Everyone has a price.

Manage newsletters

View in browser

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.

 

This week’s Big Dig . . . How This MAGA Extremist Hides His Campaign Spending

Republican congressional candidate Joe Kent has tried to distance himself from a problematic adviser’s white nationalist ties. But the money trail suggests not only that the two men remain tight, they’re so close that the relationship may have crossed into a forbidden form of political incest.

 

A Daily Beast analysis of filings with the Federal Election Commission found potential overlap in payments between the Kent campaign and a super PAC that has backed his candidacy in both the 2022 and 2024 election cycles. Federal law bars such groups from coordinating.

 

FEC records also show that since August 2022, the campaign has routed the majority of its expenses through what legal experts said appears to be a shell company. The scheme has the effect of hiding the identities of who the campaign is ultimately paying, which the experts said could run afoul of disclosure rules.

Ties that bind

 

The potential super PAC overlap involves top Kent aide and strident election denier Matt Braynard, a longtime adviser to the candidate who has spoken on the campaign’s behalf as recently as October. In the run-up to the 2022 election, Braynard’s documented ties to white nationalists contributed to a battery of negative press about Kent’s proximity to extremist groups. 

 

Kent, running in Washington state’s 3rd District, ultimately lost to Democratic Rep. Marie Gluesenkamp Pérez in 2022 by fewer than 3,000 votes. He’s challenging her again this cycle.

 

According to FEC records, a company registered by Braynard’s wife at their shared address, called “QUB Consulting,” has received tens of thousands of dollars from the pro-Kent super PAC “Pacific Northwest Political Action Committee.” In all, the group has paid QUB $64,000—$10,000 more than its other expenses combined.

 

Braided narrative

 

The payments started just days before the November 2022 election. Braynard told Talking Points Memo in September that he stopped working for the Kent campaign in November 2022. But federal law requires campaign staff and vendors to take a 120-day “cooling off” period before they can begin working with a super PAC. Braynard, however, was still fielding campaign comments one day after the super PAC paid QUB $22,000 for a text message blast. And metadata and source code in campaign blog posts from as recently as December 2023 show Braynard’s byline.

 

Braynard didn’t deny that he wrote the blogs, only telling The Daily Beast that he had “long volunteered” services to the campaign.

 

The statement also didn’t deny that the super PAC paid him through QUB. Instead, Braynard attacked the “sexist” suggestion that his wife is incapable of running a political consulting firm—a suggestion The Daily Beast never made.

 

Spoiler: It’s not sexism

 

Campaign finance experts said the super PAC and shell company arrangements raise legal concerns.

 

Saurav Ghosh, director of federal reform at nonprofit watchdog Campaign Legal Center, told The Daily Beast that the overlap suggests impermissible coordination.

 

“If this company [QUB] is Braynard and he was serving as campaign staffer, it’s hard to imagine he could do that without running afoul of campaign finance rules,” Ghosh said.

 

Brendan Fischer, deputy executive director at watchdog Documented, highlighted the proximity of the QUB payments to the 2022 election, independent expenditures for election communications. The 120-day “cooling off” rule would seem to eliminate wiggle room for Braynard, Fischer said.

 

“It’s hard to see how a staffer could move over to a super PAC at the height of the campaign and not be providing key inside information,” Fischer told The Daily Beast.

 

99 problems

 

But it’s unclear whether the Kent campaign has paid Braynard, either this year or for most of the 2022 election, when he worked on the campaign.

 

That’s because the campaign has routed the vast majority of its expenses—about two of every three dollars spent—through an apparent shell company, called “HWY 99 Corporation.” Braynard did not deny having ever gotten money from this entity when The Daily Beast pressed him, only alluding vaguely to having “long volunteered.”

 

Campaign finance experts told The Daily Beast that HWY 99—registered in Delaware under the name of a nondescript corporate agent—appears to function as a master payer. The pass-through entity obscures the identities of the true payees, including campaign vendors and possibly even staffers. These experts said the whole arrangement raises concerns about disclosure rules, as well as the campaign’s transparency with voters.

 

Shelling out

 

It’s unclear who exactly is behind HWY 99. The company is only associated with Kent’s political committees, and no other committee has ever paid it, according to FEC records. As of the most recent filings, covering through late September, the company had siphoned more than $1.3 million from the Kent operation, ascribed to a vast range of services.

 

“The company appears to be a shell,” said Ghosh, of CLC. “Here you have an entity that was recently set up, no other campaigns pay it, and you can’t trace it, which all points to an effort to conceal something.”

 

Braynard is hardly the only staffer missing from the Kent campaign’s expense reports. The campaign has reported only one “payroll” or “salary” expense ever—a $5,000 disbursement in July 2021 to former campaign manager, Byron Sanford. 

 

Pot kettle black

 

In a 204-word statement, the Kent campaign didn’t explain HWY 99.

 

“Our campaign has previously faced phony claims that were published by zero accountability publications like the Daily Beast that later ignored the FEC ruling that fully vindicated our campaign and our candidate,” the statement said. 

 

(The Daily Beast wrote up that FEC decision. And Fischer noted a similar accusation against a Democrat for a shell scheme in the 2020 primary. The FEC commissioners found 4-2 that the scheme violated transparency rules but were forced to dismiss the matter after the retirement of a commissioner.)

 

The campaign further claimed that the FEC has codified its campaign practices, which are “commonplace among other campaigns, including Marie Perez’s.”


The two examples aren’t similar. Gluesenkamp Pérez’s expenses do not have evidence to support the campaign’s allegation. Unlike Kent’s HWY 99, her top vendors are known firms that contract with a number of political committees, and her campaign lists several employees who draw a salary.

 

Advertisement

 

From Roger’s Notebook...

As luck would have it… On Wednesday, liberal watchdog Citizens for Accountability filed an FEC complaint alleging similar super PAC coordination involving a Democrat.

 

According to the complaint, first reported by Axios, Steve Schmidt—a longtime GOP strategist and former senior adviser to presidential longshot Rep. Dean Phillips (D-MN)—started a super PAC soon after launching the Phillips campaign, without the 120-day “cooling off” period.

 

“Given that Schmidt helped launch the Phillips campaign and the super PAC echoed its messaging in an ad, Campaign for Accountability argues that Phillips likely violated the Federal Election Campaign Act and FEC guidelines,” Axios reported. Schmidt and Phillips denied wrongdoing.

 

Rock Down. The Trump campaign just lost the law firm representing it in a long-running legal battle against Eddie Grant over the rights to his 1983 hit, “Electric Avenue.”

 

In a motion filed in the Southern District of New York on Dec. 29, the firm for Trump’s defense—Peroff Saunders P.C.—withdrew from the case. The motion, which the Trump campaign didn’t contest, said the lawyers were moving to a new firm that, “after careful consideration and for various internal reasons,” declined to represent Trump. The attorneys were replaced with longtime Trump defender Jesse Binnall.

 

Grant sued Trump in April 2022, claiming the then president had used the song in a 2020 ad without authorization. So far, the campaign has reported paying Peroff Saunders more than $640,000 to litigate the case—more than double the $300,000 Grant asked in damages.

 

Electric A-venue. A new decision from the Ninth Circuit Court of Appeals has let former Rep. Jeff Fortenberry (R-NE) off the hook for his conviction last year of lying to the FBI—at least temporarily.

 

The ruling, which came the day after Christmas, doesn’t overturn the conviction on the merits of the case, instead citing a procedural technicality that the lower court in California should not have tried Fortenberry in the first place, because it was the improper venue. He ducked prison time, receiving two years’ probation and community service, and resigned upon conviction.

 

The case was brought in a Los Angeles federal court—and accepted by the judge—on the jurisdictional grounds that it was the location of the foreign straw donations at the center of the trial. But Fortenberry did not lie about his knowledge of those donations in California; those interviews took place at his home in Nebraska and in Washington, D.C. The feds can still re-try Fortenberry in one of those locations, though the Nebraska official would appear to have a home field advantage in the Cornhusker State.

 

The Ninth Circuit’s decision may also impact the Justice Department’s strategy for investigating and trying similar false statements cases. If investigators anticipate a precedent, they might try to set future interviews in favorable jurisdictions for questioning—such as D.C.

 

Speaking of false statements. Rep. George Santos (R-NY) appears to have blown yet another deadline to file his legally required financial disclosure.

 

After his ejection from the House last month, Santos was required to file a final financial disclosure—or at minimum request an extension—within 30 days. But CREW pointed out this week that he has done neither.


Santos is also the only member who didn’t file his annual disclosure this year. That statement would have covered his 2022 finances, likely giving the lie to his wildly false previous disclosures as a candidate, which claimed, among other things, that he was worth millions and held real estate in Brazil. Those filings drew a criminal charge in May for making false statements to Congress and were among the many, many alleged violations included in the ethics report that precipitated Santos’ ouster. Apart from a fine, however, Santos has little to lose by not submitting these disclosures—and potentially a lot to lose if he does.

 

More From The Beast’s Politics Desk

Did Donald Trump accept a bribe? Order his FBI director to fake evidence? Tell the National Guard to kill critics? Sell nuclear secrets? Jose Pagliery found that Jack Smith is being awfully suggestive with some very specific—and repeated—hypotheticals about potentially serious new crimes in his court filings. Read what he found here.

 

Our Will Bredderman caught a former AOC adviser pocketing tens of thousands of dollars from an anti-filibuster super PAC he started. Now he’s raising money to show Joe Biden the door. Read about the Democrat’s egregious self-dealing here.


It turns out that Rep. Mike Lawler (R-NY) has a curious bullet on his resume: Michael Jackson expert. Lawler attended Jackson’s 2005 trial as well as one of his last concerts, and he is cited by a Jackson biographer as an expert on the dead and disgraced former King of Pop. He also can apparently do an incredible moonwalk. Read what Riley Rogerson uncovered here.

 

We'll be back next week with more Pay Dirt.  Have a tip? Send us a note and subscribe here.

 
Daily Beast
FacebookTwitterInstagram
© 2024 The Daily Beast Company LLC I 555 W. 18th Street, New York NY, 10011

Privacy Policy

If you are on a mobile device or cannot view the images in this message, click here to view this email in your browser. To ensure delivery of these emails, please add [email protected] to your address book. If you no longer wish to receive these emails, or think you have received this message in error, you can safely unsubscribe.
https://elink.thedailybeast.com/oc/5581f8dc927219fa268b5594k6i7w.e45/fed688d8