settlement Practice. Press Release Number: 17-613 Excerpt: Attorney General Sessions today issued the attached memo to all Department of Justice components and 94 United States Attorney’s Offices prohibiting them from entering into any agreement on behalf of the United States in settlement of federal claims or charges that directs or provides for a settlement payment to non- governmental, third parties that were not directly harmed by the conduct. “When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people— not to bankroll third-party special interest groups or the political friends of whoever is in power,” said Attorney General Jeff Sessions. “Unfortunately, in recent years the Department of Justice has sometimes required or encouraged defendants to make these payments to third parties as a condition of settlement. With this directive, we are ending this practice and ensuring that settlement funds are only used to compensate victims, redress harm, and punish and deter unlawful conduct.” Under the last Administration, the Department repeatedly required settling parties to pay settlement funds to third party community organizations that were not directly involved in the litigation or harmed by the defendant’s conduct. Pursuant to the Attorney General’s memorandum, this practice will immediately stop. Justice dot gov https://www.justice.gov/opa/pr/attorney-general-jeff-sessions-ends-third-party-settlement-practice Investors dot com 2015/06/07 CFPB Joins Justice In Shaking Down Banks For Democrat Activist Groups https://www.investors.com/politics/editorials/cfpb-diverts-civil-penalty-funds-to-democrat-activist-groups/ MSN 2021/02/21 Biden DOJ to review Trump-era rule banning 'slush fund' payments. Jerry Dunleavy https://www.msn.com/en-us/news/politics/biden-doj-to-review-trump-era-rule-banning-slush-fund-payments/ar- BB1cY0ZH Excerpt: Former Attorney General Jeff Sessions issued a directive in June 2017 titled the “Prohibition on Settlement Payments to Non-Governmental Third Parties." The policy was made part of the Justice Department’s manual by early 2018, and a final version of the rule was entered into the Federal Register in December 2020. The Biden executive order appears to be designed to review and possibly change it. Sessions said settlements "are a useful tool for Department attorneys to achieve the ends of justice” but that “it has come to my attention that certain previous settlement agreements involving the Department included payments to various non- governmental, third-party organizations as a condition of settlement with the United States.” The former attorney general said “these third-party organizations were neither victims nor parties to the lawsuits” and the Justice Department “will no longer engage in this practice.” https://www.msn.com/en-us/news/politics/biden-doj-to-review-trump-era-rule-banning-slush-fund-payments/ar- BB1cY0ZH Inquistr dot com 2017/03/04 Obama Slush Fund: A Look Into The Beneficiaries. By Thea Condrad. https://www.inquisitr.com/4032226/obama-slush-fund-a-look-into-the-beneficiaries/ 2014 MSN 2021/02/21 Biden DOJ to review Trump-era rule banning 'slush fund' payments Jerry Dunleavy https://www.msn.com/en-us/news/politics/biden-doj-to-review-trump-era-rule-banning-slush-fund-payments/ar- BB1cY0ZH The Justice Department reached a multibillion-dollar plea agreement in 2014 with Citigroup and Bank of America for their role in the 2008 global financial crisis. As part of the deal, the banks were instructed to donate tens of millions to housing-related charities and other nonprofit groups, some of which had a left-wing bent, though some of the groups were not victims themselves. 2010 Judicial Watch dot org 2010/11/09 Judicial Watch Sues Obama Justice Department for Records on Slush Funds for “Favored Groups” https://www.judicialwatch.org/press-releases/judicial-watch-sues-obama-justice-department-records-slush-funds-favored-groups/ Excerpt from Judicial Watch-2010/11/09: Judicial Watch, the public interest group that investigates and prosecutes government corruption, announced today that it has filed a Freedom of Information Act (FOIA) lawsuit against the Obama Department of Justice (DOJ) to obtain information about a DOJ policy that directs large sums of cash settlements from DOJ Civil Rights Division discrimination lawsuits to organizations that are not officially connected to these lawsuits (Judicial Watch v. U.S. Department of Justice (No. 10-1783)). According to Judicial Watch’s lawsuit, filed on October 25, 2010: In August 2010, Judicial Watch commenced an investigation into [the DOJ’s] practices regarding the distribution of leftover settlement funds to ‘qualified organizations’ not otherwise connected with the settled litigation. [Judicial Watch] sought this information in furtherance of its educational mission after learning of an apparently novel settlement arrangement used in two recently settled cases brought by the Civil Rights Division of the Justice Department, United States v. AIG Federal Savings Bank and Wilmington Finance, and United States v. Sterling. Byron York, “Justice Department steers money to favored groups,” The Washington Examiner, August 5, 2010. According to Mr. York’s report, in the past, when the Civil Rights Division filed discrimination lawsuits against banks or landlords, such cases often resulted in a settlement whereby the defendant put aside a sum of money to compensate the particular victims ofthe alleged discrimination. In these two recently settled cases, however, [the DOJ] agreed not only to put aside money for the victims of the alleged discrimination, but also to provide money to “qualified organizations” approved by the Justice Department which are not connected to these lawsuits nor alleged to be victims of discrimination by the defendants. https://www.judicialwatch.org/press-releases/judicial-watch-sues-obama-justice-department-records-slush-funds-favored-groups/ RELATED TOPICS 2014 American Thinker 2014/03/10 How Social Justice Crashed the Economy. By Michael Bargo, Jr. https://www.americanthinker.com/articles/2014/03/how_social_justice_crashed_the_economy.html Ever since FDR’s New Deal initiative, Democrats have gathered electoral support through the distribution of federal program dollars. They justify their spending by saying it is done to pursue “social justice” and “fairness.” The great political value of these concepts is that they are open-ended; they do not imply, nor do they allow, any limits. Ever since FDR’s New Deal initiative, Democrats have gathered electoral support through the distribution of federal program dollars. They justify their spending by saying it is done to pursue “social justice” and “fairness.” The great political value of these concepts is that they are open-ended; they do not imply, nor do they allow, any limits. While Republicans have struggled to convince voters that open-ended federal spending will eventually hurt working Americans and the poor, the mortgage crash of 2008 may provide such an opportunity. This is because the mortgage changes promoted by the standards of social justice and fairness had a clear beginning, middle, and implosive end. Compliance week dot com 2016/10/12 When charitable donations equal bribery https://www.complianceweek.com/when-charitable-donations-equal-bribery/2903.article o good deed goes unpunished—especially if the intent of that deed is bribery. Nu Skin Enterprises—a Provo, Utah-based developer and seller of personal care products and dietary supplements—learned this lesson the hard way when it became the target of a rare enforcement action for violations of the Foreign Corrupt Practices Act resulting solely from a charitable contribution intended to influence a foreign official. The Securities and Exchange Commission charged Nu Skin with violating the internal controls and books and records provisions of the FCPA after Nu Skin’s Chinese subsidiary inaccurately recorded the payment as a “donation” in its books and records. On Sept. 20, Nu Skin agreed to pay $765,688 without admitting or denying the allegations. Updates: 2021/04/29 HR 732 and Forbes article fleshed out; 2021/04/26 PAGE STARTED-Slush in Funding section
Index Index
Funding Arena-1 (here) Slush Settlement Fund to Leftist, Civil Rights, Social Justice, Black, Hispanic Groups Start Here Acts, Bills o H.R. 732 Stop Settlements Slush Funds Act Bob Goodlatte-House Judiciary Chairman, R-VA, supporter Alcee Hastings, US Rep, D-FL, one detractor House Judiciary and Financial Committees involved Americans for Limited Government, a Fairfax, VA-based conservative nonprofit looking on or involved Former Associate Attorney General Tony West involved in negativity executive Geoffrey Graber, former deputy associate attorney general and director of the Residential Mortgage-Backed Securities, or RMBS o H.R. 469 Sunshine for Regulations and Regulatory and Settlements Act of 2017 2021 2017 2014 2010
Funding Arena-1 Slush Settlement Funds