U.S. Family Network - DeLay's Financial Connections

DeLay's Financial Connections

The Dubya Report reported April 20, 2005 (updated December 29, 2005), that in 1998, the Democratic Congressional Campaign Committee "filed a Racketeer Influenced Corrupt Organizations (RICO) lawsuit against DeLay and his fundraising operations. DeLay's operation had begun in 1994 when Newt Gingrich slashed DeLay's budget as House Whip. DeLay responded by setting up an organization of his own that would extend his power by contributing to the political campaigns of his colleagues. He hired tobacco lobbyist and anti-union activist Karl Gallant, and induced Enron's Ken Lay to contribute $500,000 to ARMPAC. Enron also came up with a $750,000 consulting contract for Gallant and DeLay chief of staff Ed Buckham. Buckham would later set up his own lobbying firm, the Alexander Strategy Group, which boasted DeLay's wife Christine, a retired schoolteacher, on its staff at a $40,000 a year salary.

"Also named in the RICO suit was Robert G. Mills. Prior to running DeLay's 1996 campaign, Mills worked for the Council for Government Reform, from which he reportedly stole $35,000. Before that he had worked for United Conservatives of America, which was investigated by the Federal Election Commission who believed that UCA's huge debts were being used to hide illegal corporate donations. In 1998 Mills represented an organization called the US Family Network, registered as a 501(c)(4) 'social welfare' organization focused on Christian conservatives. Also on the staff of US Family Network was Ed Buckham's wife, at a salary of $59,000 a year.

"By 1999 Mills had left US Family Network, but Buckham, an ordained minister remained. The Network made headlines as the recipient of the largest single donation the National Republican Congressional Caucus ever made, $500,000. The check was cut by Virginia Congressman and DeLay crony Tom Davis, NRCC chair, but was never approved by the executive committee. The RICO suit alleged that US Family Network existed to hide the source and control of donated funds. The Washington journal Roll Call speculated that the group also existed to make statements and take actions on behalf of (or in opposition to) candidates that the NRCC would be embarrassed to do directly.

"The other 'associated organizations' named in the RICO suit were: the Republican Majority Issues Committee (RMIC), which, like US Family Network, was designed to provide (possibly) legal money laundering for political contributions, and Americans for Economic Reform. The suit alleged that DeLay and his cohorts were 'extorting' money from people with a stake in federal legislation."

Robert Dreyfuss wrote in the February 4, 2000, Texas Observer that in Fall 1999, according to Roll Call, the NRCC gave the Network the $500,000 to "turn out conservative Christian voters on election day."

Additionally, on April 28, 2000, the Texas Observer reported that the "editors at Roll Call hired a tax accountant and consulted industry and academic authorities. Yet no one could figure why a 'grassroots lobbying' political action committee linked to Tom DeLay has raised $1.3 million from only five donors – then spent the money to buy a D.C. townhouse and a truck (registered at Buckham's home), and to lease a skybox at the Redskins stadium for fifteen years.

"Roll Call describe U.S. Family Network as one of a 'web of interlocking groups revolving around DeLay and Ed Buckham, his former chief of staff and top political advisor.'"

The firm Liberty Consulting, owned by Tony Rudy's wife Lisa, was paid $15,600 by the U.S. Family Network in 1999 and $10,400 in 2000.