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Despite Denials, Buyer Has Close Ties To Questionable Charity


Rep. Steve Buyer (R-IN)

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And the award for boldest denial in the face of evidence of financial mischief goes to ... Rep. Steve Buyer!

As we've been reporting, Buyer, Republican of Indiana, is closely affiliated with the Frontier Foundation, an organization that has taken in over $800,000 from industry groups who Buyer is in a position to help. Despite its stated mission, the foundation hasn't given out a single scholarship, but has spent $258,136 over six years on salary, meals, travel, and "fundraising expenses."

Nearly $400,000 in donations to the foundation came from the pharmaceutical industry, and Buyer has worked on health care issues for years, USA Today noted in June. Buyer sits on the House Energy Subcommittee on Health.

Lobbyists and company executives use donations to foundations associated with members of Congress to woo the lawmakers and gain valuable access at fundraisers and receptions. Campaign finance limits do not apply.

But Buyer's case is a little different. He and his office have repeatedly denied that the Frontier Foundation has any special connection to Buyer. The congressman told USA Today in June: "Do I help the foundation? Yes, I do. Do I help other charity groups? Yes, I do."

And his press secretary blew off an Indiana newspaper, refusing to comment for a lengthy story beyond saying: "It's not Congressman Buyer's foundation."

And yet, overwhelming evidence points to an extremely close relationship between Buyer -- specifically his campaign operation -- and the Frontier Foundation. Here's a rundown of the links:

  • The foundation shares an address and phone number with Buyer's campaign headquarters on North Main Street in Monticello, IN.

  • Buyer's daughter Colleen was the president of the foundation until August 1 of this year.

  • His son Ryan is a director of the foundation, according to filings with the Indiana Secretary of State.

  • Answering the phone number of the campaign office (and foundation) today, Stephanie Mattix, until recently the secretary-treasurer of the foundation, told TPMmuckraker that the foundation shares the office but works out of "a separate room."

  • The real estate company that owns the space says the lease is for Buyer, and adds that the foundation is not subleasing the space. Mattix told TPMmuckraker, though, that the foundation does pay rent.

  • While drawing an annual salary in the $12,000-$17,000 range from the foundation, Mattix also served as the executive director of Buyer's Storm Chasers PAC. She is currently the finance director of his campaign and the webmaster of the campaign Web site.

  • Buyer was listed as the "honorary chairman" of the foundation on a 2004 donor solicitation, sent from Buyer's office, the Lafayette Journal & Courier reported.

  • Companies have made donations to the Frontier Foundation "in honor of" Buyer.

  • Buyer has helped the foundation with its fundraisers.

So, perhaps the question we should be asking is not how Buyer's campaign is linked to the foundation, but whether there is any difference between the two at all.

Says Dave Levinthal of the Center of Responsive Politics: "The congressman's constituents should obviously be asking him a lot of questions about whether this is a legitimate operation, or if this is another way for supporters to curry favor with the congressman and for him to keep friends on a payroll."

Calls to Buyer's Washington office and to the foundation's new president were not immediately returned.

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11 comments

Recommend Recommend (9)

October 13, 2009 6:02 PM   

Those of us in this area that care to know have known for a long time that Buyer is shady, and this is completely unsurprising. However, he will never be knocked out of his seat, because there's too many people that don't care to know.

Buyer doesn't even get funds sent to the district...only to himself and his personal buddies.

Makes me sick.

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October 13, 2009 7:16 PM   

"And the award for boldest denial in the face of evidence of financial mischief goes to ... Rep. Steve Buyer!"

I don't know about that. This is all pretty damning evidence, but bricks of cash turning up in Rangel's freezer trumps this imo. Who keeps cash in the freezer if they're not trying to hide it? Seriously.

Not to mention...
http://tpmmuckraker.talkingpointsmemo.com/2009/10/as_ethics_probe_widens_a_look_at_rangels_misdeeds.php

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October 13, 2009 8:05 PM    in reply to ohyeathatsright

"...bricks of cash turning up in Rangel's freezer trumps this imo."

Enjoy conflating? The cold cash was in William Jefferson's freezer.

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October 13, 2009 8:48 PM    in reply to elsiegel

You're absolutely right. I stand corrected. And no, I don't enjoy it. It's sad that it happens so easily in politics today.

Thank you for the fact check.

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October 13, 2009 10:02 PM   

Maybe we shouldn't pick on poor Congressman Buyer. Not only did
contributions drop from $240k in 2007 to $100k in 2008, the foundation's investments lost $134k in value.

On the other hand, calling this organization a charity sounds like fraud, something the IRS and/or the FEC might be interested in.

On Schedule B of the 2009 990, the foundation lists six contributors whose contributions total $100,148 which is
the exact amount of total contribubtions listed in Part I, Line 1. However, Statement 7 lists substantial contributors not listed on Schedule B.

If any of the contributors listed on Statement 7 but not listed on Schedule B made contributions in 2008, those contributions have not been reported on Part 1, Line 1 as requirecd by law.

I'm not familiar with every aspect of tax reporting for foundations but characterizing fundraising expenses as expenses
related to charitiable activities in Part XI-A does not seem to satisfy the definition of charitable activites as described in the instructions to 990-PF.

The firm that prepares the foundation's 990s, Strategic Financial Group, is owned by Douglas E. Raderstorf,CPA, who is also Buyer's long-time campaign treasurer.

Brenda Olthoff, who succeeded Buyer's daughter as foundation president in August 2008, was reimbursed by Buyer's leadership PAC in October 2005 for airfare. Her address at the time was in Washington DC.

Olthoff has protected her Twitter account and current information about her is not readily available online. There is a photo of her protesting the Bush-Gore election results in 2000 in Palm Beach and she follows a number of well-known wingnuts including Karl Rove and Glenn Beck on Twitter.

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October 13, 2009 10:04 PM    in reply to Mrs Panstreppon

Correction: Brenda Olthoff became president in August 2009. not 2008.

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October 13, 2009 10:27 PM   

BooYour is insolated from the locals by a very strong rigging of districts that cleave toward the whacko side of politics. He's their guy! Not much would shame them. If BooYour is going to be tossed out, it will take an outside intervention, like the FBI and IRS to cart him off to jail.

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October 14, 2009 9:20 AM   

Do you guys notice the resemblance between Buyer and Randall Tobias, the former Lily exec who Bush picked for a slot in his administration (States Agency for International Development -- the policy, it turns out, was "no to condoms, yes to prostitutes")

Both are from Indiana.

Picture here: http://tinyurl.com/rtobias

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October 14, 2009 10:33 AM    in reply to numediaman

You're right! They do look alike.

Here's another coincidence. Tobias is the former CEO of Eli Lilly which donates to Buyer's foundation every year. I wonder if they've met.

Bit of trivia: After the Lilly Foundation made a generous endowment to the Indiana Historical Society, the society gave Randal Tobias a Living Legend award (which was awarded after the prostitution scandal came to light).

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October 14, 2009 1:46 PM   

In a huge puff piece with his hometown paper, the Monticello Herald Journal, Buyer has gone from "no connection" and no special relationship to the Frontier Foundation to deeply involved with its creation and decision making.
http://newsbug.info/articles/2009/10/14/monticello_herald_journal/local_news/doc4ad5403d554c9555273724.txt

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October 15, 2009 2:32 AM   

Is there really no website for the Freedom Foundation? That itself is really hinky. This is reminding me more and more of the Seinfeld where George makes up a charity, the "Human League".

http://en.wikipedia.org/wiki/The_Strike_(Seinfeld)

When George Costanza is your business model, you are off the rails.

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