10 June 2023

Not a Surprise

It really is remarkable just how much outright fraud is baked into right wing politics.

Case in point, one of the founders of the voter suppression advocacy group True the Vote, has been lining her own pockets since founding the organization:

Conservative activists Catherine Engelbrecht and Gregg Phillips used the nonprofit True the Vote to enrich themselves, according to a complaint filed to the IRS.

On Monday, the nonprofit watchdog group Campaign for Accountability called for an investigation into True the Vote, which has made repeated false claims about voter fraud in elections. The complaint said True the Vote may have violated state and federal law when the charity used donations to issue loans to Engelbrecht, its founder, and lucrative contracts to Gregg Phillips, a longtime director. The organization also failed to disclose the payments to insiders in its tax returns, including excessive legal bills paid to its general counsel at the time, who filed election-related lawsuits in four states, the complaint said.

“Such disclosure lapses heighten suspicion regarding whether True the Vote and or its current or former officers and directors intended to conceal the payments from the public or IRS,” the complaint said. The self-dealing contracts and loans were first reported by Reveal.

………

The federal government allows nonprofit organizations to operate tax-free, and in return they are required to disclose substantial information about their finances to make sure donor funds are used appropriately. Charities like True the Vote are also not allowed to engage in certain political activity.

“I hope that the IRS and other applicable authorities take seriously what appears to be a pattern of bad behavior by Catherine Engelbrecht and Gregg Phillips, and that makes the pursuit of accountability that much more important,” said Michelle Kuppersmith, executive director of Campaign for Accountability. The organization previously filed a separate complaint in 2020 about True the Vote engaging in political activity with Georgia’s Republican Party. The IRS did not respond to that complaint.

………

In its most recently available tax return, True the Vote in 2021 raised about $1.7 million but fell $289,157 into the red. The 2021 return no longer includes Phillips as a director. In 2020, the organization raised $5 million. For 2019, the organization had given a reporter and the IRS two widely different tax returns that were riddled with inconsistencies over key questions about governance and Engelbrecht’s $113,000 loan. At the time, True the Vote said it planned to file an amended return. It does not appear to have been filed with the IRS.

Despite Texas law stating directors of nonprofits can’t receive loans from their own organizations, Engelbrecht — who was a director and an employee at the time — regularly received loans from the nonprofit, ranging from about $40,000 to $113,000, according to tax filings. She also earned a salary.

There is a pattern of this behavior, was was documented by ProPublica over a decade ago.

For whatever reason, the folks at the top of the "Vast Right-Wing Conspiracy" pyramid seem eager to cheat people lower down said pyramid out of their money.

This surprises me, because the people lower down the movement hierarchy seem to be both well armed, and eager to shoot someone to death.

Call me timid, but if I were a con artist, I would try to avoid people for whom reckless use of lethal weapons as an article of faith as targets.

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