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With Roger Sollenberger, Political Reporter

Pay Dirt is a weekly foray into the pigpen of political funding. Subscribehere to get it in your inbox every Thursday.

 

The Big Dig this week… The Curiously Unaccounted Funding Behind Speaker Mike Johnson’s Israel Trip

Just weeks before the COVID pandemic threw a wrench in global travel, Rep. Mike Johnson (R-LA) and his wife took an all-expenses paid trip to Israel with Rep. Jim Jordan (R-OH) and his significant other. But even though Johnson and Jordan filed ethics reports stating that a small nonprofit group would cover all the costs, it’s still unclear how the trip was funded.

 

The weeklong 2020 visit, which came on the heels of the unveiling of then President Donald Trump’s controversial Middle East peace plan, captures the strangeness of the alliance between Christian Zionist politicians in the United States and far-right Israelis, a politically expedient partnership that is premised on the literal end of the world.

Prophet Incentive

 

According to filings with the House Committee on Ethics, the total costs for the weeklong tour—which Johnson later said felt to him like “the fulfillment of a biblical prophecy”—came out to about $18,000 for the Johnsons and more than $16,000 for the Jordans. Costs included $450 nightly stays at the five-star King David Hotel in Jerusalem, chosen for “location and availability,” according to the nonprofit behind the trip.

 

That obscure nonprofit, called “12Tribe Films Foundation,” paid for the trip in full, according to the affidavits that the group provided to the congressmen. But the trip doesn’t appear in 12Tribe’s tax return that year. In fact, the nonprofit claimed that it incurred no travel costs at all in 2020, and made no payments for “travel or entertainment expenses for any federal, state, or local public officials.”

 

The detailed itinerary, filed with the Ethics Committee, was almost exclusively helmed by 12Tribe’s leader—Avi Abelow, a right-wing Israeli social media activist who lives in a West Bank settlement. The trip, as previously reported by Haaretz and Mother Jones, was heavy on Zionism. And while the congressmen met with far-right Jewish political and academic figures, they didn’t meet with any Palestinian leaders.

 

“You hear in the U.S. about how the Palestinians or the Arab people are oppressed in these areas, and have these terrible lives. None of that is true,” Johnson said during the visit, his second to Israel. “We didn’t see any of it.”

 

A Tribe Called Quest

 

While the agenda was clear, what’s less so is who paid and how.

 

12Tribe’s tax statements show that the group spent a total $119,994 in 2020. The spending was further broken down into $52,399 in grants and $67,595 in other expenses. Those other costs were almost entirely split between “information technology” ($23,030), “contract services” ($21,768) and “project fees” ($21,000). (The group’s stated mission is “production of educational videos.”)

 

According to the tax form, the $52,399 in grant money went to a single foreign entity in the Middle East/North Africa region, which 12Tribe said was for providing “financial assistance.” The document does not disclose the date of the grant or the name of the recipient, but claims that the money was wired to an entity recognized as a charity by either a foreign government or the Internal Revenue Service.

 

The Low End Theory

 

12Tribe Film Foundation registered with the IRS as a 501(c)(3) charity in June 2019, less than a year before the trip. And the group reported $357 in donations for 2019, according to its 2020 return. In 2020, the group raised about $134,000, and $118,000 and $164,000 in the following two years, according to ProPublica data. Its 2021 tax return isn’t publicly available, but the group reported a $41,359 grant in 2022, also to an unidentified organization in the MENA region. 

 

Phil Hackney, a nonprofit law expert and assistant professor at the University of Pittsburgh School of Law, told The Daily Beast that if 12Tribe paid for the trip, that should have appeared in its tax filing.

 

“I would have expected that that line would have been filled out regarding those two congressmen under the situation that we see here,” Hackney said.

 

The Daily Beast reached out to the nonprofit and its officials, including Abelow, but received no reply. Spokespeople for Johnson and Jordan did not provide comment.

 

The 2020 trip was Jordan’s first sponsored visit to Israel, but the second for Johnson. His prior visit, in August 2017, was funded by the American Israel Education Foundation. The group is a sister organization of the powerful AIPAC lobby, and it has poured millions of dollars into chauffeuring congressional leaders around the holy land for more than a decade.

 

Interestingly, however, 12Tribe hasn’t sponsored any other congressional trips—just the pilgrimage of the Johnsons and Jordans to Israel in 2020.

 

Messiah Complex

 

It’s unclear how the congressmen connected with the low-profile group. Still, Johnson and Jordan appear to share the spirit of Abelow’s religious zeal for Israel. Upon their return to the states, the two congressmen appeared on his podcast to discuss the religious importance of the historical sites surrounding Jerusalem.

 

Both Johnson and Abelow belong to fundamentalist sects that share a messianic vision of Israel’s future, where a “restored” Israel is necessary to bring about the arrival of the messiah. Of course, that shared vision carries distinctly different outcomes for the two faiths. In the Christian version—the End Times—all non-believers, including Jews, either convert or get damned eternally to hell.

 

That fantastical and seemingly oxymoronic belief—support of Israel is designed to quite literally wipe Jews off the face of the Earth—is central to the fervid Zionism of American religious fundamentalists. The belief also informs the decisions of evangelical elected officials—Iran military policy, for instance, or the War on Terror.

 

That rapturous conservative cadre includes Johnson, a Christian nationalist whose ties to far-right fundamentalist groups have been well-documented. But it also reached top foreign offices during Donald Trump’s presidency—in the Christian Zionism of Vice President Mike Pence and Secretary of State Mike Pompeo—and before that as the animating moral force behind the calamitous Middle East policy of George W. Bush’s administration.

 

Trump himself marveled at the irony. During a 2020 campaign rally, Trump said that his controversial decision to recognize Jerusalem as the capital of Israel was to appease his Christian supporters.

 

“That’s for the evangelicals,” Trump said. “You know, it’s amazing with that—the evangelicals are more excited about that than Jewish people.”


Read the full story here.

 

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From Roger’s Notebook...

Court Jester. After months of pressure and scandalous headlines, the Supreme Court released its first official “code of conduct” on Monday. However, the new ethics rules were so porous—literally unenforceable—that they were immediately mocked.

 

Ian Millhiser, a SCOTUS expert and Vox correspondent, noted that the new code is “so weak that it serves to legitimize Clarence Thomas’s corruption,” and “is literally worse than nothing.” For instance, Millhiser wrote, the rules officially legitimize Justice Clarence Thomas’s nine-day all-inclusive vacation on billionaire megadonor Harlan Crow’s yacht, a trip which ProPublica valued at possibly more than $500,000. He noted that the measures also reflect “a codification of principles” Thomas adhered to when his $270,000 RV purchase was backed by another conservative financier.

 

Former federal prosecutor Shan Wu, writing in The Daily Beast, said the rules were “too little, too late.” Wu noted there is no independent enforcement mechanism for violations, and slammed the nine justices’ “patronizing” joint statement bemoaning “the misunderstanding that the Justices of this Court, unlike all other jurists in this country, regard themselves as unrestricted by any ethics rules.”

 

“I would hazard a guess that the 74 percent of the American public that lacks confidence in the court couldn’t care less about how the justices ‘regard themselves,’” Wu wrote. “What we care about is the lack of an enforceable code of ethics and the lack of transparency about justices secretly living the lifestyle of billionaires.”

 

As Take Back the Court Action Fund, a liberal advocacy group, noted, the code uses the word “should” 53 times, and uses the word “must” six times. The code also defines a Justice’s family members in different ways in different contexts.

 

Regarding conflicts of interest and potential disqualification from cases, a family member is a person related to the Justice or the Justice’s spouse within the third degree of relationship—meaning immediate and extended family, including great grandparents, aunts and uncles, nieces and nephews, half blood relatives and “most step relatives.” (Canon 3, B(6)(a) in the code.)

 

In the code’s gift section, however—the flashpoint for much of ProPublica’s bombshell reporting on Thomas—the definition of family is different, giving the justices the individual power to define whether any gift-giver is a member of their family: “A ‘member of the Justice’s family’ means any relative of a Justice by blood, adoption, or marriage, or any person treated by a Justice as a member of the Justice’s family.”

 

Bye, George. Indicted Rep. George Santos (R-NY) said this week that he expects the House will soon expel him. But it’s worth considering the fact that one reason Santos is seen as a unique fraudster—aside from his monumental dishonesty—is that he managed to get elected. In reality, Santos has a lot of company in the political fraud department.

 

In parting shots delivered last week, Santos attempted to tap into this fact, trying to blur his own alleged wrongdoing with other members of Congress who are “more worried about getting drunk every night with the next lobbyist that they’re going to screw and pretend like none of us know what’s going on.” There’s at least a kernel of truth to that, as Rep. Jeff Duncan (R-SC) was recently accused in divorce proceedings of carrying on an affair with D.C. lobbyist Liz Williams—who, a person with direct knowledge told The Daily Beast, also had an affair with convicted and pardoned Rep. Duncan Hunter (R-CA).

 

But the recent history of fraud among candidates who did not get elected is more broad.

 

There’s Beej Das, a Democratic House candidate in Massachusetts during the 2018 midterms who was convicted in October on campaign finance charges eerily similar to fact patterns in Santos’ case.

 

“To inflate his fundraising numbers, Das devised a scheme in or about December 2017 to solicit personal loans from friends and close associates in excess of the $2,700 legal limit,” DOJ wrote in a statement upon the conviction. Das personally solicited hundreds of thousands of dollars from different people, then transferred the money to his campaign under the guise of “personal loans,” falsely claiming it was from his own personal funds when it was “illegal conduit contributions to his campaign.” Das also converted campaign cash to personal use, using at least $267,000 “to pay outstanding debts for his hotel business relating to vendors, the hotel’s yacht and real estate taxes unrelated to his congressional campaign.”

 

Then there’s 2020 Idaho Republican primary congressional candidate Nick Jones. In June 2022, Jones was convicted of making false statements to the FEC and wire fraud after misusing COVID small business loans. Jones told his employees that they would earn normal pay if they also worked for his campaign, paying them in part with money Jones got through PPP loans. His campaign didn’t report that work as in-kind contributions.

 

The year before, Virginia Democratic House candidate Shaun Brown was sentenced to three years in prison for a fraud conspiracy, where she stole money out of $800,000 in USDA funds for a program to feed low-income children. When she began serving her sentence, Brown announced that she would be running for Congress again from prison.

 

When Karen Matthews Davis ran for Congress as a California Republican, she did so in the face of death threats. Or so she claimed. In 2017, Davis was convicted for lying to federal agents about two anonymous threatening letters she claimed to have received while running for office in 2014, going so far as to suggest three suspects. In reality, Davis wrote both letters herself.

 

In 2019, former Rhode Island GOP congressional candidate Russell Taub pleaded guilty to fraud and campaign finance crimes related to a PAC scam he’d run in 2018. Taub admitted that he’d raised money for two fake political groups, but never registered either entity with the FEC. Of the more than $1.6 million raised—in part repeatedly invoking a “former Ambassador and high-level military officer” without that person’s knowledge or permission—Taub used more than $1 million for “purely personal expenses.”

 

Still, Santos stands out among that motley crew—he has been accused of everything that they were: raising money for a fake political committee, stealing from his campaign, lying about personal loans, defrauding a government assistance program, and making dubious claims about death threats. And much, much, much, much, much, much more.

 

MAGAfied. As the Republican Party navigates the ever-expanding and overlapping internal fault lines caused by its varying degrees of Trump loyalty, an FEC ruling could signal potential new microfractures ahead—even something of a balkanization.

 

On Sept. 28, the Upshur County Republican Executive Committee asked the FEC to declare that it is independent of the West Virginia Republican Party, and therefore isn’t beholden to the same contribution limits.

 

Even by West Virginia standards, Upshur County, smack in the middle of the state, is MAGA country—“the Trumpiest place in America,” home to a hair studio called “Trump’s Salon,” a place where “Pentecostal churches are nearly as common as restaurants” and which has reliably voted more Republican than the state, even when West Virginia went Democrat.

 

The county party’s request indicated a rift between the two groups. Upshur’s counsel—MAGAworld stalwart Charlie Spies—wrote that the county has not given money to the West Virginia GOP and “has no plans to do so in the future.” And in a crucial line at the end of his request, Spies noted that “the current State Party leadership does not support Upshur County’s independence,” which, he said, “only further supports Upshur County’s contention that it is independent.”

 

On Nov. 20, the FEC agreed, saying that the two groups aren’t affiliated—for some politically striking reasons.

 

The FEC noted that local party committees are presumed to be under the direction and control of the state party per se, unless they prove otherwise. The Upshur County GOP proved this by showing two things: The county committee hasn’t received money from the state party or affiliates, and it makes contributions independently.

 

But that triggered other criteria, specifically ten “circumstantial factors” that help define the relationship. The FEC found that only two of the ten spoke to an affiliation between the groups—their governance, and the state party’s hiring authority—and both of them were weakened by other facets of the relationship.

 

The commissioners then noted this observation: “Additionally, Upshur County has demonstrated its intention to pursue its own objectives even when those objectives do not align with those of the State Party.”


In an era where gerrymandering has created hyper-radicalized MAGA pockets wildly out of step with even the most conservative lawmakers, it’s possible that more and more of those areas, like Upshur, will want more autonomy over their own fate within the GOP.

 

More From The Beast’s Politics Desk

Shut Up, Man. The news came Thursday that Donald Trump’s gag order in the bank fraud trial is back on, after an appeals court overruled a judge who temporarily lifted the gag order. Trump has been battling with Justice Arthur Engoron and his law clerk, who the former president is targeting for her donations to Democrats. Jose Pagliery has the details.

 

Tuckered Out. Tucker Carlson is finally, officially out at The Daily Caller. I looked at The Daily Caller’s tax filings and found that Tucker is finally off the board. I also found that The Daily Caller had a $300,000 PPP loan forgiven. Read all about it here.

 

High Wire Transfer. A court-appointed financial monitor reported that Wednesday that Trump had moved about $40 million from The Trump Organization to his personal bank account in order to pay a $29 million tax bill and to help with his hefty legal bills. Trump was supposed to report any money movements over $5 million, but he failed to disclose the transfer. Read Jose Pagliery’s story here.

 

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