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Corporate Money In, No Money Out: What's Going On At Rep. Buyer-Linked Foundation?


Rep. Steve Buyer (R-IN)

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A foundation closely linked to Rep. Steve Buyer (R-IN) has collected over $800,000 in donations, much of it from industry sources with stakes in legislation moving through Buyer's committees, but has given out just $10,500 in six years and spent a whopping $258,136 in operating expenses, the Lafayette Journal & Courier reported Sunday.

Buyer's daughter is the president of the Frontier Foundation, which was set up purportedly to give scholarships to Indiana students, Buyer himself was described as "honorary chairman" in a 2004 solicitation letter, and the organization in June listed Buyer's district office as its office.

Despite all of that, Buyer's office told the newspaper, "It's not Congressman Buyer's foundation," and declined an interview request.

The Journal & Courier reports:




Frontier Foundation's donations over the years have come primarily from organizations with stakes in legislation moving through committees on which Buyer sits.

Those include the pharmaceutical, health insurance and tobacco industries -- which have a stake in bills that go through the House Subcommittee on Health -- and the telecommunications industry. Bills affecting the latter go through the House Subcommittee on Communications, Telecommunications and the Internet.

Attempts to reach Buyer for comment were unsuccessful. His press secretary referred questions to Frontier Foundation and said there was no connection between Buyer and the foundation.

...

During six years of operation, the organization has had $258,136 in operating expenses. Those included $83,150 in fundraising expenses, $48,264 for travel, and $4,499 for meals.

Gifts and awards accounted for 3.9 percent of the foundation's expense total. Mattix was paid more each year to run the foundation -- $12,000 in 2004, rising to $17,275 in 2007 and 2008 -- than the foundation gave out in six years of operation.

Nice work, if you can get it.

Among the industry donors to the foundation are: Eli Lilly & Co, PhRMA, National Association of Broadcasters. And among the very few recipients of the foundation's largess is: the NRA Foundation.

The foundation says it is waiting to hit the $1 million mark before it starts handing out scholarships. But that will be tough to do, given the high operating costs. Up until now, the foundation has apparently been merely a perpetual recipient and solicitor of donations from corporate interests.

We'll be digging more on this today, and we'll let you know what we find out.

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22 comments

Recommend Recommend (11)

October 12, 2009 10:25 AM   

Stay on this story...I smell a RAT!

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October 12, 2009 10:28 AM   

And we wonder why they are so desperate to stay in Congress! It is a constant campaign season to live high off the hog! This guy is a veteran who votes for corporate interests before Veterans. Remember the $2 billion shortfall? That was laid at Nicholson's and Buyer's feet.

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jrw

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October 12, 2009 11:05 AM   

I assume this so-called foundation must register with the IRS and follow the attendant rules. Aren't there ratios that must be maintained between money raised, expenses, dontations, etc.?

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October 12, 2009 11:16 AM   

There are at least two other family values cretins who had scams like this; Tom DeLay & wife, and Rick Santorum had charity scams hiring campaign workers and sitting on bundles of money not sent to charity.

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October 12, 2009 11:52 AM    in reply to JohnW1141

Bet there are even more, just better hidden. Saw a "hit" from the insurance industry on Baucus's (non) plan this A.M. over at HP. One reader's comment : Baucus and the industry are playing "Good Cop, Bad Cop." Hmmm...He's got a point!

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October 13, 2009 12:04 AM    in reply to JohnW1141

Lets not forget the Doolittles, either.

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October 12, 2009 11:59 AM   

Is this a PAC? A charity? What kind of legal organization is this?

It boggles the mind that more operations like this aren't legally required to open their books.

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October 12, 2009 12:09 PM   

Ain't my Congressman a peach, there is virtually no chance of defeating this scum.

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October 12, 2009 12:45 PM   

Kudos to the J-C for looking into this and breaking the story. Not exactly a liberal paper....

This small story ought to be all over the op-ed page of the WaPo, instead of the shills getting a space. Here is a nice microcosm of how money affects politics and how politicians parlay their position into capital. Pols like Buyer will always support TeaBagger anger so that there won't be any scrutiny on their practice of screwing their constituents.

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October 12, 2009 1:23 PM   

The stench emanating from the Congress of the United States grows worse with every passing day. The culture of corruption is overwhelming. The contribution of this corruption to our national decline is very apparent.

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October 12, 2009 1:31 PM   

Cozy arrangement Buyer has with his staff. The firm that signs off on the Frontier Foundation 990s, Strategic Financial Group, is owned by Douglas E. Radersdorf, CPA. Radersdorf is also Buyer's long time campaign treasurer.

Radersdorf apparently is also CEO of Bio Town Ag, Inc., a $12 million animal production firm in Indiana. I can't tell if Bio Town Ag has business that would come before Buyer in DC.

The Frontier Foundation's one paid employee, Stephanie Mattix, is Buyer's campaign finance director. I glanced through FEC campaign reports and Mattix isn't making very much money. This lends credence to the claim that one of the the foundation's purposes is to supplement Mattix's income.

Mattix is also treasurer of Buyer's leadership PAC, the Storm Chasers PAC. Mattix draws a small salary from the PAC as a "fundraiser consultant" which provides additonal support for the claim that the foundation is a vehicle to pay Mattix's salary and expenses.

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October 12, 2009 2:13 PM    in reply to Mrs Panstreppon

Check out the new Frontier Foundation president, Brenda Olthoff. Besides being an inveterate runner, she protested about ballots in Palm Beach in December 2000. Sounds like a possible GOP operative to me.

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October 12, 2009 2:48 PM    in reply to Mrs Panstreppon

HAT TIP to you, Mrs. Panstreppon! I always look for your comments as they are filled w valuable information! I hope Rachel Maddow picks up this story. I'd love to see this guy exposed.

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October 12, 2009 3:37 PM    in reply to verite

Thx, verite. I did a little more digging on the elusive Brenda Olthoff who now has her Tweets under protection. She follows a number of big name wingnuts like Rove and Beck on Twitter and some pollsters like Rasmussen. Looks more and more like she is a GOP operative.

What's strange is that there is so little other info about her online. As I mentioned, she seems to be a big runner so her name shows on a lot of race results. On the other hand, she's not on Facebook.

According to one people search site, Olthoffer is associated with a Bryan Vis and Brad Vis who also have Twitter accounts. They both have Facebook accounts, too. If I had to guess, I'd guess Brenda is hooked up with Brad Vis.

If anyone has any info on Olthoff's political activities, I'd be interested in hearing from you.

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October 12, 2009 6:47 PM    in reply to Mrs Panstreppon

She must have associated w Rep Buyer for a while because she was reimbursed for airfare to DC by his Storm Chasers PAC on 10/26/2006 according to:
http://marketplace.publicradio.org/features/pac/transactions.php?pol_id=231&txnc_group_code_2=OTHER_TRAVEL

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October 12, 2009 10:05 PM    in reply to verite

I checked the original FEC image for that expenditure and the address listed for Brenda Olthoff is:

4201 Cathedral Ave. 507 West
Washington DC 20016

The address appears to be residential apartment buildings.

Funny. All of the races list Olthoff as from Chicago. Maybe I'm looking at the wrong Brenda Olthoff.

People Search has a Brenda Olthoff at several Chicago IL, Indiana and Arlington VA addresses.

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October 12, 2009 10:20 PM    in reply to Mrs Panstreppon

There was a Brenda L. Olthoff in the Illinois State Employees Retirement system.

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October 14, 2009 11:00 AM    in reply to Mrs Panstreppon

Douglas E. Raderstorf, not Radersdorf, is the treasurer of Buyer's campaign committee and owns the firm that prepares the foundaton's 990s.

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October 12, 2009 1:45 PM   

Glad to hear you'll continue digging. I would love to hear his explanation.

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October 12, 2009 10:06 PM   

Excerpt from a June USA Today story http://www.sunlightfoundation.com/presscenter/articles/2009/06/07/lobbyists-unlimited-honoring-lawmakers/ on these types of foundations:

Amgen also donated to the Frontier Foundation in honor of Rep. Steve Buyer, R-Ind., who is on the House panel that regulates the drug industry.
The foundation, which provides college scholarships and once was headed by Buyer's daughter, received $385,000 in donations from pharmaceutical companies from 2005 through 2007, according to its IRS filings.
Buyer, who has worked on health policy in Congress for years, helped kill a provision in 2007 opposed by drug companies and broadcasters that would have imposed a three-year ban on advertising new drugs, congressional records show. Consumer advocates, including the Consumers Union, pushed the measure, arguing that aggressive drug pitches unduly sway patients to seek treatment from drugs before their safety records have been established.
During debate by a Commerce subcommittee, Buyer co-sponsored an amendment that stripped the advertising ban from a larger bill overhauling the Food and Drug Administration.
In an interview, Buyer said "there is no connection" between his legislative actions and donations to the foundation. "I'm not an officer. I'm not a board director," he said of his role in the non-profit. "Do I help the foundation? Yes, I do. Do I help other charity groups? Yes, I do."
He referred other questions to foundation officials.
The charity's IRS filing covering the year 2007, the most recent available, listed Buyer's daughter, Colleen, as its unpaid president. Stephanie Mattix, listed as the group's paid secretary/treasurer, is executive director of Buyer's political action committee, Storm Chasers, according to Federal Election Commission filings.
Mattix and Buyer told USA TODAY that Colleen Buyer had left the group and referred questions to its president, Brenda Olthoff. Olthoff did not respond to e-mails and calls. Colleen Buyer did not return telephone calls.
The National Association of Broadcasters contributed $25,000 in honor of Buyer to the foundation last year. Amgen donated $15,000.
"I don't think there is a link between a specific vote on drug legislation and contributing to kids going to college in Indiana," says Dennis Wharton, the broadcasters' executive vice president. "We look at where we think it's a worthy cause."
Davenport, Amgen's spokeswoman, says the gift matched the company's "philanthropic mission to improve education."

Indy.com ran an article using the USA Today story as a source and adding more details still here: http://www.indy.com/posts/ethics-end-run ironically payments to these phony foundations (phon-dations?) are called 'honors.'

I'm interested in where the "operating expenses" go. How much is rent and who/what else is housed at the same addresses.

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October 12, 2009 10:40 PM    in reply to Cy Guy

According to the 2008 Frontier Foundation released after the USA Today article, Collette Buyer was still president of the foundation on 12/31/2008.

Occupancy expenses were only $2500. The other operating expenses consist mostly of travel and other expenses incurred in connection with fundraising.

Hard to justify spending $63,000 to raise $100,000 from the same damned corporate interests that contributed for the last five years.

Calling the Frontier Foundation a charity is out and out fraud.

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October 13, 2009 6:26 AM   

It's even worse. According to the 2009 filing with the Indiana Secretary of State Buyer's daughter, Colleen Buyer, and his son, Ryan Buyer, are listed as directors of the Frontier Foundation. Ryan Buyer's address is listed as the same as Steve Buyer's.

The donors to the Frontier Foundation are a subset of those who also give to his Storm Chasers PAC. Clearly the travel expenses and the salary of Mattix are political expenses masked as charitable expenses.

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