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With Roger Sollenberger, Political Reporter

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

 

The Big Dig this week… The Mysterious Dark Money Group Connecting DeSantis, Christie, and Trump

In the early stages of the 2024 race, no other candidate—not even Donald Trump—has pushed the bounds of campaign finance laws as much as Ron DeSantis.

 

But somehow the DeSantis campaign’s finances have suffered despite those hard-charging efforts. Or perhaps because of the people behind them.

 

Immediately after DeSantis officially declared his inevitable candidacy, he was challenging fundraising laws. That’s when his state-level PAC pledged to transfer more than $80 million to a pro-DeSantis super PAC, just weeks after DeSantis officially cut ties with the old group—a move Florida lawmakers changed the rules to accommodate and which quickly drew a federal complaint.

 

But Florida campaign finance statements show even closer ties between these three groups than previously reported—and they go to the very top of the DeSantis operation, most specifically his campaign manager, Generra Peck.

Out of the shadows

 

Even with all the PAC money, the DeSantis campaign has been marred by financial trouble. Extravagant spending and an overreliance on large-dollar donors—71 percent of his total fundraising has come from people donating more than $2,000—prompted the campaign to cut more than a third of its staff earlier this week. And one person who has taken a lot of the blame for DeSantis’ questionable financial footing is a largely unknown figure with undeniable experience in the shadowy GOP circles of dark money: Peck.

 

Peck, a widely respected Republican strategist who prefers to operate in the wings, is DeSantis’ 2024 campaign manager, and she quietly steered him to victory in 2022. But before she took the top job, she helmed a battery of low-profile conservative advocacy groups—where the funding is largely untraceable and the spending is exceedingly difficult to unravel, often by design.

 

Peck’s present, however, is distinctly different from her past. A presidential operation tasked with taking down the most powerful force in the Republican Party has to reckon with far more public scrutiny than Peck has dealt with previously. And the transparency demanded of federal campaigns is entirely different from the occult financials of the comparatively obscure dark money groups and consulting firms where she cut her political teeth.

 

Peck’s approach, and the complications she faces today, are captured in the story of one of those groups—a dark money nonprofit that Chris Christie started to support then-President Trump, but which in hindsight looks more like an incubator for a future DeSantis presidency.

 

Right direction, wrong turn

 

“Right Direction America” was created in late 2019 to fight back against Democratic attempts to impeach Trump. 

 

“I was tired of sitting around and waiting for someone else to do it,” Christie said at the time, promising seven-figure ad buys to combat impeachment.

 

In retrospect, RDA had strong ties to DeSantis from the beginning. Aside from Peck and Christie, one of the key forces behind the group was veteran GOP operative Phil Cox—a trusted DeSantis adviser and top deputy for his super PAC. The group also featured Caroline Chestnut Linkul, another senior DeSantis 2022 aide and the former director of Casey DeSantis’ Office of the First Lady.

 

The DeSantis campaign and Peck did not respond to detailed questions for this article.

 

But after Trump was acquitted and Christie was gone, the group assumed what seems like its true purpose all along: a nozzle to spray anonymous cash to a broad range of conservative groups, issues, and politicians.

 

Dark money maze

 

RDA’s filings don’t appear in IRS searches, nor in any other public database that compiles those records. And the group’s website was taken down sometime after The Daily Beast reached out for comment for this article; it was archived as recently as March 21.

 

The Daily Beast previously obtained the group’s 2020 filing, which shows it doled out $700,000 in grants. Those funds went to two other secretive entities, both of which, like RDA, are classified as 501(c)(4) “dark money” groups—and both of which are directly tied to Peck.

 

When one of those groups, “Building a Better America,” emptied its coffers in 2021—the year Peck moved to Tallahassee to take over DeSantis’ 2022 campaign—the group poured almost all of its bank account into reforming a federal environmental policy of deep interest to DeSantis: a Florida mining project. BBA didn’t similarly explain the nature of any of its $2.1 million in grants on its previous year’s tax filing.

 

RDA—whose board also has ties to the GOP’s biggest megadonor, Dick Uihlein—took in three donations in 2020, for a total $2.12 million, the filing shows. All three were anonymous, with the largest being $2 million.

 

Gaetzgate

 

Christie dropped out of RDA after only one year. The reason is unclear, and Christie declined The Daily Beast’s request for comment.

 

His departure, however, came weeks before the most curious event in RDA’s curious life: a $100,000 gift in early 2021 from the campaign belonging to Rep. Matt Gaetz, for a time one of DeSantis’ closest allies. That’s double the amount of the Gaetz campaign’s second-largest contribution ever, and $22,000 more than its combined political gifts to DeSantis.

 

The campaign cut the $100,000 check when the congressman was on particularly shaky ground, and the Gaetz campaign’s explanation appears to defy belief, The Daily Beast previously reported. The contribution came about half a year after the Justice Department opened its investigation into whether the Florida congressman paid for sex with a 17-year-old girl, and weeks after Trump returned to civilian life at Mar-a-Lago, denying Gaetz the blanket pardon he had reportedly sought.

 

Waiting in the wings

 

A dig through RDA’s tax and FEC filings reveals a fairly wide network of similar groups, who all boast similar membership and even similar names. But the force behind them all appears to be Peck. 

 

While the strategist rarely engages the media—who seem to have rarely engaged with her before she took over the 2022 DeSantis campaign—she took a major step into public life in September 2021, when DeSantis tapped her to run his upcoming re-election effort.

 

Peck has long been close with both Ron and Casey DeSantis, but her hiring was reportedly the work of yet another ghost from Right Direction’s past: Cox, who first took a shine to Peck while they worked together on former Virginia Gov. Bob McDonnell’s 2009 campaign. 

 

However, Florida state filings don’t show 2022 DeSantis campaign payments to Peck personally or a number of known entities associated with her. They do, however, reveal $1.7 million going to Cox’s Ascent Media from the Republican Party of Florida, with that company clocking another roughly $207,000 directly from the DeSantis campaign.

 

Countdown to launch

 

This January, DeSantis, Peck, and Cox began ramping up his predicted presidential bid in earnest. And the money began moving, too, with hundreds of thousands of dollars once again flowing from DeSantis’ world to entities associated with Peck and Cox—including from the DeSantis state-level PAC at the center of the disputed $82 million transfer.

 

The contours of that fundraising effort are at the center of Campaign Legal Center’s federal complaint. The complaint, filed May 31, alleges that the PAC illegally coordinated with DeSantis to raise money in amounts exponentially higher than his campaign could have along.

 

Today, however, Peck’s cover has been blown. GOP insiders and megadonors have increasingly expressed frustration with the campaign’s flagging performance and runaway spending, and they’re hungry for a scalp. 

 

According to multiple recent reports, they’ve set their sites on Peck, whose limited campaign experience has through no fault of her own made her vulnerable to those attacks.

 

Fittingly enough, Peck’s own compensation with the campaign is its own mystery. Federal Election Commission filings show only about $10,000 going to her on the DeSantis campaign payroll over the campaign’s first six weeks. She received just the fifth-largest single payroll payment, and her total stands at about $5,000 less than the governor’s longtime communications guru, Christina Pushaw.


Read the full story here.

 

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From Roger’s Notebook...

Split decision. On Wednesday, The New York Times exposed somehow even more shady financial dealings from indicted Rep. George Santos (R-NY). The new details included an apparently unconsummated cryptocurrency deal with a Polish citizen, which reminded an investor involved with the plans of a “Nigerian prince” email scam, “in which a rich, potentially fictitious, foreigner asks an outsider to help free up frozen assets.”

 

The Times also shed light on how Santos sought to profit from a flood of donations to Tina Forte’s longshot but loud 2022 campaign against Rep. Alexandria Ocasio-Cortez (D-NY). The report describes Santos’ consulting firm, Red Strategies, engaging in a controversial but legal practice known as “revenue sharing” or “revenue splitting, where consultants take their cut on the back end of fundraising hauls.

 

Red Strategies, like other firms, contracted an enormous commission—80 percent of the money raised—but instead of getting paid directly by the campaign, collected the money via fundraising platform WinRed. These deals result in FEC filings that show campaigns paying WinRed incomprehensibly large “credit card fees” that dwarf the online service’s normal 4 percent fee, with WinRed then splitting most of that off to the contracted consultant.

 

While the arrangement isn’t uncommon, it has frustrated a number of campaigns, most typically (but not always) exploiting inexperienced candidates in unwinnable, high-dollar races. What’s less common, however, is what The Times reports next: That some of the Santos campaign’s own WinRed payments show a strikingly similar pattern, suggesting that a consulting firm—like, say, Red Strategies—profiteered off of his campaign as well.

 

Mess in Texas. Texas’ indicted attorney general Ken Paxton, facing an impeachment trial led by his former GOP allies over alleged financial wrongdoing, can’t seem to shake allegations of financial wrongdoing. The latest round of state campaign finance filings shows a pro-Paxton super PAC giving a total $3 million in June to lieutenant governor Dan Patrick—the Republican official who will preside over Paxton’s upcoming trial.

 

The gifts, which due to state reporting rules were predestined to become public record before the trial got underway, have raised concerns about an attempted bribe or payoff from Paxton allies. While it’s unclear whether Patrick will return the money, $2 million of the contributions came in the form of a loan, which Patrick himself would have had to agree to accept. On top of that, Patrick has still not compelled Paxton to repay him $125,000 in previous loans.

 

The Patrick campaign has $22 million cash on hand, and he won’t face re-election until 2026.

 

Peace in the Middle East. A new analysis by watchdog Citizens for Responsibility and Ethics in Washington has found that Trump made at least $9.6 million—“but likely much more”—from Middle East countries while in office. The nation-benefactors include Qatar, the United Arab Emirates, Turkey, and, of course, Saudi Arabia, whose lobbyists infamously paid for around 500 nights at Trump’s former D.C. hotel in the course of just three months. Those payments alone created an earnings jump of 13 percent.

 

The analysis, pulled from Trump’s tax returns and public reports, includes Qatar’s $6.5 million condo purchase in Trump World Tower, along with lavish UAE, Turkish, and Kuwaiti government spending at the hotel.

 

After leaving office, Trump struck a lucrative deal with Saudi Arabia-backed LIV golf, and invested $2 billion in his son-in-law, Jared Kushner—who may have raked in hundreds of millions while serving as White House adviser.

 

Sam Bankman-Fraud. The Justice Department said Wednesday that it was dropping a campaign finance fraud charge against the former crypto king, Sam Bankman-Fried. Prosecutors said it wasn’t because they didn’t believe SBF broke the law when he took tens of millions of dollars from his crypto exchange, FTX, and donated to candidates using other people’s names—an alleged “straw donor” scheme. Instead, the DOJ said it was dropping the charges because officials in the Bahamas, where SBF was staying, didn’t intend to extradite the FTX founder to the United States to stand trial over those charges.

 

“In keeping with its treaty obligations to the Bahamas, the government does not intend to proceed to trial on the campaign contributions count,” prosecutors said in a court filing.

 

SBF will still face a number of charges in his October trial, including wire fraud, bank fraud, operating an unlicensed money transmitter, and bribery.

 

More From The Beast’s Politics Desk

While we’re on indictment watch for special counsel Jack Smith’s anticipated federal charges against Trump for his role in the Jan. 6 attack, that case may not pose the greatest existential threat to the former president. To find out why, check out Jose Pagliery’s reporting about the looming fourth indictment in Fulton County, Georgia.

 

It’s been a summer like no other, with extreme temperatures baking every corner of the country—and Democrats are pressuring President Biden to take immediate actions that would relieve American workers. Read Ursula Perano’s exclusive on that effort here.

 

The day after DeSantis announced his candidacy, Showtime pulled a VICE documentary examining his military record at Guantanamo Bay scheduled to run four days later. The network has still not offered an explanation, but I got the transcript, so you can read VICE’s muzzled reporting and more inside information about why the bizarre move may have come at such a curious time.

 

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