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Chris McDaniel, Lynn Fitch and the case of the missing $15,000

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Even if one were to believe erstwhile candidate Chris McDaniel’s incomplete, conflicting, shifting accounting of hundreds of thousands in secretive campaign donations, it still begs the question: Where did the $15,000 go?

It also begs the question: Why is Attorney General Lynn Fitch overlooking what appear to be flagrant violations of campaign finance law by McDaniel, instead only going after his out-of-state campaign finance chairman and less-clear allegations?

Longtime state Sen. Chris McDaniel’s failed run for lieutenant governor is one for the record books. Primarily, it saw record amounts of out-of-state, secretly sourced campaign money pumped into his campaign and related state PACs. It also saw allegations of flagrant violations of state campaign finance laws and reporting requirements, and has led to calls for reform by multiple statewide elected officials.

Mississippi law says a candidate or state political action committee can accept no more than $1,000 a year from a corporation.

McDaniel, running for lieutenant governor this year, created a state PAC that accepted $475,000 from a mysterious Virginia-based dark-money corporation, the American Exceptionalism Institute.

McDaniel’s PAC then funneled $460,000 of that money to his campaign. It made up the vast bulk of his bankroll as he kicked off his campaign early this year.

But his initial PAC reports appeared to obfuscate this. For starters, is showed the PAC had collected hundreds of thousands of dollars the year before it was legally created, with no sources listed for the donations. After multiple revised reports, it became clear the PAC had received $475,000 from AEI.

Eventually, after questions from Mississippi Today and complaints to the attorney general by his opponent incumbent Lt. Gov. Delbert Hosemann, McDaniel said he was returning the money to AEI.

Problem is, by McDaniel’s own accounting, his PAC only returned $460,000 to the corporation.

What happened to the other $15,000?

Mississippi voters will likely never know. His final “termination-amended” report for his PAC gave no accounting. And Fitch appears to have closed the book on that complaint.

And despite laws that require candidates to divulge the sources of campaign donations, they’ll likely never know the original source of the $475,000 from the American Exceptionalism Institute, which has pumped millions of secretly sourced dollars into campaigns across the country.

They’ll also likely never know all the sources of the total of nearly $1 million more pumped into a separate PAC that McDaniel’s Wisconsin based treasurer created in the eleventh hour of the 2023 race to run TV attack ads on Hosemann.

McDaniel has said he knows very little about the finances of his PAC or campaign, and as he faced questions about them over months, he often chalked problems up to “clerical errors” and provided few other comments.

But in a statement for this article, he refuted that $15,000 remains unaccounted for.

“As a candidate, I have no involvement in the financial operations of any committee or PAC,” McDaniel said. “But I’ve been advised that all the money from the (American Exceptionalism Institute) was refunded.”

McDaniel has refused to answer what he knows about AEI or why it would pump nearly half a million dollars into Mississippi’s lieutenant governor’s race. Little information on AEI is available online, and efforts by Mississippi Today — and several other media outlets over years — to contact the organization or find more details have been fruitless.

When he announced he was returning the money, McDaniel said he believes Mississippi’s corporate donation limit laws are unconstitutional and would fall to a legal challenge. But he said he did not have time or resources for such a challenge, so he was giving it back.

McDaniel has referred to the landmark U.S. Supreme Court Citizen’s United ruling in 2010, which held corporations and PACs can spend unlimited amounts on broadcasts and communications related to an election, provided they act independently of any candidate.

But courts have also upheld state limits or bans on corporate donations to campaigns or state PACs. Only five states allow unlimited corporate campaign donations, while 23 ban them. The other 22 set some restrictions on corporate donations.

Mississippi’s campaign finance laws are seldom enforced, and allegations of violations seldom investigated. The state’s laws regulating a politician’s campaign cash and reporting appear to fall under a special Oops Doctrine. If a campaign accepts an illegal contribution or makes a glaring omission or mistake on a report, it can typically avoid investigation or prosecution by giving the money back, amending reports or filing them later. Few other laws offer this escape.

But typically, these appear to be legitimate mistakes and oversights by large campaigns for far smaller donations. They are typically flagged by the campaigns themselves, the money returned promptly and the transactions duly noted on finance reports.

McDaniel’s PAC and campaign appear to have held onto AEI over-the-limit money for months, and its reporting was confounding. At one point, McDaniel’s PAC reported it returned $460,000 to AEI on the same day it received $237,500 from the corporation. His many amended reports have been difficult to follow.

READ MORE: Chris McDaniel’s reports deny accurate public accounting of campaign money

Mississippi Today first raised questions about McDaniel’s campaign finances in February, and Hosemann filed his first legal complaint with the attorney general’s office in March. For months, AG Fitch’s office’s only response was, “We are looking into it.” This prompted calls for investigation and enforcement. Secretary of State Michael Watson at the Neshoba County Fair called for lawmakers to give his office campaign enforcement authority. He said, “When people do not do their jobs, I will stand in the gap for Mississippians” — a clear dig at Fitch.

Amid this pressure, just days before the primary election, Fitch announced she was investigating the separate PAC run by McDaniel’s campaign treasurer. The Invest in Mississippi political action committee was created in July by Wisconsin political operative Thomas Datwyler, who McDaniel also listed as his campaign’s treasurer. Datwyler has a history of running afoul of Federal Election Commission campaign finance rules with several congressional campaigns.

Datwyler’s PAC ran ads against Hosemann late in the race, fueled by at least $885,000 in donations from out of state super PACs. Hosemann’s campaign had filed another complaint late in the race that the PAC-to-PAC donations were an attempt to dodge the $1,000 corporate donation limits, and that the PAC cannot claim it is independent of McDaniel because it’s run by his campaign treasurer.

READ MORE: Out of state PACs dump dark money into McDaniel’s lieutenant governor’s race

In a statement announcing the investigation, Fitch said, “The people of Mississippi should be able to expect that those who participate in our electoral process will not seek to exploit this careful balance and step over that line, and in this instance, there is evidence to suggest that has occurred here.”

Fitch did not mention McDaniel in her announcement of the investigation, but a spokeswoman for her office later indicated the office was also investigating another complaint raised by Hosemann.

READ MORE: Fitch says she’s investigating PAC run by Chris McDaniel treasurer

But the spokeswoman also said another earlier complaint had been looked into and closed. This, the Hosemann campaign confirmed, was the original complaint about McDaniel’s PAC, the campaign and the $475,000 AEI donation.

Fitch’s office has declined comment on why it would not pursue the original complaint, including where the unaccounted-for $15,000 went. McDaniel appears to have acknowledged violation of the campaign donation limit laws, saying repeatedly he would likely win a legal challenge of the law.

Many political observers have surmised Republican Fitch is loathe to go after complaints about McDaniel for fear of angering his conservative base in the state GOP. Fitch’s office has faced some complaints of failing to fulfill responsibilities of the office, instead focusing on big headline-grabbing national issues and cases.

READ MORE: Chris McDaniel, Lynn Fitch show that Mississippi might as well not have campaign finance laws

In a statement, Hosemann spokeswoman Leah Smith said: “When our opponent received $475,000 from the corporation and returned only $460,000, we contend a violation of the campaign finance laws occurred. It was impossible to determine what happened with those funds because accounting was so poor throughout, in addition to all of the other violations. We anticipate a number of legislators will be enthusiastically interested in reform this year and our office is, too.”

McDaniel, who after his defeat for lieutenant governor will be vacating his state Senate office in January after 16 years, was once himself a vocal champion for campaign finance reform and more transparency for voters of the source of politicians’ money. His latest campaign’s legacy, it appears, may be an invigorated push for reform.

In his victory speech on primary election night, Hosemann said: “When you have this much dark money pumped into a race — almost $1 million in the last week — it screams for reform. We are going to listen to those screams.”

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

An ad supporting Jenifer Branning finds imaginary liberals on the Mississippi Supreme Court

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mississippitoday.org – Bobby Harrison – 2024-11-24 06:00:00

The Improve Mississippi PAC claims in advertising that the state Supreme Court “is in danger of being dominated by liberal justices” unless Jenifer Branning is elected in Tuesday’s runoff.

Improve Mississippi made the almost laughable claim in both radio commercials and mailers that were sent to homes in the court’s central district, where a runoff election will be held on Tuesday.

Improve Mississippi is an independent, third party political action committee created to aid state Sen. Jenifer Branning of Neshoba County in her efforts to defeat longtime Central District Supreme Court Justice Jim Kitchens of Copiah County.

The PAC should receive an award or at least be considered for an honor for best fiction writing.

At least seven current members of the nine-member Supreme Court would be shocked to know anyone considered them liberal.

It is telling that the ads do not offer any examples of “liberal” Supreme Court opinions issued by the current majority. It is even more telling that there have been no ads by Improve Mississippi or any other group citing the liberal dissenting opinions written or joined by Kitchens.

Granted, it is fair and likely accurate to point out that Branning is more conservative than Kitchens. After all, Branning is considered one of the more conservative members of a supermajority Republican Mississippi Senate.

As a member of the Senate, for example, she voted against removing the Confederate battle emblem from the Mississippi state flag, opposed Medicaid expansion and an equal pay bill for women.

And if she is elected to the state Supreme Court in Tuesday’s runoff election, she might be one of the panel’s more conservative members. But she will be surrounded by a Supreme Court bench full of conservatives.

A look at the history of the members of the Supreme Court might be helpful.

Chief Justice Michael Randolph originally was appointed to the court by Republican Gov. Haley Barbour, who is credited with leading the effort to make the Republican Party dominant in Mississippi. Before Randolph was appointed by Barbour, he served a stint on the National Coal Council — appointed to the post by President Ronald Reagan who is considered an icon in the conservative movement.

Justices James Maxwell, Dawn Beam, David Ishee and Kenneth Griffis were appointed by Republican Gov. Phil Bryant.

Only three members of the current court were not initially appointed to the Supreme Court by conservative Republican governors: Kitchens, Josiah Coleman and Robert Chamberlin. All three got their initial posts on the court by winning elections for full eight-year terms.

But Chamberlin, once a Republican state senator from Southaven, was appointed as a circuit court judge by Barbour before winning his Supreme Court post. And Coleman was endorsed in his election effort by both the Republican Party and by current Republican Gov. Tate Reeves, who also contributed to his campaign.

Only Kitchens earned a spot on the court without either being appointed by a Republican governor or being endorsed by the state Republican Party.

The ninth member of the court is Leslie King, who, like Kitchens, is viewed as not as conservative as the other seven justices. King, former chief judge on the Mississippi Court of Appeals, was originally appointed to the Supreme Court by Barbour, who to his credit made the appointment at least in part to ensure that a Black Mississippian remained on the nine-member court.

It should be noted that Beam was defeated on Nov. 5 by David Sullivan, a Gulf Coast municipal judge who has a local reputation for leaning conservative. Even if Sullivan is less conservative when he takes his new post in January, there still be six justices on the Supreme Court with strong conservative bonafides, not counting what happens in the Branning-Kitchens runoff.

Granted, Kitchens is next in line to serve as chief justice should Randolph, who has been on the court since 2004, step down. The longest tenured justice serves as the chief justice.

But to think that Kitchens as chief justice would be able to exert enough influence to force the other longtime conservative members of the court to start voting as liberals is even more fiction.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

On this day in 1968

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mississippitoday.org – Jerry Mitchell – 2024-11-24 07:00:00

Nov. 24, 1968

Credit: Wikipedia

Black Panther leader Eldridge Cleaver fled the U.S. to avoid imprisonment on a parole violation. He wrote in “Soul on Ice”: “If a man like Malcolm X could change and repudiate racism, if I myself and other former Muslims can change, if young whites can change, then there is hope for America.” 

The Arkansas native began to be incarcerated when he was still in junior high and soon read about Malcolm X. He began writing his own essays, drawing the praise of Norman Mailer and others. That work helped him win parole in 1966. His “Soul on Ice” memoir, written from Folsom state prison, described his journey from selling marijuana to following Malcolm X. The book he wrote became a seminal work in Black literature, and he became a national figure. 

Cleaver soon joined the Black Panther Party, serving as the minister of information. After a Panther shootout with police that left him injured, one Panther dead and two officers wounded, he jumped bail and fled the U.S. In 1977, after an unsuccessful suicide attempt, he returned to the U.S. pleaded guilty to a reduced charge of assault and served 1,200 hours of community service. 

From that point forward, “Mr. Cleaver metamorphosed into variously a born-again Christian, a follower of the Rev. Sun Myung Moon, a Mormon, a crack cocaine addict, a designer of men’s trousers featuring a codpiece and even, finally, a Republican,” The New York Times wrote in his 1998 obituary. His wife said he was suffering from mental illness and never recovered.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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Mississippi Today

On this day in 1867

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mississippitoday.org – Jerry Mitchell – 2024-11-23 07:00:00

Nov. 23, 1867

Extract from the Reconstructed Constitution of the State of Louisiana, 1868. Credit: Library of Congress

The Louisiana Constitutional Convention, composed of 49 White delegates and 49 Black delegates, met in New Orleans. The new constitution became the first in the state’s history to include a bill of rights. 

The document gave property rights to married women, funded public education without segregated schools, provided full citizenship for Black Americans, and eliminated the Black Codes of 1865 and property qualifications for officeholders. 

The voters ratified the constitution months later. Despite the document, prejudice and corruption continued to reign in Louisiana, and when Reconstruction ended, the constitution was replaced with one that helped restore the rule of white supremacy.

This article first appeared on Mississippi Today and is republished here under a Creative Commons license.

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