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Americans Elect Wants To Be On Presidential Ballot, But Won't ID Donors


First Posted: 11/02/11 06:14 PM ET Updated: 11/03/11 02:43 PM ET

Americans Elect, a group trying to launch a third-party presidential ticket, was accused by a prominent campaign watchdog Wednesday of violating tax and campaign finance disclosure laws.

Fred Wertheimer, head of Democracy 21, said in a statement that the group is posing as a "social welfare group" rather than a political organization in order "to keep secret from the American people the donors supporting its political activities."

Social welfare groups don't have to disclose who underwrites them -- but they're also supposed to stay out of elections.

Meanwhile, at a kickoff event for Americans Elect at the National Press Club on Tuesday, the group's leaders described how they intend to put a "nonpartisan presidential ticket" -- chosen through an online, open nominating convention -- on the ballot in all 50 states. The goal, they said, it to give voters an alternative to the limited choice the two-party system provides.

Kahlil Byrd, the group's CEO, said it is operating "completely within the bounds" of the law. He noted that unlike a traditional political group, "Americans Elect has no candidate and has no issue."

As for the donors, he said, the reason they want to remain secret is to avoid political payback. "This is a very tough political environment," he said. "Retribution is real."

Byrd also, perhaps contradictorily, described donating to the campaign as "a small act of courage."

The group says it has already raised $22 million of its $30 million target. Byrd refused to identify the group's largest donors. But he did say that contributions from donors who gave more than $100,000 had actually come in the form of loans that the group expects to pay back from future, smaller donations.

At some point, then, people donating $1, $5, or more to advance Americans Elect's cause will presumably be paying back these anonymous wealthy donors instead.

The group claims it accepts no money from "special interests," but it is thought to be funded primarily by hedge funds.

For some time, it was organized under a different section of the tax code than it is now -- the one for political organizations. Its financial disclosure statement showed that it had raised over $1.5 million from controversial financier Peter Ackerman, whose son Elliot is the group's chief operating officer, and $189 from everybody else combined.

The group is clearly positioning itself to harness and channel the intense dissatisfaction voters currently have with the candidates the political parties have been offering them. But the goal seems to be more a centrist mash-up of the two parties than a dramatic alternative. The group's bylaws, for instance, appear to allow its leaders to veto any ticket they don't consider "balanced."

And while the group used pictures from the Occupy protests in its presentation on Tuesday, its chief strategist is Douglas Schoen, a pollster and Fox News political analyst who just a few weeks ago penned an op-ed for the Wall Street Journal in which he asserted that the Occupy Wall Street protesters supported "radical left-wing policies" that "are dangerously out of touch with the broad mass of the American people."

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Dan Froomkin is senior Washington correspondent for The Huffington Post. You can send him an email, bookmark his page; subscribe to his RSS feed, follow him on Twitter, friend him on Facebook, and/or become a fan and get email alerts when he writes.

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Americans Elect, a group trying to launch a third-party presidential ticket, was accused by a prominent campaign watchdog Wednesday of violating tax and campaign finance disclosure laws. Fred Werth...
Americans Elect, a group trying to launch a third-party presidential ticket, was accused by a prominent campaign watchdog Wednesday of violating tax and campaign finance disclosure laws. Fred Werth...
 
 
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HUFFPOST SUPER USER
David Wilson
01:19 AM on 12/20/2011
There is something seriously eskew wiuth this group. First, there are an overhwleming number of Wall Street types invovled, and an article on their page suggests Americans arent's as angry with Wall Street. Then, there is the affiliation with Arno Political Consultants, whose questionable political tactics are well published. On balance, it also has a large number of former GOP officials, albeit with a few former Democratic ones. It is clearly a political orginzation, but hiding under a "social welfare" classification to hide its' donors. There is something that stiunks about this group, more than the GOP, and my prior posts indicate how I feel about the latter group. Perhaps what is most troubling is the complete lack of transparency!
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4eva
.-.. --- ...- . --..-- / -. --- - / .... .- - .
11:24 AM on 12/05/2011
cross post

2012: The Year of the Independent? by Lynn Forester de Rothschild
CEO of EL Rothschild, LLC and the co-Chair of the "Better Values, Better Markets" Task Force
http://www.huffingtonpost.com/lady-lynn-forester-de-rothschild/2012-third-party-americans-elect_b_1128640.html
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HUFFPOST SUPER USER
MalleusMaleficarum
Global nomad.
11:25 AM on 11/03/2011
Doug Schoen is sharpening his attack on the Democratic wing of the Democratic Party by emphasizing the need for a "third party" to occupy the center of the US political spectrum. Schoen is one of the prime architects of the centrist movement inside the Democratic Party that has attempted to Reaganize the party in order to make it more acceptable to corporate interests. For several years, Schoen has been advocating the creation of a third party. To encourage political centrism, Schoen is backing the Third Way project as well as the "No Labels" project. One of the key figures in both centrist groups is Senator Joseph Lieberman. Schoen wants a centrist party that can exist to the right of the Democrats and to the left of the Republicans, a scheme that many observers see as a plan to formalize, popularize and Republicanize the Blue Dog faction of the Democratic Party backed by huge secret corporate donations. To rally his centrists, Schoen published an oped piece in the Wall Street Journal castigating the Occupy Wall Street movement as support for, "radical left wing policies . . . dangerously out of touch with the broad mass of the American people."
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HUFFPOST SUPER USER
Jack Mahoney
Everybody matters or nobody matters. (H. Bosch)
08:48 AM on 11/03/2011
As long as mega-churches are allowed to operate as tax-deductible political organizations, it's tough to figure out where the line should be drawn between political (taxable) and apolitical (non-taxable) organizations.
wendy scott
never believe generalizations
08:38 AM on 11/03/2011
This is just another GOP tactic to dupe more people and take votes away from Obama. Voter suppression...fake candidates....lies...games and tricks...That's all they've got.
watoos013
Minister of Truth
08:02 AM on 11/03/2011
Wisconsin Republicans already tried this by running fake Democrats.
07:12 AM on 11/03/2011
It's not free to start a ballot initiative in all 50 states, pay web designers, hire other support staff, etc. etc. you know. Otherwise I would have done this a long time ago.
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HUFFPOST SUPER USER
superjoe
The wise man walks the middle path
03:56 AM on 11/03/2011
"But he did say that contributions from donors who gave more than $100,000 had actually come in the form of loans that the group expects to pay back from future, smaller donations." So they are paying it back with interest? How is this not a Ponzi scheme?
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ehjay
VOTE DEMOCRAT & SAVE AMERICA
03:54 AM on 11/03/2011
Only an idiot would contribute to a candidate whose character, personality and intellect were an unknown. These people must believe a sucker is born every minute.
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HUFFPOST SUPER USER
Jack Mahoney
Everybody matters or nobody matters. (H. Bosch)
08:49 AM on 11/03/2011
I've seen nothing recently to disprove Barnum.
09:07 PM on 11/03/2011
Yes, because donating to a known career politician/scam artist is a genius idea. Looks like you're a sucker and don't even know it. How sad.
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pdxist
Feel free to copy my avatar! (Or ask me how.)
03:29 AM on 11/03/2011
It sounds like a hedge fund is just swindling people out of their money. They've created an entity that can accept donations, then they've loaned money to it, and now they're just funneling all the real donors' money back into the hedge fund in the form of loan repayments.
01:34 AM on 11/03/2011
If one donates to support the cause ... isn't paying back the cause's creditors a part of that? I've never heard anyone express concern about donations made to a mainstream candidate who carries campaign debt. How would donations here be any different? That seems an odd point to raise.

OTOH. Not saying send these people money ... don't know anything about them. The part about leaders having the right to veto the results of the so-called internet primary seems to make the whole thing a joke IMO.
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pdxist
Feel free to copy my avatar! (Or ask me how.)
03:30 AM on 11/03/2011
The thing is, we don't know how much these hedge fund loans are for. If they're large amounts, then conceivably all of the money anyone else donates will go straight back to the hedge funds, then the hedge funds will call back their loans, then the "party" will go away.
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Pod-gers
Jeremy Lin = Game Change
12:49 AM on 11/03/2011
Man oh man, do I smell the wiff of fear!
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HUFFPOST SUPER USER
David Wilson
01:23 AM on 12/20/2011
Oh, I smell something too, and it ain't fear. Something about so much Wall Street types stinks! Brought to you by the same people that gave us credit default swaps, sub-prime mortages, and the too big to fail mentality.
12:19 AM on 11/03/2011
Of course they don't want it know who is giving them money. Why? Because later when they are in positions of power and have to pay back these favors they don't want any proof around that they have been bought and sold and have no ethics. It might keep them from being elected again and take advantage of their position to get more corrupt money.
This user has chosen to opt out of the Badges program
12:37 AM on 11/03/2011
wow! what a comment---you say that as if you know something about who the donors are and it's striking that you are apparently not upset about the two parties we have now who are definitely doing the very things you are accusing (in advance) Americans Elect of doing. Very curious comment.
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HUFFPOST SUPER USER
nanoscare
01:08 AM on 11/03/2011
"Has no candidate and has no issue." Yea, that sounds real.

Face it... it's a cover for billionaire hedge fund managers who want to keep their income tax rate at 15%.
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HUFFPOST SUPER USER
David Wilson
01:30 AM on 12/20/2011
Americans Elect lacks transparency. That alone is troubling. But not so much that it listed as one of its' leaders, W. David Lawson, the MANAGING DIRECTOR OF JP MORGAN CHASE. Or two other "leaders" from ARNO POLITICAL CONSULTANTS - political con artists (search them on Wiki!) What I've discovered, just on the face of it, i the last two hours, gives me serious concerns about this group. I barely trust electonic voting machines after 2000, and I am supposed to accept a nominating process from an IT guy from E*Trade? Not happening.
This user has chosen to opt out of the Badges program
12:50 AM on 11/03/2011
By the way, did you ever stop and think of the many (other) legitimate reasons donors may want to remain anonymous-- eg. maybe they don't want their employers to know about their political life. People get fired for their postings on social networks about politics, personal opinions about--you name it and there's apparently nothing that can protect them from an aggressive employer who disagrees with what they have posted.
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HUFFPOST SUPER USER
David Wilson
01:36 AM on 12/20/2011
So Americans Elect is taking a creative interpretation of IRS regulations, and failing to identify as a politivcal oirganization, which is clearly is, to protect donors? Be real! I didn't read a whole lot of "social welfare" articfles on its web pages.
HUFFPOST SUPER USER
onionboy
Blessed are the Cheese Makers
11:26 PM on 11/02/2011
What is "dangerously out of touch"?

What does that mean? Even if OWS had a fringe opinion (which I don't believe they have), how is that dangerous? An opinion or a position is dangerous? This is the kind of party they are?
11:20 PM on 11/02/2011
Looks like Lyndon LaRouche finally got parole.