Leonard Leo’s Financial Network Still in the Spotlight
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** CfA's April 5, 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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Leonard Leo’s Financial Network Still in the Spotlight
On Wednesday, New York Times columnist Thomas B. Edsall published a deep dive ([link removed]) into the fundraising networks pushing for a second Trump presidency, and identified far-right powerbroker Leonard Leo as one of the movement’s central players. As Edsall explains, many of the nonprofits involved in this effort operate with minimal reporting standards, which creates opportunities for lucrative self-dealing. His op-ed goes on to cite CfA’s 2023 complaint ([link removed]) to the IRS and D.C. Attorney General Brian Schwalb, which called for an investigation into multiple nonprofit groups associated with Leo. Together, these tax-exempt organizations appear to have funneled ([link removed]) millions of dollars to for-profit businesses owned or
co-owned by Leo, which could be a violation of IRS rules against excessive benefits transactions. Schwalb’s office appears to have opened an investigation ([link removed]) into this nonprofit network, following CfA’s complaint and multiple additional stories in the press. Predictably, Leo and his allies have resisted the inquiry every step of the way.
Weapon Modification Content Still Thriving on YouTube
This week, the nonprofit Media Matters for America (MMFA) released a new report ([link removed]) identifying over a dozen YouTube videos showing users how to convert weapons into fully automatic firearms, even though these videos are forbidden ([link removed]) under the platform’s community guidelines. YouTube first restricted ([link removed]) weapons modification tutorials in the aftermath of the 2017 Las Vegas attack, which was carried out using multiple AR-type rifles modified for automatic fire using bump stocks ([link removed]) . Subsequent mass shootings prompted YouTube to tighten its policies further – or at least announce ([link removed]) that it had. Unfortunately, announcements don’t always lead to enforcement.
According to MMFA’s research, this latest batch of weapons modification videos had been viewed more than 9 million times, and included a monetized video ([link removed]) that showed viewers how to “turn any AR into a gatling gun” with an aftermarket “trigger crank.”
While these videos are concerning on their own, they become particularly dangerous when combined with YouTube’s recommendation algorithms, which drive a majority of traffic ([link removed]'s%20recommendation%20algorithm%20drives%2070,adjust%20what%20it%20shows%20them.) on the platform. In May of 2023, TTP released a report ([link removed]) demonstrating that YouTube was recommending real-life firearms content to accounts registered as young boys interested in gaming, who had not independently sought out this material. TTP noted that many of the videos also violated YouTube’s policies against weapons modification, but that the platform had taken no steps to restrict them.
Expanded Online Betting Leads to Surge in Addiction Hotline Activity
The legalization of mobile sports betting has triggered an increase in calls to addiction hotlines across the country, NBC ([link removed]) reported this morning. At the same time, gambling addiction counselors have observed ([link removed]) that their clients are skewing younger and younger; in one survey ([link removed].) conducted by the NCAA, 67% of college students living on campus said they had bet on sports games. In the face of growing public concern, sports betting companies announced ([link removed]) the formation of the Responsible Online Gaming
Association (ROGA), which claims ([link removed]) to promote “sustainable” gambling and will be led by a long-time executive from Caesars Entertainment.
Like social media platforms, mobile sports betting operators use notifications and other engagement strategies ([link removed]) to get users’ attention – a practice that relies on variable rewards to encourage cravings ([link removed]) and drive compulsive use. Interestingly, the techniques adopted by mobile app designers were first developed by the makers of electromechanical slot machines ([link removed]) , who built games with small, frequent rewards that could keep players fixated. The most harmful aspects of both industries appear to be combined in mobile sports betting, as an addictive product is constantly
pushed to consumers through targeted advertising, promotions, and notifications. Now, the mobile gambling industry is borrowing yet another strategy from Big Tech in arguing for “self-regulation” through ROGA – an approach that will leave Americans at the mercy of massive and unaccountable corporations.
What We're Reading
Alabama hospital to stop IVF services at end of the year due to "litigation concerns" ([link removed])
Trump official Jeffrey Clark likely violated ethics rules with 2020 election theories, D.C. Bar panel finds ([link removed])
Why Are Law Schools Outsourcing Student Services to the Federalist Society? ([link removed])
** Follow Our Work:
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We thank you for your continued support. Without people like you, our work would not be possible.
Here is how you can stay involved and help us accomplish our mission:
1. Follow CfA on Threads ([link removed]) and BlueSky ([link removed])
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5. Make a tax-deductible donation ([link removed]) .
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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