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Conservative Fundraising Firm Takes Hefty Cut From Other Candidate's Haul

During the first quarter of 2008, BMW Direct, a conservative political firm in Washington, helped raise more than $500,000 for an obscure Republican longshot running for Congress in Georgia.

But in a replay of the firm's modus operandi in a Massachusetts race, as chronicled by the Boston Globe, most of the money raised by BMW Direct in the Georgia race has come from out-of-state contributors and been spent on supposed campaign-related services provide by the firm and its affiliates.

A half a million dollars in a single quarter is a substantial haul for even well-financed, high-profile candidates, let alone someone like Deborah Travis Honeycutt, who ran for the seat in 2006 and lost by 38 points.

BMW Direct, which has a track record of raising a lot of campaign money and then directing most of it to affiliates or vendors, uses glossy direct-mail campaigns targeting conservatives across the country, urging them to chip in to help defeat liberal lawmakers and push hot-button right-wing issues.

Honeycutt lists BMW Direct's Washington office as her campaign address, and the firm's FEC compliance officer, Scott Mackenzie, is listed as her treasurer, according to her most recent FEC filing.

Honeycutt's campaign has brought in more than $1.7 million so far this election cycle. It has also spent more than $1.5 million.

For the most recent quarter, the campaign raised $620,016.72 in mostly small donations from across the country, according to her most recent FEC filing. And she spent $537,622.68 during the first quarter, most of which was to cover the costs of the direct mail campaign.

Only a small fraction of the money went to pay for a campaign on the ground. The total money spent in Georgia was $16,695. That covered expenses listed as political field work, public relations and media.

However, more than $314,000 went to BMW Direct and its affiliates who all work in the same downtown Washington office building. That's not including the other large payments to other Washington-area firms for direct mail-related expenses.

For example, Honeycutt's FEC report shows a payment to BMW Direct affiliate Century Data Systems Corp. for $7,430.85 for "data processing" on Feb. 4, 2008. The campaign cut a $23,569 check to the affiliate Legacy List Marketing for "list rentals" on Feb. 21, 2008. And a $19,544 check on March 7 for "direct mail fundraising" went to a company called Patriot Partners, which shares an office address with Legacy List Marketing.

This is the second time Honeycutt's run for the seat, and last time she also worked with BMW Direct. In the 2006 cycle, she raised $1.1 million from donors across the country. But most of the money went to BMW Direct and its affiliates and vendors. That campaign didn't get much attention and she lost to the incumbent, Rep. David Scott (D-GA) by a wide margin, 31 percent to Scott's 69 percent.

Now she's at it again. Honeycutt is outraising and outspending Scott by about four times. But the district is rated "Safe Democrat" by Congressional Quarterly.

We called the BMW Direct office this afternoon and a receptionist said there was no one available to take our call. We also put in a call down to Honeycutt's campaign in Georgia, but have not heard back from them.


11 Comments

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This certainly appears to be gaming the system to be the perennial candidate at the expense of outside donors. How does she afford her food, clothing and shelter: kickbacks from the vendors?

I realize that two instances does not a pattern make. But should a pattern develop here, there are similarities.

BMW seems to be very, very expensive yet only a factory for losers. Who are the winning candidates that BMW has worked for? Are there any?

If there are no winning candidates, why does anyone bother going to BMW? What sort of deal do they insist upon?

BMW seems to have a habit of signing up candidates who have no idea what's going on with their money. And the transactions keep going after the candidate is out. Why.

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I've seen this movie. It's called "The Producers."

I don't know much about money laudering, but this looks like money laundering to me (based on my knowledge of the Sopranos.) Are her "small donors" across the country real people? I'd be surprised if they're real people.

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What's the problem? The more the right wing fringe spends on hapless candidates running losing campaigns the less they'll have to spend attacking Obama.

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They state very clearly, right in their name, what they are about: getting a BMW for themselves as directly as possible.

You don't have to go to Broadway or the cinema for this plotline. Try the front page of the newspaper. This is plot of the entire US government since 2000. What are the Wars on Terra and Iraq but raising money for a hopeless candidate who knows it can't win, sending out press flummery to pretend there is a real candidate, and then distributing the money raised to cover "supposed campaign-related services provide(d) by the firm and its affiliates."

"This is plot of the entire US government since 2000."

Yep.

Crony capitalism, crony appointments, crony "justice," all covered by a crony press.

That rustling sound you here is the last dollars being taken out of the pockets of still-gullible Americans as their house is falling down around them.

I would be interested in seeing the mailers sent out by BMW Direct, and I wonder how inflammatory they are. In Massachusetts, the Democratic candidate they were running against was Barney Frank, and I can imagine mailers that described a check for Charles Morse (the Republican) as a chance to defeat the "homosexual agenda." In Georgia, Honeycutt is running in an Atlanta-area district represented by David Scott (who's actually a pretty business-friendly Democrat), but I wonder if the specter of former Rep. Cynthia McKinney is invoked in order to convince people to open up their wallets.

They are real nasty. In 2006 when she first ran one of the mailers I received had a picture of Jesse Jackson and Al Sharpton on the front of the envelope with a quote from her saying: "These Black liberals don't speak for me....It was an six-page document talking about the Black Caucus and how she would work against them and their organization. Yet she is running in a Democratic district with a large Black voting population. I didn't send her any money, didn't know how she got my name either.

The two prosecutable frauds I see being perpetuated here are either bank fraud or mail fraud.

Mail fraud in that BMW is soliciting donations for services that don't exist (ie - a candidate who has withdrawn from a race).

Bank fraud in that BMW retains control of a bank account (or bank accounts) and cash flows in the name of a candidate who has no control over what is happening in those accounts. If there's no candidate, there's no reason for the account in the first place.

They conned my 81 year old mother-in-law who lives in Southern California out of a $10.00 donation to the Honeycutt "campaign" in Georgia. Why an old lady who eschews turning on a light bulb to save a few pennies writes a check to a total stranger is beyond me. I'm forwarding your article, thanks.

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