Channel One

2/09 raw story<div>
</div><div><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">When it was announced last week that CBS News had hired Jeff Ballabon as a senior vice president for communications, with</span><a href="http://blogs.jta.org/politics/article/2009/02/19/1003145/ballabon-joins-cbs-news" style="text-decoration: none; font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">responsibility</a><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);"> for "all media relations and public affairs," there were scattered complaints about Ballabon's extreme conservatism and apparent bias against Democrats.</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">One blogger at Huffington Post, Ira Forman, </span><a href="http://www.huffingtonpost.com/ira-forman/cbs-news-pick-claimed-dem_b_168688.html" style="text-decoration: none; font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">recalled</a><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);"> that when he debated Ballabon a decade ago, "Ballabon claimed that, after his most recent job in Washington, he became convinced that Democrats are inherently bad people and Republicans are fundamentally good people."</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">However, what has not been widely noted is that Ballabon formerly had a close relationship with lobbyist and convicted felon Jack Abramoff, first as a client and then seemingly as a friend.</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">Ballabon was an executive vice president with Channel One in 1998 when it came </span><a href="http://multinationalmonitor.org/mm1999/99june/front3.html" style="text-decoration: none; font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">under fire</a><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);"> from Senator Richard<b> Shelby (R-AL). </b>Channel One had developed a comfortable niche providing free educational programming to public schools in exchange for running commercials during the programs, many of them f<b>or soda, candy, and other junk food.</b> Responding to complaints from conservative constituents, Shelby expressed concern and called for Congressional hearings.</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);"><b>Channel One quickly hired the lobbying firm of Preston, Gates to head off this threat to its profits, ultimately paying them over a million dollars. Preston, Gates assigned the still-obscure lobbyist Jack Abramoff to the account. </b></span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">Emails released by the Senate Finance Committee show that Abramoff was hard at work by January 1999. Over the next several months, he would recruit all his most reliable allies to speak on Channel One's behalf: Grover Norquist's Americans for Tax Reform, Citizens Against Government Waste, the Traditional Values Coalition, Rabbi Daniel Lapin's Toward Tradition. and two groups which had sponsored Abramoff's overseas junkets -- the National Security Council Foundation and the National Center for Public Policy Research (NCPPR).</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">As described by Raw Story in a series of articles in 2006, all these groups were accustomed to provide articles or testimony favorable to Abramoff's clients -- such as the </span><a href="http://rawstory.com/news/2006/Washington_nonprofit_where_Abramoff_was_director_0308.html" style="text-decoration: none; font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">Marianas Islands</a><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);"> or </span><a href="http://www.rawstory.com/news/2006/Former_DeLay_aide_paid_thinktank_that_0412.html" style="text-decoration: none; font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">Stoli Vodka</a><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);"> -- without revealing their relationship to the lobbyist. John Byrne and Ron Brynaert </span><a href="http://rawstory.com/news/2006/Nonprofit_think_tank_wrote_articles_favorable_0309.html" style="text-decoration: none; font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">wrote</a><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">specifically of the support expressed for Channel One in May 1999 by </span><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 102);">NCPPR's Amy Ridenour:</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">"Ridenour defended Channel One�s use of commercials after<font color="#ff0000"> Ralph Nader�s Commercial Alert urged Congress to investigate the practice.</font> Ridenour said Nader�s charge was spurious. 'Commercial Alert turns benefits of Channel One on its head,' she wrote in an editorial. 'Instead of seeing the free 10-minute current events program and 250 hours of educational programming and tens of thousands of dollars worth of equipment and servicing as a benefit received by the schools in exchange for one to two minutes of commercials, Commercial Alert sees the schools as exploited and those who benefit from Channel One's services as "forced" to watch ads.'"</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">Ballabon was fully aware of these subsidized efforts on Channel One's behalf. On May 19, Abramoff emailed him, "When we are through the hearing, we have to discuss getting Amy a contribution as we discussed. She was going to do 5 pieces for $10K. We can chat on this next week."</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">Ballabon responded, "yup--i have not forgotten (was it $10? -- I wrote it down--whatever it was, she'll get it.)"</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">However, the most interesting of the emails relating to Ballabon may be one which has been largely overlooked, perhaps because it is not part of the Senate Finance Committee file but was released separately, by the House Committee on Oversight and Government Reform.</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);"><b>Ralph Reed, who had been friends with Abramoff since their College Republican days in the early 80's, also participated in the Channel One lobbying effort. On February 3, 1999, just as the campaign was getting underway, he sent Abramoff an email with the subject heading,"Karl Rove."</b></span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">"Did you and Karl chat?" Reed asked. "I am planning to get Ballabon down to meet with the Governor in the next month or two and I'd like to do the same with you."</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);"><b>It would be interesting to know whether Ballabon actually did meet in Texas with then-Governor George W. Bush,</b> and if so what was said about Channel One's lobbying campaign, but no emails appear to have been released which could shed light on this matter.</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">However, it does appear that Abramoff and Ballabon remained close, because in December 2001, Abramoff tried to get an invitation for Ballabon to a White House Chanukah party. In a December 5, 2001 email released by the Government Reform Committee, he asked the favor of his former aide, Susan Ralson, who by then was working for Rove in the White House.</span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">"I understand that they are doing a ceremony for Chanukah on Monday night," Abramoff wrote. "I was wondering if you could possibly arrange for xxxx, the kids and me in to that? The last time we were able to go to that was during Bush 41. Jeff Ballabon also wants to come (solo) if that is not too much to ask." </span><br style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);" /></div><div><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">
</span></div><div><span style="font-family: 'Times New Roman'; background-color: rgb(255, 255, 255);">=</span></div><div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Metrock bashing”  </font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman"><b>Report Uncovers Channel One’s Sleazy Tactics</b></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">October 15, 2006</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">MINORITY STAFF REPORT</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">INVESTIGATION OF JACK ABRAMOFF’S USE OF</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">TAX-EXEMPT ORGANIZATIONS</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">PREPARED BY THE MINORITY STAFF OF THE</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">COMMITTEE ON FINANCE</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">UNITED STATES SENATE</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">CHARLES E. GRASSLEY, Chairman</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">MAX BAUCUS, Ranking Member</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">OCTOBER  2006</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">COMMITTEE ON FINANCE</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">CHARLES E. GRASSLEY, Iowa, Chairman</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">ORRIN G. HATCH, Utah</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">TRENT LOTT, Mississippi</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">OLYMPIA J. SNOWE, Maine</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">JON KYL, Arizona</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">CRAIG THOMAS, Wyoming</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">RICK SANTORUM, Pennsylvania</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">BILL FRIST, Tennessee</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">GORDON SMITH, Oregon</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">JIM BUNNING, Kentucky</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">MIKE CRAPO, Idaho</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">MAX BAUCUS, Montana</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">JOHN D. ROCKEFELLER IV, West Virginia</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">KENT CONRAD, North Dakota</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">JAMES M. JEFFORDS (I), Vermont</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">JEFF BINGAMAN, New Mexico</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">JOHN F. KERRY, Massachusetts</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">BLANCHE L. LINCOLN, Arkansas</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">RON WYDEN, Oregon</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">CHARLES E. SCHUMER, New York</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">KOLANDAVIS, Staff Director and Chief Counsel</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">RUSSELLSULLIVAN, Democratic Staff Director</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div><font face="Times New Roman" style="background-color: rgb(255, 255, 102);">INVESTIGATION OF JACK ABRAMOFF’S USE OF TAX-EXEMPT ORGANIZATIONS</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">INTRODUCTION</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">In September 2005, the United States Senate Committee on Finance (‘‘the Committee’’) began an investigation into the actions of tax-exempt organizations relating to the lobbying operations of Jack Abramoff. The role tax-exempt organizations played in Mr. Abramoff’s client relationships first came to light during an investigation by the Senate Committee on Indian Affairs. In that investigation, e-mails from and to Mr. Abramoff showed that he furthered his lobbying enterprise with the help of several tax- exempt organizations, which took contributions arranged by Mr. Abramoff and undertook actions on Mr. Abramoff’s clients’ behalf.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">In the final report on its investigation, the Committee on Indian Affairs observed that tax-exempt organizations were apparently ‘‘serving or being used as extensions of for-profit lobbying operations.’’</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">The Senate rules give the Committee on Finance jurisdiction over revenue matters, and thus the Committee is responsible for conducting oversight of the administration of the federal tax system, including matters involving abusive acts by tax-exempt organizations. The Committee takes particular interest in ensuring that tax laws affecting donors and exempt organizations operate in a manner that benefits the American public. This investigation has been conducted not only to inform the Committee and the public about the specific organizations connected to Mr. Abramoff, but also to provide a broader picture of issues to be considered by Congress and the public with regard to tax-exempt organizations, including charitable organizations.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">On September 22, 2005, Senator Charles Grassley and Senator Max Baucus, Chairman and Ranking Democratic Member of the Committee, authorized, on behalf of the Committee, the issuance of subpoenas to Mr. Abramoff’s former employers, Greenberg Traurig LLP and Preston Gates LLP. The subpoenas sought any and all communications of Jack Abramoff as well as financial records.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Along with the e-mails and other documents provided to the Committee in response to the subpoenas, Committee Minority staff reviewed e-mails made public by the Committee on Indian Affairs. The Committee on Indian Affairs also shared with the Committee e-mails within the jurisdiction of the Committee that the Committee on Indian Affairs had not previously made public.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 255);">In its review of the materials, the Committee’s Minority staff discovered actions taken by several tax-exempt organizations that raise serious legal and policy questions. The Minority staff focused on five organizations that appeared, in the context of the reviewed material, to be</span><span style="background-color: rgb(255, 255, 102);"> willing to provide certain services for Mr. Abramoff’s clients in exchange for payments. They are:</span></font></div><div><font face="Times New Roman" style="background-color: rgb(255, 255, 102);">• Americans for Tax Reform,</font></div><div><font face="Times New Roman" style="background-color: rgb(255, 255, 102);">• National Center for Public Policy Research,</font></div><div><font face="Times New Roman" style="background-color: rgb(255, 255, 102);">• Toward Tradition,</font></div><div><font face="Times New Roman" style="background-color: rgb(255, 255, 102);">• Council of Republicans for Environmental Advocacy, and</font></div><div><font face="Times New Roman" style="background-color: rgb(255, 255, 102);">• Citizens Against Government Waste.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">FINDINGS</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">The Minority staff found that some officers of these organizations were generally available to carry out Mr. Abramoff’s requests for help with his clients in exchange for cash payments. The help they provided varied from organization to organization, but included:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• helping to hide sources of funds by laundering payments and then disbursing funds at Mr. Abramoff’s direction,</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• taking payments in exchange for writing newspaper columns or press releases that put Mr. Abramoff’s clients in a favorable light,</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• introducing Mr. Abramoff’s clients to government officials in exchange for payment, and</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• agreeing to act as a front organization for congressional trips paid for by Mr. Abramoff’s clients.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Media reports indicate that employees of other organizations have resigned when similar allegations came to light. In December 2005, a senior fellow at the Cato Institute, Doug Bandow, resigned after admitting that Mr. Abramoff paid him for op-ed articles that were favorable to Mr. Abramoff’s clients. Mr. Bandow admitted to taking money for writing between 12 and 24 articles over a period of years, beginning in the mid 1990s. Mr. Bandow called his actions a ‘‘lapse in judgment’’ and resigned.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">E-mails subpoenaed by the Committee do not implicate the Cato Institute. The correspondence clearly shows, however, that the tax- exempt organizations listed above—not just the individuals directly involved—took payments when their employees agreed to write such articles favorable to Mr. Abramoff’s clients.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">This type of activity indicates that these tax-exempt organizations engaged in what amounted to profit-seeking and private benefit behavior inconsistent with their tax-exempt status. And by virtue of the tax benefits, other taxpayers implicitly subsidized this behavior. Thus, these tax-exempt organizations appear to have perpetrated a fraud on other taxpayers.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">AMERICANS FOR TAX REFORM</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Americans for Tax Reform (‘‘ATR’’) describes itself as an organization that advocates for a system in which taxes are ‘‘simpler, fairer, flatter, more visible, and lower than they are today.’’17 It states that government’s power to control one’s life derives from its power to tax and that such power should be minimized. On its IRS Form 990, the section 501(c)(4) organization lists its primary ex- empt purpose as increasing public awareness about the size and regulations of government and rallying support for lower taxes and smaller government.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">ATR was founded in 1985 by Grover Norquist, who is its current president. According to media reports, he and Mr. Abramoff have been friends since they were college students in Massachusetts, where they organized support for Ronald Reagan’s presidential candidacy in 1980. When Mr. Abramoff became national chairman of the College Republicans, he made Mr. Norquist his executive director. The two later worked together at the conservative advocacy</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">group Citizens for America (before Mr. Norquist founded ATR).</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">After Mr. Abramoff became a lobbyist in the mid-1990s, the two corresponded by e-mail, occasionally discussing proposed payments from Mr. Abramoff’s clients and what those clients wanted from ATR. Other ATR employees corresponded with Mr. Abramoff and his colleagues, as well.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Those e-mails from and to Mr. Abramoff, his colleagues and ATR officials indicate that ATR:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• accepted payments from clients of Mr. Abramoff with the agreement to write checks to third parties as Mr. Abramoff directed, with ATR retaining a portion of the funds on at least one occasion,</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• accepted payments from clients of Mr. Abramoff with tacit or explicit agreements to perform services such as writing newspaper columns favorable to the clients, and</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• accepted payments from clients of Mr. Abramoff while agreeing to introduce them to government officials, including then- White House Senior Advisor Karl Rove.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">In the organization’s response to Minority staff questions, ATR’s attorney responded that as long as ATR spends its funds in keeping with its general purpose and permissible activities under the law, ‘‘there is no ‘abuse’ of ATR’s tax status by virtue of ATR’s involvement in state level, grassroots campaigns on issues.’’ ATR declined to respond to questions regarding the identity of, or contributions from, any donor.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">In an e-mail to Jeffrey Ballabon, then executive vice president of public affairs for Primedia Inc.’s Channel One Network, Mr. Abramoff indicated how much he valued his relationship with Mr. Norquist. Mr. Abramoff told Mr. Ballabon that he strongly opposed putting another lobbyist in contact with Mr. Norquist: ‘‘We should not fully (or perhaps even partially) trust this guy and certainly we should not be giving our hard won assets or contacts. The quickest way to lose the interest of Sheldon, Grover et al is to ‘hand them over’ to another lobbyist.’’ Mr. Ballabon responded, ‘‘ABSOLUTELY! We are not sharing our friends.’</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">2. LOBBYING</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman" color="#ff0000"><b>Channel One Network</b></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman" color="#ff0000"><b>In 1999, as a coalition of opponents sought to remove Channel One from public school classrooms, Mr. Abramoff and his clients looked in part to tax-exempt organizations to provide public support for Channel One. One argument was that Channel One offered tax savings for state and federal governments.</b></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Ballabon with Channel One wrote to one of the<b> Preston Gates lobbyists</b>, Amy Berger, on January 12, 1999: </font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">I think that next I want to get credit from the Pentagon public affairs dept & then from ONDCP (office of drug policy) & then from minority groups, &c &c . . . & Grover & CAGW & Rabbi Lapin . . . we should get these guys crazy! & lots & lots of interviews w/members of Congress! At least one press release every week or two</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Ballabon wrote to Mr. Abramoff on January 18, 1999:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">The only thing I think Paul really needs before he gets on C-SPAN on Thursday is a statement he can attribute somehow to Grover or CAGW that rebuts Molnar’s charge that we are a waste of tax dollars. Can you help us get something somehow (between now and then) that Paul can refer to which argues that we are, in fact, a huge and creative tax savings?</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Ms. Berger wrote to Abramoff the next day as a reminder:</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 255);">Call Council Nedd and/or Tom Schatz or even </span><span style="background-color: rgb(255, 255, 102);">Grover </span><span style="background-color: rgb(255, 255, 255);">to get a statement hat Ch 1 is a huge and creative tax savings!!!!!</span></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff wrote to Mr. Ballabon on January 20, 1999:</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 255);">I set in motion today a piece by Peter Ferrara (the chief tax counsel of ATR and former fellow of Heritage and Cato) which deals with the cost to taxpayers issue. He’ll have a draft real fast for us. It’ll run in the Investors Business Daily, and probably reprinted in </span><span style="background-color: rgb(255, 255, 102);">Human Events.</span></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Ballabon replied:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Excellent. Thanks, Jack. ALSO—<font color="#ff0000">tell Grover he can redeem himself by blasting the coalition in a letter to the NYT responding to today’s story.</font></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff wrote back and included Ms. Berger:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Good idea. Amy, hold on getting this to Ferrara. Let’s draft something from Grover to respond to this and I’ll get it to him. Have Daniel draft it up fast. I’ll run it by Grover. We’ll send it him and voila, it should work. Thanks Jeff.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 255);">Ten days later, Mr. </span><span style="background-color: rgb(255, 255, 102);">Norquist published an op-ed in the Washington Times </span><span style="background-color: rgb(255, 255, 255);">titled ‘‘Tuning in to Channel One.’’ Mr. Abramoff wrote to Mr. Ballabon on February 3, 1999, regarding providing money to ATR for a dinner series.</span></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">. . . especially in light of the huge hit Grover delivered, I think this would be a very nice gesture on your part.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">On April 20, 1999, Mr. Abramoff wrote that they needed to agree on the price topay Peter Ferrara at ATR for an economic analysis related to Channel One.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Jeff, we need to agree on the price we are going to pay him. I think he wants $5K, but we have offered him $3K. We can put this on our bill as a subcontract, but the firm will not want to have to pay for this out of our fees. Give me some guidance. He is, meanwhile, working on it. . . .</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Ms. Berger then wrote to Mr. Abramoff:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">i have offered him $2000 and he said ok!!! I am calling right now to make the appointment.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff replied:</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 102);">You’re a bargain shopper! Tell him we’ll give him $3K, but we want him to do press and talk radio on this.</span><span style="background-color: rgb(255, 255, 255);"> That way I don’t look like an idiot with Jeff. Wait till I tell Glen what a bargain you can drive!</span></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Dennis Stephens (a government affairs counselor at Preston Gates) wrote to Mr. Abramoff on May 17, 1999, that ‘‘Peter with ATR is in,’’ referring to Peter Ferrara at ATR:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">When I talked with Peter this morning, he was planning to draft a press release hammering the ‘‘anti technology’’ crowd per Jeff B’s request and will also be distributing Grovers nice piece on Channel One. A nice balance, a positive piece on the good guys and a hit piece on the bad guys. Sound good?</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">On May 19, 1999, ATR published a policy brief authored by Mr. Ferrara entitled ‘‘The Clear Benefits of Channel One.’’26 On May 20, 1999, Mr. Abramoff wrote to Mr. Norquist to say ‘‘thanks Gro- ver’’ after receiving a copy of an ATR press release defending Channel One.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">On April 24, 2000, ATR was included in a list of organizations to contact on Channel One:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Grover Norquist (ATR)—Damon in his office is revising K. Ring Draft letter and intends to send out this Friday . . . to all GOP senators and maybe to Dems also—</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">The same day, Mr. Abramoff wrote to Mr. Norquist to say a need for ‘‘a hard-hitting op-ed has arisen’’ regarding Channel One. Mr. Abramoff asked whether Mr. Norquist would be willing to do it himself:</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 102);">Ariana Huffington has now joined Ralph Nader and George Miller in attacking Channel One. </span><span style="background-color: rgb(255, 255, 255);">. . . We want to do an oped which smacks her big time, and also swipes at Nader’s guy and the other loonieon this. We have $1,500 to do this piece and get it placed. Are you interested (we can write it for you)? If not, let me know if I can approach Peter [Ferrara].</span></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Norquist wrote back to Mr. Abramoff the next day:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Jack, yes, go ahead and draft a copy for me. I have just spoken with the head of the Washington Times op-ed about a piece for Bruce Heinman. They said they are full for a while due to Elian article. I will talk to Helle Wed morning and make a case for this piece. yes, ATR will do this piece and push to have it in the Washington Times and the Investors Business Daily. Also I will share it with all our state groups. Grover</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div><font face="Times New Roman" style="background-color: rgb(255, 255, 102);">NATIONAL CENTER FOR PUBLIC POLICY RESEARCH</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">The National Center for Public Policy Research (‘‘NCPPR’’), which represents itself as a ‘‘conservative think tank,’’ is organized under IRC section 501(c)(3).29 The organization, founded in 1981, describes its primary exempt purpose as educating Americans about the free market solutions to today’s public policy problems.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">On its website, NCPPR is described as a research organization dedicated to a strong national defense and to providing free-market solutions to today’s public policy problems. The website states: ‘‘We believe that the principles of a free market, individual liberty and personal responsibility provide the greatest hope for meeting the challenges facing America in the 21st century.’’</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 102);"><font color="#ff0000">Amy Ridenour,</font> NCPPR’s president and a founder of the organization, first met Mr. Abramoff when they were members of the College Republicans</span><span style="background-color: rgb(255, 255, 255);">. In testimony before the Committee on Indian Affairs and in an interview with Finance Committee staff, Ms. Ridenour said that her organization accepted donations from Mr. Abramoff’s clients and routed money as Mr. Abramoff directed. Mr. Abramoff served on NCPPR’s board of directors.</span></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">E-mail exchanges among Ms. Ridenour, Mr. Abramoff, and Mr. Abramoff’s colleagues and clients indicate that CREA/Ms. Ridenour:</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 255);">• accepted payments from Mr. Abramoff’s clients and then</span><span style="background-color: rgb(255, 255, 102);"> acted as the front organization to pay for trips by members of Congress, their staff members and others,</span></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• accepted payments from Mr. Abramoff’s clients and then wrote checks as Mr. Abramoff directed, and</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">• accepted contributions from Mr. Abramoff’s clients and then performed services such as writing favorable newspaper columns and speaking in favor of clients’ causes.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman"> LOBBYING AND PUBLIC RELATIONS WORK FOR ABRAMOFF CLIENTS</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Channel One Network</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div><font face="Times New Roman"><span style="background-color: rgb(255, 255, 153);">E-mails indicate that Ms. Ridenour wrote newspaper columns at the direction of Mr. Abramoff’s client Primedi</span><font color="#ffff66" style="background-color: rgb(255, 255, 255);">a</font><span style="background-color: rgb(255, 255, 255);"> Inc. She maintains that she did such work ‘‘independent of’’ and ‘‘without regard to’’ Primedia’s contributions.</span></font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">In 1999, Mr. Abramoff and his associates discussed with Jeff Ballabon, who at the time was executive vice president of public affairs for Primedia’s Channel One Network, the best way to fend off a coalition seeking the network’s ouster from public school classrooms.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff’s colleague, Amy Berger, wrote on April 12, 1999:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">In preparation for hearings on Channel One, it would be extremely useful to have a white paper issued by a conservative think tank group like Heritage or CATO. I know that you have excellent contacts with these think tanks. Would you be able to work with a think tank to produce this type of a paper?</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Patrick Pizzella, another colleague, wrote back:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">my guess is it would cost about $5000 and we would want them to promote it. . . . and we ought to use a smaller out- fit . . . maybe Amy R., maybe CEI. . . .</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff replied to Mr. Pizzella:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">I think Amy is the way to go. I am meeting with her this week. I’ll raise it with her.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff wrote to Mr. Ballabon on May 19, 1999:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">When we are through the hearing, we have to discuss getting Amy a contribution as we discussed. She was going to do 5 pieces for $10K. We can chat on this next week.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Ballabon responded:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">yup—I have not forgotten (was it $10?—I wrote it down—whatever it was, she’ll get it.)</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff wrote to Ms. Ridenour the same day:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">I just want to thank you again for all you to do help us. Jeff is so grateful and, as soon as the dust clears, is going to make his gratitude tangible. Thanks for all you do!</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">On May 23, 1999, Mr. Ballabon wrote to Mr. Abramoff saying that Ms. Ridenour ‘‘really does deliver.’’ Mr. Abramoff wrote back:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">We should get her a check as soon as we can. She can really help us with the Approps battle (we have used her before for this kind of battle before).</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">The next day, Mr. Abramoff wrote to Ms. Ridenour:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Amy, can you get me an invoice for a contribution for $10,000 which I can push through Channel One? Jeff has asked for this so we can get something to you asap. Thanks.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">On March 13, 2000, Dennis Stephens forwarded a commentary from R.D. Davis, a member of NCPPR’s Project 21, a national leadership network of black conservatives:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">I note for the files, that Amy Ridenour has a member of Project 21 who is a writer and radio talk show host in Huntsville, Alabama. With the proper education, etc, he might be recruitable for Channel One support and Metrock bashing. Thoughts?</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff forwarded the message to Ms. Berger, who responded:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">worth keeping in mind—esp. if we get a contract with [Channel One]!</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">In an interview with Committee staff, Ms. Ridenour denied that NCPPR was engaged in any ‘‘Metrock bashing.’’</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">On October 29, 2001, Mr. Ballabon at Primedia wrote to Mr. Abramoff regarding Ms. Ridenour:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Any way to get some paperwork from her on the 50k asap so I can get a check cut?</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Abramoff wrote back with an attached NCPPR invoice requesting a contribution of $49,000 from Primedia ‘‘to support public programs.’’</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">I used one of their other invoices for another project and made it work. Let me know the next step. Please get the check directly to me. Thanks.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">Mr. Ballabon wrote back on November 8, 2001, to say that a check had been cut and that he was sending it to Ms. Ridenour. Mr. Abramoff objected:</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">No! Send it to me. I have to work this through with her carefully.</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">
</font></div><div style="background-color: rgb(255, 255, 255);"><font face="Times New Roman">CITIZENS AGAINST GOVERNMENT WASTE....</font></div><div style="background-color: rgb(255, 255, 255); font-family: 'Times New Roman';">
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