Thread by @HeidiReports

NEW👉: Leonard Leo, Trump’s Supreme Court “whisperer,” & his nonprofit network are under investigation by the D.C. Attorney General.

Also just in: weeks ago, a pillar of his empire moved to Texas from the Capitol area (home for nearly 20 years).



THREAD:politico.com/news/2023/08/2…

The probe follows @politico's reporting that the tax-exempt "charitable" group paid his for-profit tens of millions over 2 years, with little indication of what services were rendered.

The nonprofit had been using a UPS drop box in DC's Georgetown as its mailing address.

Paperwork filed in Texas lists the address of another UPS store, this one in a strip mall next to the “Snooty Pig Cafe” Paperwork filed in Virginia lists yet a different address: a virtual office suite in Forth Worth shared by a “Two Men and a Truck” franchise.

Citing our previous report, a progressive watchdog group had called on the IRS and D.C. AG to investigate whether the groups may be violating their tax-exempt status by “siphoning” assets or income for personal use.

politico.com/news/2023/03/0…

David Rivkin, an attorney representing the parties, issued a statement: "The complaint ... is sloppy, deceptive and legally flawed and we are addressing this fully with the DC Attorney General's office."

(Also mentions a firm called Arabella, which I'll get to below.)

The scope of the investigation is unclear, and the AG’s office declined to confirm or deny its existence. The IRS also declined to comment on whether it may be investigating.

It’s also not the only major conservative nonprofit moving to Texas.

The National Rifle Association, contesting multiple lawsuits from attorneys general in New York state and Washington D.C. alleging violations of nonprofit law, announced in early 2021 that it would relocate to Texas.

An important note:

Leo has long likened his business practices to that of Arabella Advisors.

There are important distinctions between Arabella and Leo’s network.

Arabella provides fee-based administrative, HR and accounting services to largely philanthropic nonprofits

which are independently run. Leo’s nonprofit network is managed by a small circle of allies, a number of whom are also on the receiving end of payments, while the services rendered have been opaque.

Shortly after I recently contacted Leo reps re more reporting I was researching,

an aligned conservative nonprofit filed a complaint with the IRS against Arabella, founded by a former Clinton appointee, raising questions similar to my reporting on Leo's network.

END