Americans for Job Security, a conservative group that has been at the forefront of politically active nonprofits that don’t reveal their donors, gave away $26.3 million in grants in late 2011 and the first 10 months of 2012, according to a new filing obtained by the Center for Responsive Politics.

Americans for Job Security has never given out grants in the past, but more than half of its expenditures consisted of grants to other groups. Almost all of that — nearly $25 million — went to one group: the Center to Protect Patient Rights (CPPR), a 501(c)(4) nonprofit with ties to David and Charles Koch that does little besides make grants to other dark money groups. The grant was reported on AJS’ Form 990, its annual tax filing with the IRS, covering the period Nov. 1, 2011 through Oct. 31, 2012.

That’s more than double the amount that AJS was revealed to have passed through CPPR when a California court ruled last year that the donors behind a group that fought one state ballot initiative and worked in favor of a different one must be disclosed. But that disclosure showed only that the group received $11 million from something called Americans for Responsible Leadership, which received that sum from CPPR, which simply was passing on money it got from AJS. None of the groups are required, under federal law, to publicly disclose the names of their donors, although some states argue that disclosure is required under their laws.

California’s campaign finance watchdog group called it the largest case of campaign “money laundering” in the state’s history.

CPPR, which is run by a Koch brothers operative, Sean Noble, also received major funding last year from Freedom Partners Chamber of Commerce, another 501(c)(6) organization. Freedom Partners — a relatively new group also tied to the Kochs whose grantmaking operation was recently revealed in a Politico story — gave CPPR $115 million, more than the budget of Noble’s group in all previous years combined.

It’s unclear what CPPR did with the money, but the likelihood is that it gave it out to various Republican groups that spent it in the 2012 presidential and congressional elections — if CPPR’s previous actions provide any insight. The existence of CPPR, which was founded in 2009, as a politically important organization was revealed by OpenSecrets Blog last year. Money shuffle The AJS grant to CPPR is curious, because in late 2011 the money went in the other direction: CPPR gave a generous grant of $4.8 million to AJS, according to OpenSecrets.org research.



The apparently reversible pipelines of funds show how some some conservative groups shuttle money back and forth to one another, adding multiple layers of protection for donors who don’t want their names revealed. Americans for Limited Government is another group that has given money to AJS as well as receiving grants from it, though on a smaller scale. In 2010, Americans for Limited Government, which is part of a shadowy network of groups controlled by New York real estate developer and libertarian Howard Rich, gave $250,000 to AJS. Recently, Rich’s group joined a coalition of four organizations advocating repeal of the 16th Amendment, which gives the federal government the right to collect an income tax. A group called the Taxpayers Protection Alliance, a 501(c)(4) group based in Alexandria, received AJS’ only other grant (besides the one to CPPR) that was at least seven figures. AJS gave the group $1.1 million. Stephen DeMaura, AJS’ president, is treasurer of Taxpayers Protection Alliance. The group has attacked green building regulations, advocated for a lower corporate tax rate, and went after GOP presidential candidate Newt Gingrich for keeping his Secret Service detail when he was no longer a viable contender. Help us keep government accountable by making a donation today.

Other groups that were funded by AJS in late 2011 or the first 10 months of 2012 included Americans for Limited Government, which received $10,000; American Action Network, which got $25,000; the Coalition for American Jobs, $442,000; American Tradition Partnership, $70,750; and Texans for Fiscal Responsibility, $40,000. American Action Network received millions in grants in the 2012 campaign cycle from the Republican Jewish Coalition, the Pharmaceutical Researchers and Manufacturers Association and others. The group reported spending more than $11 million in that cycle, mostly to attack Democrats running for Congress. American Tradition Partnership, a Montana organization, is at the center of a donor disclosure fight because of political flyers it produced in connection with state races. A Montana court has demanded the group disclose its contributors, which it has refused to do. The court fight is continuing. The Coalition for American Jobs is an alliance of the American Chemistry Council, American Petroleum Institute, the U.S. Chamber of Commerce, the American Forest and Paper Association, the National Association of Manufacturers and possibly others. Much of the group’s energy has been devoted to attacking environmental regulations. Other AJS spending







Not all of AJS’ $48 million budget (up from $2.5 million the year before) went for grants to other groups. It spent Not all of AJS’ $48 million budget (up from $2.5 million the year before) went for grants to other groups. It spent more than $15 million on ads attacking President Obama during his 2012 re-election race. And it was active in at least one other nonfederal race, in addition to funneling money to the California group: According to the Michigan Campaign Finance Network, it poured more than $1.1 million into issue ads in a state judicial election.

AJS reported that its president, DeMaura, received $114,851 in salary and another $19,639 in “other compensation from the organization and related organizations.” DeMaura did not respond to a request for an interview. On their 990s, 501(c)(4) organizations also must report their five highest-paid contractors that received more than $100,000. AJS’ form shows that it favors keeping money in the family. For example, Norway Hill Associates, in New Hampshire, was paid $137,500 for “management and consulting,” just under what it was paid in 2009 for the same service. The CEO of Norway Hill, David Carney, is also a cofounder of Americans for Jobs Security. Another founding member of AJS, Michael Dubke, runs the Black Rock Group, which received $133,003 from AJS this year for “communication consulting.” The Black Rock Group has long shared office space with Americans for Job Security at 66 Canal Center Plaza in Alexandria, Va. In fact, a number of linked groups reside at the Canal Center Plaza address. One of them is Dubke’s Crossroads Media — which for some reason is absent from AJS’ list of outside contractors, despite the fact that Crossroads Media was the group’s media firm of choice in the 2012 election. FEC reports show AJS paid nearly $15 million to Crossroads Media during the period covered by its most recent 990. In 2010, AJS reportedpayments to Crossroads Media for similar services. The largest contractor reported on AJS’ 990 is BlueFront Strategies LLC, which was paid $274,453 for “marketing and media placement.” BlueFront Strategies was originally located at the same Alexandria address as Americans for Job Security and the Black Rock Group.



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