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Profile: Black Rock Group
Black Rock Group was a participant or observer in the following events:
Black Rock Group logo. [Source: Black Rock Group]The 2010 Citizens United decision (see January 21, 2010) requires third-party groups working on behalf of candidates or parties not to coordinate their efforts with those candidates or parties—to remain “independent.” Many political observers have suspected that some of these groups are coordinating their efforts with the campaigns and/or with one another. Two of the groups under suspicion are American Crossroads, a super PAC, and Crossroads GPS. The two groups share the same president (Steven Law), the same spokesperson, the same staffers, and the same mailing address. Together, the two have raised $100 million for the 2012 election cycle and have already run millions of dollars of television ads (see April 13-20, 2012). In early June, Crossroads GPS spent $70,000 in advertisements attacking Democratic Senate candidate Heidi Heitkamp (D-ND), half of its $140,000 spent on that race. Shortly before that run of advertisements began, Heitkamp’s Republican challenger, Rick Berg (R-ND), paid the Black Rock Group, a Republican consulting firm in Virginia, thousands of dollars for “communications consulting.” Black Rock is also contracted to perform “advocacy and communications consulting” for American Crossroads. Black Rock’s founding partner, Carl Forti, is American Crossroads’s political director and formerly served as Crossroads GPS’s advocacy director. (Forti also helped start Restore Our Future, presidential candidate Mitt Romney’s super PAC—see June 23, 2011). Black Rock partner Michael Dubke is the founder of Crossroads Media, which buys ads for American Crossroads and Crossroads GPS. Crossroads Media and Black Rock share offices. It would be illegal for Berg’s campaign to consult or coordinate with Crossroads GPS on advertisement strategies. It would not be illegal for Berg’s campaign to consult with Black Rock, and then for Black Rock to consult with Crossroads GPS. “The real scandal is what’s legal,” says Paul Ryan of the Campaign Legal Center. The Citizens United ruling said that groups would disclose their donors and activists, and groups would not coordinate with one another. Yet both provisions are either being ignored or dodged. Fred Wertheimer of Democracy 21 says: “The statu[t]e and the Supreme Court have been very strong on preventing coordination. But the FEC regulations have basically gutted the laws and given us very weak laws to prevent coordination between outside spenders and candidates… despite the fact that the Court’s entire decision in Citizens United is based on the notion that the expenditures are going to be entirely independent from the campaign.” Bill Allison of the Sunlight Foundation says, “[T]he FEC [Federal Election Commission] has a very narrow definition of what coordination actually is.” As long as a campaign and an outside group do not directly communicate, their use of a “common vendor” such as Black Rock is perfectly legal as long as several specific criteria are avoided. “It kind of boggles the mind, but that’s what the FEC has defined and there’s nothing illegal about it.” Ryan says: “It makes the coordination rules pretty meaningless. We have all of this special interest money that we feared might be in the system, and none of the meaningful restraints on coordination, and very limited disclosure.” Allison gives a hypothetical example: “If they’re using the same people to buy ads, and the campaign is telling the ad buyer, ‘We want you to buy ads in such and such and such,’ and the ad buyer does that, the super PAC can then say, ‘Well, run ads where they’re not running ads, or double their ads,’ or whatever. These guys are professionals and they know how to do this. That’s still not coordination.” There is no evidence that Black Rock is ferrying communications between Crossroads GPS and the Berg campaign; according to Black Rock spokesperson Chelsea Wilson, “Black Rock has had firewalls in place since last year which allows the firm to legally engage in federal campaign and independent expenditure or issue advocacy campaigns.” Crossroads GPS is not legally bound to disclose much of its information to the FEC, and it is impossible to know precisely what Crossroads GPS is paying Black Rock to do for it. The Berg campaign denies any coordination, saying in a statement: “While we do work with Black Rock, there is no coordination between our campaign and outside groups and we have no knowledge of what their plans are. We cannot control what outside groups will do.” Allison says that even if Berg’s campaign is being truthful, there are many ways campaigns and outside groups can legally coordinate, using a common advisor such as Black Rock or even individual consultants. “There can be coordination at the level of consultants, even if they’re not at same company,” he says, noting that many consultants know one another socially or have worked together in previous campaigns. It is also possible, and legal, for super PACs to find out where campaigns they are supporting are buying ads by contacting the campaigns of the opposing candidates, which keep track of such information. Forti, the CEO of Black Rock, is in a unique position to facilitate what reporter Alex Seitz-Wald calls “GOP non-coordination coordination,” as he “sits in the middle of a powerful nexus of outside spending groups and GOP political firms all run out of the same office suite in Alexandria, Virginia.” Charles Spies, the treasure of Romney’s Restore Our Future, says of Forti, “I don’t know of anybody who’s got as important of a role with the major outside organizations, both in 2010 and in 2012.” [Salon, 6/19/2012]
Entity Tags: Charles R. Spies, Bill Allison, American Crossroads GPS, American Crossroads, Alex Seitz-Wald, Carl Forti, Rick Berg, Steven Law, Paul S. Ryan, Chelsea Wilson, Crossroads Media, Fred Wertheimer, Black Rock Group, Michael Dubke, Restore Our Future, Heidi Heitkamp
Timeline Tags: Civil Liberties, 2012 Elections
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