patrick davis

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4/15 superpacMike Snyder, a locally famous ex-anchorman for Dallas-Fort Worth’s NBC station, was running media strategy. Janeé Hill, a motivational speaker, handled outreach.
Randy Hill, Janeé’s husband, was hired to be the PAC’s executive director. Along with his business acumen – Hill once said his peanut transport system moved 80 percent of the nation’s crop – he was well connected. Then-Gov. Rick Perry had appointed him to the state’s emerging technologies committee.
Hill’s father had been Wal-Mart’s chief ethics officer, and was invited to join the PAC’s board. Gary Hill found the PAC’s patron to be “very eccentric.” When they first met, he recalled in an interview, Ken Davis told him the nametag on his sport coat was on the wrong side, ripped it off and fixed it onto the other side. But he joined the board anyway.
Patrick Davis, the group’s senior consultant, had the most political experience among the hires. He served as the political director for the National Republican Senatorial Committee during the 2004 cycle and had helped run dozens of local, state and national campaigns.
Through his lawyer, Davis said he was attracted to the Fort Worth group because the national debt had long been an interest of his. And his style appealed to the oilman. He would often kick off conference calls by leading a prayer, asking for the Lord’s guidance in being responsible stewards of their patron’s money.
But very quickly, fissures appeared.
In his July memo to the board, Randy Hill alleged irregularities in Patrick Davis’ reimbursement requests. He wasn’t turning in receipts, Hill wrote, and some expenses didn’t track, such as a bill for an Iowa hotel stay that had been prepaid and a bill for a plane ticket even though Davis had driven to his destination.
Hill also questioned whether events organized by Davis were all they claimed to be. At an Iowa phone bank, Hill said, a caller admitted they were just “pretending to make phone calls” for the benefit of the campaign’s video cameras.
Hill was particularly concerned about Patrick Davis’ associate. She was combative with the rest of the staff and acting erratically, he said, so he began looking into her past.
Her name was Italia Federici. A decade earlier, Federici figured in the Jack Abramoff lobbying scandal, which contributed to the resignation of House Majority Leader Tom Delay and led to the criminal convictions of 21 people, including a House member who admitted taking bribes.
Federici was accused of using her position as head of a conservative environmental advocacy group to serve as intermediary between Abramoff and her friend, Deputy Interior Secretary Steven Griles. Abramoff funneled $500,000 to her group, offered her box seats to NFL games and paid for her meals and parties at his D.C. restaurant. In return, she allegedly exploited her romantic relationship with Griles to get Abramoff inside information and to lobby for his tribal clients.
When she testified before the Senate Indian Affairs committee, North Dakota Democratic Sen. Byron Dorgan accused her of being involved in “one of the most disgusting tales of greed and avarice” and mocked her denial of a quid pro quo: ”I come from a really small town, but I think I can spot a pretty big lie from time to time.”
Federici pleaded guilty in 2007 to tax evasion and obstructing a Senate investigation. She was given probation for her crimes and moved back to Colorado, where she’d lived before Washington.
There, her problems continued. The IRS accused her of being delinquent on more than $250,000, which her lawyer said was the result of a penalty assessed against her in connection with the Abramoff scandal. Her Boulder landlord told ProPublica she kicked her out for not paying several months of rent. “She doesn’t have clear boundaries between truth and fiction,” said the landlord, Diane Dvorin.
Through her attorney, Federici said she was truthful and moved out promptly after not being able to make rent.
In 2012, Federici and Patrick Davis met while working to promote Newt Gingrich’s presidential campaign in Colorado. Davis had moved to Colorado and set up his own consulting firm after finishing his stint at the Republican senatorial committee.
Davis’ work was at times controversial after he left Washington. In 2008 he led a nonprofit that backed the presidential campaign of former Arkansas Gov. Mike Huckabee. It was blasted by other conservatives for allegedly making robo-calls to voters in multiple states that masqueraded as polls and suggested that a rival candidate, Sen. John McCain, “voted to use unborn babies in medical research.” The group was widely denounced, including by Huckabee’s campaign.
While he was working for Vote2ReduceDebt, Davis was also running the campaign of Annette Bosworth, a South Dakota physician making a bid for the Senate. Bosworth, who got 6 percent of the vote in the Republican primary last year, faces trial on a dozen felony counts of perjury and filing false statements in connection with allegedly forged names on nominating petitions.
Before Davis was running Bosworth’s campaign, records show he got paid a consulting fee by a PAC that boosted one of her opponents, a fact Bosworth’s attorney said was never disclosed to her.
Through his attorney, Davis said the relationship was disclosed, and that the calls on behalf of Huckabee were not push polls, but rather educational calls. The attorney said Davis had no knowledge of the alleged crimes committed by Bosworth.
In his July 2014 memo, Randy Hill asked for Davis and Federici to be fired.
The next day, Patrick Davis wrote a memo of his own to the board. In it, he alleged that after a June 5 Vote2ReduceDebt rally, as they drove to the Midland, Texas airport, Hill told him about a secret plan.
At the time, Hill was in talks with television executives to create a reality show about his quest to start a NASCAR racing team. He already had a website billing himself as “The Entrepreneur… Chasing the Dream,” encouraging visitors to follow along as he recruited a driver, sponsors and a spot on the racing circuit. He told colleagues this would be good publicity for the PAC – he’d emblazon his racecars with the Vote2ReduceDebt logo and take them on tour.
But Patrick Davis alleged that Hill took it a step further in their conversation. In order to start filming, Hill said, he needed to get a team together, and that required money he didn’t have. Hill missed his first deadline with NBC, and though he was granted an extension, time was running out.
By Davis’ account, Hill offered him a trade of sorts. He would make Patrick Davis “a character in his reality TV show.” And Patrick Davis would help Hill get $4 million out of the PAC: half a million for PAC promotions, and the rest going toward racing expenses including drivers and pit crews. Ken Davis, recently hospitalized, would be told the money was going towards legitimate get-out-the-vote operations.
In his memo, Patrick Davis wrote that he would never go along with such a scheme because it would have “required lying to Mr. Ken Davis which was something I was not going to do.”
The board and Ken Davis had to decide whom to believe. Patrick Davis warned the leadership that if they sided with Hill, they would risk future disaster. “In other cases where I’ve occasionally been ignored, clients have really created problems for themselves,” he wrote.
For her part, Federici began pressuring Snyder, who was in charge of media strategy, and the PAC’s attorney, Chris Gober, who was looking into the allegations. One evening in July, she sent Gober a barrage of text messages. She demanded he turn over video from a PAC event she believed would play in their favor. He emailed the texts the same evening to Ken Davis.
“SECURE THE EVIDENCE YOU’VE BEEN NOTIFIED FOR A MONTH EXISTS,” Federici texted in all caps, according to the email. “If you think I’m cowed in any way, think again. I will ferociously expose you and anyone else I feel is complicit in destroying documentation about the fleecing (of) this family.”
“Screw with this PAC at your peril…Who do you think you are?… If you want to sue me/us… Do it! Otherwise, do your fucking job and stop being Mike Snyder’s bitch.”
“WTF. I could care less about your Harvard ‘creds,’” she continued, even though the attorney said he didn’t respond. “Do. Your. Job. We asked for docs and recorded material weeks ago. How impotent are you? Or is it criminal. Your choice.”
In an interview, Hill said the reality TV show scam was a figment of Patrick Davis’ imagination, one that Davis fabricated to distract from his own fraud. He said the board decided to side with him, voting to fire Davis and Federici.
But he said he was called into Ken Davis’ office and berated.
“Nobody fires anybody until I tell ‘em to,” the oilman said, according to Hill.
That afternoon, Hill said, Patrick Davis flew in and met privately with Ken Davis. The next day Hill was fired.
Patrick Davis remained and his influence grew. According to records and interviews, he pushed for multiple six-figure payments to organizations run by him or his close associates.
He convinced the PAC to hire a Virginia company called ccAdvertising for calls to voters, at a price of about $230,000, records show. Davis’ attorney, Cleta Mitchell, said that Davis has a “long term business and personal relationship” with the company’s owner. Mitchell declined to respond to questions about whether Davis received personal benefit from the contract.
At least three of the outside companies Davis recommended to Vote2ReduceDebt were run by one of his business associates, Joel Arends, an attorney and political operative based in South Dakota. Davis and Arends have known each other for two decades through various Republican campaigns. Most recently, they had worked together on the South Dakota primary in which their candidate got indicted and blamed Arends for the allegedly falsified filings.Italia Federici testifies during a Senate committee hearing on lobbying by Indian tribes in Nov. 2005. (AP Photo/Yuri Gripas)Hill said that one proposal from Patrick Davis involved a cross-country bus tour using a company linked to Arends that was so obscure it didn’t have a website. On another occasion, Davis pushed for the PAC’s printing services to be handled by Arends. Davis said through his lawyer that he felt Arends would be faster and cheaper than other options.
Vote2ReduceDebt didn’t go with Patrick Davis’ suggestions on either of those jobs, but did heed his advice when choosing who to hire for a $200,000 contract to produce voter rallies. Davis again picked Arends, who ran a company called Red State Productions. Davis’s lawyer said in a statement that Red State “is a skilled political campaign services provider with years of experience and excellent results over many campaigns.”While Arends had worked with campaigns in the past, Red State’s website, which displays photos of big political rallies featuring Republican stars such as Rep. Michelle Bachmann and Newt Gingrich, was created a couple of days before Red State pitched the $200,000 deal to Vote2ReduceDebt, domain registration records show. The company was incorporated in South Dakota a few days after the pitch.
Red State’s events, according to the website, “are widely attended, photographed and reported.” A search of online databases turned up no previous record of payments to Red State Productions by a candidate or political committee. The D.C. number for the company has since been disconnected. The address listed on its website is for a service on Washington’s K Street lobbying corridor that provides mail drops and temporary office space.
Vote2ReduceDebt staffers were not pleased with Red State’s work, according to a lawsuit the super PAC filed in December to get the money back. One of the firm’s main responsibilities was promoting rallies and getting people there. But most of the people who attended their rallies, the PAC alleged, were paid Vote2ReduceDebt staffers, with one rally only drawing seven outsiders.
Arends’ attorney did not respond to questions from ProPublica. His company has sued Vote2ReduceDebt for terminating the contract, and harming its reputation with future clients.
CLETA Mitchell, Davis’ attorney, said the events Red State organized were “very successful,” including one attended by more than 250 people and others that drew volunteers, elected officials and local activists.
Arends and Patrick Davis “are not in business together,” said Mitchell. Asked if Davis received a personal benefit from the work the PAC gave to Arends, Mitchell said: “If there were any business arrangements with any vendors, those arrangements would have been (and were) fully disclosed.”
Another move by Patrick Davis raised questions among some PAC colleagues. He secured payments of about $410,000 from Vote2ReduceDebt – roughly a seventh of the total funds raised by the super PAC - to another PAC, one he and Federici had created in 2013.
Until the payment from Vote2ReduceDebt, their PAC, called Person to Person, had almost no contributions or activities. According to an invoice, other internal records and a person with knowledge of the transactions, the money was paid in expectation of a service: Person to Person would recruit 320 volunteers for door-knocking and phone work in Vote2ReduceDebt’s eight target states.
But Patrick Davis reported the money to the FEC as a contribution, not a fee for service. According to Noble, the former FEC attorney who reviewed the filings for ProPublica, that distinction allowed Person to Person to do whatever it wanted with the money and pay no taxes on it.
Person to Person quickly began spending its windfall. According to federal disclosure records compiled by the OpenSecrets website, more than $115,000 has gone to Red State Productions and Patrick Davis’ consulting company.
In October, Vote2ReduceDebt parted ways with Davis. By then, records show, the super PAC had paid more than $875,000 – almost a third of its total spending – to companies and organizations owned or operated by Davis and Federici or their associates.
Both declined to be interviewed by ProPublica. In a recent interview with a conservative commentator for the Daily Caller, they said they are preparing the Person to Person PAC for the 2016 cycle. The host asked Patrick Davis if he believes that some conservative groups exist not to affect elections but to bilk donors.
“There is a problem, but Person to Person PAC is not participating in the problem,” Davis said.
Federici directed listeners to the group’s website, where they could log on and donate.
Mitchell, Patrick Davis’s lawyer, denied that Davis and Federici falsified reimbursement requests, faked phone banking events or were dishonest with Vote2ReduceDebt staff.
In fact, Mitchell described Federici as a whistleblower who took on dishonest employees within the PAC. She described one instance in which a PAC state director with a suspended license was secretly using one of the group’s employees as a chauffeur for five weeks.
“One lesson Tali learned from the experience of being dragged into the Abramoff mess was to be very cautious and to ask questions,” Mitchell said. “That was in large part what led her to blow the whistle… before a problem was created and funds were misused.”
Mitchell said Patrick Davis still does not understand why Vote2ReduceDebt terminated his consulting contract. “Had Person to Person PAC been allowed to complete the deployment project,” she said, it would have “met and exceeded” its promised volunteer numbers. Mitchell said Patrick Davis was correct in reporting the money as a contribution, and it was Vote2ReduceDebt that reported the payment incorrectly.
The breakdown of his super PAC has left Ken Davis with some ambivalence about entering election politics.
In a brief interview, he declined to discuss the allegations that he had been duped. He did acknowledge that he may have been in over his head and that he’s not sure the group had the impact he desired.
“I’m convinced there’s a lot of people that jumped into politics with the idea that they’re gonna make a change in the world and they’ve found out it ain’t that easy,” Davis said. “Just because you think it’s needed doesn’t mean you can make it happen.”
Help us investigate: Have a tip about campaign finance? Email robert.faturechi@propublica.org.---</div><div>==</div>