09/28/2007 12:24 pm ET Updated Dec 06, 2017

Introducing Rove's New Protege

photograph: Harry Cabluck/AP    R and R, Texas Governor's Mansion, 1999

Rudolph Giuliani may be best known as a New Yorker, but evidence from the last two quarters of FEC filings strongly suggests that the Giuliani campaign has deep roots in Texas -- and that he is the new political protégé of the Texas-based, dirty politics machine created by Karl Rove.

White it was widely reported that Giuliani hired close former associates of Karl Rove: Chris Henick, Margert Hoover, Heath Thompson, the media has kept silent on one of the most important facts of the 2008 Presidential election season.

Feeding The Firm That Rove Built

The Giuliani campaign is paying increasingly large, Texas-sized sums of money to the Austin-based political consulting firm Olsen & Shuvalov -- owned and run by former employees of Karl Rove and which became a political firm when Rove sold them the assets of his infamous consulting firm:

The company that would go on to become Olsen & Shuvalov was formed in 1999 when Rove sold the assets of his direct mail firm, Karl Rove & Co., to Todd Olsen and Ted Delisi, two of his former employees. Now run by Olsen and another longtime Republican consultant, Heather Shuvalov, the outfit specializes in direct mail campaigns and fundraising. A subsidiary group, Praxis List Co., manages and rents out the mailing lists of potential GOP donors.

(source: Center For Public Integrity)

In other words: Olsen & Shuvalov is the legacy firm that inherited everything that Karl Rove & Co. had--except Karl Rove. Olsen & Shuvalov's biggest client to date had been the Bush-Cheney re-election campaign, for which they produced campaign ads and direct mailings almost from the day the firm was created. Their most notorious ad was argued that electing John Kerry would result in the destruction of the United States by terrorists.

Of note, Giuliani is the only Republican Presidential candidate currently paying Olsen & Shuvalov for services -- for which Giuliani is paying more and more each month -- strong evidence that 'America's Mayor' is the newest teacher's pet in the house that Rove built.

The New Yorker With the Texas-Based Campaign

Recent FEC filings for the 2007 Q2 presidential campaign expenditures shows that the Giuliani campaign's largest single expense -- $1,902,084.68 -- was paid to the Austin, TX-based Olsen & Shuvalov. In the same quarter, the Giuliani campaign spent less money on its own administrative staff ($1,301,902.70) than on fees for the Texas firm with strong ties to Karl Rove.

The $1.9 million fees paid to Olsen & Shuvalov in 2007 Q2 represented a 400 percent increase over fees paid by the Giuliani campaign to the Texas firm in 2007 Q1. In the first quarter of this year, the Giuliani campaign paid Olsen & Shupalov $491,211.83.

Karl Rove resigned his position at the Bush White House in August of 2007. Before joining the White House, Karl Rove was president of Karl Rove & Co., an Austin-based public affairs firm that he founded in 1981. Upon resigning from the White House, Rove returned to Texas.

(cross-posted from Frameshop)