While Eric Holder was attorney
general, the Justice Department allowed prosecutors to strike agreements
compelling big companies to give money to outside groups not connected
to their cases to meet settlement burdens.
(Reuters)
The chairman of the House Judiciary
Committee claims he obtained a “smoking gun” email that proves the Obama
Justice Department prevented settlement payouts from going to
conservative-leaning organizations, even as liberal groups were awarded
money and DOJ officials denied “picking and choosing” recipients.
“It is not every day in congressional
investigations that we find a smoking gun,” Rep. Bob Goodlatte, R-Va.,
said Tuesday. “Here, we have it.”
While Eric Holder was U.S. attorney general, the
Justice Department allowed prosecutors to strike agreements compelling
big companies to give money to outside groups not connected to their
cases to meet settlement burdens. Republican lawmakers long have decried
those payments as a “slush fund” that boosted liberal groups, and the
Trump DOJ ended the practice earlier this year.
But internal Justice Department emails released Tuesday
by Goodlatte indicated that not only were officials involved in
determining what organizations would get the money, but also Justice
Department officials may have intervened to make sure the settlements
didn’t go to conservative groups.
“It is not every day in congressional investigations that we find
a smoking gun,” House Judiciary Chairman Bob Goodlatte, R-Va., said
Tuesday. “Here, we have it.”
(Associated Press)
In one such email in July 2014, a senior Justice
Department official expressed “concerns” about what groups would receive
settlement money from Citigroup — saying they didn’t want money going
to a group that does “conservative property-rights legal services.”
DOJ ENDS HOLDER-ERA ‘SLUSH FUND’ PAYOUTS TO OUTSIDE GROUPS
“Concerns include: a) not allowing Citi to pick a
statewide intermediary like the Pacific Legal Foundation (does
conservative property-rights legal services),” the official, whose name
is redacted in the email, wrote under the title of “Acting Senior
Counselor for Access to Justice.”
The official added that “we are more likely to get the right result from a state bar association affiliated entity.”
The Pacific Legal Foundation responded to the email
release Tuesday by telling Fox News it believes “permanent reforms to
prevent such abuse are needed.”
“We are flattered that the previous administration
would be concerned enough about our success vindicating individual
liberty and property rights to prevent settlement funds from making
their way to Pacific Legal Foundation,” PLF CEO Steven D. Anderson said
in a statement.
“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,” Attorney
General Jeff Sessions said.
(Associated Press)
Goodlatte, who is sponsoring the Stop Settlement Slush
Funds Act of 2017, disclosed the emails during a speech on the House
floor, taking aim at then-Associate Attorney General Tony West.
“Aiding their political allies was only the half of
it,” Goodlatte said. “The evidence of the Obama DOJ’s abuse of power
shows that Tony West’s team went out of its way to exclude conservative
groups.”
The documents indicate West played an active role in helping certain organizations obtain settlement information.
“Can you explain to Tony the best way to allocate some
money to an organization of our choosing?” Principal Deputy Associate
Attorney General Elizabeth Taylor wrote in one November 2013 email.
Groups who received funding also expressed appreciation for West’s efforts, according to the emails.
“Now that it has been more than 24 hours for us all to
try and digest the Bank of America settlement, I would like to discuss
ways we might want to recognize and show appreciation for the Department
of Justice and specifically Associate Attorney General Tony West,”
wrote Charles R. Dunlap, executive director of the Indiana Bar, in an
August 2014 email.
Dunlap wrote that West “by all accounts was the one
person most responsible” for the Interest on Lawyers Trust Accounts
group receiving money.
One person, Bob LeClair, responded to Dunlap’s email by
saying, “Frankly, I would be willing to have us build a statue [of
West] and then we could bow down to this statue each day after we get
our $200,000.”
West, who now works as an executive vice president at
PepsiCo, did not immediately return an email from Fox News seeking
comment.
In 2015, however, Geoffrey Graber, who oversaw the
Justice Department’s big banks settlements, told Goodlatte during a
congressional hearing that the department “did not want to be in the
business of picking and choosing which organizations may or may not
receive any funding under the agreement.”
“But internal DOJ documents tell a different story,”
Goodlatte said Tuesday. “They show that contrary to Graber’s sworn
testimony, the donation provisions were structured to aid the Obama
administration’s political friends and exclude conservative groups.”
Even before the release of Tuesday’s emails, Republicans had blasted these settlements as a “slush fund” for favored groups.
Gibson Guitars was forced to pay $50,000 to the
National Fish and Wildlife Foundation in 2012, though that organization
has nothing to do with the case. In 2014, Bank of America gave money to
the National Urban League, the Neighborhood Assistance Corporation of
America and the National Council of La Raza as part of a major mortgage
fraud settlement stemming from the 2008 financial crisis.
'Aiding their political allies was only the half of it.'
Asked about the emails, the Justice Department on
Tuesday referred Fox News to Attorney General Jeff Sessions’ statement
in June after he announced the end to the practice.
“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.
Goodlatte on Tuesday praised Sessions’ move to end
mandatory donations, but called his legislation a “good governance
measure,” and called it necessary to prevent a future Justice Department
from reversing the action. The bill prohibits the Justice Department
from requiring defendants to donate money to outside groups as part of a
settlement with the federal government.
The Obama administration has been accused of unfairly
targeting conservative organizations before — most famously after the
revelation the IRS applied extra scrutiny to groups with “Tea Party” in
their names.