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With Roger Sollenberger, Political Reporter

Pay Dirt is a weekly foray into the pigpen of political funding. Subscribehere to get it in your inbox every Thursday.

 

The Big Dig this week… How Herschel Walker’s Wife Tried (and Failed) to Turn His Campaign Into a Personal Payday.

As college football legend Herschel Walker prepared to step into the Georgia Senate race in 2021, people close to him tried to talk him out of it—including his own wife. 

 

But according to five former campaign officials and advisers, Walker’s wife, Julie Blanchard, quickly became his Senate bid’s most vocal champion, only changing her tune after she saw an opportunity to turn a tidy personal profit from official campaign business.

 

This could have posed serious legal concerns. But Blanchard’s gambit never came to fruition—largely because the campaign kept shooting it down.

Basic Instincts

 

Blanchard’s plan, according to these campaign sources, was to collect a commission from the campaign’s media buys. Essentially, these sources said, Blanchard believed she could strike an agreement with a media company that employed a friend of hers—and then collect a percentage of the profit through a private agreement.

 

“It was clear from that point that Julie was going to be in charge,” one former adviser told The Daily Beast, echoing staff observations in numerous news reports. “The dangerous thing is she had no idea about what the fuck she was doing. She’s also got the worst political instincts of anyone I’ve ever met, and that’s a dangerous combination. It was clear she was just motivated by, ‘How can I control it? What are the ways I can make money?’”

 

However, Blanchard never struck an agreement with the media company, and after months of twisting on the vine, the idea eventually died.

 

Credit Cardi B

 

Blanchard—who dated Walker for more than a decade before marrying him in March 2021, about five months before he announced his candidacy—was a powerful and ubiquitous campaign figure from the start. But her inexperienced advice more often than not made things more difficult for the campaign. The Daily Beast previously reported that campaign staff expressed immense frustration with her throughout the race, a theme echoed in postmortems from several outlets.

 

“Julie wanted Cardi B on the campaign trail,” a staffer previously told The Daily Beast, referring to the liberal hip-hop star from the Bronx. “The person who sings ‘Wet Ass Pussy,’ and you want to bring her on the campaign trail to appeal to conservatives, just because she tweeted that we’re in a recession?”

 

Short Circuit

 

But at the start, Blanchard first had to allay her concerns that a Senate campaign would damage Walker’s earning potential, according to two people with direct knowledge of those early discussions.

 

One of the chief concerns, all of these sources said, was the inevitable hit to Walker’s public speaking engagements and endorsement deals, which had provided the couple with a steady stream of income for years.

 

“There were a few concerns about that,” another official said, referencing the speeches. “First, the campaign had no ability to control what he said and there was a chance his remarks would be recorded. Second, there were scheduling challenges with a Senate campaign. Finally, it couldn’t be risked that he appear to use paid speeches to advance a campaign.”

 

The couple, however, mostly disregarded this advice, according to three campaign sources.

 

Walker’s financial disclosures showed that his speaking gigs continued through summer 2022, though the regularity waned a bit. In the months before announcing his candidacy in Aug. 2021, Walker reported nine payments for paid speaking appearances, totaling $236,000. In the same approximate time frame for 2022, he reported seven gigs, for $221,000.

 

Money Talks

 

Blanchard additionally had more general fears about Walker jumping into the race, four of the people said, most specifically that certain skeletons in Walker’s closet would come out.

 

“She was absolutely adamant that he not run in the first place,” a former Walker adviser told The Daily Beast. “Adamant.”

 

But two sources with direct knowledge of discussions in the campaign’s formative days said that once Blanchard understood the amount of money the campaign would raise, she changed her mind.

 

“In a meeting one day, she suddenly made clear to us that she thought she would be able to get points off of the media buys,” one source said, claiming that Blanchard had planned to funnel kickbacks to one of her companies. “If this was going to be a $100 million operation, then in her mind she deserved to get some of that money.”

 

Iconoclast

 

Four of the sources said Blanchard made repeated attempts to direct campaign contracts to ICON International, who employed a friend she knew from her days selling billboard ads at CBS Outdoor more than a decade ago. But while that friend—Andy Campbell—had media experience, neither he nor his company had experience in the political sphere, according to the four people.

 

“We kept telling her that it just didn’t make any sense to hire them for this,” a former top adviser told The Daily Beast.

 

The campaign never contracted with Campbell or ICON, opting instead for trusted political firms, as reflected in the campaign’s filings with the Federal Election Commission. However, on Dec. 18, 2022—12 days after Walker conceded his run-off defeat to Democratic opponent Raphael Warnock—Campbell received a $5,500 payment for “advertising” during the run-off.

 

Chicken Soup for The Soul

 

Walker and Blanchard didn’t respond to repeated requests for comment.

 

Reached for comment, Campbell told The Daily Beast that he was “totally unaware” of Blanchard’s alleged plan. He added that it seemed “implausible” that Blanchard, with her own media background, would think she could take a commission from an international company like ICON. He also emphasized that ICON never conducted any business with the campaign.

 

But Campbell did acknowledge performing an independent review of campaign media strategy on Blanchard’s behalf. That review, he said, took place in the weeks before November’s general election—not, as the campaign’s expense report says, during the run-off.

 

“We have been best of friends for years. Julie asked me to check their buys to see my opinion on the quality of their work as a media professional,” Campbell told The Daily Beast, emphasizing that he never bought media for the campaign. “They were using outdated Nielsen books, and I told Julie they should use accurate ratings books.”

 

Legal Ease

 

Campaign finance expert Brendan Fischer, deputy executive director of watchdog group Documented, told The Daily Beast that kickbacks to a candidate’s spouse could violate the ban on personal use of campaign funds, and might also constitute a reporting violation.

 

“Campaign funds cannot be used for anybody’s personal benefit,” Fischer said. “Candidates must tread cautiously when hiring family members or friends. Any payments to family members must be for fair market value.”

 

Either way, despite Blanchard’s wishes, the plan didn’t work, and therefore, there never was any kickback.

 

Read the full story here.

 

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From Roger’s Notebook...

LaRose by any other name. Ohio GOP Secretary of State Frank LaRose has been covertly entertaining a 2024 challenge to incumbent Sen. Sherrod Brown (D-OH)—possibly triggering campaign finance regulations, according to his own statements.

 

Over the last month, LaRose, a two-term Secretary of State who first took office in 2018, has not only teased a run, he’s repeatedly admitted that he’s actively raising money—including into a super PAC.

 

Asked about the prospect of a Senate run in a March 8 interview with Columbus news radio WTVN, LaRose replied that he was “really working towards” a bid, “building a team,” and, most notably, “trying to raise some money into a super PAC.”

 

In the same interview, LaRose added that he had recently been asking allies for “some commitments for financial support for this.”

 

He also alluded to a run in a March 29 interview with WFMJ radio in Youngstown. “I’m thinking about it,” he said. “I’m actively building a team and looking at it. And, uh, again, hopefully, can make an announcement later this year.” Earlier this week he repeated the fundraising claim in an interview with WTAM, claiming, “I’ve been building a team and starting to raise a little bit of money to see if, you know, I’m going to be able to do it.”

 

Federal election law forbids candidates from coordinating with super PACs for fundraising and expenditures. Those laws also require anyone running for federal office to register with the FEC and file financial reports when they either raise or spend more than $5,000.

 

Brendan Fischer, of Documented, explained the rules, telling The Daily Beast that anyone exploring a potential candidacy is free to do so without registering with the FEC—with some caveats.

 

“Any funds raised during that ‘testing the waters’ period must comply with candidate contribution limits and prohibitions,” Fischer said. “If the person does later become a candidate, all funds raised and spent during the exploratory period must be disclosed on the first report filed with the FEC.”

 

If LaRose has in fact been raising money for more than a month, and traveling the state discussing his run without registering, it seems possible that he would have hit that threshold.

 

“Once a candidate decides to run, they have 15 days to file a statement of candidacy with the FEC, and a number of other restrictions kick in—most notably, the restriction on raising or spending ‘soft money,’” Fischer continued. Basically, he explained, once a person becomes a candidate, they can’t solicit major super PAC funds.

 

“LaRose saying he is ‘really working towards’ a bid and ‘building a team and starting to raise a little bit of money to see if, you know, I’m going to be able to do it’ sounds like he is at least testing the waters,” Fischer said.

 

LaRose hasn’t declared his candidacy or registered a campaign committee. There’s also no immediately recognizable super PAC aligned with him, though a single-candidate super PAC called “Defend Ohio Values” recently registered with the FEC.

 

In the March 29 interview, LaRose called the two GOP contenders already in the ring “nice guys.” He then added, “I don’t think either of them have the stuff to take on Sherrod, which is really what the objective is for my party is to replace this guy that I don't think shares Ohio's values.”

 

What’s the clearance, Clarence? On Thursday, nonprofit investigative news organization ProPublica published a blockbuster story, revealing that Supreme Court arch-conservative Clarence Thomas failed to report decades of all-expenses paid vacations footed by Texas billionaire Harlan Crow.

 

“For more than two decades, Thomas has accepted luxury trips virtually every year from the Dallas businessman without disclosing them, documents and interviews show,” the report said. “A public servant who has a salary of $285,000, he has vacationed on Crow’s superyacht around the globe. He flies on Crow’s Bombardier Global 5000 jet. He has gone with Crow to the Bohemian Grove, the exclusive California all-male retreat, and to Crow’s sprawling ranch in East Texas. And Thomas typically spends about a week every summer at Crow’s private resort in the Adirondacks.”

 

According to ProPublica, the “extent and frequency of Crow’s apparent gifts to Thomas have no known precedent in the modern history of the U.S. Supreme Court.” But Thomas never reported the trips as financial disclosure rules require.

 

“His failure to report the flights appears to violate a law passed after Watergate that requires justices, judges, members of Congress and federal officials to disclose most gifts, two ethics law experts said,” the report read. “He also should have disclosed his trips on the yacht, these experts said.”

 

Read it here.

 

KiloGraham. As Sen. Lindsey Graham (R-SC) faces mounting legal pressure from an Atlanta grand jury investigation into 2020 election interference, he is drawing donations into his official legal fund—including from a group that he founded.

 

A recent FEC filing from Graham’s Fund for America’s Future shows a $1,000 contribution to the Lindsey Graham Legal Expense Trust Fund. 

 

As Pay Dirt previously reported, Graham reported a stunning $270,000 in legal fees last quarter, in connection with his subpoena battle and subsequent testimony in front of the Fulton County special grand jury. His Republican colleagues have covered at least $60,000 of those costs via contributions to his legal fund, Pay Dirt reported—“$10,000 donations from leadership PACs belonging to Johns Booozman (AR), Hoeven (ND), and Barrasso(WY); $5,000 each from North Dakota’s Kevin Cramer and Iowa’s Chuck Grassley; and two more $10,000 gifts from the Potato State’s Mike Crapo and former Sen. Richard Shelby of Arkansas.”

 

Asa Spades. Former Arkansas GOP Gov. Asa Hutchinson filed the official paperwork declaring his 2024 presidential candidacy on Thursday. Hutchinson joins another erstwhile conservative governor, Nikki Haley, in the official field, though both are considered longshots. Current Florida Gov. Ron DeSantis, who hasn’t officially announced his bid, is widely seen as the frontrunner in the upcoming battle against the de facto party leader, the recently indicted Donald Trump. DeSantis has been on what’s widely seen as an unofficial campaign tour, but The Daily Beast reported that a number of false steps have led observers to hedge their bets on a candidate whom they say doesn’t seem fit for primetime.

 

Spamalot. Anti-vaxx crusader kook Robert F. Kennedy Jr. has also entered the 2024 fray, as a Democrat taking on Joe Biden and longshot Marianne Williamson. RFKJ first filed his official statement of candidacy on Wednesday, then filed again on Thursday. The first statement listed what appears to be RFKJ’s actual home address. He changed that to a mail center the next day.

 

More From The Beast’s Politics Desk

Matt Gaetz

The news of the week, of course, is Trump’s historic indictment in Manhattan. I broke down the charges and the case against him—it’s a weighty piece, and you can read it here.

 

If you don’t think Trump is the de facto GOP leader, Sam Brodey’s got news for you—Republicans are leaping at the chance to defend him. Read it for yourself.

 

For some counterprogramming, Jake LaHut published an exclusive on a recent DeSantis troll from Florida Democrats, who identified 17 instances in his recent book that could potentially violate his own controversial laws against  “divisive concepts” in educational curricula. Check it out right here.

 

Pay Dirt is on vacation next week, but will be back the week after.  Have a tip? Send us a note and subscribe here.

 
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