Clarence Thomas and the Charter Yacht Loophole
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** CfA's February 9, 2024 Newsletter
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With your support, Campaign for Accountability is working to expose corruption and hold the powerful accountable.
** This Week's Updates:
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Harlan Crow’s Mysteriously Unprofitable Yacht
On Monday, the Senate Committee on Finance sent a letter to real estate billionaire Harlan Crow, who is best known ([link removed]) for bestowing lavish and unreported gifts on Supreme Court Justice Clarence Thomas. ProPublica’s investigation into their relationship has opened multiple cans of worms for Crow, who may have violated tax laws ([link removed].) to deduct millions in losses on the yacht that Thomas traveled on. Technically, Crow operated an unprofitable charter company for the 162-foot Michaela Rose, but crew members say it was never leased. It’s a common strategy among the super wealthy, who can offset the costs ([link removed]) of expensive assets by pretending they’re losing money, or are being used for
businesses purposes. As the Senate Finance Committee’s letter ([link removed]) notes, The Michaela Rose was not registered with any maritime authorities, and was only permitted for use as a pleasure yacht. In addition to exposing the improper gifts made to Thomas, ProPublica seems to have uncovered another glaring example of the special privileges enjoyed by billionaires, who pay just a sliver ([link removed]) of their income in taxes compared to normal American families.
ICYMI: $100M Moved Between Nonprofits and Businesses Associated with Leonard Leo
Last Friday evening, Bloomberg News reported ([link removed]) that nonprofits associated with conservative powerbroker Leonard Leo had paid more than $100 million to CRC Advisors, a consulting group that Leo co-owns. While there’s nothing improper about this type of transaction, the sheer amount of money spent is unusual, especially because CRC Advisors does not publicly market, advertise, or even describe their services. Earlier payments to Leo’s businesses already attracted the attention ([link removed]) of DC Attorney General Brian Schwalb; under IRS rules ([link removed]) , it’s illegal for individuals to use nonprofits for their private benefit by making gross overpayments to
businesses they own. This latest probe into Leo’s finances was conducted by the watchdog organization Accountable.US, which analyzed ([link removed]) forms submitted to the IRS by nonprofits affiliated with Leo, including The 85 Fund, the Federalist Society, and the Concord Fund.
CfA called attention ([link removed]) to Leo’s sudden windfall in April 2023, and submitted complaints to both the IRS and the DC Attorney General’s office. Leo has said that he will not cooperate ([link removed]) with Schwalb’s investigation, which was confirmed to be underway several months after CfA made its complaint.
Platforms Ignore Danger of “Networked Incitement”
On Wednesday, David Ingram of NBC News reported ([link removed]) that the far-right hate account “Libs of TikTok” had been linked to at least 33 instances of violent intimidation, including 21 bomb threats. The account was first created on Twitter by Chaya Raichik ([link removed]) , a former real estate agent who attended the “Stop the Steal” really on Jan. 6^th. Raichik tried and failed to achieve virality with several different gimmicks before landing on a strategy that worked: she would trawl social media platforms for videos of LGBTQ people and repost content that was likely to trigger harassment and bullying. Capitalizing on rage-engagement, Raichik grew Libs of TikTok accounts across multiple platforms, including Instagram and Facebook. Ironically, TikTok is the only social media company to have permanently banned
([link removed]) her account.
It's unclear why Meta hasn’t followed TikTok’s lead and de-platformed Raichik for spreading anti-LGBTQ hate. Beyond straightforward harassment, the real danger posed by Libs of TikTok is its ability to launch intimidation campaigns against teachers, librarians, mental health professionals, and doctors who express support for the LGBTQ community. Extremism researcher Joan Donovan has described ([link removed]) Libs of TikTok as engaging in “networked incitement,” a form of online insurgency involving ringleaders who use social media to bring about real-world violence. Raichik, for instance, targeted Boston Children’s Hospital with a flurry of posts in the summer of 2022, claiming without evidence that doctors were performing hysterectomies on minors. The hospital was inundated with calls threatening violence, which culminated in a bomb threat
([link removed]) and lockdown. Until social media platforms acknowledge the role they play in this cycle, accounts like Libs of TikToks are free to encourage this behavior and pave the way for political violence.
What We're Reading
FTC’s Proposed Junk Fee Ban Draws Legal Threats From Industry ([link removed])
Revealed: rightwinger Leonard Leo linked to efforts to keep Trump on ballot ([link removed])
US bank lobbyists ranks swell to post-crisis high amid regulatory pushback ([link removed])
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Here is how you can stay involved and help us accomplish our mission:
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Be on the lookout for more updates about our work in the upcoming weeks. Thanks again for signing up to be a part of CfA!
Sincerely,
Michelle Kuppersmith
Executive Director, Campaign for Accountability
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