Page 2 of 2

Inside the Dark-Money Group Fighting Reform in Montana and Beyond

The secretive American Tradition Partnership has ushered in a new era of "funny money with no legal constraints" in Big Sky Country. And it's just getting started.

| Mon Oct. 22, 2012 6:03 AM EDT

"Plausible Deniability"

The group rarely communicates with the press and it hires unknowing lawyers to sign campaign finance reports and its 2008 nonprofit incorporation documents in Colorado.

Scott Shires has been sued, indicted, and fined for his election activities, but the Colorado-based political consultant says his reputation really took a hit after he signed ATP's forms. When Montana released the results of its 2010 investigation, Shires' name began showing up in the press, and he says he cut ties to the organization.

"The operatives writing these stupid ads and mailings don't want to be identified," Shires said. "I was the screen that allowed them to hide—plausible deniability is something a lot of these groups are interested in."

Shires listed himself as "President" of ATP when he signed the group's request for exempt status with the IRS in 2008.

He is widely known for registering hundreds of political committees in Colorado, mostly Republican groups. The work involves some risk. He pled guilty to filing false tax returns for a client in 2008, a misdemeanor charge. He was also caught up in former Colorado candidate for US Senate Bob Schaffer's 2008 campaign finance scandal.

ATP Executive Director Donald Ferguson did not return numerous calls for comment.

The group raises money with the promise that "no politician, no bureaucrat, and no radical environmentalist will ever know you helped make this program possible."

"Not Really Sure Who Is in Charge"

The left-leaning Montana Conservation Voters claims ATP was unfazed by the 2010 investigation and is "right back to doing the same thing," according to the group's board member Ben Graybill, who filed the original complaint.

This year, ATP has registered a PAC in the state. It sent mailers prior to the June primary election, but has reported zero spending to the state.

Its filings are signed by Montana attorney Chris Gallus, who was "surprised" to receive a call from the Center regarding ATP. He claims no leadership role in the organization, and said he's "not really sure who is in charge."

Gallus said he has not been contacted by ATP since being hired to sign their PAC reports, and does not anticipate filing any spending reports on their behalf. "Until that changes, my involvement is the same as the date I signed their forms."

The organization sent out a questionnaire to candidates in early October, asking about their stance on land development and environmental regulations in resource-rich Montana.

"Will you oppose legislation which would categorically limit development of any specific energy resource?" reads one. "Will you oppose legislation that would rescind, reduce or shorten the tax holiday on oil & gas wells?" reads another.

Candidates who don't respond, or don't respond with answers favorable to ATP's interests, are often targeted by a direct-mail campaign similar to those launched at Bullock.

Its adversary, the Montana conservation group, endorses candidates for the state Legislature who align with its mission to "protect clean water, public health, and our incredible outdoor heritage." Its mid-October mailers praise Bullock for leading "the fight against corporate control of our elections."

Unlike ATP, the group reports its direct and independent spending to the state and lists its donors.

"They're scofflaws," said Theresa Keaveny, executive director of the Montana conservation group.

Keaveny says ATP is not only in violation of Montana law, but also IRS rules for (c)(4) groups that dictate ATP must not spend a majority of its funds on political activity.

According to its 2008 application for exempt status, obtained by the Center, ATP promised not to "spend any money attempting to influence" elections. It also promised not to "directly or indirectly participate or intervene on behalf of or in opposition to a candidate for public office."

It would, however spend "70 percent" of its time and resources to "educate citizens" about "land and resource development issues."

It also revealed the Jabs contribution. Jabs could not be reached for comment.

"Funny Money With No Legal Constraints"

Bullock, a Democrat, is running against Republican Rick Hill, a Republican. It's expected to be a close race despite Montana's majority-Republican voting population.

"We want citizens deciding elections, not corporations," said Bullock in an October debate during which he touted his record as a campaign finance crusader.

Montana has won access to ATP's bank records. If a judge makes them public, they could offer voters a first glimpse at the group's funders.

While outside spending groups, including the Republican and Democratic governors associations, have swarmed the state with ads, the two candidates have had to abide by Montana's low contribution limits—for most of the campaign.

In October, ATP made national news when a federal judge agreed with the organization and its high-profile campaign finance lawyer, James Bopp, and struck down contribution limits on individuals, PACs, and parties—including the $630 cap on individual giving to Bullock and Hill.

"The political establishment can no longer tell citizens to shut up because they've reached their speech limit," said ATP Montana Director Doug Lair in a press release.

Montana joined the ranks of 12 other states with no limits on contributions to candidates, but only temporarily. A week later, a federal appeals court stayed the lower court decision pending a full appeal, putting the state's contribution limits back in force.

Bullock's opponent took advantage of the six-day free-for-all between the ruling and the stay, accepting a $500,000 contribution from the state's Republican Party. The gift dwarfed Montana's $22,600 limit on party giving to candidates.

A month before the vote, Montana residents woke up to a fake newspaper on their doorstep called the Montana Statesman.

The publication calls itself "the largest and most trusted news source" but is actually a series of ATP-funded attacks on Bullock. It leads with a giant headline that reads "Bullock Admits Failure."

The "news" story below claims that the attorney general has let "1 in 4 sex offenders go unregistered." It includes four photos: three registered sex offenders and Bullock.

The group continues to raise money on the promise that "no politician, no bureaucrat, and no radical environmentalist will ever know you helped make this program possible," as its 2010 briefing to donors reads. "You can just sit back on election night and see what a difference you've made."

Unsworth says his 2010 investigation did not stop ATP, and outside spending that has already flooded the state, is sure to intensify, particularly in light of the Citizens United decision. He calls the advertising a "mess of trash that lays at the feet of the public," paid for by "funny money with no legal constraints."

"We don't know who's saying these crazy things," he added, "so the public has to suffer and our political system suffers as a result."

Update (Oct . 22, 7:00 p.m.): This story was updated to reflect that Jabs, through a spokesman, denied making a contribution to ATP.

The Center for Public Integrity is a nonprofit, independent investigative news outlet. For more of its stories on this topic, click here.

Page 2 of 2