BUYING SCOTUS — Martin Sheil’s Guest Op-Ed on the Investigation into Leonard Leo

The rightwing extremist lawyer and Federalist Society co-chair — who built a network of dark money ops aimed at gutting democracy — is under investigation, according to Politico. Marty weighs in

I’m interrupting my Shadenfreude caused by mugshots coming out of Fulton County of dipsomaniacs in bad lighting to ensure today’s Politico report on rightwing judicial operative Leonard Leo isn’t overlooked. Politico is reporting that Leo and his network of nonprofits are currently under investigation by the Attorney General of the District of Columbia Brian Schwalb.

According to the Politico report:

The scope of the investigation is unclear. But it comes after POLITICO reported in March that one of Leo’s nonprofits — registered as a charity — paid his for-profit company tens of millions of dollars in the two years since he joined the company. A few weeks later, a progressive watchdog group filed a complaint with the D.C. attorney general and the IRS requesting a probe into what services were provided and whether Leo was in violation of laws against using charities for personal enrichment.

Best known as Donald Trump’s White House “court whisperer,” Leo played a behind-the-scenes role in the nominations of all three of the former president’s Supreme Court justices and promoted them through his multi-billion-dollar network of nonprofits. Trump chose his three Supreme Court picks, Neil Gorsuch, Brett Kavanaugh and Amy Coney Barrett, from a list drawn up by Leo. More recently, Leo was the beneficiary of a $1.6 billion contribution, believed to be the biggest political donation in U.S. history.

In a guest op-ed exclusive to Bette Dangerous, retired IRS criminal investigator Martin Sheil writes:

Leonard Leo is the SCOTUS whisperer largely responsible for the last three appointments to the Supreme Court, who were in turn largely responsible for the infamous Dodd decision that reversed Roe v. Wade and took away women's constitutional right for the last fifty years to reproductive freedom.

Politico reported Wednesday that the District of Columbia AG has opened up a criminal investigation of Mr. Leo with regard to allegations of so-called self-dealing via nonprofit organizations he controlled to the tune of $73M over the course of a six-year period.

It is believed this investigation was initiated from a referral made in April of this year by a nonprofit watchdog called Campaign for Accountability (CFA) whose Executive Director is Michelle Kuppersmith.

The wannabe rich guy Leo controls a host of for-profit and nonprofit organizations that transferred millions of dollars between entities that allegedly were ultimately disposed of by Mr. Leo.

Among the allegations are monies derived from tax exempt nonprofits that ultimately were used by Leo to procure two separate mansions in the great state of Maine. Leo has a reputation for dressing in expensive suits and a taste for fine wine. 

Leo has been in the news lately as closely affiliated with Justices Clarence Thomas and Alito, as the person who networked/arranged vacations for those justices with elite corporate benefactors that resulted in undisclosed gifts including yacht trips, corporate jet use, and campfires around campgrounds in the Adirondacks and Alaskan fishing trips.

Michelle Kuppersmith wrote a report that she referred to the DC AG as well as IRS documenting millions of dollars that Leo allegedly manipulated from nonprofits through for-profit entities and ultimately to Leo's control. Such self dealing from nonprofits is expressly prohibited by IRS regulations for tax exempt organizations and can ultimately result in the revocation of exempt status for such organizations where inurement occurs.

Mr. Leo is associated with many nonprofits — the best known of which is The Federalist Society that notably promotes the anti-regulation/anti-tax philosophy that taxation is "theft."

It is unknown at this time whether Mr. Leo reported the alleged $73M of inurement funds but it is known that embezzled funds are taxable funds, and therefore should have been reported on the appropriate year 1040 by Mr. Leo.

If Mr. Leo, as director of multiple nonprofits from which it is alleged he inappropriately skimmed funds, did not report such payments on the individual nonprofit tax returns then he could be open to Federal tax violations of making false statements on those returns should the IRS and US Attorney's office recommend charges. 

Currently, the DC AG's office is investigating and it is unknown what investigating agency is supporting the probe. It is also unknown what charges they may be investigating since IRS tax charges and false statements are Federal charges that do not come under the jurisdiction of the DC AG. That could still happen

Leo is going to need a good lawyer.—MS

I wouldn’t recommend Giuliani, Powell, Eastman, Clark, or Chesebro, who are currently being rickrolled throughout the Western hemisphere.

It’s worth noting among Leo’s patrons are the anti-democracy villains Koch and Mercers, and WaPo noted “few people outside government have more influence over judicial appointments than Leo.”

It’s also worth noting Leo’s nonprofit Judicial Crisis Network spent $7 million blocking the appointment of Merrick Garland, and his tentacles were also felt during the Bush administration, where he worked on such judicial confirmations as SCOTUS blights Roberts and Alito. The Knight of Malta also helped Ginni Thomas — who joins him at the Council for National Policy — get an $80,000 payday from KellyAnne Conway, through each of their respective polling companies.

I will now return to my Shadenfreude, courtesy of Fulton County and the hard work of dedicated public servant Fani Willis.

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