Andy Kroll

Andy Kroll

Reporter

Andy Kroll is Mother Jones' Dark Money reporter. He is based in the DC bureau. His work has also appeared at the Wall Street Journal, the Detroit News, Salon, and TomDispatch.com, where he's an associate editor. He can be reached at akroll (at) motherjones (dot) com. He tweets at @AndrewKroll.

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Penny Pritzker, Longtime Obama Fundraiser, May Finally Get Her Cabinet Position

| Thu Feb. 7, 2013 3:03 PM PST
Businesswoman and Obama fundraiser Penny PritzkerBusinesswoman and Obama fundraiser Penny Pritzker.

Early in President Barack Obama's reelection campaign, when it looked as if he would be buried in an avalanche of money by Republican super-PACs and dark-money nonprofits, I talked to a lot of Democratic strategists and fundraisers who were fretting over the potential cash imbalance between Obama and Rove, the Kochs, and the rest of the GOP. Thinking about how to beat back that tide of cash, many of them raised the same question: Where is Penny Pritzker?

Pritzker, the Chicago businesswoman whose family owns the Hyatt hotel chain, chaired Obama's national fundraising operation during his 2008 campaign, helping the campaign raise nearly $750 million. Post-election, she was rumored to be Obama's top pick for secretary of the Department of Commerce. Yet the job ultimately went to someone else, and Pritzker went on to play a lesser role for Obama in 2011 and 2012, relinquishing her role as chief fundraiser (although she still bundled several hundred thousand dollars). Unlike mega-donors Jeffrey Katzenberg and Fred Eychaner, Pritzker irked Democratic fundraisers by not supporting the pro-Obama super-PAC Priorities USA Action. "The word was she wanted Commerce and didn't get it and is all pissed off," one well-connected Democratic strategist complained to me last summer.

Now, it looks like Pritzker might get her commerce gig after all. Bloomberg News quotes three anonymous sources saying Obama could soon name Pritzker as his new commerce secretary. A president naming one of his top fundraisers to a cabinet position is not uncommon in Washington; fundraisers and donors are often rewarded with ambassadorships—or, in a few cases, cabinet jobs. This is how a winning presidential candidate thanks his biggest supporters. Indeed, folks who fundraise for a presidential campaign often go into the process eyeing a plush gig on the other side—if their candidate wins, of course. "You always have people that are interested in what's next for them" in political fundraising, a former senior Obama campaign staffer says.

None of this is to say Pritzker lacks the qualifications for the job. She has years of experience in the private sector, having run a real estate company and served on the boards of Hyatt, the credit-reporting company TransUnion, and the Wm. Wrigley Jr. Company. That business experience, though, has caused her problems in the political world. Her family partially owned a bank that was ensnared in the subprime mortgage debacle, a blemish on her resume that hurt her chances of securing the commerce secretary job after the 2008 campaign.

But the subprime debacle is in the rear-view mirror in Washington, and Pritzker appears to be on the cusp of finally joining the Obama administration. If she does go to the Department of Commerce, it will mark a milestone in a decades-long friendship between Obama and Pritzker. In the 1990s, Pritzker met the future president through his brother-in-law, Craig Robinson, on a YMCA basketball court in Chicago. From the Y to the White House: that is quite a journey.

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Two Years Later, The Florida Bar Takes Action Against Foreclosure Baron David J. Stern

| Tue Feb. 5, 2013 1:07 PM PST
A caricature of David J. Stern, portrayed as Superman, as it appeared on a commemorative T-shirt.

Way back in August 2010, I sounded the alarm about a fellow named David J. Stern, a lawyer in Fort Lauderdale, Florida, who'd gotten rich off the housing meltdown of the mid-2000s. Stern ran a law firm that handled foreclosure cases as fast as possible for big banks and the quasi-governmental housing corporations Fannie Mae and Freddie Mac. But as I revealed, Stern's law firm, paid per case, increasingly cut corners and, in some cases, duped judges in Florida's overwhelmed court system in the race to foreclose on more people and make more money. (One local judge said a key document filed by a lawyer in Stern's firm was "fraudulently backdated, in a purposeful, intentional effort to mislead the defendant and this court.") Stern's firm, I noted, was among the largest of a thriving breed of law firms profiting off of the housing crisis—and called them "foreclosure mills."

Days after my 4,600-word investigation into Stern's operation appeared, the Florida attorney general's office launched its own probe of three of the state's largest foreclosure mills. The big banks soon cut ties with Stern, as did Fannie and Freddie. Later, Fannie and Freddie cut ties with all foreclosure mills like Stern's, after an inspector general report (citing Mother Jones, among others) criticized their use of such firms. Yet through it all, the Florida Bar, the enforcer of ethics for the state's lawyers, publicly did nothing, to the dismay of homeowners, attorneys, and judges on the other side of Stern's misdeeds.

No longer. The Palm Beach Post reports that the Bar is looking to bring disciplinary action against Stern resulting from 17 different complaints over the backdating of foreclosure documents, misleading local courts, failing to appear before an appeals court in a class action, and for his attorneys failing to appear in foreclosure hearings. The Bar decided to pursue action against Stern after internal grievance committees—similar to a grand juries—found probable cause in various Bar complaints filed against Stern.

Stern's attorney, Jeffrey Tew, told the Post that the Bar had already closed 19 complaints against Stern without any repercussions. "David didn't do anything wrong, ethically or otherwise," Tew said. "He had a very complete system of supervision and didn't participate in any of the individual situations."

There is little left of Stern's business empire. His law firm shuttered in March 2011 after the banks and Fannie and Freddie yanked their foreclosure cases out of his hands. The next day, DJSP Enterprises, Stern's short-lived foreclosure processing operation, told investors it would voluntarily delist from the NASDAQ stock exchange. It was quite a downfall for a man whose firm, a few years before, litigated hundreds of thousands of cases for the biggest banks in America, and who was so assured of his abilities and power that he gave T-shirts to investors depicting himself as Superman.

Stern is no longer the Superman of foreclosure lawyers. But for the defense attorneys and homeowners and judges streamrolled by Stern's foreclosure machine, long-delayed action by the Florida Bar is better than nothing.

Michigan Tea Partier: Charter Schools Are for Kids From "Ethnically Challenged Families"

| Mon Feb. 4, 2013 10:03 AM PST
Anti-right-to-work protest signs wait for protesters to take them before the march to the state capitol in Lansing, Michigan, in December 2012.

A few weeks ago, the Michigan chapter of Americans for Prosperity, the Koch-backed conservative advocacy group, held a "citizen watchdog training" in a suburb of Detroit. The training was billed as a workshop for regular folks to learn "the best tools and techniques in investigative journalism, social media, and opposition research." Featured speakers—including local activists, conservative state legislators, and Scott Hagerstrom, AFP-Michigan's director—would also speak about efforts to "reform" Michigan's schools.

Among the AFP set, reforming public schools usually means converting them into non-union, privately-run charter schools. Nationally, AFP is a vocal proponent of charters and "school choice." And at the Michigan citizens training, one of the featured speakers, Norm Hughes, a member of the North Oakland Tea Party Patriots, offered this take on charters:

Kids aren't going to charter schools if they're "A" students. They go to charter schools because they're failing students and, by and large, the charter schools have a higher percentage of poor families, ethnically challenged families…

Ethnically challenged? Hughes did not explain what he meant, but you won't find that take on charters anywhere in the AFP literature. (Listen here to the audio of Hughes' comment, grabbed by Progress Michigan, a liberal advocacy group.)

Whatever Holmes' view of charters, AFP's agenda in Michigan is cause for concern for Michigan's public schools and teachers unions. AFP played a central role in ramming through so-called right-to-work legislation for public- and private-sector workers in Michigan in December. Right-to-work legislation is central to AFP's agenda, and its passage in Michigan, a cradle of organized labor, was a major victory for movement conservatives.

If the January 19 event is any indication, a big push for charters is next up for AFP and its allies in the Michigan legislature. But before they go whole-hog on charters, AFP conservatives might want to give their conservative bedfellows, like Norm Hughes, a few tips about messaging.

Karl Rove's New Super-PAC: Republicans Attacking Republicans!

| Mon Feb. 4, 2013 4:06 AM PST
Karl Rove walks the floor of the 2012 Republican National Convention at the Tampa Bay Times Forum.

No more Todd Akins. No more Richard Mourdocks. No more Republican primaries that produce divisive, gaffe-spewing GOP candidates.

That's the aim of a new super-PAC, the Conservative Victory Fund, spearheaded by Karl Rove and his big-money juggernaut, American Crossroads. Rove's new project plans to raise millions of dollars from the biggest GOP donors and then spend it on hard-hitting television ads and mailers during GOP primaries in marquee Senate races. The goal, as the New York Times reported this weekend, is blocking future Akins and Mourdocks from winning Senate primaries, while paving the way for less-divisive candidates with broader appeal and better odds of winning the general election. "We don't view ourselves as being in the incumbent protection business, but we want to pick the most conservative candidate who can win," Steven Law, the president of American Crossroads and a force behind the Conservative Victory Fund, told the Times.

Law singled out Rep. Steve King (R-Iowa), who could run to replace outgoing Democratic Sen. Tom Harkin, as a controversial candidate the Conservative Victory Fund might target. King has a penchant for howlers: He's hinted at questions about President Obama's US citizenship, claimed minority students all "feel sorry for themselves," insisted that the idea of diversity making American stronger "has really never been backed up by logic," and compared illegal immigrants to dogs. "We're concerned about Steve King's Todd Akin problem," Law said. "All of the things he's said are going to be hung around his neck." (King, for his part, said choosing the candidate to replace Harkin "is a decision for Iowans to make and should not be guided by some political staffers in Washington.")

The Conservative Victory Fund's creation threatens to stoke an already fiery internal battle over the future of the Republican Party. There are the Roves and Laws of the GOP, the pragmatic Beltway operators who backed Mitt Romney and who believe the party must tone down the demagoguery on immigration and social issues if they ever want to control of Congress and the White House again. On the other side are the ideologues, the GOP's conservative wing, the Koch-backed groups and tea partiers and Grover Norquist acolytes who believe the party's future lies in veering hard to the right and doubling down on pure conservative ideals.

With Rove's new super-PAC in the mix, the GOP's slate of 2014 primaries will be even nastier than expected in states such as Iowa, Georgia, and Kentucky, among others. The GOP needs to win six seats in 2014 to take back control of the Senate, and if that requires some intraparty combat, the Conservative Victory Fund looks ready to go to war. By the end of 2014's primary season, don't be surprised, to borrow a phrase from Massachusetts Sen. Elizabeth Warren, to see quite a lot of blood and teeth left on the floor.

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