Everyone has a price.

Manage newsletters

View in browser

With Roger Sollenberger, Political Reporter

Pay Dirt is a weekly foray into the pigpen of political funding. Subscribe here to get it in your inbox every Thursday.

 

This week’s Big Dig . . .  How Republicans Are Preparing Their Defense for Trump’s Hush-Money Trial—“What About Hunter?”

As Donald Trump’s first criminal trial begins on Monday, the former president’s defenders have been lodging a familiar list of complaints about why the case against him is misguided and unfair.

 

Trump’s case—stemming from a six-figure hush-money payment to adult film star Stormy Daniels, weeks before the 2016 election—prompted Manhattan District Attorney Alvin Bragg Jr. to bring 34 felony counts against the former president related to falsifying business records, after he allegedly tried to cover up those payments. 

 

But for Trump’s biggest defenders in Congress, there’s a similar but far less familiar narrative that voters should focus on instead: Hunter Biden.

The whatabout defense

 

For months, these Republicans—many of them the top impeachment officials in the House—have sewn allegations of potential campaign finance violations involving Hunter Biden into media appearances and official press statements. A source with knowledge of GOP efforts to target Hunter Biden told The Daily Beast that Republicans are preparing to make the Biden campaign finance allegations a key part of their defense of Trump. And while those accusations against Hunter Biden haven’t found much traction, that may soon change.

 

From the day the indictment first dropped, Trump and his allies have invoked a ‘whatabout’ defense to counter the charges with accusations about the sitting president’s son. In more recent months, they’ve been laying groundwork to equate tax payments that one of Hunter Biden’s lawyers, Kevin Morris, made on Hunter’s behalf with the hush money payments that Trump’s lawyer, Michael Cohen, made on Trump’s behalf.

 

But experts laid out to The Daily Beast how these cases are very different—and how even the similarities reveal the emptiness of GOP concerns when it comes to Hunter Biden.

 

Election interference

 

If key details are excluded—like timing, intention, evidence, and judicially established criminal culpability—the Biden accusations do, superficially, seem to echo Trump’s charges: A lawyer making payments on behalf of a politically significant client, quashing potentially embarrassing information from surfacing in the atmosphere of a presidential election.

 

In the Hunter Biden scenario, his lawyer—longtime Hollywood attorney Kevin Morris—made a six-figure tax payment on his behalf in the early months of the 2020 election. Republicans have claimed that Morris, a major Democratic donor, made those payments to protect Joe Biden’s campaign, thereby effecting an impermissibly large in-kind political contribution, just as Cohen did for Trump. Notably, the same Trump loyalists who seem so far out over their skis on the Biden payments have also ceaselessly mocked Bragg’s prosecution as unmerited political sport hunting and—ironically enough—“election interference.”

 

But Weiner, the former FEC lawyer, explained that these cases carry a high burden of proof, and while the Trump-Cohen payments appear to meet that bar, the Biden-Morris payments likely do not.

 

“Prosecutors would pursue these criminal charges in only the most clear-cut cases,” Weiner told The Daily Beast. “And, leaving aside whatever one may think about the propriety of these payments, the comparison with the Stormy Daniels scenario doesn’t hold much water.”

 

Brendan Fischer, a campaign finance law specialist and deputy executive director of watchdog Documented, called the Republicans’ legal theory a “stretch.”

 

“Based on what we know right now, this theory seems like a stretch. Hunter Biden wasn’t running for office, his personal tax issues were never an issue in his father’s campaign, and there is no evidence that Joe Biden directed or coordinated the tax payment,” Fischer explained.

 

Hush-hush

 

The experts walked through the differences. (Pay Dirt readers can access a fulsome account of the hush-money affair here.) First, Weiner said, the payments must be proven to have “a clear electoral nexus.”

 

“With the Stormy Daniels payments, there was a clear enough electoral connection for Michael Cohen to plead guilty,” Weiner said—a connection that Justice Department prosecutors also endorsed in that case.

 

Jordan Libowitz, communications director for Citizens for Responsibility and Ethics in Washington, zeroed in on another fundamental difference.

 

“A close personal friend of Hunter Biden’s helping him with unpaid taxes to relieve pressure he faced is not remotely the same thing as Donald Trump personally causing the Trump Org to create false business records in order to hide hush money payments,” Libowitz said.

 

Politically charged

 

In a transcribed closed-door hearing last November, Morris acknowledged paying hundreds of thousands of dollars on his friend’s behalf in 2020. In all, Morris floated his client nearly $2 million to help him resolve tax issues, though the vast majority of those payments came after the election, with a $160,000 payment in January 2020.

 

Republicans have repeatedly alleged that these payments—like the Stormy Daniels hush money—were intended to help Joe Biden’s campaign and therefore appear to be illegal in-kind contributions in excess of individual limits. As evidence, they point to a Feb. 7, 2020, email that Morris sent an accountant, which said in part, “Emergency is off for today. Still need to file Monday—we are under considerable risk personally and politically to get the returns in.”

 

Morris said those were references to Trump’s first impeachment trial and the Senate investigation into Hunter Biden. Further, he had paid the $160,000 weeks earlier—and he didn’t pay for Hunter Biden’s back taxes and fines until a year after the election.

 

Final analysis

 

Weiner told The Daily Beast that the publicly known facts don’t clear the legal bar.

 

“Here you have—nine months out from the election—an ambiguous statement about ‘politics’ that could have meant any number of things, and that came in close proximity to the impeachment proceedings. Notably, the other tax payments, which was most of the money here, were paid long after the election,” he said.

 

Fischer contrasted these allegations with the Stormy Daniels case.

 

“There, on the eve of the 2016 election, with Trump’s infidelity a central campaign issue following the release of the Access Hollywood tape, Trump allegedly directed Michael Cohen to pay Stormy Daniels to keep her story out of the media. That evidence points towards the payment being made for the purpose of influencing Trump’s election.”

 

This piece is an excerpt. Read my extensive investigative report here.

 

Advertisement

 

From Roger’s Notebook...

Perry Mason. Of all the Trump supporters in Congress, there may be none more enmeshed in the former president’s legal problems than Rep. Scott Perry (R-PA)—and his latest campaign disclosure shows it.

 

In the first three months of the year, Perry’s campaign paid JPRowleyLaw PLLC—the law firm run by former federal prosecutor John Rowley—another $62,000 for legal counsel, bringing Rowley’s total tab up to nearly $400,000 since Perry hired him in May 2022. Rowley represented Perry in his ultimately failed attempt to shield his communications from Justice Department prosecutors. Federal agents seized Perry’s phone in 2022 as part of their investigation into Trump and his allies’ efforts to overturn the 2020 election—with Perry serving as a key point person in those communications. After a wildly see-sawing legal battle, a judge ruled in December that the feds could access the bulk of Perry’s messages after all—a stunning reversal of a September decision in the congressman’s favor.

 

Perry isn’t Rowley’s only Jan. 6-related client. The one-time fed has represented former Trump White House advisers Stephen Miller and Peter Navarro, former Trump legal adviser Cleta Mitchell—who exchanged texts with Perry—and the former President himself. Rowley also counseled Trump in the Mar-a-Lago probe, resigning dramatically the day after Trump was indicted for unlawfully retaining sensitive government records and obstructing the investigation. The steady payments Rowley had been collecting from Trump’s “Save America” PAC, however, ceased about six months before then. No other federal committee has ever paid Rowley.

 

But that’s not where Perry’s legal expenses end. The records also indicate that his campaign paid another roughly $2,000 this year to Trustpoint.One, the same vendor that drained former Trump lawyer Rudy Giuliani’s pockets hosting documents from his own seized phones. Before 2022, the Perry campaign hadn’t paid a lawyer since 2017, FEC records show.

 

Joe’s Mansion. West Virginia Governor Jim Justice—a Republican coal mining magnate running to become his state’s next Senator, also owns the state’s ritziest resort—the historic Greenbrier. Many powerful people, including government employees and lobbyists, have shelled out cash there, raising questions about Justice’s potential conflicts of interest. The Greenbrier even hosted House Republicans’ retreat last month and will host GOP chiefs of staff in May. But the resort also appears to have hosted a more surprising guest: the Democrat whom Justice is running to replace. 

 

According to FEC records, late last year, retiring Sen. Joe Manchin’s campaign committee paid more than $3,000 to the Greenbrier, described as “travel expenses.” The payment is dated Nov. 30—just three weeks after Manchin publicly announced he would not seek a third term. 

 

Manchin—a former WV governor himself—has attended Greenbrier events before, including a state chamber of commerce meeting there in early September, Justice’s 2017 inaugural ball (the governor was still a Democrat), and more than one golf tournament. While the campaign filing doesn’t specify whether the November payment was tied to a particular event, other details raise questions about a potentially previously unreported meeting between the two officials. (Multiple Manchin staffers did not respond to Pay Dirt’s inquiries about the spending.) 

 

For one, the $3,236.63 is itemized as part of a credit card payment made that day, for $4,956.10. The filing also shows a $5,128.20 “catering” payment on the same day to the Capital Yacht Club in Washington, D.C. It’s not clear if the Greenbrier “travel” is connected to the yacht club event, however—the campaign’s previous payment on that credit card came in late October, so the Nov. 30 payment could theoretically cover charges throughout the month.

 

While it was publicly reported that Manchin attended the Greenbrier’s Sept. 1 chamber event, that fell within the prior reporting period, which ended Sept. 30. Additionally, his campaign reported several payments on the same card in both September and October, suggesting that the Nov. 30 charge and payment was in fact connected to a more recent and apparently unreported event. Intriguingly, the campaign’s most recent prior credit card payment was on Oct. 25, with Manchin’s official Nov. 9 retirement announcement falling in the same period apparently covered in the Nov. 30 charges—suggesting that the intractable conservative Democrat may have visited his aspiring GOP successor’s resort either before or soon after he went public with the news.

 

This isn’t the first time Manchin has spent money at the Greenbrier. Through 2018, his campaign made numerous payments to the resort, mostly for catering expenses. But those payments halted in 2019, the same year Manchin suggested to ProPublica that Justice was using the resort for personal gain. Since then, the campaign reported just one other Greenbrier disbursement, about $1,700 in late 2021, also for travel expenses. 

 

While Manchin has since ruled out a presidential run, last month he cracked the door back open on an independent bid for his current seat—calling the possibility “a long, long, long-shot scenario.” The filing deadline is in August. 

 

Pump and dump. For years, the three Republican FEC commissioners have voted as a bloc to forestall investigations, deadlocking the six-member commission in dozens of cases where the agency’s own independent Office of General Counsel has found reason to believe violations occurred. These split decisions aren’t exonerations, because an equal number of commissioners saw it the other way—but the GOP’s side has the more powerful practical effect of killing the investigation. And a recent case shows just how powerful that can be—boosting the value of an individual company’s stock, and overpowering top-notch, document-based reporting.

 

Last month, NextEra Energy released a public statement touting some good news for the company: The FEC had just informed them that the agency had closed its inquiry into allegations that a NextEra subsidiary, Florida Power and Light, had secretly and illegally funded a number of “ghost candidates” in Florida’s 2022 elections. The statement made the narrow claim that the decision “concluded the FEC's consideration of the complaint without a finding that the commission had reason to believe that FPL violated the FECA.”

 

NextEra’s stock—which had plummeted from the news of the FEC inquiry—spiked up at the announcement, with Reuters picking up the corporate statement. Some even said, falsely, that the company had been cleared.

 

Importantly, the FEC notifies participants about its enforcement decisions weeks before disclosing them to the public—along with the underlying documentation.

 

In this case, NexEra’s claims were accurate, but they weren’t the full truth. That only came out this week: The company had not been cleared, and the matter hadn’t even been fully investigated. In a lengthy and extensively detailed report, the independent OGC had recommended that the commissioners find “reason to believe” that violations cited in the complaint—from watchdog CREW—had in fact occurred.

 

In a separate statement dated April 9—weeks after NexEra got the jump on the news—the commission’s three Democrats argued forcefully in favor of an investigation based on the merits of those OGC findings, of the complaint, and of the underlying investigative journalism that unearthed the shocking allegations to begin with. The statement from the three GOP commissioners, however, used the fact that the complaint had cited journalistic findings as a strike against its viability, voting to block even an official investigation into the scandal.

 

The Democrats’ statement noted that the paper, the Orlando Sentinel, was founded in 1876 and had been awarded multiple Pulitzer Prizes, including for investigative reporting. Its reporting on the FP&L scheme was “detailed and well-sourced,” the commissioners said, citing “internal emails and memoranda from the political consultants discussing the scheme” that the journalists had obtained.

 

“This Commission exists because of the intrepid investigative reporting that revealed the Watergate scandal,” the Democrats noted, adding, “Some of the most significant allegations that the Commission has considered were initially brought to light by investigative reporting.”

 

However, the nuances of bureaucratic protocol don’t travel well. Or fast. And in the end, ideology still beats journalism—no matter how convincing or accurate.

 

More From The Beast’s Politics Desk

Another week, another abortion fight. After the Arizona Supreme Court reinstated an 1884 abortion ban this week, anti-abortion GOP Senate candidate Kari Lake flip-flopped. Emily Shugerman and Riley Rogerson point out how quickly she turned against a law she previously said she’d be “thrilled” to see enforced.

 

Ted Cruz has recently taken heat for using his podcast to funnel hundreds of thousands of dollars into an allied super PAC. That trend continued this week, when the Campaign Legal Center filed an FEC complaint against him. Read our deep dive for a close look at the ethical issues he’s raising—and the loopholes that may let him get away with it. 


South Dakota Gov. Kristi Noem may be a potential Trump VP pick, but many of the people who have lived in her home state the longest want nothing to do with her. After Noem suggested Lakota tribal leaders are in cahoots with Mexican cartels, three tribes barred her from their lands—which, as Justin Rohrlich explains, means she can’t set foot in 10 percent of her own state.

 

We'll be back next week with more Pay Dirt.  Have a tip? Send us a note and subscribe here.

 
Daily Beast
FacebookTwitterInstagram
© 2024 The Daily Beast Company LLC I 555 W. 18th Street, New York NY, 10011

Privacy Policy

If you are on a mobile device or cannot view the images in this message, click here to view this email in your browser. To ensure delivery of these emails, please add emails@thedailybeast.com to your address book. If you no longer wish to receive these emails, or think you have received this message in error, you can safely unsubscribe.
https://elink.thedailybeast.com/oc/5581f8dc927219fa268b5594kud4g.dmn/f69635d8