Welcome to the Checks & Imbalances newsletter. Today, I’ve got a newsletter-exclusive update on that National Rifle Association hack—plus another on the billionaire behind Donald Trump’s $100 million mortgage. Let’s dive in.
Acampaign filing the NRA’s political action committee made last week confirmed that the group did indeed suffer a ransomware attack last fall.
In October 2021, a Russian cybercriminal group called Grief claimed to have hacked the NRA and posted 13 of the organization’s files to a site on the dark web, reported NBC News. At the time, the NRA tweeted that “it does not discuss matters relating to its physical or electronic security,” but that it “takes extraordinary measures to protect information regarding its members, donors, and operations.”
In a filing made with the Federal Election Commission on Friday to explain why it needed to amend some reports, however, the NRA’s Political Victory Fund admitted that the NRA had in fact been the victim of a ransomware attack:
On October 20, 2021, our sponsoring organization was victim of a ransomware attack that took our network offline for over two weeks. During that time, we were not able to access email or network files. When our Information Security team brought our network back online, the process was undertaken slowly and carefully, with the end result that we did not have full access to our network and the internet until the second week of November. During the network restoration process, one batch of credit card receipts was not processed correctly into our donor database.
A spokesperson for the NRA did not immediately respond to an inquiry.
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In Case You Missed It
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Trump Political Supporter Chairs Company That Issued Title Insurance On New $100 Million Trump Tower Mortgage
The chairperson of the title insurer for Donald Trump’s new $110 million mortgage of Trump Tower, billionaire William Foley II, is a major political supporter of the former president. The CEO of the bank that financed the loan also donated to Trump’s campaigns, as Checks & Imbalances previously reported.
Documents recorded last week with New York City’s Department of Finance identify Fidelity National Title Insurance Company as the organization that notified the city about the transaction. Peter Sadowski, the chief legal officer for that firm’s parent company, Fidelity National Financial, confirmed it issued the title insurance.
Foley founded Fidelity National Financial in 1984 and still serves as its chairperson. Since 1998, Foley has donated about $4 million to GOP campaigns, including $493,000 in support of Donald Trump, according to FEC records.
Neither Foley nor politics had anything to do with the company’s involvement in Trump’s new mortgage, Sadowski said. “[He’s] just another customer.”
Gregory Garrabrants, the CEO of Axos Bank of San Diego, which financed the Trump Tower mortgage, is also a political backer of his client, having contributed $50,000 to Republican campaigns, including $9,600 in support of Trump since 2012, according to records with the Federal Election Commission. A spokesperson for Axos declined to comment.
Continuing Irresolutions
Updates on Checks & Imbalances’ previous reporting
Jurors heard the opening statements in the trial of Rep. Jeff Fortenberry (R-Neb.) on Thursday, reported KOLN. Fortenberry has denied the government’s allegations that he lied to the FBI. His campaign reported spending $158,000 on legal fees last year. Fortenberry also launched a legal expense trust in August.
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In response to threats from Iran, the State Department is spending approximately $2 million a month to protect former Secretary of State Mike Pompeo and another $175,000 a month to keep former Special Representative for Iran Brian Hook safe, according to a report to Congress reportedly seen by the Washington Examiner. Former National Security Advisor John Bolton also has been receiving Secret Service protection, reportedly in response to the same threat.
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“The Forerunner: A Memoir by Congresswoman Cori Bush” will reach booksellers on Oct. 3, publisher Alfred A. Knopf announced on Monday. The Missouri Democrat’s advance paid her more than $50,000 in 2020, according to a disclosure she filed in August 2021. While members of the House are not allowed to receive book advances, Bush signed her deal before being sworn in earlier this year.
Will Florida’s ‘Don’t Say Gay’ Law Hurt Its $97 Billion Tourism Industry?
Disney CEO Bob Chapek's “initial refusal to publicly criticize the so-called ‘Don’t Say Gay’ bill passed by Florida’s legislature drew swift and intense backlash from both outside and within the company. Then came a cleanup,” reports Suzanne Rowan Kelleher for Forbes:
Chapek announced that Disney would pause all political donations in Florida. Campaign finance reports show that Disney donated roughly $4.8 million to Florida candidates on both sides of the aisle, including $50,000 directly to Governor Ron DeSantis. In response, DeSantis called Disney “woke” and accused the company of doing the bidding of “Communist China.” Nobody ever said taking on Florida’s political machine was for the feint of heart—which may be why so few companies in the tourism industry have done it. Visit Florida and Visit Orlando, the state’s two largest tourism organizations, tout their pro-LGBTQ bona fides at every opportunity. It is simultaneously notable and unsurprising that neither organization has commented publicly on the bill.
Oopsies
Rebuilding America Now, a pro-Trump super PAC founded in 2016 and linked to Paul Manafort and Trump business associate Tom Barrack, told the FEC it would “develop and enforce internal controls” in a filing earlier this month. The PAC’s newfound commitment to processes and procedures came via a resolution with the FEC, after the committee’s former treasurer misappropriated $278,000.
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KelliPAC, a super PAC associated with Arizona GOP chair and subpoena recipient from the January 6 committee Kelli Ward, filed its February report 19 days late, according to records with the FEC. The PAC reported no contributions or disbursements that month. KelliPAC didn’t provide the FEC with an explanation for the delay nor did a spokesperson immediately respond to an inquiry.
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Last Thursday, the FEC asked the campaign for Joe Kent, a Washington state Republican running for Congress, for more details about “expenditures from the candidate's personal funds on behalf of the committee.” Kent’s sole disbursement on the report in question was $10,600, which was described as “In-kind: Travel, airfare, lodging, parking.”
Tracking Trump
The National Shooting Sports Foundation is returning to Trump’s D.C. hotel for its annual import/export conference in August, according to an email the group sent potential attendees. NSSF relocated its conference to the then-president’s hotel in 2019 and returned there in 2021 after canceling the 2020 renewal because of the pandemic. The 2022 agenda is not yet available, but in the past, government officials have spoken at the event.
NSSF’s decision to host the conference at Trump International Hotel in Washington, D.C., was based on a best cost estimate, according to Mark Oliva, NSSF’s spokesperson. “NSSF fielded requests for proposals from several venues in Washington, D.C. and Trump International Hotel offered the most cost-effective, competitive rate,” he said, declining to disclose what that rate was. As for government employees addressing customers of the then-president’s hotel at past conferences, Oliva said, “There have been no issues or concerns to my awareness of federal employees attending.”
Former President Donald Trump is effectively ruling out tapping former Vice President Mike Pence as his running mate should he mount a third White House bid in 2024 and win the Republican nomination,” the Washington Examiner reported on Wednesday. Pence’s Great America Committee PAC spent $237,000 at Trump’s D.C. hotel in 2018 through 2019.
Forbes continues to update “Tracking Trump: A Rundown Of All The Lawsuits And Investigations Involving The Former President.” Among the latest developments: former tenants of rent-controlled apartments owned by Trump’s father Fred allege the ex-president and some of his family members committed fraud and racketeering.
- “The Totally Dodgy Backstory of the Bank that Just Refinanced Trump Tower” (Rolling Stone)
- “Saudi-Backed Golf League Plans Tournament at Trump’s New Jersey Course” (Mother Jones)
- “Critics accuse CPAC of becoming pay-to-play as Trump loyalists gain power” (The Guardian)
- “Ohio Senate hopeful Mike Gibbons is latest to score Trump meeting at Mar-a-Lago” (NBC News)
- “Democratic group complains Trump funding presidential campaign illegally” (Reuters)
Editor’s Picks
- “Koch Industries breaks silence” (Popular Information)
- “U.S. lobbyists connect Ukraine officials with powerful allies to help in war against Russia” (CNBC)
- “Lobbying giant works to connect Ukraine officials with U.S. leaders after representing Russian bank as war rages on” (CNBC)
- “Russian Oligarchs Find Ally In America’s Small Business Lobby” (The Daily Poster)
- “Maryland attorney registers as Ukrainian weapons helper” (LegiStorm)
- “Federal and state lobbying spending soared to $10 billion during the 2020 election cycle, but state lobbying disclosure remains limited” (OpenSecrets)
- “House Republicans who challenged Biden's win are losing lots of corporate cash” (Reuters)
- “Shutout for feds in straw donor trial” (Politico)
- “Stock ban showdown in Congress delayed after Rep. Zoe Lofgren gets COVID-19” (Insider)
- “Senator Sheldon Whitehouse just reported buying up to $50,000 of $TSLA (Tesla) stock in January, and now advocates for taxes on oil company profits.” (Twitter/Congress Trading)
- “Congressional Trading in 2021” (Unusual Whales)
- “Trump-backing congressmen and a top DC lobbyist will make their own luck at a St. Patrick's Day political fundraiser” (Insider)
- “New in lobbying: Embattled Pegasus Israeli spyware maker NSO Group taps former Bill Clinton press aide Steve Rabinowitz and Bluelight Strategies for $50,000/month” (Twitter/Julian Pecquet of the Africa Report)
- “Hunter Biden Paid Tax Bill, but Broad Federal Investigation Continues” (The New York Times)
- “Climate Activists Flex Their Political Muscle” (The New York Times)
- “Adams quietly undoes de Blasio-era lobbying disclosure requirement” (Politico)
- “More crypto moves” (Politico)
- “Sen. Menendez discloses his wife's pot of gold” (LegiStorm)
- “Judge imposes $61K penalty on Omarosa for failing to file financial disclosure” (Politico)
- “Last week, Breitbart broke that Club for Growth's super PAC would be dropping $10M against Pat McCrory in the NC Senate primary. The article didn't mention that Breitbart would be getting a cut of that $10M. A new FEC filing shows CFG paid Breitbart $25K for anti-McCrory ads.” (Twitter/Brendan Fischer of It's Documented)
In Closing
“We have been captured by the thieves of the night
Held for ransom if you please
Heaven help the devil may he have a few unpleasant memories”
— Gordon Lightfoot, “Heaven Help the Devil”
