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EDITOR OF REDSTATE

Charlatans and the Horse They Rode In On

I have been biting my tongue so hard for so long that I’m surprised I haven’t developed gangrene, but the time has come to open my mouth, or at least put fingers to the keyboard.

I have for years been shouting into the wind about those I believe are conservative charlatans abusing the money of donors, burning bridges, and making it all the more difficult for solid conservative activists to gain the trust of large conservative donors.

As I told Ken Vogel a few weeks ago, “Every movement — left, right, center or no political affiliation whatsoever — attracts its contingent of scammers and con artists and charlatans, and it takes a while for that to sort itself out . . . . And that’s why a lot of the money is still sitting on the sidelines.”

And now there is this.

Launching under the umbrella of the group Americans for New Leadership, Liberty.com will be led by tea party organizer Eric Odom and begin its venture with $700,000 and 70,000 members, according to a spokesman. Odom previously built conservative coalitions under the American Liberty Alliance and The Patriot Caucus. [Emphasis added]

Yes, it is another conservative organization purporting to be the next MoveOn.org for the right. These things come and go like objects best flushed down the toilet. Along the way they consume large amounts of money, burn the goodwill of donors, and leave a wake of destruction in the online conservative movement behind them. God knows the Vanguard, no, not this Vanguard and not this Vanguard, has been selling itself as the next MoveOn.org since around 2006.

Any group selling itself as the next MoveOn.org for the right needs to keep moving on. We shouldn’t be trying to be them, but be better than them.

But I digress.

There is more here that particularly troubles me about this one and it all goes back to a lot of unanswered questions not from me or anyone else other than the Federal Election Commission related to ventures previously set up by Eric Odom — questions so far unanswered despite multiple letters from the Federal Election Commission seeking additional information and filings.

First there was the for profit American Liberty Alliance set up by Eric Odom. I know people, some are friends, who were employed by this organization and left without the money they were due. Neither I nor they have any idea what happened to the money.

At some point the for profit American Liberty Alliance was rolled into Liberty First PAC, which was also set up by Eric Odom. I have no idea how the transaction occurred as it is not inside the FEC filings of Liberty First PAC. Considering American Liberty Alliance was for profit and Liberty First PAC is a PAC, I assume there is some transaction to show how it occurred, except there is not one and there should be, at least as a line item in a report to the FEC.

Though the language is no longer there, originally the American Liberty Alliance website contained this language:

The American Liberty Alliance is not a 501c3, 501c4 or a PAC. We are not registered as a non-profit and we do not raise funds as such. Our primary focus is on content. We publish information and sell advertising on our network of sites. We also occasional [sic] seek contributions from our readers. These contributions are seen as “gifts” to our network and are not tax deductible.

On August 23, 2009, Eric Odom wrote, “We’re currently in the process of filing for our non-profit, 501c4 status which will allow us to become even more aggressive in the political environment,” but that does not appear to have ever actually happened. No records exist in Guidestar and, for that matter, there appears to be no incorporation record for American Liberty Alliance in Illinois, Tennessee, or Delaware. I searched those states because initial principals of ALA were connected to both Illinois and Tennessee and it is pretty common to register as a corporation in Delaware. Additionally, in a review of Lexis-Nexis I can find no incorporation paperwork or Articles of Organization (assuming it might be an LLC) anywhere in the nation for American Liberty Alliance, which, if it really has not been incorporated (and a failure to find it does not mean it was not actually done), would mean ALA operates/operated as a sole proprietorship with its income taxed in the individual 1040 tax return of the sole proprietor, who would be Eric Odom.

As you can see here from this screenshot of the Freedom Activist website, American Liberty Alliance is shown as a “project of Liberty First PAC after Feb 1 2010.” Likewise, I had more than one person tell me it was public knowledge American LIberty Alliance had been moved into Liberty First PAC. The same people have told me it was then pulled back out of Liberty First PAC after Liberty First PAC ceased doing business. Both before, during, and after its ties to Liberty First PAC, American Liberty Alliance still had a donation form on its website without any notation as to its status as a PAC, for-profit, 501(c)(4), or anything else. The actual submission function for a donation, however, appears not to be working (at least when claiming to send a check).

Eric Odom organized Liberty First PAC on November 24, 2009, with an amended statement of organization filed on January 24, 2010.

Both of these statements of organization were filed before the for-profit American LIberty Alliance was rolled into Liberty First PAC. That is problematic. Why? Because there has only been one filing of receipts and expenditures and it does not show ALA rolling into Liberty First PAC.

What it does show, however, is that Liberty First PAC had been taking contributions prior to the date it filed its Statement of Organization with the FEC. The original Statement of Organization was filed on November 24, 2009, and its FEC filing shows itemized contributions as early as November 9, 2009, when all that existed was American Liberty Alliance. There are also a high number of unitemized small dollar contributions. If any of those contributions were meant to go to ALA and got rolled into Liberty First PAC there could be a problem, given that ALA had been set up as a for profit venture and, therefore, was not subject to contribution caps, citizenship requirements, etc.

Additionally, the FEC report shows a $6,000.00 payment to something called Vector Solutions, Inc. located in Reno, NV. The purpose of the expenditure was “email marketing and online communication” to oppose Senator Harry Reid.

According to Nevada corporate filings, Vector Solutions, Inc. is also owned by Eric Odom.

In other words, Eric Odom seemingly transferred a for-profit entity, American Liberty Alliance, into a PAC. There is no documentation for that transfer with the FEC. There is a documented transfer of $6000.00 from Liberty First PAC to Vector Solutions, Inc., which, like ALA and Liberty First PAC, are both entities under Eric Odom’s control.

Now we have Americans for New Leadership and their Liberty.com. While we have this new group, we also have a number of demands from the FEC for Liberty First PAC to file requested filings showing what it has done with the rest of its money.

Specifically there is a May request from the FEC for additional information pointing out that the financial figures for LIberty First PAC do not compute, a May 5, 2010, notice from the FEC that Liberty First PAC had failed to file a quarterly return, and an August 4, 2010 notice from the FEC that Liberty First PAC had failed to file another quarterly return.

Having contacted the FEC, I’ve hit a brick wall here. No additional filings have been made, but when last Liberty First PAC filed a return, it had over $2300.00 cash on hand.

This doesn’t even go into the disaster that was the bus tour across America, the low turn out tea party gatherings, the RootsHQ event in Nashville that I spoke at, and the list of disasters and questionable stuff arising out of American Liberty Alliance and whatever happened to it (both factually and as a legal entity) goes on and on and on. I’m not even sure if the bus tour made it all the way across America as its web journal stopped well before its end point and its blog has now somehow become a Christine O’Donnell site, except it hasn’t been updated since June. This is all par for the course.

A further irony is that on January 13, 2010, after Libety First PAC had been organized, but while American Liberty Alliance continued as a separate entity, American Liberty Alliance pulled out of sponsorship of the National Tea Party Convention based in part on the tea party convention operating as a for-profit entity.

To be clear, the for-profit model has its place in the movement. Many, MANY groups in the movement operate this way. But these groups should always have boards and oversight, and should never, ever process donations through personal paypal accounts.

There are a lot of questions unanswered, including whether the email lists, names, 70,000 strong membership, etc. was transferred from Liberty First PAC or American Liberty Alliance or what. I know I got Liberty First PAC emails without ever having signed up and now I’m getting Liberty.com emails. I’m not the only one. If a list was rented, surely it would show up in the FEC filings. Oh wait — there aren’t any!

This is wholly and completely unacceptable. For months we have seen competing people and competing groups claim the mantel of “tea party leader” and portray themselves as grand gurus of the movement, spin, and technology.

More often than not it keeps blowing up in our collective faces and I am really tired of it. I hate to ruin some friendships in the process, but somebody needs to say this. At some point the media is going to start digging and the usual guilt by association stuff will happen — hurting a lot of good people along the way, including some fine candidates.

There are too many questions and a very dubious web of connections. Frankly, I also know way too many people who have been burned in this tangled web.

For a number of months I have had more than my share of phone calls from conservative donors, bloggers, activists, campaigns, and others wishing someone would speak out. Several tried pushing this story into the mainstream media, but we all know what would happen there — we’d turn people into martyrs who shouldn’t be.

At best this conduct looks like ignorance of the complex bureaucracy and regulations surrounding the FEC. At its worst, it looks like . . . well, you decide. I’m sure even more will come out now that I’m willing to speak up and it does not look like a case of simple ignorance. If it were an isolated incident it’d be one thing, but it is a pattern.

There are way too many questions and concerns here and conservative activists and donors should be wary.

——-
*I should add here that this should not be viewed as an indictment of whatever Liberty.com may or may not be or become. I have a number of friends who tell me they will be involved in the project and I trust them all and value their competence. But having Eric Odom as the front person, given the problems outlined above, is not reassuring. If the past is the best indicator of future performance we know how this will wind up.

COMMENTS

  • JadedByPolitics

    not “you know”. I too have received emails from the NEW group and really it doesn’t bother me if the email list was transferred. I am ALL IN for any Conservative group but I certainly would NOT want any candidate to be hurt iin the process of doing something that will spell DOOM because of ignorance of the laws. I know as a Conservative that you MUST be right 100% of the time because the Media Wing of the Democrat Party, CBS,NBC,ABC, MSDNC, CNN, NYTimes,Washington Post will drag down EVERYONE to get their overlords elected!

  • voltron

    This needs to be exposed. Sunlight is the best disinf

  • voltron

    ectant!

  • acat

    But then, politics attracts liars and charlatans like {excrement} attracts flies.

    Mew

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • HSMom

    doesn’t every email gathering entity sell, rent, give… whatever… their email lists unless they say they are not going to when you sign up? Does Red State? This is common practice… isn’t it? If you don’t want to be on any email list, then unsubscribe!

  • http://www.erickerickson.org Erick Erickson

    Because we’re dealing with a PAC, there has to be some documentation with the FEC. Liberty First PAC cannot use ALA’s email list and vice versa without documentation at the FEC.

    Not only that, but the CAN-SPAM law would apply. We’ve had to document how we use email, etc. here at RedState to comply with CAN-SPAM. In fact, we have a whole segment of users who we cannot send emails to save RedState announcements because there was no disclosure to these people when they first opted-in.

  • http://www.theminorityreportblog.com/blog/loren_heal Socrates

    The tendency to move from project to project, promising gold-plated unicorns without tying up all the loose ends is strong with some people.

    Some of us have learned not to promise quite so much.

    On the other hand, owing people money and not paying it puts you into this whole other category.

  • sdkruiser

    And by “well done” I mean “count me among the burned” (list too long to mention here). This desperately needed to be put out there because, as you state at the end of the post, there are still reputable people who keep getting involved with the Odom project du jour. Heck, my BS meter is pretty good and it still took me awhile to learn to run in the opposite direction. We sometimes worry so much about eating our own that we shy away from calling out those who need it.

    Excellent throwing down of the gauntlet, Erick.

  • calesgrandma
  • bobojake
  • beezling

    THANK YOU!

    And American Liberty Alliance IS incorporated. They’re incorporated in Nevada, and they’re incorporated as … wait for it … a NON-PROFIT!

    Even the NAME has “non-profit” in it.

    AMERICAN LIBERTY ALLIANCE, A NONPROFIT CORP. NV20091203378 Active Domestic Non-Profit Corporation

    http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=06Qt2B%252feZBIDpymIdOPK0Q%253d%253d&nt7=0

  • beezling

    http://www.huffingtonpost.com/dawn-teo/tea-party-founder-announc_b_300347.html

    http://www.huffingtonpost.com/dawn-teo/tempest-in-a-teabag-tea-p_b_354649.html

    http://www.huffingtonpost.com/alex-brantzawadzki/anatomy-of-the-tea-party_b_380626.html

    http://www.huffingtonpost.com/alex-brantzawadzki/anatomy-of-the-tea-party_b_380662.html

    http://www.huffingtonpost.com/alex-brantzawadzki/patriot-caucus-tea-party_b_395327.html

  • http://www.campaignfreedom.org seandparnell

    And you’re probably being too kind when you offer that it may be “ignorance of the complex bureaucracy and regulations surrounding the FEC.” Yes, they are complex, and wholly beyond the ability of most to comprehend let alone comply with. Which is a pretty good reason alone to toss the system of speech regulation enshrined by the FEC.

    But failure to file, and ignoring requests for information, is way beyond ignorance. It is as you say, a part of a pattern, and indicative of someone playing fast and loose with the rules.

    To clarify a few of your points:

    1. You can’t “roll” one entity into a PAC. It’s a stand-alone entity that must rely entirely on the proceeds solicited and received for the PAC, with the exception of a separate segregated fund (fancy way of saying, PAC sponsored by another entity – a business, etc). The report filed by Liberty First PAC indicated that it was not a SSF, so it could not legally have received any assistance or assets (like lists) from Liberty Alliance.

    2. The large number of unitemized contributions isn’t a big deal, judging by the expenditure for fundraising at ElectionMall, I’d guess the fundraising was done entirely through e-mail, which is going to produce a lot of small-dollar contributions that aren’t going to be disclosed.

    3. Also probably not an issue, the fact that contributions were received before the PAC was filed. You don’t have to file until you raise a certain threshold of funds ($1,000) and then you have 10 days to file. It looks like he may have gone over the 10 day grace period, which is sloppy, but not necessarily that big a deal.

    All in all, excellent work slogging through this stuff. In general I find disclosure and filings to be of dubious value, but in this instance it does appear to have revealed the type of shenanigans that make our political process worse off.

    Sean Parnell
    President
    Center for Competitive Politics
    http://www.campaignfreedom.org
    http://www.twitter.com/seanparnellccp

  • Republican_Michigander

    I don’t know enough here to comment without my own research, but my guard is up. We should always keep out guards up when it comes to organizations where we make our donations, whether it be PAC’s, c3/c4′s, or even candidate committees as some make a living running for office (good candidate’s don’t).

    I’m a professional treasurer/recordkeeper. I’ve also cofounded several small PAC’s (mostly local) and ballot committees. I can usually tell quickly just from a disclosure statement whether a PAC (ideology aside) is work donating to or not.

    I’ll say right now that most are NOT. I usually recommend individual candidates for donations.

  • coriewhalen

    Thanks for writing this, Erick. As you know, I too am among the long list of folks that didn’t get paid. Not that it was a lot of money, and not that I wanted it after I found out how he treated other friends that deserved much more than I did.

    Someone needed to shine the light on this. I trust that karma will eventually put Odom in his place. You can’t moved from failed project to failed project, simply changing the same of what’s essentially the same operation, and expect people not to notice – and to not be hurt by your shenanigans; financially, and otherwise.

  • coriewhalen

    Changing the *name (not the same). Excuse the typo. Anyway, thanks again, Erick.

    http://www.twitter.com/coriewhalen

  • JadedByPolitics

    the disgusting HATEFUL and trashy huffingtonpost over to this site to denigrate Eric Odom? what is YOUR particular beef? and the truth of the matter is NO MATTER WHAT your beef is, DO NOT slough that trash over here!

  • beezling

    Did you READ the piece?

  • http://thesandsinstitute.org Vassar Bushmills

    …but that will takw time, and EE, I think properly had to address the political fallout, real and potential now. In our war, the Cause, we need to distance ourselves from any (and I think in this the known evidence here leans toward ‘likely”) projects that may hurt our case. Like you, I;m hoping everything comes up roses, esp since so many RS’ers have been involved at the edges. Let’s wish them luck in the investigation, but I think EE wsa timely in denying the Left some coal for ther fires.
    VB

  • JadedByPolitics

    they NEED NOT be proven by bring the VILE and HATEFUL huffington post over here to make your point. Did you NOT read what I wrote?

    The bottom line is Eric Odom has NOT been found guilty by a jury of his peers and there is ALWAYS the hope that he is just in over his head or not, who knows, NO ONE but he. WE in the Conservative Movement have the unmitigated ability to BLOW UP a damn good election cycle time after time after time. This should be an easy 80+ in the House election cycle and WE The People should focus on sending Socialists home and keep OUR dirty laundry amongst OURSELVES up and until charges have been filed against someone.

    I have watched the internet light up on Dan Riehl over some BOGUS charges from the Daily Caller this week and now this and yet WE are 70 Days out from a BLOWOUT of proportions that this Country has never envisioned. I am calling for ALL SIDES to stand down and then STAND UP for America and a Conservative Congress!

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine

    may hurt our cause. For me to take a position on such arcane minutia I would have to know the other side’s position, i.e. Eric Odom. Given that, my position is the only one I can take on the non-legal issues as well. Not enough info to wield the charlatan meter from here atop Stone Mountain and I was being facetious about a trial, as one of the reasons I must take this analysis with a grain of salt is that there is no legal process underway, and given the supposed seriousness of the matter, one would expect money to have been placed where one’s mouth is. But that may be due to my ignorance of some aspects of the matter. And before I accept nefarious allegations such as these, I would have to hear the other side. I am not passing judgment on Erick’s apparent conclusions either way. I know that for me to have written this column, I would have to know more than is revealed by the column. That does not mean that Erick doesn’t possess more information or at least the reasoning behind the conclusion.

  • spiff

    I had not heard of Eric Odom, the ALA, or Liberty First PAC until I read this article – surprising how much free advertising and publicity one can get for $2300.00.
    Spiff

  • cringinghere

    Also, it is pretty standard practice of people that do all sorts of efforts to have many different entities registered to their names. I am not necessarily alarmed that Odom has a bunch of different companies or projects registered to him.

  • ihateliberals

    give money for a cause anymore without running the risk of being scammed. I hve quit giving to the RNC because that is what they have turned into. A great big Scam as long as Steele is the president. he makes them be a non-credible group. if they were credible they would get rid of him and put Palin in there. that would boost the RNC and stop the bleeding of funds to rogue Tea party groups,

  • http://thesandsinstitute.org Vassar Bushmills

    VB

  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://www.examiner.com/x-1597-Charlotte-Law--Politics-Examiner Mike gamecock DeVine
  • http://stixblog.com Black River Wolf
  • winkmv1

    Erik, thanks for posting. The activities of Mr. Odom have troubled me for some time. It does in fact matter whether someone, or some organization, purporting to represent a movement is behaving in ways that reflect negatively on the community at large.

    The Tea Party movement has been constantly attacked as “astro-turfing” … and Odom’s activities reinforce that claim. The media does not care whether he is actually representative of the movement, they will claim it so.

    Moreover, it matters because if in fact the mid-terms are a success, guns-for-hire like Odom will be able to claim credit and potentially use their phony success to land positions of power in Washington D.C..

    I’m not saying the movement should go on a witch hunt, but we should clearly avoid being associated with individuals who have shown a pattern of corrupt and dishonest behavior. If they behave this way outside the beltway, god help us once they have access to the inner corridors of power.

  • beezling

    Actually they incorporated in Nevada

    Full name of corp = AMERICAN LIBERTY ALLIANCE – A NON-PROFIT CORP

    How can you incorporate and call yourself a non-profit? Doesn’t the former precede the latter? As in, don’t you have to incorporate BEFORE you apply for non-profit status?

    http://nvsos.gov/sosentitysearch/CorpDetails.aspx?lx8nvq=06Qt2B%252feZBIDpymIdOPK0Q%253d%253d&nt7=0