Sunlight Foundation

Lobbyist Bundler Data Includes Giving to Super Committee

Of the 12 members of the failed supercommittee that were tasked with cutting $1.2 trillion from the federal deficit, five have disclosed records with the Federal Election Commission stating that they’ve received bundled contributions from lobbyists exceeding $16,000.

Representative Dave Camp, R-Mich, is the only member of the committee that has reported receiving bundled contributions so far this cycle. All $32,000 he received was bundled by one lobbyist named Harry Sporidis. Sporidis works for the firm Polsinelli Shughart and represents a number of clients in the healthcare industry, including the National Association for Behavioral Health and the American Society of Clinical Oncology.

According to the records, Sen. Patty Murray, D-Wash, has been the greatest supercommittee recipient of bundled contributions since 2009. She’s received just over $262,000 from large corporations including AT&T, Microsoft, Boeing, and Amazon, and well-known lobbyists like Tony Podesta who represents many prominent clients like BP America, Credit Suisse and Boeing.

This information has been made available as a result of the Honest Leadership and Government Act of 2007, which amended the Lobbyist Disclosure Act of 1995. The act made gifts to lawmakers illegal, was supposed to close the revolving door and required more disclosure regarding lobbying activity and spending – including the disclosure of bundled contributions, among other things. The act came about after Jack Abramoff, the infamous lobbyist turned felon, was convicted of fraud, tax evasion and conspiracy. His case demonstrated the wide-ranging corrupt practices that could take place in Washington. The rules require disclosure of bundled contributions went into effect in 2009, and have so far generated a rather small dataset of just over 300 records but have revealed $17.1 million in contributions to just 76 recipients including party committees. The largest bundler, the Edison Electric Institute (EEI), has given $2,120,952 in bundled contributions to just two recipients. The Democratic Congressional Campaign Committee is one of them and received the bulk of that money: $2,072,950. The Republican Senator from South Carolina, Lindsey Graham, received the remaining $48,000 of that money. According to records filed with the Senate Office of Public Records, EEI has lobbied on a variety of issues related to energy, including regulating greenhouse gases and Clean Air Act regulations.

The remaining supercommittee members that received bundled contributions subject to the relatively new rules are Jeb Hensarling, R-Texas, Chris Van Hollen, R-Md, and John Kerry, D-Mass,. The three received $235,500, $40,000 and $20,425 respectively.

The lobbyist bundler data is now available on InfluenceExplorer.com and TransparencyData.com. The data comes directly from the FEC. Contributions are disclosed by recipients (reporting committees) to the FEC when a lobbyist/registrant or lobbyist/registrant PAC makes at least two contributions to a single recipient totaling at least $16,200. Recipients report according to their regularly scheduled reporting periods and according to biannual reporting requirements put into place just for bundled contributions, according to the FEC.

Influence Explored: Obama's Bundler List

President Barack Obama leans back in his chair while on the phone in the Oval Office.Earlier today the Obama campaign released a list of 244 fundraisers who have bundled thousands of dollars in donations to the president's victory fund. This is an excellent opportunity to use the Sunlight Foundation's Influence Explorer and Transparency Data tools to dig into the connections and past contributions of these masterful rainmakers.

It's a veritable rolodex of the rich and powerful across the country - among them you'll notice a CEO, editor, former politician and even a former lobbyist. Have fun and beware duplicate names in the always imperfect campaign data!

Update: Based on comparisons to the list of bundlers in Obama's 2008 campaign we found that there are 109 repeat bundlers so far for 2012.

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Bundlers Galore

Three makes a trend, right? Today, there are three news stories on presidential bundlers - campaign contributors who solicit money from other contributors and bundle it together - and their activities. All of these stories highlight the need for bundling disclosure rules from the Federal Election Commission. But two of these stories pinpoint the potential for abuse in the bundling system.

The Washington Post looks at the odd practices of one Harry Sargent III, the owner of an oil trading company with billion dollar defense contracts. Sargent has raised over $50,000 for Sen. John McCain's presidential bid from a collection of Arab-Americans who refuse to discuss why they gave money to the Republican's campaign:

Some of the most prolific givers in Sargeant's network live in modest homes in Southern California's Inland Empire. Most had never given a political contribution before being contacted by Sargeant or his associates. Most said they have never voiced much interest in politics. And in several instances, they had never registered to vote. And yet, records show, some families have ponied up as much as $18,400 for various candidates between December and March.

Both Sargeant and the donors were vague when asked to explain how Sargeant persuaded them to give away so much money.

"I have a lot of Arab business partners. I do a lot of business in the Middle East. I've got a lot of friends," Sargeant said in a telephone interview yesterday. "I ask my friends to support candidates that I think are worthy of supporting. They usually come through for me."

As the Post story notes, this seems analogous to the Norman Hsu case that played out in 2007. Hsu was a con-artist who bundled large sums of money for Sen. Hillary Clinton's presidential run from a collection of Chinese-Americans, many of whom were barely integrated into the larger American society. It turned out that Hsu funneled his own money through these individuals to be able to make contributions. Hsu was arrested for this and other crimes and Sen. Clinton returned hundreds of thousands of dollars in donations. Are Sargent's bundled contributions legitimate? Why do the people who operate as Sargent's fundraising operation refuse to discuss why they are giving these campaign contributions?

In a very similar case, two individuals of modest means, an office manager at Hess and her husband, an Amtrak foreman, contributed $61,600 to Sen. McCain's campaign committee and a joint Republican-McCain committee. McClatchy:

Alice Rocchio is an office manager at the New York headquarters of the Hess Corp., drives a 1993 Chevy Cavalier and lives in an apartment in Queens, N.Y., with her husband, Pasquale, an Amtrak foreman.

Despite what appears to be a middle-class lifestyle, the couple has written $61,600 in checks to John McCain's presidential campaign and the Republican National Committee, most of it within days of McCain's decision to endorse offshore oil drilling.

At a June fundraiser, the Rocchios joined top executives at Hess Corp. — Chairman and Chief Executive Officer John Hess, his wife, Susan, his mother, Norma Hess, and six other officials in giving a total of $313,500 to a joint McCain-RNC fundraising committee, Federal Election Commission records show.

Alice Rocchio insists that she and her husband used their own money to pay for these large campaign contributions, the first either her or husband have made. The June contributions to the joint committee were revealed in a Campaign Money Watch report earlier this week. The large Hess contributions came days before Sen. McCain switched his position on offshore drilling.

Clearly, these two stories show the danger of abuse in the bundling system and the clear lack of disclosure. While Congress approved disclosure of bundled contributions in the recent ethics reform bill, they only did so for federally registered lobbyists. In both cases, including the case of a federal contractor, neither party would be required to disclose the bundled contributions.

In our final bundling story of the day, the New York Times looks at the big dollar donors and bundlers surrounding Sen. Barack Obama's campaign. Despite the well-known small dollar donations machine the campaign built during the primaries, Sen. Obama is also raising massive sums from big dollar donors:

But records show that one-third of his record-breaking haul has come from donations of $1,000 or more: a total of $112 million, more than Senator John McCain, Mr. Obama’s Republican rival, or Senator Hillary Rodham Clinton, his opponent in the Democratic primaries, raised in contributions of that size.

Behind those larger donations is a phalanx of more than 500 Obama “bundlers,” fund-raisers who have each collected contributions totaling $50,000 or more. Many of the bundlers come from industries with critical interests in Washington. Nearly three dozen of the bundlers have raised more than $500,000 each, including more than a half-dozen who have passed the $1 million mark and one or two who have exceeded $2 million, according to interviews with fund-raisers.

This latest info on the McCain and Obama bundlers comes thanks to an effort by a number of groups, including the Sunlight Foundation, to pressure both campaigns to disclose their bundlers as former candidates George W. Bush and John Kerry both did. Voluntary disclosure is all well and good, but as I mentioned adove, mandatory disclosure would increase accountability and would apply across the board to include House and Senate bundlers as well.

Young Donors Max Out, Need Diapers Changed

Competition among bundlers is getting so competitive that fundraisers are getting their children to chip in. These aren’t grown children by the way; these are toddlers, babies, and prepubescent children without incomes - unless of course they’re working as cockney bootblacks (“Straight shine’s a nickel; super buff’s a dime!”). The Washington Post reported yesterday on this effort by bundling donors using their children and nieces and nephews as ways of funneling ever more money into the coffers of their favored candidate.

Such campaign donations from young children would almost certainly run afoul of campaign finance regulations, several campaign lawyers said. But as bundlers seek to raise higher and higher sums for presidential contenders this year, the number who are turning to checks from underage givers appears to be on the rise.

"It's not difficult for a banker or a trial lawyer or a hedge fund manager to come up with $2,300, and they're often left wanting to do more," said Massie Ritsch, a spokesman for the Center for Responsive Politics. "That's when they look across the dinner table at their children and see an opportunity."

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Suitably Flip Opens up Bundles of Hsu's

Running names identified by the media as being part of Norman Hsu's network of donors through federal, state and even municipal campaign finance records, Suitably Flip offers the most comprehensive road map to following the money.

Sadly, there's no way to be certain which of these contributions were truly bundled by Hsu, and which might have been independently. While the recently enacted Honest Leadership and Open Government Act of 2007 requires campaigns to identify bundled contributions totaling more than $15,000 from registered lobbyists, there's no provision requiring the same sort of disclosure about bundles from convicted felons, or anyone else for that matter.

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