With Daniel Lippman FEDS CHARGE PROLIFIC 'SCAM PAC' OPERATOR: For the last five years or more, Matt Tunstall has used the name and likeness of Donald Trump and other politicians to ostensibly raise money for a network of political action committees. But he's been accused of pocketing most of the money himself, and on Wednesday his so-called scam PAC operation finally caught up to him, your host reports. — In an indictment unsealed on Wednesday, federal prosecutors charged Tunstall and an associate, Robert Reyes, with conspiracy to commit wire fraud and to lie to the FEC, alleging that of the roughly $3.5 million raised by the PACs they ran during the 2016 election, "only approximately $19 were distributed to any candidate's authorized campaign committee or to any political cause, while a total of more than $1.5 million was used to benefit" the PAC operators themselves. — Prosecutors also charged Tunstall with multiple counts of wire fraud and money laundering. The indictment charges a third associate and cousin of Tunstall, Kyle Davies, with conspiracy to commit wire fraud and to lie to the FEC, and multiple counts of wire fraud. Attempts to reach Tunstall and Reyes were unsuccessful. There was no readily available contact information for Davies. — Tunstall, 34, has been linked to a number of political action committees — including as recently as this spring — using Trump's name in order to raise money. Campaign finance disclosures showed that those PACs contributed little or none of that money to Trump's campaign or causes. And Tunstall has reportedly used the returns to fund a lavish lifestyle for himself, or one portrayed as such online. — But the scheme prosecutors zeroed in on in Wednesday's indictment took place in the lead-up to the 2016 election, when Tunstall, Reyes and Davies formed two PACs claiming to support candidates on the right and the left, respectively. The indictment does not name either candidate but makes clear that the defendants' Liberty Action Group PAC claimed to support then-candidate Trump and their Progressive Priorities PAC claimed to support his Democratic rival, Hillary Clinton. — Both PACs made "false and misleading representations" in robocalls and written and radio ads soliciting donations, which sought to portray the committees as being affiliated with or working to financially support — both directly and indirectly — their respective candidates, prosecutors said. They offered campaign swag like stickers and signed photos as rewards for larger donations. Tunstall, Reyes and Davies "instead used the funds they acquired through the scheme to pay for additional fraudulent solicitations for money, to enrich themselves directly, and to support their independent, unrelated business ventures," according to the indictment, which charges that the PACs reported little or no operating expenditures while money was transferred to the defendants or falsely reported as advertising expenses. Good afternoon and welcome to PI. Thank you all so much for the warm wishes and feedback yesterday! Keep sending your gripes, compliments and lobbying tips: coprysko@politico.com And be sure to follow me on Twitter: @caitlinoprysko. |
HAGGLING OVER DRUG PRICING CONTINUES: "Lobbyists and advocates are pressing for a number of changes to a drug pricing overhaul as the focus on a $1.75 trillion budget bill shifts from the House to the Senate," Lauren Clason and Mary Ellen McIntire write for Roll Call. "The lobbyists are angling for tweaks on everything from the time period of drug exclusivity to the tax treatment of rare disease drugs and provisions affecting the pharmacy benefit managers that manage prescription drugs for insurance companies." — Though the package has yet to receive a vote in the House, "lobbyists and advocates say that chamber's language is mostly baked." Still, "some changes are already under discussion for the health provisions. Multiple lobbyists told CQ Roll Call that more language affecting pharmacy benefit managers is likely to be added. Currently, the bill repeals a rule requiring PBMs to share drugmaker rebates with patients at the pharmacy counter. The Trump-era rule has never taken effect but was estimated to cost as much as $170 billion over a decade, including through higher Medicare premiums." — Industry lobbyists are "also working to roll back several other provisions, including new restrictions on tax credits for drugs that treat rare diseases. Orphan drugs, as they're known, would qualify for the research credit for only the first approved use of the drug under the bill, removing the credit for any additional uses approved down the road." CHIEF LOBBYIST AT TELECOM GROUP TO RETIRE: Joanna McIntosh , the top lobbyist for one of the country's most powerful telecommunications trade associations, announced today that she will retire from NCTA – The Internet & Television Association at the end of the year. McIntosh joined NCTA in 2017 after serving in top government affairs roles with AT&T, Verizon and the Motion Picture Association of America (now just the Motion Picture Association). — She'll be succeeded by Cliff Riccio, currently the trade group's vice president and deputy chief of government relations. Ricco will oversee both the federal and state legislative functions while the state team will continue to be led by Lisa Schoenthaler . Riccio has been with NCTA, which routinely ranks as one of K Street's top spenders each quarter, since 2001. He previously served as a legislative analyst on telecom issues for two former chairs of the House Energy and Commerce Committee. TRADE GROUPS SUE OVER VACCINE MANDATE: "Trade associations representing retailers, truckers and distributors filed a lawsuit against the Occupational Safety and Health Administration (OSHA) Tuesday to block its vaccine-or-test mandate for private employers," The Hill's Karl Evers-Hillstrom reports. — The groups, which include the National Retail Federation, several chapters of the American Trucking Associations, the National Association of Convenience Stores, the National Association of Wholesaler-Distributors, FMI – The Food Industry Association, the International Warehouse & Logistics Association, the International Foodservices Distributors Association and the National Federation of Independent Business, "said that the rule, which will require businesses with 100 or more employees to mandate COVID-19 vaccinations or weekly testing by Jan. 4, will 'inflict irreparable harm' on their member companies. — "'This is not a case about the efficacy of COVID-19 vaccines, which are a marvel of modern medicine. … This is a case about American businesses that do not want to face the immediate irreparable harm of losing employees, incurring substantial and unrecoverable compliance costs, and worsening already fragile supply chains and labor markets,' the groups wrote in a court filing." THE GOP MONEY MACHINE: The Washington Post's Josh Dawsey, Isaac Stanley-Becker and Michael Scherer have a great look at the windfall of cash Republicans in Washington are bringing in despite lingering fury over the Jan. 6 insurrection , which is distilled in this great lede: "One day after rioters ransacked the Capitol in a bid to overturn the 2020 presidential election, Republican lobbyist Geoff Verhoff sent a searing email to top GOP officials. Verhoff, a bundler who works at the lobbying firm Akin Gump, wrote on Jan. 7 that he was appalled by President Donald Trump and the rioters, and he was resigning as co-chair of the Republican National Committee's finance committee, according to a person with knowledge of the email. — "He could no longer associate himself with Trump and his movement, he wrote, and he was distressed by what his party had become. But when Trump spoke to some of the party's top donors last month," the Post reports, Verhoff was in attendance. "After the Jan. 6 attack on the Capitol, scores of donors and companies made public or private statements like Verhoff's, vowing to withhold or rethink their funding for the GOP. But a review of attendees at elite donor retreats, financial filings and interviews with party officials, donors and fundraisers indicates the GOP has had a booming financial year, retaining significant support from many Fortune 500 companies and the city's most influential lobbying shops, including some contributors who initially balked in the wake of the Jan. 6 attack." ANTENNA GROUP ADDS PUBLIC AFFAIRS ARM: The PR and strategic comms firm Antenna Group has launched a new public affairs practice in Washington headed by Andy Beck, an alum of the George W. Bush Energy Department, EPA and DOT. The new practice will advise clients on sustainability issues including green energy and energy efficiency, though it won't lobby. The new Antenna Public Affairs team will include Senior Vice President Hardy Spire, Vice President Neal Urwitz, account director Caleigh Bourgeois, account supervisor Bennett Artman and senior account executive Caroline King. |
— Paula Witt joined the Association for Accessible Medicines as its senior manager of state government affairs. She was previously director of judicial education in the Law & Economics Center of George Mason University's Antonin Scalia Law School. — Boehringer Ingelheim has added Alex Rothenburger as senior associate director of public policy and Kirby Consier as senior associate director for state government affairs covering the southeast. Rothenburger was most recently manager of strategic and policy analytics at the Children's Hospital Association and Consier was most recently at Novartis, where she was associate director for state government affairs. — Brady PAC has promoted AJ Roshfeld to PAC director and Anna Quinn to state and federal political manager as the gun control group staffs up for the midterms. — Zachary Kiser is now director of government relations and advocacy for NephCure Kidney International. He is a House Select Subcommittee on the Coronavirus Crisis and Sen. Sherrod Brown (D-Ohio) alum. — Brian Buchwald is now chief strategy and business development officer at consumer intelligence platform Talkwalker. He most recently was president of global intelligence for Weber Shandwick and is an alum of NBC Universal. — Rhonda Bentz is joining the Consumer Brands Association as executive vice president of public affairs. She most recently was vice president of paid media and strategic initiatives at the American Petroleum Institute. — Marisol Garibay is joining Invariant to advise financial services clients. She most recently was vice president of communications and media relations at the National Association of Federally-Insured Credit Unions, and is a CFPB, OMB, Treasury and Hill alum. — Michael Czin has taken a leave of absence from SKDKnickerbocker to serve as senior adviser to the White House Counsel's Office. — Linda Beza has joined the National Health Council as vice president of finance and administration. She most recently was the senior director of finance and administration at the Pool and Hot Tub Alliance. — Michael Zetts will be a director of strategic communications at Bully Pulpit Interactive. He previously was communications director and senior adviser for Rep. Tim Ryan (D-Ohio). — Prashanth Rajan has joined Mastercard as a director of public policy. He was previously a director of public affairs at APCO Worldwide. |
Conaway Graves Group, LLC: Manhattan Solar Partners, LLC
Connect Strategy LLC: Animal Welfare Institute
Dinino Associates, LLC: Cornerstone Government Affairs Obo Epirus, Inc.
Fgh Holdings, LLC (Formerly Known As The Glover Park Group LLC): Land O'Lakes, Inc
Hogan Lovells US LLP: Tops Markets LLC
Holland & Knight LLP: Jo-Ann Stores, LLC
Invariant LLC: H-E-B Grocery Company, Lp
Lobbyit.Com: Advocates For Wild Equines (Informal Coalition)
Lobbyit.Com: Child And Parent Information Database System (CAPIDS)
The Livingston Group, LLC: Hebert, Stephen
The Russell Group, Inc.: Tonnies Lebensmittel Gmbh & Co. Kg |
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